- Rising sales in UK and US contribute to revenues of £7.1 billion in Q4 and £24.2 billion for full year
- Encouraging demand for new models including Jaguar E-PACE, Jaguar I-PACE, Range Rover Velar and Range Rover Evoque
- Jaguar I-PACE first vehicle to win three World Car awards in a single year, as well as European Car of the Year, German Car of the Year and China Green Car of the Year
- Company returns to profitability with Q4 pre-tax profit of £269 million before exceptional items
- Fourth quarter pre-tax profit of £120 million after transformation costs
- Q4 cash flow of £1.4 billion, reflecting improved working capital and investment savings
- ‘Charge’ transformation programme on track with £1.25 billion of efficiencies
- Full-year pre-tax loss of £358 million before £3.3 billion of exceptional items (Q3 non-cash impairment and Q4 transformation costs)
- £3.8 billion invested in product development, new technologies, expanding manufacturing footprint and streamlining product creation process
Jaguar Land Rover Automotive plc today reported financial results for the fourth quarter and financial year ending 31 March 2019.
Over the financial year the company saw encouraging demand for new models including the Jaguar E-PACE sporty compact SUV, the Range Rover Velar mid-size SUV, the refreshed Range Rover and Range Rover Sport (both including plug-in hybrid options) and the all-electric Jaguar I-PACE. This helped lift unit sales in the UK by 8.4% and by 8.1% in North America, as Jaguar Land Rover outpaced industry growth in both markets. Land Rover was also the fastest-growing automotive brand in the US and Jaguar sales rose sharply in Europe. Continued weakness in China, however, led to a 5.8% decline year-on-year in retail sales to 578,915 vehicles.
Ongoing product launches have included the new Jaguar XE, to be followed by the refreshed Discovery Sport and the new Land Rover Defender. Jaguar Land Rover has also expanded its Ingenium engine family with the addition of a new high performance, low emissions six-cylinder petrol engine.
In the last quarter of the financial year Jaguar Land Rover returned to profitability. In the three months to 31 March, the company generated pre-tax profits of £269 million before exceptional items as the ‘Charge’ transformation programme delivered cost and cash improvements. After £149 million of redundancy costs as part of the ongoing transformation, pre-tax profit was £120 million. Revenues of £7.1 billion were down £421 million year-on-year as growing demand in key markets such as the UK and US helped offset weaker China market conditions. Operating cash flow of £1.4 billion reflected a strong working capital performance and lower investment spending.
In the 12-month period, the company made a pre-tax loss of £358 million before exceptional items, primarily as a result of lower full-year unit sales against the backdrop of a weaker China market. The previously-announced third quarter non-cash impairment charge of £3.1 billion and the redundancy costs taken in the fourth quarter contributed to a full-year pre-tax loss of £3.6 billion on revenues that declined £1.6 billion year-on-year to £24.2 billion. For the year, the Charge programme delivered £1.25 billion of cash savings and cost efficiencies.
Jaguar Land Rover continues to maintain a strong balance sheet with £3.8 billion of cash and an available £1.9 billion undrawn credit facility, resulting in £5.7 billion of total liquidity at the financial year-end.
Jaguar Land Rover has been one of the first companies in its sector to address the multiple headwinds simultaneously sweeping the automotive industry. We are taking concerted action to reduce complexity and to transform our business through cost and cash flow improvements. The company has returned to profitability in the fourth quarter and already delivered £1.25 billion of efficiencies and savings.
Prof. Dr. Ralf Speth
Jaguar Land Rover Chief Executive
Jaguar Land Rover is on track to make at least £2.5 billion of investment, working capital and profit improvements by March 2020 through its Charge transformation programme. The company has already delivered the first £1.25 billion, with £150 million of cost efficiencies, £400 million of working capital improvements and £700 million of investment savings achieved by March 2019.
As part of the ongoing transformation programme, the company continued to invest in its manufacturing footprint. Jaguar Land Rover opened a new plant in Nitra, Slovakia – producing the Land Rover Discovery – and enhanced its state-of-the-art flexible manufacturing in Halewood for the new Range Rover Evoque. Plans have been announced to assemble electric drive units and battery packs in the UK and invest in the production of the next generation of flagship Range Rover models at Solihull.
Work is underway at Gaydon, UK, to centralise Jaguar Land Rover’s automotive design and product engineering activities. New technology centres have been created in Shannon, Ireland, in Manchester, UK and in Budapest, Hungary.
These investments are focused on technology innovation, particularly in the company’s autonomous, connected and electrified future, with the development of all-electric, PHEV and MHEV models. Jaguar Land Rover’s electrification capabilities were reflected by the multiple awards for the pure EV Jaguar I-PACE, which became the first vehicle to win a hat trick of three World Car awards in one year. This was in addition to being named European Car of the Year, German Car of the Year and the China Green Car of the Year 2019, on top of many other accolades since it was revealed little more than a year ago.
Jaguar Land Rover is focused on the future as we overcome the structural and cyclical issues that impacted our results in the past financial year. We will go forward as a transformed company that is leaner and fitter, building on the sustained investment of recent years in new products and the autonomous, connected, electric and shared technologies that will drive future demand.