Aston Martin Q2 Loss Widens; Amends Cooperation Agreement With Mercedes-Benz

Aston Martin Lagonda Global Holdings plc (AML.L) reported that its second quarter loss widened to 177.8 million pounds from 29.3 million pounds in the same quarter last year.

Loss before tax for the quarter also widened to 173.8 million pounds from 48.5 million pounds in the prior year.

Revenues for the quarter grew to 309.0 million pounds from 274.4 million pounds in the previous year.

Aston Martin announced a mutually-agreed amendment to the strategic cooperation agreement with Mercedes Benz. The agreement extends the timeframe for the Company and Mercedes to agree additional technology requests by 12 months, with the corresponding tranche 2 share issuance related to the second basket of Mercedes technologies to be accessed under the earnings for stocks, including BEVs, to take place by July 2024.

Aston Martin stated that the amendment does not impact its access to the technologies, subject to reaching a commercial agreement, or change the timeline for first BEV, which it continues to target for launch in 2025.

Aston Martin said it remains on track to achieving its medium-term targets of about 10,000 wholesales, about 2 billion pounds revenue and 500 million pounds adjusted EBITDA by 2024/25.

For 2022, Aston Martin continues to expect to deliver significant growth on 2021 with an about 8% increase in core volumes expected to deliver an about 50% improvement in adjusted EBITDA from the core business.

For the second half of 2022, the company expects strong year-on-year wholesale volume growth, supported by easing supply chain dynamics, robust demand, as well as the production ramp-up of the DBX707 and the V12 Vantage.

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