Strong recovery sees auto group JLR post best nine-month sales in its history

Jaguar Land Rover reported its biggest revenues in a nine month period, today (February 2 2024).

In releasing its results for the three months to December 31, 2023, the luxury car marque, which has production plants at Halewood in Merseyside and Solihull and Castle Bromwich in the West Midlands, revealed its strong financial performance following the easing of the sector’s shortage of digital chips.

Turnover for the quarter was £7.4bn, up 22% versus the same quarter the previous year, and up eight per cent in the previous quarter, Q2 for the current 2024 financial year.

Revenues for the nine months to December 31, 2023 were £21.1bn – JLR’s highest ever revenue generation in the first nine months of a financial year and up 35% compared with the prior year.

Profit before tax and exceptional items in the quarter was £627m, up from £265m a year ago.

EBIT margin was positive at 8.8%, more than doubling from 3.7% a year ago. The higher profitability year-on-year reflects favourable volumes and reduced chip costs, offset partially by unfavourable fixed marketing, administration and foreign exchange revaluation compared with a year ago.

Profit after tax in the quarter was £592m, compared with a profit of £261m in the same quarter a year ago. Profit before tax year to date was £1.5bn and profit after tax, year to date, was £1.2bn.

Free cash flow for the period was £626m.

At the end of the quarter, total cash was £4.3bn and net debt was £1.6bn, with gross debt of £5.8bn.

Total liquidity was £5.8bn, including the £1.52bn undrawn revolving credit facility maturing April 1, 2026.

Looking ahead, the company said it is on track to achieve its profitability and cashflow targets.

The EBIT margin for financial year 2024 is expected to be more than eight per cent and the group said it continues to expect operating cashflow to support net debt of less than £1bn by the end of FY24 and positive net cash in FY25.

Range Rover Electric prototypes are being tested on the road while electric medium size SUV prototypes and new Jaguar prototypes are in development

Also, the transformation of JLR plants for EV production continues at pace.

A new £60m BEV underbody line at Solihull, West Midlands, UK, is being installed, a new body shop in Halewood, for electric EMA models, is near completion, and production lines for electric drive unit manufacture at Wolverhampton are progressing well.

CEO, Adrian Mardell, said: “We have delivered a further outstanding financial performance in quarter three, with our best quarterly profit for seven years and our highest ever revenue for the first nine months of a financial year.

“Sales of our modern luxury vehicles hit new records in the quarter, and we are excited about the strong client interest for our soon to launch Range Rover Electric.

“I must attribute these results to our talented and dedicated people, who work relentlessly to bring our exceptional modern luxury cars to the market.”

He added: “Looking ahead, we are mindful of the challenges the business will face, but we are confident that we will continue to successfully deliver our Reimagine Strategy.”

Chief financial officer, Richard Molyneux, said: “I am very pleased with our strong financial results this quarter and year to date, with record free cash flow reducing our net debt to £1.6bn.”