Currently reading: Jaguar Land Rover posts £439m pre-tax profit in final quarter of 2020
Sales boosts in several markets helped kick-start financial recovery from pandemic
Autocar-Felix-Page
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3 mins read
29 January 2021

Jaguar Land Rover (JLR) reported pre-tax profits of £439 million in the final quarter of 2020, a boost of £374m over the preceding three months. 

The company said its figures for the third quarter of the fiscal year (October-December 2020) reflect its best-ever third quarter cash flow on record, with profits up £121m year on year. 

Car sales in most regions increased as global markets began to reopen following the easing of lockdown measures, with JLR's 128,469 sales up 13.1% on the previous quarter. However, the company notes that sales were still 9% lower than in the final three months of 2019, before the pandemic took hold. 

A 20% quarterly sales boost in China - one of the brand's biggest markets - is cited as a significant factor in the recovery, and while most regions recorded a year-on-year drop, China was up 19.1% on 2019. 

Overall, JLR generated £6 billion in revenue in the quarter, up £1.6bn on the second fiscal quarter but £300m less than in the same period in 2019. It lists a "favourable sales mix, cost performance and partial reversal of prior-period reserves for emissions and residual values" as factors in the partial recovery. It paid £37 million in 'exceptional charges', including £35 million allocated to EU fleet CO2 emissions fines, down from an allocated £90 million in 2020 as a result of the marque's increasingly large electrified vehicle offering. 

The new Project Charge+ transformation initiative saved JLR £400m across the quarter, half in costs and half in "investment efficiencies". For the year to date, the company has saved £2.2bn and says it is on track to achieve its £2.5bn sales target by the end of the financial year, on 31 March 2021.

In the same period, free cash flow totalled £562m, cash and short-term investments rose to £4.5bn and total liquidity stood at £6.4bn, including £1.9bn in undrawn credit facility.

Looking ahead, the company says it is "encouraged" by the agreement of a UK-EU trade deal, although it notes the risks posed by increased border administration procedures and welcomes the news that recent approved vaccines could bring an end to the pandemic. 

JLR has introduced several new and updated models to the market in recent months and now has 20 electrified cars - eight PHEVs, 11 MHEV-equipped options and the fully electric Jaguar I-Pace - in showrooms. It expects sales to increase gradually as a result and for its final results for the 2020/21 financial year to reflect strong profit margins and positive free cash flow. 

CEO Thierry Bolloré, ending his first full quarter at the helm of the British manufacturer, said: "This performance is a credit to the outstanding efforts of the employees of Jaguar Land Rover to overcome many challenges this year and I would like to thank every one of our colleagues for their contribution, particularly those who are working safely in our plants and facilities.

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"Looking ahead, these challenges continue, including the Covid pandemic and its impact on the global economy, the UK’s new trading relationship with the EU and the significant technological changes taking place in the automotive industry. 

"In this environment, I’m working with my management team on plans to realise an exciting future for Jaguar Land Rover, which I look forward to sharing in due course.”

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CharlieBrown 29 January 2021

A good result but I think you'll find most of the OEMs had a good quarter but the elephant in the room with these results is that they have reduced investment as part of the cost savings hence delaying the much needed Jaguar XJ and other battery electric cars so will still be in catch up mode

jonboy4969 31 January 2021

Not been delayed it was always mooted to be on sale by Q2 2021, so loads of time yet

xxxx 29 January 2021

Strange hows there's few commentators when things go well for jlr, but when they do not the knives come out. Just saying.

peetee 29 January 2021
xxxx wrote:

Strange hows there's few commentators when things go well for jlr, but when they do not the knives come out. Just saying.

They can claim to have made a profit and no doubt auditors support them but the fact remains that in the short / medium term they will fail to repeat such claims. EVs are now leading the market and whilst JLR may claim to have 20 electrified cars only one, the iPace, stands much of a chance of appealing to all those buyers eschewing both diesel / petrol cars  the fact is the iPace is a total flop. 

Peter Cavellini 29 January 2021
peetee wrote:

xxxx wrote:

Strange hows there's few commentators when things go well for jlr, but when they do not the knives come out. Just saying.

They can claim to have made a profit and no doubt auditors support them but the fact remains that in the short / medium term they will fail to repeat such claims. EVs are now leading the market and whilst JLR may claim to have 20 electrified cars only one, the iPace, stands much of a chance of appealing to all those buyers eschewing both diesel / petrol cars  the fact is the iPace is a total flop. 

EV's leading the Market?, when did that happen?, worst car sales since 1984?, don't think Ev's own the roads yet.

peetee 30 January 2021

Leading the market, not dominating.  

YTD SALES

Diesel -  55% Petrol -  39% BEV   + 185%

SOURCE SMMT December 2020

 

xxxx 30 January 2021
peetee wrote:

xxxx wrote:

Strange hows there's few commentators when things go well for jlr, but when they do not the knives come out. Just saying.

They can claim to have made a profit and no doubt auditors support them but the fact remains that in the short / medium term they will fail to repeat such claims. EVs are now leading the market and whilst JLR may claim to have 20 electrified cars only one, the iPace, stands much of a chance of appealing to all those buyers eschewing both diesel / petrol cars  the fact is the iPace is a total flop. 

Oh dear someones upset about jlr upbeat accounts, ipace a flop, you really know nothing about cars or accounting.

jonboy4969 31 January 2021

YAWN - you talk total C-R-A-P, they have made money in each of the quarters, or are you saying they are lying to the Tax office, Government, shareholders and banks, they have a cash reserve of BILLIONS, they are investing BILLIONS, they have had every car in both ranges get either replaced, or refreshed within the last 18 months, and are not onto the next gen cars, they are looking good, believe me, its idiots like you that continue to put the boot in, i suspect you couldnt afford one if you wanted one, probably got a chaved up Corsa, they are doing very well, and apart from the write down (which all companies worldwide do) they have been successful year after year after year for over a decade.We can see you dont accept it, thats fine, but your post says more about you than it does about JLR.

jonboy4969 31 January 2021

Oh yes forgot to say - ROFL - at the iPace flop comment, they are selling every one they can produce, there is a wait list for them, and before you say there are loads on my local Jag forecourt, YES, thats because the dealer ordered them, the days of brand foisting cars has gone, everything is built to order apart from launch cars, the iPace has been a success in every country it has been launched in. NOW THATS A FACT

Bimfan 29 January 2021

On the face of it positive news from JLR. However, reading between the lines and carefully chosen wording, other than China sales doing well, maybe not quite as good as it appears.