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Aston Martin (AML) Shares Fell 2.17% Despite Positive H1 Report

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Updated 29 Jul 2022

Key points:

  • The Aston Martin share price edged lower despite an upbeat H1 report.
  • Investors barely reacted since they expected positive results anyway.
  • The company’s prospects are pretty promising.

The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price fell slightly after the ultra-luxury car manufacturer released its half-year report. The company reported a 9% increase in revenues during the first six months of 2022, yet investors were largely unimpressed.

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Aston Martin’s H1 revenues rose 9% to £542 million despite selling lesser units. The ultra-luxury carmaker attributed the higher sales figures to higher average selling prices, which rose to £164,000 compared to £150,000 in the first half of 2021.

Also read: Morning Star Candlestick Patterns.

The company also noted that its gross profits rose 31% annually to £188 million from the £143 million recorded in H1 2021. Again, the company attributed its higher profitability to a better pricing mix and the increased efficiency of its operations.

However, the company’s operating loss surged to £90 million, driven by a £47 million annualised increase in depreciation and amortisation. Its pretax losses rose to £285 million due to a £134 million negative non-cash FX revaluation.

Aston Martin reported that customer demand for its cars was much greater than its production capacity since it was ahead of its wholesale sales throughout H1 2022. The company’s new V12 Vantage was sold out before its launch in March, with the company now being tasked with producing the 333 limited edition units.

The ultra-luxury car manufacturer also reiterated its commitment to shipping its first plug-in hybrid (PHEV) cars by 2024 and its first battery-electric (BEV) cars in 2025 after unveiling a new ESG strategy.

Lawrence Stroll, Aston Martin’s Executive Chairman, commented: “We have continued to make strong progress in our vision to become the world’s most desirable, ultra-luxury British performance brand during the first six months of 2022, despite supply chain challenges in Q2. The underlying fundamentals of Aston Martin have never been stronger, with robust demand across our product range, sports cars sold out into 2023 and DBX orders up by more than 40% compared to 2021.”

Investors barely reacted to today’s news, which was widely expected since aspects of the half-year report had been announced when they occurred.

*This is not investment advice. Always do your due diligence before making investment decisions.

Aston Martin’s (AML) share price chart.

Aston Martin share price 29-07-2022
Source: IG

The Aston Martin share price edged 2.17% lower to trade at 469.40p, falling from Thursday’s closing price of 479.80p.