Losses shrink at JLR in full fiscal year results

JLR, formerly known as Jaguar Land Rover, posted better results for the FY23 fiscal year than the year before.

It posted an EBIT (earnings before income and taxes) margin of 2.4 per cent for the full fiscal year of 2023, an improvement over the negative 0.4 per cent EBIT margin for FY22.

Free cash flow was also in the black at £521 million (A$972 million).

Not every figure was positive, with an overall loss after tax of £60 million (A$112 million). However, that was still £762 million (A$1.42bn) better than a year ago.

Revenue was up 25 per cent against FY22 to £22.8 billion (A$42.562bn), with JLR citing improved chip supply.

JLR also says it reduced net debt to £3.0 billion (A$5.6bn) with cash of £3.8 billion (A$7.09bn).

It says it has total orders of 200,000, with the Range Rover, Range Rover Sport and Defender representing 76 per cent of the order book.

Retail sales for the full year were 354,662, down six per cent compared to the previous year.

“For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6% and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3 billion,” said JLR interim CEO Adrian Mardell.

“With the collective strength of our people, we will continue to deliver our Reimagine strategy.

“Demand for our exceptional modern luxury vehicles remains strong and with a pipeline of ultra-desirable electrified models on the horizon, I am excited and confident for our future.”

JLR is investing £15bn (A$28bn) over five years in its electrification and digital transformation, which includes converting the Halewood plant in the UK to electric vehicle production.

While JLR only has one electric vehicle at present – the Jaguar I-Pace – its first electric Range Rover will be available for pre-order later this year.

Next year, the first of three new electric Jaguars – a four-door grand tourer – will be unveiled as the brand transitions to having an EV-only line-up by 2025.

The replacements for the current Land Rover Discovery Sport and Range Rover Evoque and Velar are expected to be electric-only, moving to the new EMA architecture.