JLR still in the red

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JLR reports another strong quarter but is still in the red

Driven by higher wholesales, better mix, cost reductions and investment in demand generation, Jaguar Land Rover has reported a record half-year revenue of £13.8bn – 42 per cent up on last year’s £9.7bn. JLR has also posted the second quarter of its financial year brought in £6.9bn, a 30 per cent increase on 2022’s figure.

JLR’s EBIT (earnings before interest and tax) margin for Q2 was 7.3 per cent, up from 1 per cent a year ago but slightly down from 8.6 per cent in the first quarter. Yet it has improved its target margin for the full year to 8 per cent.

Free cashflow was £300m for the quarter and £751m for the financial year’s first half, which JLR said was its best H1 cash flow on record.

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The order book remains strong with over 168,000 client orders at quarter end, with Range Rover, Range Rover Sport and Defender continuing to make up a significant portion, accounting for 77 per cent of the order book overall.

Looking ahead, production and wholesale volumes are expected to gradually increase in H2 FY24. JLR is expecting Free Cash Flow of over £2bn in FY24 with net debt reducing to less than c.£1bn by the end of FY24.