🏎 $AML.L reporting H1 2021 Results – Sales Growth of over 200% 💰

𝙃𝙄𝙂𝙃𝙇𝙄𝙂𝙃𝙏𝙎

Aston Martin has reported today that sales to its dealers increased 224%. This was mainly attributed to the sales of DBX – its first SUV – which totaled over half of the 2901 vehicle sales. Revenue more than trebled to £499M.

The pretax loss fell from £227M in H1 2020 to £91M ($126 million), with the company saying trading was in line with expectations as it aims for 2021 volumes of around 6,000 vehicles.

Adjusted EBITDA reached £49M with 10% margin. Importantly, Project Horizon has shown excellent progress, launching 2 new vehicles, leveraging Aston Martin Cognizant Formula One Team, improving manufacturing efficiencies as well as strengthening the Board and the Executive Leadership Team.

💰 𝙁𝙄𝙉𝘼𝙉𝘾𝙄𝘼𝙇𝙎

Total Wholesales went from 895 in H1 2020 to 2901 in H1 2021. Revenues increased from £146M to £499M. Adjusted EBITDA from (£89M loss) to £49M. Adjusting Operating loss went from (£146M) to (£36M).

Free Cash Flow went from (£146M) to (£36M). Finally, Net Debt went from £751M to £792M.

In terms of units, SUV reached 1595 vehicles while Sport reached 670 units, a growth of 137%. The biggest growth came from China with 620%, APAC with 444%, Americas with 277%, EMEA at 214% and UK at +58%.

H1 2021 Adjusted EBITDA improved by £138M YoY. Q2 margin was 12% ex. doubtful debt provision. Net pricing benefited from decreased customer financing support and improved residual values. Cash balance was £506M as of June 30th 2021.

📈 𝙋𝙍𝙊𝙅𝙀𝘾𝙏 𝙃𝙊𝙍𝙄𝙕𝙊𝙉

Project Horizon, the name for the turnaround of the company since Lawrance Stroll took over, is delivering operational excellence, agility and efficiency throughout every aspect of the company.

Naturally, Formula 1 engagement increases brand desirability with over 85M viewers a race. It also emphasizes performance and innovation from the Product perspective.

The newest programme called 𝙄 𝘼𝙈 𝘼𝙨𝙩𝙤𝙣 𝙈𝙖𝙧𝙩𝙞𝙣 leads to organisational structure streamlined, performance driven culture, dynamic and innovative mindset as well as restructuring savings.

In terms of Portfolio Strategy, a sustainable product plan has been defined and aligned with market demand/business plan. The expansion of the portfolio is based on DBX and GT/Sports platform. Iconic Aston Martin Valkyrie is another milestone to enter the mid-engine market. Electrified powertrain and upgraded infotainment expected in 2023/24.

Importantly, customer experience has been strengthened with the launch of new configurator and focus on customer journey. We are also seeing network extension in Europe.

Product Development Efficiency and Operational Excellence have also been the focus of Project Horizon. New COO is driving transformation, delivering annual savings of over 30%. There is an investment in leading PLM/ERP IT architecture and strong strategic alignment to operational footprint. Big focus is on increased productivity through collaboration and digitisation.

𝘾𝙊𝙉𝘾𝙇𝙐𝙎𝙄𝙊𝙉

Let us not forget that Vantage F1 Edition and V2 Speedster are first of more than 10 new vehicles to launch by 2023. The Valhalla plug-in hybrid supercar, the first new generation Aston Martin, has been revealed. The F1 Team drives brand awareness with 1.4B social media impressions YTD.

I wrote how important SUVs were for $PAH3.DE (Porsche Automobil Holding SE) – they are effectively the cash cows for the luxury automakers. Aston is positioning more in the luxury space, competing directly with $RACE (Ferrari NV) With 10,000 vehicles, 2B in sales and 500M EBITDA by 2024/25, our beloved Aston Martin is on track to accelerate its growth and come back to its previous glory.

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