Jaguar Land Rover announces steep rise in profit

VEHICLE manufacturer Jaguar Land Rover has seen a £113m rise in full year pre-tax profit, the company announced today.

For the year to March 31, 2015, the company delivered its fifth successive year of solid growth.

It sold 462,209 vehicles around the world in the fiscal year, generating revenue of £21,866m, up £2,480m on the previous year.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) increased to £4,132m, up £739m on the previous year, equivalent to an EBITDA margin of 18.9%, up 1.4 percentage points.

Pre-tax profit rose to £2,614m, up £113m, a figure which the company said reflected the higher EBITDA and lower net finance expense, partially offset by the effect of unfavourable revaluation of foreign currency debt and hedges, as well as higher depreciation and amortisation.    

Reflecting the company’s long-term development plans, capital expenditure and research and development investment for the year was £3,147m.

Commenting on the results, Dr Ralf Speth, JLR CEO, said: “Jaguar Land Rover has delivered five years of solid financial results, enabling us to invest in our long-term future. This has positioned the company strategically and financially for continued sustainable growth.

“The past year has been one of significant achievement, with the expansion of our vehicle ranges and our manufacturing footprint. We are committed to delivering further growth this year, maintaining our relentless pace of launching new models and introducing innovative technologies for our discerning customers around the world.”