Aston Martin (AML) Shares Rose 5.9% on the Lower FY ’23 Losses

The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price rose 5.9% after releasing its full-year results for the year ended 31 December 2023. The company successfully increased its wholesale volumes and revenues, marking a year of challenges and achievements.

Throughout 2023, the company saw a 3% increase in wholesale volumes, rising to 6,620 units from 6,412 in the previous year. This growth was notably propelled by a 14% surge in the Sport/GT category, thanks to the increased volumes of the DB12 and DBS 770 Ultimate models in the second half of the year, despite minor setbacks in the initial production ramp-up of the DB12. 

The final quarter of 2023 witnessed a 54% sequential rise in wholesale volumes from the third quarter. However, there was a slight 6% decrease compared to the same period in the previous year, which had exceptionally high sales.

Revenue for FY 2023 grew by 18% to £1,633 million, demonstrating the effective implementation of the company's growth strategy. This strategy not only reinforced the company's position as an ultra-luxury brand but also led to an increase in volumes and a record in average selling prices (ASPs).

The ASP growth was driven by solid pricing strategies across the core portfolio and a favourable product mix, including the DBS 770 Ultimate and new DB12 models. The core ASP for the year rose by 6% to £188,000, and the overall ASP increased by 15% to £231,000, reflecting the inclusion of high-value Special models.

The gross profit for 2023 saw a 42% increase to £639 million, with the gross margin reaching 39%, up from 33% the previous year. The adjusted EBITDA for 2023 increased by 61% to £306 million, with an adjusted EBITDA margin increase of 490 basis points to 18.7%.

Lawrence Stroll, Aston Martin Executive Chairman, commented: “In 2023, Aston Martin delivered significant strategic milestones and further financial progress, driven by continued strong demand for our ultra-luxury, high-performance products. The rich mix of sales, driven by our ongoing commitment to product innovation, supported growth in average selling prices to record levels. This, combined with our ongoing portfolio transformation, resulted in a significantly enhanced gross margin, remaining on track to achieve our longstanding target of around 40% gross margin in 2024.”

Aston Martin (AML) share price. 

Aston Martin's (AML) share price rose 5.90% to trade at 186.96p from Tuesday’s closing price of 176.55p.