Described as demonstrating “strong growth, robust financial results and continuous investment in [the] future”, the Tata-owned firm reported operating profit of £4.1 billion – 21.8% up (that’s £739 million) on the same period last year.
This represents a margin of 18.9% – profitability not even Porsche can match.
Premium car makers normally post margins half that of JLR’s 2014/15 performance. Volume car brands are normally pleased with a 5% margin.
Sales up big, profit up less
JLR sold 462,209 vehicles in 2014/15, which drew in revenue of £21.8 billion. This was a hefty £2.4 billion increase on the previous fiscal year.
Profit before tax, however, ‘only’ grew £113 million, to £2.6 billion. This, says the company, was because of unfavourable foreign currency debt and hedges. It also depreciated and amortised more equipment.
The company invested a mighty £3.1 billion in R&D.
JLR CEO Dr Ralf Speth said: “Jaguar Land Rover has delivered five years of solid financial results, enabling us to invest in our long-term future. This has positioned the company strategically and financially for continued sustainable growth.
“The past year has been one of significant achievement, with the expansion of our vehicle ranges and our manufacturing footprint.”
And the year ahead? “We are committed to delivering further growth this year, maintaining our relentless pace of launching new models and introducing innovative technologies for our discerning customers around the world.”
Those launches include customer deliveries of the five-star new Jaguar XE, the all-new Jaguar XF and the introduction of new engines into the Land Rover Discovery Sport.
What do you make of the great British success story that is Jaguar Land Rover? Share your thoughts below