Jaguar Land Rover announces major update as auto giant ‘enters exciting next phase’

Jaguar Land Rover (JLR) has announced another record financial performance in the three months to 31 March. Revenue for the quarter was £7.9bn, up 11%.

Revenue for the 12 months to March 31 was £29.0bn, JLR’s highest ever full year and up 27% on the previous year. Profit before tax and exceptional items (“PBT”) in the quarter was £661m, up from £368m a year ago.

The EBIT margin was 9.2%, up 2.7 percentage points from the previous year. The higher year-over-year profitability reflects increased volumes and lower material costs, partially offset by higher marketing expenses compared to a year ago. Profit after tax (“PAT”) in the quarter was £1.4 billion, compared with a profit of £259 million in the same quarter a year ago. Full-year PBT was £2.2bn, the highest since FY15, and full-year PAT was £2.6bn. PAT for the quarter and year reflects the recognition of a deferred tax asset (DTA) of £1.0 billion, which was recognized as a result of a reassessment of the future recoverability of the DTA in relation to tax losses and deductions.

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Free cash flow for the quarter was £892m and £2.3bn for the full year, the highest cash flow ever recorded. At the end of the quarter, the cash balance was £4.2bn and net debt £0.7bn, with gross debt £4.9bn. Total liquidity was £5.7 billion, including the unused £1.5 billion revolving credit facility, which matures on 1 April 2026.

The order book was around 133,000 vehicles at the end of the financial year, of which 76% were for the Range Rover, Range Rover Sport and Defender models. As expected, the order book gradually reduced during the year as customer orders were fulfilled.

JLR chief executive Adrian Mitchell said: “This has been a year of great strategic progress at JLR and I would like to thank our customers, our people, suppliers and partners for their part in our success. We delivered a record financial performance. for the company, generating free cash flow of £2.3bn, enabling us to reduce net debt to £0.7bn.

“Underlying this performance was sustained global demand for our modern luxury vehicles, led by our Range Rover and Defender brands, supported by a constant focus on operational improvement. We are entering the next exciting phase of our Reimagine strategy, which will see us we are bringing our modern luxury electric vehicles to life and providing our customers with an accompanying modern luxury experience, ensuring that we continue to firmly address the challenges we face in 2024.”