The FINANCIAL — Jaguar Land Rover Automotive Plc today reported its results for the three-month period to December 31, 2015.
Retail sales of 137,653 vehicles were 23 percent up on the previous year’s third quarter, with Jaguar sales increasing 30 percent to 23,841 units and Land Rover rising 22 percent to 113,812 units, marking the strongest quarterly sales performance in the company’s history. Demand in the top three regions was almost 50 percent above the same quarter a year ago, with Jaguar Land Rover retail sales growth of 48 percent in Europe and North America and 47 percent in the UK. China was down 10 percent due to local market conditions and model transitions. Other overseas markets were up 6 percent overall, according to Tata.
Total revenues were £5.8 billion, 2 percent down on the same period of fiscal 2014/15.
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of £834 million, representing an EBITDA margin of 14.4 percent for the quarter. Although underlying earnings were down from the £1.1 billion reported for the same quarter of fiscal 2014/15, EBITDA for the latest three month period was up from £589 million in the second quarter, with Jaguar Land Rover offsetting the impact of less favourable mix and slower China sales through growth in other markets.
For the three months ending December 31, 2015, profit before tax was £499 million including a £30 million favourable exceptional item relating to the initial insurance payments for vehicles damaged in the 2015 Tianjin Port explosion. This compares to a profit before tax of £685 million for the same period of last year, largely reflecting the change in EBITDA year-on-year, and is significantly improved from the exceptional pre-tax loss reported in the second quarter.
Dr Ralf Speth, Jaguar Land Rover CEO, said: “We have reported solid revenues and profits in our latest financial quarter, reflecting very positive customer demand for our new and refreshed line-up of vehicles. With announcements of our plans to build a plant in Slovakia and double capacity at our UK Engine Manufacturing Centre, we have continued to invest for the long term. Jaguar Land Rover remains well positioned to deliver sustained profitability as we maintain our consistent strategy to shape the future of the company.”