Jaguar Land Rover: Profit suffers £100m reverse despite sales rise
Jaguar Land Rover (JLR) has revealed its pre-tax profit reversed by more than £100m during its latest quarter despite a rise in sales.
The automotive giant has posted a pre-tax profit of £523m for the final three months of 2024, down from the £627m it reported during the same period in 2023.
However, despite the fall during the third quarter of its financial year, Jaguar Land Rover’s pre-tax profit for the 12 months to date stands at £1.6bn, up seven per cent year on year.
The group added that the current total is the best year-to-date figure it has reported at the end of its third quarter for a decade.
Jaguar Land Rover also said that its EBIT [earnings before income tax] margin, nine per cent, is also the best for its third quarter for ten years.
In December, Jaguar revealed a first look at its new electric concept car following a world-wide backlash.
In a statement, JLR said the increase in its year‑on‑year profitability “reflects higher volumes, improved mix and a reduction in depreciation and amortisation driven by Castle Bromwich production cessation and ICE end of life extensions, partially offset by an increase in VME, warranty costs and unfavourable FX revaluation”.
Jaguar Land Rover added: “Looking ahead, while mindful of the challenging economic backdrop, the company is on track to achieve its profitability and cash flow targets in FY25, with EBIT margin ≥8.5 per cent and positive net cash.”
In November 2024, City PM reported that JLR’s pre-tax profit accelerated by 25 per cent during the first half of its financial year despite its revenue flatlining.
The group posted a profit of £1.1bn for the first six months of its year to the end of September 2024. However, its revenue remained at £13.7bn.
Chief executive Adrian Mardell said: “JLR has delivered a robust performance in the third quarter of our financial year, and reached further milestones in our Reimagine strategy.
“Thanks to our people and partners, we achieved record Q3 revenue and our best EBIT margin in a decade, and our electrification plans are progressing.
“We revealed the beautiful, reimagined Jaguar design vision ‑ Type 00 ‑ in Miami and, later this year, we will launch Range Rover Electric.