Aston Martin has posted a profitable end to 2022, stirring hopes among investors and fans that the struggling luxury brand can turn around a prolonged loss-making spell.
The company made a narrow operating profit of £6.6 million for the final three months of 2022, boosted by a higher average selling price for its cars of £184,000, up from £152,000 last year, excluding specials.
A weaker pound helped Aston Martin during the year, although not enough to negate a sharp rise in operating expenses such as raw material costs. Overall, the company lost £118 million for 2022 as a whole, an increase on 2021’s figure of £76 million.
The chink of light shown by the better than expected final quarter results roused the financial markets and pushed the stock price higher than it has been in more than six months.
“We view the results, outlook and re-confirmation of medium-term targets as positive,” banking firm Jefferies said in a note to investors.
Some of Aston’s boost came courtesy of an increase in wholesales (sales to dealers) of the Aston Martin DBX SUV, a car that has lagged behind its potential due to the slower than expected roll-out of the 707 performance version after suffering supplier and production issues.
Total DBX sales last year climbed 7% to 3219 units, accounting for half of all Aston’s 6412 wholesales last year and illustrating again just what a difference an SUV can make to the sales figures for ultra-luxury brands such as Aston, Bentley, Lamborghini and Rolls-Royce.
Aston is predicting a much smoother ride for 2023 as it enters the delivery phase of the long process of overhauling its front-engined sports cars, with the first model (likely to be the updated Aston Martin DB11) reaching first customers in the autumn.
There’s a lot riding on the successful launch of replacements for the DB11, Vantage and DBS as the last of the (ex-CEO) Andy Palmer-era cars roll down the production lines, mostly as high-value specials like the V12-powered DBS 770 Ultimate.
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