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  • MJ

๐ŸŽ $AML.L reporting H1 2021 Results โ€“ Sales Growth of over 200% ๐Ÿ’ฐ

๐™ƒ๐™„๐™‚๐™ƒ๐™‡๐™„๐™‚๐™ƒ๐™๐™Ž

Aston Martin has reported today that sales to its dealers increased 224%. This was mainly attributed to the sales of DBX โ€“ its first SUV โ€“ which totaled over half of the 2901 vehicle sales. Revenue more than trebled to ยฃ499M.


The pretax loss fell from ยฃ227M in H1 2020 to ยฃ91M ($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 ยฃ49M 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.


๐Ÿ’ฐ ๐™๐™„๐™‰๐˜ผ๐™‰๐˜พ๐™„๐˜ผ๐™‡๐™Ž

Total Wholesales went from 895 in H1 2020 to 2901 in H1 2021. Revenues increased from ยฃ146M to ยฃ499M. Adjusted EBITDA from (ยฃ89M loss) to ยฃ49M. Adjusting Operating loss went from (ยฃ146M) to (ยฃ36M).


Free Cash Flow went from (ยฃ146M) to (ยฃ36M). Finally, Net Debt went from ยฃ751M to ยฃ792M.


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 ยฃ138M YoY. Q2 margin was 12% ex. doubtful debt provision. Net pricing benefited from decreased customer financing support and improved residual values. Cash balance was ยฃ506M as of June 30th 2021.


๐Ÿ“ˆ ๐™‹๐™๐™Š๐™…๐™€๐˜พ๐™ ๐™ƒ๐™Š๐™๐™„๐™•๐™Š๐™‰

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 ๐™„ ๐˜ผ๐™ˆ ๐˜ผ๐™จ๐™ฉ๐™ค๐™ฃ ๐™ˆ๐™–๐™ง๐™ฉ๐™ž๐™ฃ 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.


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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) โ€“ 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.


PS. All my investments and portfolio are public. To join eToro please follow the link: https://bit.ly/3i7Yo3C


My Public Profile: https://www.etoro.com/people/mj_lux


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