Aston Martin has reported a pre-tax loss of £216.7m for the six months to June 30, 2024.
The luxury car maker attributed the losses, which compare to a loss of £142.2m during the same period in 2023, to a fall in demand for high-end models.
The Warwickshire-based company saw revenue fall from £677.4m to £603m, according to new results filed with the London Stock Exchange.
READ MORE: {}
Aston Martin delivered 1,998 vehicles over the six months, a drop of almost a third year-on-year.
Executive chairman Lawrence Stroll said the company was at a "pivotal moment" as it prepares to launch a range of new models later this year, as reported by .
The Canadian billionaire described the move as an "immense product transformation," that would support volume growth.
He added: "In line with prior guidance, our execution in the first half of the year focused on the successful delivery of our new Vantage and upgraded DBX707 and we remain on track to deliver a strong second half performance,".
"This will be underpinned by a significant ramp up in wholesale volumes including both the new V12 flagship Vanquish and ultra-exclusive Valiant Special, which we recently unveiled at Goodwood with Fernando Alonso."
Most Read
Despite the losses, shares rose over seven per cent in mid-morning trading as earnings beat market expectations ahead of increased production later in the year.
Stroll is spearheading a significant transformation at the renowned luxury car manufacturer, known for its ties with the James Bond franchise. The company, which has a manufacturing plant in St Athan. South Wales, has been grappling with mounting debt since its 2018 IPO and has frequently turned to its shareholders for assistance.
Aston Martin maintained its medium-term forecast for the full year of 2027/28, expecting revenues of £2.5bn and an adjusted EBITDA of £800m.
"Earlier this year we successfully completed our 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," Stroll stated.
However, the magnitude of Aston's challenges will be a primary concern for Adrian Hallmark, the ex-CEO of Bentley who assumes the leadership role in September.
The company's electrification drive, a crucial aspect of its future strategy, will be under intense scrutiny.
Today, the automaker announced it had set aside £2bn over the next three years for its transition to more environmentally friendly fleets.
Don’t miss
This follows a series of significant announcements last year, including a £182m partnership with US-based EV manufacturer Lucid.
Orwa Mohamad, an analyst at Third Bridge, commented: "2024 is shaping up to be a challenging year for Aston Martin in terms of sales volume, due to the low demand for the SUV DBX and the lack of new product launches."
"Focusing on profitability recovery should be the top priority, followed by investing in new product line-ups and implementing cost-cutting measures. Halo products like the Valkyrie and the Valhalla are crucial to Aston Martin's long-term success. Although only a small volume is sold, these vehicles command very high prices."
Don't miss the latest news and analysis with BusinessLive's regular newsletters - sign up here for free.