The luxury carmaker said its revenue was up 9%, but wholesale volumes dipped thanks to supply chain shortages.
29 July 2022
High demand for cars lifted sales for Aston Martin, but persistent supply chain disruption has cost the carmaker millions.
The luxury carmaker said its revenue was £541.7 million in the six months to 30 June, up 9% from the same period last year.
Strong demand for sports cars meant its models are sold out into 2023, the company told shareholders on Friday.
But wholesale volumes dipped by 8% to 2,676 as supply chain shortages and logistic issues in the car industry continues to halt the delivery of car parts.
Aston Martin reported that 350 of its latest SUV, the DBX707, were waiting for final parts at the end of June which cost the company more than £80 million.
The car industry has been affected by a global shortage of semiconductors, fuelled by the pandemic, and more recently faces rising prices of raw materials and energy.
Aston Martin said it had difficulty meeting high levels of demand for new cars.
Lawrence Stroll, Aston Martin’s executive chairman, said: “The first half of the year was not without its challenges.
“Isolated but impactful supply chain shortages, particularly in the second quarter, resulted in lower wholesales and significant working capital headwinds.
“Specifically, we ended June with more than 350 DBX707s that we had planned to deliver in the second quarter, still awaiting final parts, consuming tens of millions in cash and temporarily limiting our ability to meet the strong demand we have.
“We have now started to deliver these vehicles in July and expect further improvements in the supply chain as we move through the second half of the year, supporting the delivery of our full year targets.
“As a result of the working capital build in the first half and our expected second half performance, we now expect to generate positive free cashflow in the second half, resulting in a significantly higher cash balance at year end.”
The brand acknowledged that the worsening cost of living could dent demand for its ultra-luxury vehicles as people hold back on making big-ticket purchases.
But supply chain issues should ease and production will ramp up to meet robust demand in the second half of the year, the company said.
Q&A with Jeremy Paxman
- Sewage discharge at more than 40 beaches after rainstorms
- Pikachus hit London hot spots for Europe’s first Pokemon World Championships
- Ryan Giggs breaks down in court describing night in cell as ‘worst experience’
- Double-digit inflation leaves families ‘worried sick’ over cost of living
- Priti Patel signs deal to send ‘foreign criminals’ back to Pakistan
- Cristiano Ronaldo given police caution after incident at Everton match
- Lamb found stuck in mud rescued and returned to flock