REG - Aston Martin Lagonda - Trading Update and adjustment to FY 2024 guidance

Aston Martin Lagonda Global HoldingsAnnouncement

30/09/2024 07:00

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RNS Number : 1275G  Aston Martin Lagonda Glob.Hldgs PLC  30 September 2024

30 September 2024

 

Aston Martin Lagonda Global Holdings plc

("Aston Martin", or "AML", or the "Company"; or the "Group")

Trading Update and adjustment to Full Year 2024 guidance

 

 

This announcement contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation No. 596/2016 as it forms part
of UK law by virtue of the European Union (Withdrawal) Act 2018. The person
responsible for releasing this announcement on behalf of the Company is Liz
Miles, Company Secretary.

 

Aston Martin today announces a strategic realignment of its 2024 wholesale
volumes, making a circa 1,000 unit reduction to address disruption in its
supply chain and continued macroeconomic weakness in China. In addition, the
Company seeks to smooth the cadence of wholesale volumes over the coming
quarters to deliver on its demand-led approach and maximise production
efficiencies.

The Company is today providing updated guidance for Full Year 2024, with
adjusted EBITDA now expected to be slightly below FY 2023 and no longer
expecting to achieve positive free cash flow in H2'24.

From now on, and for the first time in many years, Aston Martin will be in the
enviable position of commencing the new year with a fully reinvigorated
portfolio of ultra-luxury high performance models. This will support future
growth with the Company remaining focused on achieving its previously
communicated targets for FY 2025.

Operational update

External factors within the global automotive industry, including supply chain
disruption and weak demand in China, are now impacting Aston Martin's volume
outlook for the remainder of 2024. Concurrent with the significant ramp-up in
production for the second half of the year, following new model introductions,
the Company is experiencing a growing number of late component arrivals due to
disruption at several of its suppliers. As a result, an increasing number of
vehicles are taking longer to complete, with these issues impacting the
efficiency of its operations and delaying the delivery of its vehicles.

In addition, a decision has been taken to strategically re-align planned
volumes, in line with the Company's demand-led strategy, commitment to quality
and optimised production processes. The Company is addressing the supply
chain challenges and continues to recognise the significant market opportunity
that China represents as its macroeconomic environment improves.

Updated guidance

·    Q3 2024 wholesale volumes and adjusted EBITDA are now expected to be
below current market  expectations.

·      FY 2024 wholesale volumes are now expected to decline by high
single digit percentage compared  with FY 2023 (previously high single digit
volume growth)

·       FY 2024 gross margin now expected to be modestly below 40%
(previously targeting c. 40%)

·       FY 2024 adjusted EBITDA margin now in the high teen's
percentage (previously low 20s%)

·    H2'24 free cash flow, while materially improved compared with H1'24,
will remain negative (previously positive free cash flow generation in H2'24)

·      The Company remains focused on achieving its previously
communicated targets for FY 2025

 

 

 

Adrian Hallmark, Aston Martin Chief Executive Officer commented:

"Having been with the Company for a month I am even more convinced than before
in its growth potential. The team at Aston Martin has done an exceptional job
in launching a fully reinvigorated core range of vehicles over the last 18
months.

"Near perfect execution was required to meet the Company's ambitious 2024
plan. However, it has become clear that we need to take decisive action to
adjust our production volumes for 2024 given a combination of supplier
disruption, the weak macroeconomic environment in China and a proactive
decision to strategically re-align our production plans to optimise efficiency
and achieve a more balanced delivery cadence in the future."

Lawrence Stroll, Executive Chairman Aston Martin commented:

"When the Yew Tree Consortium made its significant investment in Aston Martin
in 2020, we did this with a long-term view of the necessary commitment and
turnaround required to unlock the enormous value potential of this iconic
brand. I remain steadfast in this view and now, with the calibre and
experience Adrian Hallmark brings, I am extremely confident in the Company's
ability to realise the full potential of its ultra-luxury high performance
strategy."

Aston Martin's Q3 2024 results will be announced on 30 October 2024.

Conference call
details

·      There will be an analysts conference call today at 08:00 BST:
https://app.webinar.net/g73K2wyPdYp
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.google.com%2Furl%3Fq%3Dhttps%253A%252F%252Fapp.webinar.net%252Fg73K2wyPdYp%26sa%3DD%26source%3Dcalendar%26usd%3D2%26usg%3DAOvVaw2x8DJaJSUEJAeqnThiN3RH&data=05%7C02%7CJames.Arnold%40astonmartin.com%7Cf5025a8868f14a36a66608dcdf0050e1%7C63ab48267a7348169bc13934580f4485%7C1%7C0%7C638630439664663482%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=Ywk0%2F9UNEggs8wvdBTo2SInw6tLX06RxeLJZGZiJm7I%3D&reserved=0)

·      A replay facility will be available on the website later in the
day: https://www.astonmartinlagonda.com/investors
(https://www.astonmartinlagonda.com/investors)

 

Enquiries

 

Investors and Analysts

James Arnold                        Head of Investor
Relations
+44 (0) 7385 222347

 
james.arnold@astonmartin.com

Ella South                              Investor
Relations
Analyst                                 +44
(0) 7776 545420

 
ella.south@astonmartin.com

Media

Kevin Watters                      Director of
Communications
+44 (0) 7764 386683

 
kevin.watters@astonmartin.com

Paul Garbett                         Head of Corporate
& Brand Communications               +44 (0) 7501 380799

 
paul.garbett@astonmartin.com

FGS Global

James Leviton and Jenny Bahr
 
+44 (0) 20 7251 3801

 

 

Cautionary statement

No representations or warranties, express or implied, are made as to, and no
reliance should be placed on, the accuracy, fairness or completeness of the
information presented or contained in this release. This release contains
certain forward-looking statements, which are based on current assumptions and
estimates by the management of Aston Martin Lagonda Global Holdings plc
("Aston Martin Lagonda"). Past performance cannot be relied upon as a guide to
future performance and should not be taken as a representation that trends or
activities underlying past performance will continue in the future. Such
statements are subject to numerous risks and uncertainties that could cause
actual results to differ materially from any expected future results in
forward-looking statements. These risks may include, for example, changes in
the global economic situation, and changes affecting individual markets and
exchange rates.

Aston Martin Lagonda provides no guarantee that future development and future
results achieved will correspond to the forward-looking statements included
here and accepts no liability if they should fail to do so. Aston Martin
Lagonda undertakes no obligation to update these forward-looking statements
and will not publicly release any revisions that may be made to these
forward-looking statements, which may result from events or circumstances
arising after the date of this release.

This release is for informational purposes only and does not constitute or
form part of any invitation or inducement to engage in investment activity,
nor does it constitute an offer or invitation to buy any securities, in any
jurisdiction including the United States, or a recommendation in respect of
buying, holding or selling any securities.

About Aston Martin Lagonda

Aston Martin's vision is to be the world's most desirable, ultra-luxury
British brand, creating the most exquisitely addictive performance cars.

Founded in 1913 by Lionel Martin and Robert Bamford, Aston Martin is
acknowledged as an iconic global brand synonymous with style, luxury,
performance, and exclusivity. Aston Martin fuses the latest technology, time
honoured craftsmanship and beautiful styling to produce a range of critically
acclaimed luxury models including the Vantage, DB12, DBS, DBX and its first
hypercar, the Aston Martin Valkyrie. Aligned with its Racing. Green.
sustainability strategy, Aston Martin is developing alternatives to the
Internal Combustion Engine with a blended drivetrain approach between 2025 and
2030, including PHEV and BEV, with a clear plan to have a line-up of electric
sports cars and SUVs.

Based in Gaydon, England, Aston Martin Lagonda designs, creates, and exports
cars which are sold in more than 50 countries around the world. Its sports
cars are manufactured in Gaydon with its luxury DBX SUV range proudly
manufactured in St Athan, Wales. The company is on track to deliver net-zero
manufacturing facilities by 2030.

Lagonda was founded in 1899 and came together with Aston Martin in 1947 when
both were purchased by the late Sir David Brown, and the company is now listed
on the London Stock Exchange as Aston Martin Lagonda Global Holdings plc.

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