Jaguar Land Rover posts £2.6 billion pre-tax profit

Published: 27 May 2015

► Jaguar Land Rover announces £2.6bn profit
► 462,209 JLR vehicles sold in 2014-15
► Total revenues at £22bn as sales soar 

Jaguar Land Rover is celebrating this week with the announcement of a £2.6bn pre-tax profit in its full-year results for the 2014-15 fiscal year.

The company reported its fifth consecutive year of growth financial results. Key highlights include:

  • 462,209 Jaguars and Land Rovers sold
  • £2.6bn in pre-tax profits
  • £21.9bn total revenues
  • £4.1bn in earnings before interest, taxes, depreciation and amortisation (EBITDA)

Cash flow is looking positive, as group sales closed in on half a million vehicles, accounting for a £2.4bn jump in revenues to £21.8bn.

Jaguar Land Rover: the financial outlook for 2015 and beyond

JLR expects sales to continue climbing as it launches new models, such as the Jaguar XE, Land Rover Discovery Sport and Jaguar F-Pace crossover. In a market that demands continual innovation, new product is king and the company plans 50 'product actions' in the next five years, including a dozen new models, facelifts or upgrades in 2015.

However, analysts warn that future profits are likely to be stymied by the heavy R&D investment the company is making to tool up for future product expansion. Much of today's profits - and impressive 18.9% margins - come from the lucrative Range Rovers and Range Rover Sport cash cows; making serious bucks out of smaller compact execs and baby crossovers may prove more challenging.

Coventry management blamed unfavourable foreign currency debt and hedges for the modest £113m rise in pre-tax profits.

CEO Ralf Speth said: 'We are committed to delivering further growth this year, maintaining our relentless pace of launching new models and introducing innovative technologies for our discerning customers around the world.'

Read our Jaguar XE adventure drive to Gibraltar here.

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