Aston Martin Lagonda reported lower first-quarter earnings as the automaker boosted spending on new models and sales in the UK and mainland Europe declined.
Adjusted earnings before interest, tax, depreciation and amortization fell 35 percent to 28.3 million pounds ($37 million), the automaker said Wednesday. Analysts had expected a 31-million-pound profit, based on company-collated estimates.
Revenue rose 6 percent to 196 million pounds ($252.98 million).
The company reported an adjusted operating loss of 2.2 million pounds, compared with a profit of 22 million pounds a year earlier.
Costs at Aston Martin rose as the automaker pumped cash into the development of a new model range as it seeks to replicate Ferrari's success in moving toward higher-volume carmaking. It also increased spending on marketing the latest products.
A new factory in St Athan, Wales, began production trials on April 15. The plant is regarded as key to future growth as it will build both the DBX, the company's first SUV, and a lineup of electric models.
The company sold more than 1,000 cars in the three months and said it is on course to reach a target of 7,100 for the year. That will take it more than halfway toward a 2023 target of 14,000 sales.
Vehicle sales fell 9 percent in the UK, where delays to Brexit have stunted demand, and 4 percent in mainland Europe in the first three months. By contrast, sales in China surged 29 percent and in the Americas by 20 percent.
The company's performance "reflects the higher than usual dealer inventory levels at the start of the year, particularly in the UK and Europe given the late December deliveries due to fourth quarter supply chain disruption," Aston Martin said.
"We remain conscious of the challenging external environment in certain of our markets and we have taken this into account in our planning while ensuring we do not compromise on delivery," CEO Andy Palmer said while affirming full-year prospects.
Aston Martin's stock has lost half its value compared with a 19-pound IPO price in October, hitting an all-time low on Tuesday.
The decline has fostered concern that the stock was oversold and is a far cry from gains at Ferrari, which is more profitable with a stronger balance sheet and earnings multiples akin to luxury-goods companies.
Reuters contributed to this report
