1:20 pm, November 2, 2023
JLR has posted a record half-year revenue of £13.8bn – 42% up on last year’s £9.7bn.
The manufacturer also said today that the three months to September 30 – the second quarter of its financial year – brought in £6.9bn, which was a 30% increase on 2022’s figure.
The easing of supply constraints meant more vehicles were able to be delivered to customers, it said, while better pricing and a mix of models plus reductions in cost also played their part.
Meanwhile, profit before tax and exceptional items for Q2 was £442m, reversing last year’s £173m deficit with a £615m increase year on year. It was also up slightly on Q1’s £435m.
For the first half of the year, it was £877m, which again saw it back in the black after rising by more than £1.5bn on last year.
It shifted 96,817 vehicles during the quarter and 190,070 over the first half – both figures were 29% up year on year.
JLR’s EBIT margin for Q2 stood at 7.3%, which was up from 1.0% a year ago but slightly down from 8.6% in the first quarter. As such, it has increased its target margin for the full year to some 8%.
Meanwhile, free cashflow was £300m for the quarter and £751m for the financial year’s first half, which JLR said was its best H1 cashflow on record.
Chief executive Adrian Mardell said: ‘I am pleased to announce another strong quarter of financial and operational progress for JLR.
‘We have delivered our best-ever cashflow in the first half of this financial year and delivered another profitable quarter due to the strength of our financial performance.
‘These results demonstrate the huge desirability of our modern luxury product portfolio and the skill of our hard-working teams who have increased production to ensure we can satisfy the substantial demand for our cars more quickly.’
Chief financial officer Richard Molyneux commented: ‘I am very pleased with how our financial performance has developed in recent quarters, and as a result we are in a position to increase our target EBIT margin from 6%-plus previously indicated to around 8% for the full year.’
JLR said its order book was strong, with more than 168,000 orders by the end of the quarter. The Range Rover, Range Rover Sport and Defender accounted for 77% of them.
Looking ahead, it expects its net debt to go down to less than circa £1bn by the end of its current financial year.
