Currently reading: Jaguar Land Rover back in profit following global sales uptick
Company's sales were up 53.3% in second quarter of 2020 as customers returned to reopened dealerships
Felix Page Autocar writer
News
2 mins read
27 October 2020

Jaguar Land Rover (JLR) has recorded a profit for the first time in 2020, citing a recovery from the impact of the pandemic-induced downturn that decimated its sales in the first quarter. 

The manufacturer's latest financial report shows that retail sales were up 53.3% in the second quarter of the year, with 113,569 cars sold.

The majority of JLR dealerships are now back in operation, following a near-universal shutdown that led to just over 74,000 units being sold in the first quarter.

Factors in the growth include a 14.6% quarterly increase in Chinese sales and strong demand for the new Land Rover Defender, which sold 4508 units in September alone.

Overall revenue generated from March to September - excluding that of JLR's Chinese joint venture - totalled £4.4 billion, which is up 52.2% on Q1 but down 28.5% year on year as a result of the pandemic.

The firm recorded a £65 million pre-tax profit, compared to a loss of £413m in the previous quarter. 

JLR lists "the recovery in sales, Project Charge+ cost efficiencies and favourable foreign exchange impact" as the driving forces behind its uptick. It also notes that profit margins were improved, with earnings before interest, taxes, depreciation and amortisation (EBITDA) at 11.0%. 

Some £0.6bn was generated through savings as part of the company's Project Charge+ transformation programme, which JLR says means it is "on track to achieve the £2.5bn target for the full year ending 31 March 2021".

JLR's chief financial officer, Adrian Mardell, said: "We were pleased to see sales, profitability and cash flow significantly improve in fiscal Q2 from the prior quarter. While sales and profitability haven't fully recovered to pre-pandemic levels in most markets, it was particularly encouraging to see China sales up year on year and global sales of the new Land Rover Defender starting to ramp up.

"The Charge+ cost and cash efficiency programme also contributed significantly to the better results in the quarter. Charge+ remains on track to deliver £2.5bn of saving this year and, with continued strong liquidity, Jaguar Land Rover is well-placed to benefit from further market recovery in the second half and beyond."

The firm expects sales to gradually improve following the introduction of the new short-wheelbase Defender 90, plus updated versions of the Range Rover Velar and Jaguar F-Pace, XE and XF.

In addition, the firm will launch another new plug-in hybrid model and a pair of new mild-hybrid options before the end of the year. 

Read more

Jaguar Land Rover reports "significant impact" of Covid-19 as Q1 losses mount (from July)

Range Rover Velar gains new engines and PHEV option for 2021​

Updated Jaguar F-Pace gains new interior and plug-in hybrid​

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cambuster 29 October 2020

My "submission rejected due to embedded links"..

........which my message does not have. Would appreciate an explanation please?

Bar room lawyer 28 October 2020

Every. conceivable write down and

possible management accounting loss was "kitchen sinked" into last years mega losses. It is hardly surprising profits have returned now.

How good the new models that will come along turn out to be is what will keep the profits flowing in (or not if they are not what customers want.)

Citytiger 27 October 2020

So basically

JLR lost loads of sales because one of its biggest sellers was the Discovery 4 which was replaced the dog that is the Discovery 5, and the customers didnt buy it, so they have released the new Defender which is what the Discovery 5 should have been and customers are buying it again.. 

xxxx 28 October 2020

usual rubbish citytiger

See lots of Discoveries, know someone on their second and they love it. Defender is a different car, can never understand why you find it so confusing

catnip 28 October 2020

xxxx wrote:

xxxx wrote:

See lots of Discoveries, know someone on their second and they love it. Defender is a different car, can never understand why you find it so confusing

I don't know the figures but I'd be surprised if Discovery 5 sells anywhere near as well as Discovery 4. If you're paying that sort of money you shouldn't have to put up with something as amateurly styled, and its noticeable that most articles about the fortunes of JLR hardly give the model a mention.

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