Tata-owned Jaguar Land Rover has reported results for the year to the end of March 31 that show its retails sales up 13% and in excess of 500,000 for first time. However, earnings before tax were down on the previous year’s record on less favourable product and market mix, the effects of the Takata airbag recall in US and currency effects.
Vehicle retail sales rose 13% to 521,571 as the company said its expansion was helped by an expanded portfolio of products including the Land Rover Discovery Sport, Jaguar XE and XF.
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JLR said that the combination of an increased demand for new models and solid growth in markets including Europe, North America and the UK, helped support full-year financial revenues of GBP22.2bn, up GBP342m on the previous 12-month period.
For the fiscal year, Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was GBP3.31bn with a margin of 14.9% before one-time reserves and charges of GBP166m, including a recall in the United States of potentially faulty passenger airbags supplied by Takata, a doubtful debt and previously capitalised investment (EBITDA as reported GBP3.15bn with 14.2% margin). EBITDA is down from a record GBP4.13bn a year ago; JLR said that was due primarily reflecting less favourable market and product mix, especially in the first half of the year and unfavourable FX revaluation.
Profit Before Tax was GBP1.56bn after an exceptional charge for the Tianjin Port explosion of GBP157m (net of insurance and other expected recoveries to date) with strong free cash flow of GBP791m after total investment spending of GBP3.14bn. Profit before tax was down from GBP2.6bn last year, primarily reflecting market conditions during the first half of the year, JLR said – especially in China, model mix and continued investment.
JLR said that in a particularly strong fourth quarter, retail sales reached 158,813 vehicles, up by 28% when compared to the previous quarter last year.
Dr Ralf Speth, Jaguar Land Rover Chief Executive Officer, said: “Jaguar Land Rover has produced and sold more cars than at any time in our history. We are now the largest automotive manufacturer in the United Kingdom and our vehicles have received more than 140 awards across the range for design, technology, safety and environmental sustainability.
“During this fiscal year, we have delivered sustainable, profitable growth and introduced new models – such as the Discovery Sport, Jaguar XE and XF – that have redefined their market segments.”
“Furthermore, we are on track to deliver even more sensational products that will underpin the future performance of the business.”
