Half Year 2024 Aston Martin Lagonda Global Holdings PLC Earnings Call Transcript
Key Points
- Aston Martin Lagonda Global Holdings PLC (AMGDF) successfully delivered two new models on time in the first half of 2024, receiving significant acclaim and strong customer demand.
- The DB12 model is sold out for 2024, with orders extending into 2025, indicating strong market reception.
- The company achieved a significant improvement in gross margin to 38.6% in the first half of 2024, approaching their full-year target of circa 40%.
- Aston Martin Lagonda Global Holdings PLC (AMGDF) secured improved five-year terms following credit rating agency upgrades, enhancing liquidity through a new increased revolving credit facility (RCF).
- The company is on track to generate positive free cash flow in the second half of 2024 and sustainably thereafter, supported by a significant volume ramp-up.
- First half total wholesales decreased by 32% to 1,998 units due to the product portfolio transition.
- Revenue decreased by 11% compared to the first half of 2023, impacted by the planned core portfolio transition and foreign exchange headwinds.
- Adjusted EBITDA of GBP62 million decreased by 23%, resulting in a 160 basis point margin dilution to 10.3%.
- Net debt position increased to GBP1.19 billion following the refinancing in Q1, with a net leverage ratio of 4.2 times.
- China's wholesale volumes decreased by 72% compared to H1 2023, reflecting market dynamics and the timing of new model deliveries.
(video playing) Good morning. Thank you for joining the Aston Martin Lagonda first half 2024 results presentation and Q&A. I am Lawrence Stroll, Executive Chairman. I am pleased to welcome alongside me today, Amedeo Felisa , Chief Executive Officer; and Doug Lafferty, Chief Financial Officer.
As we enter an exciting second half of 2024, Aston Martin is approaching a pivotal moment in our vision as we progress towards our long-term commitment to deliver sustainable, positive free cash flow generation. This builds on the solid bedrock of our successfully completed planned refinancing, securing improved five-year terms following credit rating agency upgrades and enhancing our liquidity through a new increased RCF provided by our existing lenders.
The results we are reporting today demonstrate our focus on execution in the first half of 2024, reflecting the strong strategic progress made by the company in recent years, we have delivered two of our four new models this year on track during Q2. In
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