The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price surged 21.3% after releasing its financial results for the 2022 calendar year. The company generated revenues worth £1.4 billion, representing a 26% increase to the £1.1 billion generated in 20221. The company noted a 46% jump in its Q4 revenues to £524 million.
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The ultra-luxury car manufacturer attributed its impressive performance to the record average selling price (ASP) of over £200,000 per vehicle. The company revealed that it had witnessed strong demand for its vehicles, with the DBX order backlog stretching into Q3 2023. The firm also revealed that 80% of its GT/Sports model vehicles were sold out for 2023.
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Investors cheered the results, as evidenced by the rally in Aston Martin shares. The company’s gross profits improved by 31% to £450.7 million from £343.7 million in 2021. The car manufacturer confirmed it was on track to achieve its medium-term goal of selling 7,000 vehicles at wholesale prices in 2023.
Aston Martin also expects its gross margins to improve by 20%. The company noted strong demand for its DBX vehicles, which sold 3,200 units, the majority of which were the DBX707, representing over 50% of all DBX sales.
The ultra-luxury car manufacturer reported an operating loss of £142 million, driven primarily by a £96 million annual increase in depreciation and amortisation costs related to the Aston Martin Valkyrie programme deliveries. The loss was also attributed to the accelerated amortisation of capital expenditures as the firm prepares to launch new sports models.
Aston Martin’s pretax loss surged to £495 million partly due to the £156 million non-cash FX revaluation of its dollar-denominated debt as the British pound fell against the US dollar in 2022.
The company noted that it continues to launch new models, such as the DBX707, launched in February 2022. Aston Martin’s top-end limited edition models, such as the V12 Vantage Coupe and the V12 Vantage Roadster, were sold out soon after launch, indicating pent-up demand for such iconic vehicles.
Aston Martin shares just broke a long-term resistance zone and could be headed higher in future.
*This is not investment advice.
The Aston Martin share price.
The Aston Martin share price surged 21.29% to trade at 244.53p, from Tuesday’s closing price of 201.60p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.