Jaguar Land Rover announces big update as car giant 'enters next exciting phase'

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

Revenues for the 12 months to March 31 were £29.0 billion, which is JLR’s highest full year revenue and up 27 per cent compared to the previous year. Profit before tax and exceptional items (“PBT”) in the quarter was £661 million, up from £368 million a year ago.

EBIT margin was 9.2 per cent, up 2.7 percentage points compared to the prior year. The higher profitability year-on-year reflects increased volumes and reduced material costs, offset partially by increased marketing spend compared to a year ago. Profit after tax (“PAT”) in the quarter was £1.4 billion, compared to a profit of £259 million in the same quarter a year ago. Full year PBT was £2.2 billion, the highest since FY15, and full year PAT was £2.6 billion. PAT for the quarter and the year reflects the recognition of a deferred tax asset (DTA) of £1.0 billion, which has been recognised due to a reassessment of future recoverability of DTA relating to tax losses and allowances.

READ MORE: The full list of the best and worst Coventry secondary schools

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

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

JLR Chief Executive Officer Adrian Mitchell said: "This has been a year of great strategic progress at JLR and I would like to thank our clients, our people, our suppliers and partners for their role in our success. We have delivered a record financial performance for the company, generating free cashflow of £2.3 billion, enabling us to reduce net debt to £0.7 billion.

"The foundation of this performance was the sustained global demand for our modern luxury vehicles, led by our Range Rover and Defender brands, underpinned by a consistent focus on operational improvement. We are entering the next exciting phase of our Reimagine strategy which will see us bring to life our modern luxury electric vehicles and deliver an accompanying modern luxury experience for our clients, ensuring we continue to vigorously address the challenges we have encountered in 2024."