The adjusted loss before tax more than doubled to £110.5 million ($137.8 million) compared to a loss of £57.3 million the previous year. Analysts had expected a loss of £93 million in the first quarter, according to Reuters.
Revenue fell by 10% to £267.7 million, while net debt increased by 20% to £1.04 billion. The company's huge debt pile is a long-term concern for investors which has contributed to the sharp decline in Aston Martin's share price since its listing in 2018.
Analysts at Jefferies noted a “significant error in metrics,” suggesting a 26% decline in volumes.
Aston Martin said on Wednesday that deliveries of four new models in 2024 will fuel “significant growth” in the second half of the year and beyond.
“Our performance in the first quarter reflects this expected transition period, as we cease production and deliveries of our core outgoing models before ramping up production of the new Vantage, the refreshed DBX707 and our upcoming flagship V12 sports car which we confirmed today,” said Chairman Lawrence Stroll.
Stroll added that Aston Martin took an “important step” in strengthening its balance sheet in the quarter, completing a refinancing with improved terms on its five-year secured notes following a credit rating upgrade.
“Aston Martin will be in a unique position with a core range of completely revitalized models by the end of the year,” the company said in a statement.
By region, wholesale volumes fell by 35% in the Americas, by 30% in the United Kingdom, and by 17% in the EMEA region. Trading volumes in the Asia-Pacific region fell by 14%.
Wholesale sales of the SUV fell by 63% due to a “transitional decline in volumes ahead of the recently announced launch of the new model DBX707,” according to the company.
Aston Martin has reiterated its full-year target of delivering high single-digit growth in wholesale volumes, improving gross margins towards its long-term target of 40%.
The company is preparing to welcome new CEO Adrian Hallmark, the current chairman of Bentley, in the fall. Hallmark will be its third new CEO since 2020.
Aston Martin's results follow those of global automaker Stellantis on Tuesday, which also reported slowing sales as it prepares to launch a slew of new models this year.
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