Automotive giant Jaguar Land Rover reports quarterly pre-tax profits of £627m – its highest three-month figure since 2017. Tony McDonough reports
Carmaker Jaguar Land Rover (JLR) saw pre-tax profits hit £627m in the three months to December 31, 2023 – its highest quarterly figure since 2017.
During the three-month period, the third quarter of its fiscal year, JLR saw revenues hit £7.4bn, 22% higher than the same period last year. The pre-tax profit figure was up from £265m in 2022.
Revenues for the nine months to December 31 were £21.1bn – JLR’s highest ever revenue generation in the first nine months of a financial year and up 35% compared to the prior year.
JLR operates the Halewood factory in Merseyside where more than 3,500 workers assemble the Range Rover, Evoque and the Land Rover Discovery Sport. It has pledged a £15bn investment to create a new generation of electric vehicles.
Its higher profitability year-on-year reflects favourable volumes and reduced computer chip costs, offset partially by unfavourable fixed marketing, administration and FX revaluation compared to a year ago.
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 a £1.52bn undrawn revolving credit facility.
JLR says it is on track to achieve its profitability and cashflow targets. In early January it reported wholesale volumes in the third quarter were 101,043 vehicles (excluding the Chery JLR China JV), up 27% year-on-year.
Retail sales for the quarter were 109,140 units (excluding the Chery JLR China JV), up 29% year-on-year and up 2% compared to the quarter ended September 30.
Chief executive Adrian Marvel 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.”