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Tuesday, May 7, 2019

2018 McLaren’s financial results



McLaren’s financial results have made for interesting reading of late, with the company announcing that it had revenues of $1,643 million in 2018, up from $1.132 million in 2017, an increase of 45 percent, thanks to road car sales that leapt from 3,340 in 2017 to 4,829 last year. There was particularly impressive growth in China, which was up 141 percent, with the Asia Pacific region up 57 percent, Europe up 43 percent and North America up 42 percent.

However, when the various divisions are considered separately, there was a rather shocking story with McLaren Racing recording a drop in revenues of around $172 million, compared to the previous year’s $272 million, a drop of $100 million, or around 37 percent. This was caused by the loss of prize money, sponsors and specifically financial support from Honda. There were increased costs as well with the need to buy Renault engines. This meant that despite the sale of “heritage cars” (worth $13 million), the team ended up with a loss of $125 million.

In the overall scheme of things, the company continued to invest in new model development and now employs 3,800 people.

The word in F1 circles is that the team owners (primarily Bahrain’s Mumtalakat investment company, which owns 57 percent of the shares) wants to stop the losses and produce better results in 2019.

Source: JSBM 18-19

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