Aston Martin beats expectations thanks to DBX sales

DBX sales put luxury carmaker on the path to profitability despite posting £42m Q1 loss

An Aston Martin DBX drives along a road tunnel                                 

Aston Martin beat analyst expectations for the first quarter of this year, helped in large part by demand for the DBX, its first ever SUV.

However, the luxury car brand posted a first quarter loss of £42.2m ($58.6m), which was a marked improvement on the £110.1m loss incurred in the same period of 2020.

Raising investor hopes for future profitability, the firm’s revenue rose by 153% year on year to £224.4m ($312.4m), exceeding analyst forecasts of £196.7m ($273.8m). The DBX accounted for 55% of sales to dealers.

Losses compounded by pandemic

The company has suffered significant losses in the past three years with business made yet harder by the COVID-19 crisis. Having traded at £109.10 in its 2018 market debut, the carmaker’s share price fell as low £5.50.

A rescue attempt by Canadian billionaire Lawrence Stroll has helped steady the ship, with the fashion tycoon investing significant amounts of cash and strengthening ties with Mercedes-Benz. Indeed, Tobias Moers, the former head of Mercedes-AMG’s performance division, joined as the new CEO of Aston Martin Lagonda Global Holdings.

A pleasing performance

Hailing the results, Moers said: ”I am pleased with our performance in the first three months of the year, delivering results in-line with our expectations of good growth and progress on the path to improved profitability and cash generation.

”We are encouraged by the growth in orders for both GT/Sport and DBX, providing good visibility.“

Having traded up by as much as 3% in initial trading, Aston Martin stood 0.3% higher by mid-morning at £19.12.

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