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Luxury car maker Aston Martin Lagonda saw a 27 per cent year-on-year jump in revenues in the first quarter of 2023 as wealthy consumers chose to ride out recession fears in all-leather interiors.
The firm reported an operating loss of £50.9m which it put down to amortisation and depreciation costs increasing, but maintained guidance for the year of a “significant growth in profitability.”
The marque lost just shy of half a billion pounds last year, blaming a weakened UK pound, but looks to have turned a corner on the lows of 2022.
The company said its revenue increase was down to strong demand from consumers, its repositioning as an “ultra-luxury brand,” and the success of its GT/sport range, which has sold out for 2023.
It also highlighted a successful partnership with the Aston Martin Aramco Cognizant Formula One team, which has driven up brand awareness.
Gross profit increased by 21 per cent year-on-year to £102m with a gross margin of 34 per cent, noting that higher manufacturing costs had partially offset these gains.
Aston Martin boss talks of ‘exciting year’
Amedeo Felisa, Aston Martin Lagonda chief executive said: “Over the course of the first three months of the year, we have continued to build on the progress we have made to meet strong customer demand and deliver on our targets.
We remain on track to deliver a number of thrilling new Specials in the second half of the year. Our new portfolio will also bring significant improvements in profitability, with all new models, from the DBX707 onwards, continuing to target a 40%+ gross margin.”
She added: “We have also further strengthened our organisation, promoting internal talent and hiring new leaders to enhance our execution capabilities, focus our investments in areas that will continue to differentiate the Aston Martin driving experience, and deliver on our goals.”
Lawrence Stroll, executive chairman, said: “2023 is set to be one of the most exciting years in Aston Martin’s history.”
“Since the start of the year, we have continued to see strong demand across our product range, with our current range of sports cars essentially sold out for the year. “
The brand is celebrating its 110th anniversary this year.