After years of struggles, the first nine months of 2017 have been strong.
Aston Martin is going from strength to strength – after more than two decades of losses and even more years of struggles, the British manufacturer is now enjoying a revenue rise of 84 percent over the last nine months — an impressive £567 million ($755M).
In the third quarter alone, revenues rose 62 percent to £156M ($208M) and the company's pre-tax earnings have also gone up four times year on year. These figures come after strong demand for the new DB11 grand tourer and the limited run Zagato Vanquish.
"Our strong financial performance and continued profitability reflects the growing appeal of our high-performance sports cars, with the new DB11 Volante and a new Vantage expected to stimulate further demand in the coming year," said Aston Martin CEO Andy Palmer. "Our ‘Second Century’ transformation program continues to gain momentum, paving the way for an expanded global presence."
Sales for the first nine months of 2017 were up 65 percent to 3,330 units, while the average selling price rose to £150,000 ($200,000) thanks to an improved mix and increased number of chosen options. The limited-edition Vanquish Zagato also completely sold out. The company recently announced the opening of a new flagship store in Tokyo ahead of a push into the lucrative Japanese luxury market.
For the third quarter, Aston Martin recorded an operating profit of £8.6M ($11.4M). A remarkable turnaround compared to the same quarter in 2016 where they recorded an operating loss of £8.5M ($11.3M). Meanwhile compared to last year, revenues during that time increased to £156.4M ($208M) from £96.6M ($128.6M).
Aston Martin also ended September with £72M ($96M) in cash after generating £150.3M ($200M) from operating activities over the first nine months of the year. After the success, Aston Martin has re-evaluated its financial expectations for the full year. The company now anticipates pre-tax earnings of at least £180M ($240M) on revenues of over £840M ($1.11B), compared with previous guidance of £175M ($233M) and £830M (1.1B) respectively.
But the company has warned that it needs clarity on Brexit with worries over increased import and export tariffs if no deal is reached ahead of the March 2019 Article 50 deadline.
Source: Aston Martin