Aston Martin has come a long way. In the mid-2010s, Gaydon’s firm, which was almost passed for dead, was not out of the woods yet, but recently released figures point to a brighter future.

Aston Martin has announced that it has narrowed its losses for the past year thanks to a strategy focused on personalized cars and unprecedented prices. In a published press release the company found that this approach helped cut its losses in half.

Aston Martin is still losing money, but less so

Over the past year, Aston Martin’s turnover has increased by 18% to 1.6 billion pounds. This growth was mainly driven by higher prices and a slight increase in sales volume. The brand’s sports cars, such as the DB12 due in 2023, have played a key role in this expansion, while the DBX continues to appeal. Despite this significant improvement, the company still had a pre-tax loss of £240m, compared to £495m last year. Separately, Aston Martin’s debt rose by 6% to £814m on a year-on-year basis.
As part of its refinancing plans, the group announced its intention to carry out a debt refinancing operation in the first half of 2024, announcing this in “in-depth training” for this step. Aston Martin is maintaining its medium-term targets, targeting revenue of £2.5bn by 2027/28, as well as a significant reduction in debt and an operating margin of around 45% from 39% last year.

The electric future is taking shape

The manufacturer will continue to invest in long-term growth and the electrification of its vehicles, with an investment plan of £2 billion between 2023 and 2027. The first 100% electric Aston Martin is expected by 2025.
Sophie Lund-Yates, an analyst at Hargreaves Lansdown, commented on this development, stressing that “Aston Martin is investing a lot of money in marketing to strengthen its position in the ultra-luxury category. This shift is expensive and weighs on margins, even if there is progress.”.
She also welcomed the brand’s repositioning towards the ultra-luxury segment, noting that this strategy could strengthen its financial sustainability. Really, more cost-effective custom vehicles combined with manufacturing efficiencies helped boost the company’s profitability.

Selling already expensive products even more expensive is a strategy that we are not necessarily familiar with other manufacturers in this sector.

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