TIDMAML
RNS Number : 3389R
Aston Martin Lagonda Global Hld PLC
04 November 2021
4 November 2021
Aston Martin Lagonda Global Holdings plc
Results for the nine months to 30 September 2021
- Year to date revenue almost trebled, adjusted EBITDA improved
by GBP190m to GBP72m
- Building track record of consistent delivery, re-iterating
2021 guidance
- Brand strength and ultra-luxury positioning driving strong
customer demand, pricing dynamics across portfolio and dealer
profitability
- Excellent progress with 'Project Horizon' transformation plan
delivering growth
GBPm YTD 2021 YTD 2020 change Q3 2021 Q3 2020 change
--------- --------- -------- --------
Total wholesale
volumes(1) 4,250 1,555 173% 1,349 660 104%
Revenue 736.4 270.0 173% 237.6 124.0 92%
Adjusted EBITDA(2) 72.3 (117.6) n.m. 23.5 (28.6) n.m.
Adjusted operating
loss(2) (65.1) (215.2) n.m. (29.1) (69.7) n.m.
Operating loss (68.2) (229.1) n.m. (30.2) (69.8) n.m.
Loss before tax (188.6) (307.9) n.m. (97.9) (80.5) n.m.
Net debt(2) 808.6 868.5 808.6 868.5
-------------------- --------- --------- ------- -------- -------- -------
1. Number of vehicles including specials; 2. For definition of
alternative performance measures please see Appendix
Financial highlights
-- Strong growth in wholesales(3) driven by customer demand; DBX
on plan with >2,100 delivered, Q3 impacted by planned ramp up of
St Athan following efficiency actions completed in August
-- Revenue almost trebled to GBP736m with substantial volume growth driven by customer demand
-- GBP190m improvement in adjusted EBITDA with a 10% margin
reflecting good progress on strategic transformation, improving
efficiency and profitability
-- Operating loss significantly improved despite increased
investment in brand and marketing activities, particularly in Q3,
higher D&A and non-repeat of 2020 GBP13m furlough credit
-- Free cash outflow(4) of GBP39m (Q3 inflow GBP5m) a GBP475m
improvement over comparative period
-- Cash of GBP495m (December 2020: GBP489m); Net debt of GBP809m (December 2020: GBP727m)
'Project Horizon' transformation well underway
-- Delivering compelling products:
- Era-defining hypercar, Aston Martin Valkyrie - production
scaling up with first customer car completed and deliveries
starting in Q4
- Valkyrie AMR Pro on track for deliveries to commence later in
Q4
- Valkyrie Spider unveiled at Pebble Beach, now two times
oversubscribed and finalising unit allocations to customers
- Valhalla hybrid supercar officially unveiled at British Grand
Prix, with strong response
- Production of first DBX derivative commenced; second
derivative to launch in H1 2022
-- Focusing on customer and brand:
- Brand strength supporting higher pricing and residual
values
- Class-leading configurator with improved customer experience
launched in July, trebling leads to dealers
- Dealer profitability in all regions significantly improved;
confidence in plan and performance leading to strong growth in new
dealer franchise demand
- Aston Martin Cognizant Formula One(TM) Team connecting brand
with engaged audience, 2.1bn impressions since March; brand equity
research shows increasing perception and buying intent among luxury
car buyers, particularly in China and the US; double-digit
percentage uplift to website traffic on race weekends
- Aston Martin takes leading role in latest critically-acclaimed
James Bond film, No Time To Die, starring four Aston Martin
models
-- Delivering operational excellence, agility and efficiency:
- Paint shop consolidation completed in August, delivering
efficiency and quality improvements
- St Athan plant efficiency actions complete, benefits building
through Q4
- Navigating challenging supply chain environment and monitoring
the evolving landscape daily to mitigate disruption
-- Integrating electrification and ESG strategy:
- Electrification strategy remains on course, with all new Aston
Martins to have an electrified powertrain option - either hybrid or
battery electric from 2025/26 - and over 90% of global portfolio
electrified or battery electric by 2030
- Collaborating with key stakeholders and industry-leading
organisations to establish a renewed ESG strategy to be published
in Q1 2022, setting ambitious new commitments to reduce carbon
emissions, increase diversity and engage communities, further
strengthening Aston Martin's ambition to be a world-leading
sustainable ultra-luxury automotive business
Lawrence Stroll, Aston Martin Lagonda Executive Chairman
commented:
"Through the first nine months of this year we have successfully
built on the foundations we put in place for the company's success
in 2020. Not only do we have low dealer inventory, but it is also
healthy and fresh - a testament to our shift to ultra-luxury
positioning.
The excitement around and demand for the brand are tremendous,
with good visibility for sales, increased interest to be part of
our journey from potential new dealers and fantastic demand for our
limited run Specials. The Aston Martin Cognizant Formula One(TM)
Team is significantly expanding our audience with over 87 million
people per race seeing our brand in the heat of intense performance
competition.
Our team has been laser-focused on successfully executing our
exciting plans to transform Aston Martin to be one of the greatest
ultra-luxury brands in the world. Our progress to date, the new
products we are launching, the team we have assembled and the
partnerships we have forged give me great confidence in our
continued success on the path to achieve our medium-term objectives
of GBP2bn in revenue and GBP500m of adjusted EBITDA."
Tobias Moers, Aston Martin Lagonda Chief Executive Officer
commented:
"I am pleased with our performance to date, delivering strong
results in-line with our plans to improve profitability. The shift
to a demand-led, ultra-luxury operating model achieved earlier this
year continues to support strong pricing dynamics with order cover
through 2021 and extending into 2022.
Our excellent progress on 'Project Horizon' as we drive
efficiency and agility throughout our business is delivering
results with further operational milestones of consolidating our
paint shops and restructuring our St Athan operations completed
during the quarter.
We continue to strengthen our operational teams, with a
triple-digit number of new engineers joining the company over the
last year as we focus on developing our future portfolio of
compelling products on our journey from combustion to hybrid to
electric.
Our confidence in delivering our transformational growth
strategy to create a world-class, sustainable ultra-luxury brand is
underpinned by our excellent progress on execution to date, as
demonstrated with the results we have reported today."
Outlook
The significant progress we are making to transform Aston Martin
underpins our confidence in delivering our medium-term plans and
targets. By 2024/25:
- c.10,000 wholesales, c.GBP2bn revenue and c.GBP500m adjusted
EBITDA
- Annual capex and R&D GBP250m-GBP300m
This year, the first full year of the plan, is expected to
deliver the first steps towards improved profitability.
Trading year-to-date is in-line with our expectations and our
guidance for 2021 remains unchanged. A significant proportion of
expected FY adjusted EBITDA relates to the number of Aston Martin
Valkyrie and AMR Pro vehicles due to be shipped in the fourth
quarter.
-- 2021 guidance
- Wholesales c. 6,000
- Adjusted EBITDA margin mid-teens %, prior to the GBP15m impact
of legal action announced 22 June (i.e.
<14% after impact)
Updated to reflect current exchange rates and timing, no
change to product plan:
- CAPEX and R&D c.GBP215m - GBP235m reflecting timing
of spend (previously c.GBP250m- GBP275m),
re-phased into 2022 which is currently
expected to be > GBP300m
- Depreciation and amortisation c.GBP225m - GBP235m reflecting timing
(previously c.GBP255m-GBP265m), re-phased
into 2022 which is currently expected
to be > GBP300m
- Interest costs(5) P&L financial charge: Unchanged at
constant currency, now c.GBP165m (previously
c.GBP135m) reflects revaluation of
USD debt at current exchange rates
Cash interest: Unchanged at c.GBP120m
The financial information contained herein is unaudited.
All metrics and commentary in this announcement exclude
adjusting items unless stated otherwise and certain financial data
within this announcement have been rounded.
3. Company sales to dealers (some Specials are direct to
customer)
4. Operating cashflow less capital investment and net cash
interest; note cash interest payments are in Q2 and Q4
5. Assuming current exchange rates prevail for the remainder of
2021; interest payments are made in Q2 and Q4
Enquiries
Investors and Analysts
Charlotte Cowley Director of Investor Relations +44 (0)7771
976764
charlotte.cowley@astonmartin.com
Holly Grainger Deputy Head, Investor Relations +44 (0)7442
989551
holly.grainger@astonmartin.com
Brandon Henderson Senior Manager, Investor Relations +44 (0)7585
326704
brandon.henderson@astonmartin.com
Media
Kevin Watters Director of Communications +44 (0)7764 386683
kevin.watters@astonmartin.com
Grace Barnie Corporate Communications Manager +44 (0)7880
903490
grace.barnie@astonmartin.com
Tulchan Communications
Harry Cameron and Simon Pilkington + 44 (0)20 7353 4200
-- There will be a call for investors and analysts today at 08:30am GMT
-- The conference call can be accessed live via the corporate website https://www.astonmartinlagonda.com/investors/calendar
-- A replay facility will be available on the website later in the day
-- Full year Results for the twelve months ending 31 December
2021 will be announced on 24 February 2022
No representations or warranties, express or implied, are made
as to, and no reliance should be placed on, the accuracy, fairness
or completeness of the information presented or contained in this
release. This release contains certain forward-looking statements,
which are based on current assumptions and estimates by the
management of Aston Martin Lagonda Global Holdings plc ("Aston
Martin Lagonda"). Past performance cannot be relied upon as a guide
to future performance and should not be taken as a representation
that trends or activities underlying past performance will continue
in the future. Such statements are subject to numerous risks and
uncertainties that could cause actual results to differ materially
from any expected future results in forward-looking statements.
These risks may include, for example, changes in the global
economic situation, and changes affecting individual markets and
exchange rates.
Aston Martin Lagonda provides no guarantee that future
development and future results achieved will correspond to the
forward-looking statements included here and accepts no liability
if they should fail to do so. Aston Martin Lagonda undertakes no
obligation to update these forward-looking statements and will not
publicly release any revisions that may be made to these
forward-looking statements, which may result from events or
circumstances arising after the date of this release.
This release is for informational purposes only and does not
constitute or form part of any invitation or inducement to engage
in investment activity, nor does it constitute an offer or
invitation to buy any securities, in any jurisdiction including the
United States, or a recommendation in respect of buying, holding or
selling any securities.
Sales & Revenue analysis
Total wholesales almost trebled year-to-date, to 4,250 units,
and included 56 Specials compared with 11 Specials in the
comparative period. DBX represented over half of the core mix with
2,186 units despite being impacted by the planned phased ramp up of
St Athan through September, following efficiency actions completed
in August.
Geographically, the Americas and APAC were the strongest and
largest markets (representing 34% and 28% of wholesales
respectively) with these markets showing high DBX penetration, as
expected. Within APAC, China grew more than 600% over the
comparative period and represented 16% of total wholesales (2020
YTD: 6%).
Revenues were GBP736m, up 173% over the comparative period,
driven mainly by increased wholesales, Specials and stronger
pricing dynamics.
With dealer stock currently low for GT/Sport both in terms of
units and age, following completion of supply-to-demand rebalance
during Q1, residual values have increased and financial support per
vehicle has been significantly reduced compared with the prior year
period. Wholesale average selling price (ASP) year-to-date was
GBP157k, benefiting from Specials, and core ASP was GBP150k (2020
YTD total: GBP137k; core: GBP126k). Q3 ASP total: GBP160k; core:
GBP148k (2020 Q3 total: GBP152k; core: GBP130k).
Income statement
Adjusted EBITDA was GBP72m, an improvement of GBP190m on the
comparative period with a margin of 10%. The significantly improved
operating loss of GBP(68)m (2020 YTD: GBP(229)m) reflected:
-- strong revenue growth, positive Specials mix and
manufacturing efficiency actions contributing to a gross margin of
30%, more than offsetting the non-repeat of c. GBP13m of furlough
credits received in the comparative period;
-- increased brand investment at events such as Goodwood
Festival of Speed and Pebble Beach which resumed post-pandemic, as
well as events associated with F1(TM) and James Bond;
-- higher depreciation and amortisation charges, up GBP40m on
the comparative period, principally due to DBX which started
delivering in late Q3 2020 and Specials; and
-- an GBP8m benefit from exchange rate movements.
Adjusting operating items of GBP3m predominantly related to ERP
implementation costs (2020 YTD: GBP14m -predominantly restructuring
costs).
Net adjusted financing costs of GBP133m were higher than the
GBP79m in the comparative period. The charge reflected interest on
the GBP1.1bn equivalent notes issued in October 2020 as part of the
re-financing at that time and the GBP70m equivalent notes issued in
February 2021. The net financing costs also included a GBP18m
adverse FX charge given the US dollar denomination of the notes
(2020 YTD included a GBP4m adverse FX charge) and a GBP13m
adjusting finance credit due to fair value movements of outstanding
warrants (2020 YTD: nil). The reduced loss before tax was GBP189m
(2020 YTD: GBP308m loss).
Cash flow and net debt
Net cash inflow from operating activities was GBP151m (2020 YTD:
GBP272m outflow), largely due to improved trading and included a
working capital inflow of GBP89m. The largest component of the
working capital inflow was GBP45m from deposits, reflecting strong
demand for Specials following the launch of Valkyrie Spider and
unveiling of Valhalla. All other working capital components were
also positive (receivables GBP28m; payables GBP9m; and inventory
GBP7m) reflecting Project Horizon benefits.
Capital expenditure was GBP135m with investment focused on
development of the future product pipeline including DBX
derivatives, front-engine refreshes and mid-engine programmes
aligned to product plan.
Free cash outflow of GBP39m; (2020 YTD: GBP514m outflow),
reflected improved trading performance, working capital inflow and
planned capital expenditure phasing. Q3 free cash inflow of GBP5m
due to the above factors and including a GBP38m deposit inflow and
no interest payment in the quarter.
Cash at 30 September 2021 was higher at GBP495m (31 December
2020: GBP489m) including GBP77m gross proceeds from the new $98.5m
note issuance completed in Q1 and GBP13m from executed warrants.
Interest on all outstanding notes is paid in Q2 and Q4.
Net debt of GBP809m was up from GBP727m at 31 December 2020.
APPICES
Wholesale number of vehicles
YTD 2021 YTD 2020 change Q3 2021 Q3 2020 change
--------- --------- -------- --------
Total 4,250 1,555 173% 1,349 660 104%
Core (excluding Specials) 4,194 1,544 172% 1,313 650 102%
By region:
UK 728 470 55% 294 195 51%
Americas 1,438 342 320% 382 62 516%
EMEA ex. UK 898 440 104% 298 249 20%
APAC 1,186 303 291% 375 154 144%
By model:
Sport 959 369 160% 289 86 236%
GT 1,043 809 29% 433 213 103%
SUV 2,186 345 534% 591 345 71%
Other 6 21 (71%) - 6 n.m.
Specials 56 11 409% 36 10 260%
--------------------------- --------- --------- ------- -------- -------- -------
Note: Sport includes Vantage, GT includes DB11 and DBS, SUV
includes DBX and Other includes prior generation models
Summary Income Statement
GBPm YTD 2021 YTD 2020 Q3 2021 Q3 2020
--------- --------
Revenue 736.4 270.0 237.6 124.0
Cost of sales (514.5) (255.9) (159.0) (107.1)
Gross profit 221.9 14.1 78.6 16.9
Gross margin % 30.1% 5.2% 33.1% 13.6%
Operating expenses(6) (287.0) (229.3) (107.7) (86.6)
of which depreciation & amortisation 137.4 97.6 52.6 41.1
Adjusted operating loss
(2) (65.1) (215.2) (29.1) (69.7)
Adjusting operating items (3.1) (13.9) (1.1) (0.1)
Operating loss (68.2) (229.1) (30.2) (69.8)
Net financing expense (120.4) (78.8) (67.7) (10.7)
of which adjusting financing
income 12.9 - (1.1) -
Loss before tax (188.6) (307.9) (97.9) (80.5)
Taxation 28.0 40.0 8.4 12.4
Loss for the period (160.6) (267.9) (89.5) (68.1)
Adjusted EBITDA (2,6) 72.3 (117.6) 23.5 (28.6)
Adjusted EBITDA margin 9.8% n.m. 9.9% n.m.
Adjusted loss before tax
(6) (198.4) (294.0) (95.7) (80.4)
EPS (pence) (7) (141.1) (384.0) (77.6) (77.4)
Adjusted EPS (pence) (2,7) (161.6) (370.0) (76.1) (77.5)
----------------------------------------------- --------- --------- -------- --------
2. For definition of alternative performance measures please see
Appendix; 6. Excludes adjusting items; 7. EPS has been restated in
the comparative period to reflect the 20:1 share consolidation in
December 2020; Weighted average number of shares YTD 2021: 115.2m,
Q3 2021: 115.9m and total share count at 30 September 2021:
116.2m
Summary Cash Flow
GBPm YTD 2021 YTD 2020 Q3 2021 Q3 2020
--------- --------
Cash generated from/(used in)
operating activities 151.4 (272.1) 47.6 (92.7)
Cash used in investing activities
(excl. interest) (136.2) (204.1) (45.2) (42.6)
Net cash interest (paid) / received (54.3) (37.4) 2.8 (7.7)
--------- -------- --------
Free cash (outflow)/inflow (39.1) (513.6) 5.2 (143.0)
Cash inflow / (outflow) from
financing activities (excl.
interest) 44.0 717.6 (18.4) 89.0
Increase / (decrease) in net
cash 4.9 204.0 (13.2) (54.0)
--------- --------
Effect of exchange rates on
cash and cash equivalents 0.9 (4.6) 2.8 1.9
------------------------------------- --------- --------- -------- --------
Cash balance 495.2 307.3 495.2 307.3
------------------------------------- --------- --------- -------- --------
Net Debt Overview
GBPm 30-Sep-21 31-Dec-20 30-Sep-20
---------- ----------
Loan notes (1,074.1) (965.0) (907.6)
Inventory financing (19.3) (38.2) (39.6)
Bank loans and overdrafts (113.5) (119.8) (133.6)
Lease liabilities (IFRS 16) (98.4) (103.0) (105.6)
Gross debt (1,305.3) (1,226.0) (1,186.4)
---------- ----------
Cash balance 495.2 489.4 307.3
Cash not available for short term
use 1.5 9.9 10.6
----------------------------------- ---------- ---------- ----------
Net debt (808.6) (726.7) (868.5)
----------------------------------- ---------- ---------- ----------
Summary Balance Sheet
GBPm 30-Sept-21 31-Dec-20 30-Sept-20
----------- ----------
Non-current assets 1,978.1 1,905.3 1,822.3
Current assets 856.8 889.5 767.5
Total assets 2,834.9 2,794.8 2,589.8
Current liabilities 878.4 808.3 775.7
Non-current liabilities 1,267.4 1,182.4 1,081.1
Total liabilities 2,145.8 1,990.7 1,856.8
Total equity 689.1 804.1 733.0
----------- ----------
Alternative performance measures
In the reporting of financial information, the Directors have
adopted various Alternative Performance Measures ("APMs"). APMs
should be considered in addition to IFRS measurements. The
Directors believe that these APMs assist in providing useful
information on the underlying performance of the Group, enhance the
comparability of information between reporting periods, and are
used internally by the Directors to measure the Group's
performance.
-- Adjusted operating loss is loss from operating activities before adjusting items
-- Adjusted EBITDA removes depreciation, loss/(profit) on sale
of fixed assets and amortisation from adjusted operating loss
-- Adjusted EBITDA margin is adjusted EBITDA (as defined above) divided by revenue
-- Adjusted Earnings Per Share is loss after income tax before
adjusting items, divided by the weighted average number of ordinary
shares in issue during the reporting period
-- Net Debt is current and non-current borrowings in addition to
inventory financing arrangements, lease liabilities recognised
following the adoption of IFRS 16, less cash and cash equivalents,
cash held not available for short-term
-- Free cashflow is represented by cash (outflow)/inflow from
operating activities plus the cash used in investing activities
(excluding interest received) plus interest paid in the year less
interest received.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTUPGRAGUPGUQC
(END) Dow Jones Newswires
November 04, 2021 03:05 ET (07:05 GMT)
Aston Martin Lagonda Glo... (LSE:AML)
Historical Stock Chart
From Mar 2024 to Apr 2024
Aston Martin Lagonda Glo... (LSE:AML)
Historical Stock Chart
From Apr 2023 to Apr 2024
