Jaguar Land Rover Hit Record Q1 Revenue
The positive momentum in Jaguar Land Rover’s (JLR) financial performance continued in Q1 FY25, driven by higher wholesale volumes, investment in demand generation, and a favourable pricing environment.
Adrian Mardell, Chief Executive Officer at JLR, states: “Our strong financial performance is allowing us to invest in our sustainable future, to invest in skills and training for our people, and to invest in creating truly modern luxury experiences for our clients.”
Record-breaking revenue
Revenue for the quarter was an impressive US$9.3bn (£7.3 bn), marking the best Q1 revenue on record for JLR. It represents a 5% increase compared to Q1 FY24. However, revenue was down 7% from Q4 FY24, reflecting fewer production weeks in Q1 FY25 compared to the previous quarter.
Increased Profitability
Profit before tax and exceptional items (PBT) for the quarter was US$884m (£693m), a significant rise from US$556m (£435m) a year ago. The EBIT margin increased, reaching 8.9%, up 0.3 percentage points from Q1 FY24. The higher profitability year-on-year reflects favourable volume, mix, and material cost improvements, although it was partially offset by increased marketing expenditure.
Profit after tax (PAT) for the quarter was US$641m (£502m), compared to US$412m (£323m) in the same quarter a year ago.
Strong cash flow and improved net debt position
Free cash flow for the quarter was US$293.5m (£230m). At the end of the quarter, JLR’s cash balance stood at US$4.85bn (£3.8bn), with net debt at US$1.28bn (£1.0bn) and gross debt at US$6.1 bn (£4.8 bn).
The net debt position improved by US$1.9 bn (£1.5 bn) year-on-year, despite being US$3.8m (£300m) higher than Q4 FY24 due to the annual dividend payment of £387m to TML Holdings Pte. Ltd (“TML”) and other non-operating items totalling US$122m (£96m).
Total liquidity was US$6.7bn (£5.3bn), including a US$4.9bn (£1.5bn) undrawn revolving credit facility maturing on 1 April 2026.
Outlook and Challenges
Looking ahead, JLR anticipates constrained production in Q2 and Q3 due to the annual summer plant shutdown and floods at a key aluminium supplier. Despite these challenges, the company maintains its guidance on key full-year financial deliverables, aiming for an EBIT of over 8.5% and achieving net cash.
Adrian acknowledges the efforts of the entire JLR team: “I would like to thank my colleagues for their continued hard work and determination as we transform our business and I thank our clients for sharing their passion for our luxury vehicles.”
Reimagine Strategy: A Vision for the Future
JLR’s strong Q1 performance is a testament to the successful implementation of the Reimagine Strategy. The strategy aims to set a new benchmark for environmental, societal, and community impact within the luxury automotive sector.
Electrification and sustainability goals
Under the Reimagine Strategy, Jaguar will become an all-electric luxury brand by 2025. Over the next five years, Land Rover will launch six pure electric variants, blending cutting-edge technology with timeless design. The strategy emphasises modern luxury, electrification, sustainability, and enterprise, and it aims to integrate advanced connected services, sustainable materials, and circular economy principles to minimise environmental impact throughout the vehicle lifecycle.
Investment in skills and training
A core element of JLR’s strategy is investing in skills and training. To date, 20,000 employees have been trained in electrification and digital skills. Additionally, 95% of retail partner technicians are now EV trained, preparing them for the upcoming electric vehicle launches.
Commitment to a Sustainable Future
JLR’s Q1 FY25 performance highlights solid financial results and underscores the company’s commitment to a sustainable future. Through continued investments in people, technology, and sustainability initiatives, JLR is poised to lead the luxury automotive industry into a new era of modern luxury experiences and environmental stewardship.
**************
Make sure you check out the latest edition of EV Magazine and also sign up to our global conference series - Sustainability LIVE 2024
**************
EV Magazine is a BizClik brand