Bentley bounces back from pandemic with record half-year profits

Bentley announced record half-year profits as it bounces back out of the Covid-crisis with booming sales. 

A major turnaround plan and an innovative health strategy helped keep its show on the road through the pandemic.

The Crewe-based luxury car firm says its operating profit of €178million (£151.51million) for the first six months of this year is greater than any profit figure it has posted for a full-year and along with soaring sales is ‘unmatched in Bentley’s 102-year history’.

Fuelled by popular models such as the Bentayga SUV, Continental GT, and new flagship Flying Spur, retail sales around the globe so far increased by 50 per cent from a pre-Covid figure in 2019 of 4,785 up to 7,199 in 2021.

Bentley has announced record half-year profits and announced

Bentley said its revenue for the first six months of 2021 was €1.32billion (£1.12billion) – up from a pre-Covid figure of €834.8 million (£710.85million) in 2019. 

It said its operating result of €178million (£151.51million) helped deliver a record high return on sales of 13 per cent.

Sales were ‘well-balanced’ between the marque’s three model lines: the Bentayga SUV (2,767), Continental GT (2,318) and flagship Flying Spur (2,063).

Fully electric plans

The results come just as the company embarks on ambitious plans to fully electrify its entire model range within a decade, and with its first fully electric car already in the pipeline. 

Bosses said they were on track in their turnaround plan – called Beyond100 – to being ‘financially resilient and recession-proof.’

But Bentley warned that the widespread and much criticised ‘pingdemic’ forcing staff to self-isolate risked putting the brakes on its accelerating performance – echoing wider concerns in the industry.

There are ambitious plans to fully electrify Bentley’s entire model range within a decade

Bentley explained: ‘To put these figures in context, Bentley’s previous record half-year performance was in 2014, with a revenue of €887million and an operating result of €95.2million. 

‘That year closed as Bentley’s most successful year with a profit of €170million, already exceeded at the half-year point 2021.’

Earning vital export income for the UK, year on year against the first half of 2020 global sales were up 46 per cent.

Even at the peak of the Covid crisis in 2020 – and with its own workplace health policy in place – Bentley still managed to increase production by three per cent to 4,918 cars, though operating profits were £99million in the red and return on sales was minus 12 per cent, reflecting a loss on every car produced.

The car firm, which has won awards for its Covid strategy to keep staff safe and production line running, said it remains ‘cautiously optimistic’ for the full year but warned there were still challenges ‘due to increasing Covid-19 numbers and resulting impact on colleague self-isolation.’

In the driver’s seat? Bentley’s chairman and CEO Adrian Hallmark could be steered by the impact of the ‘pingdemic’

Announcing its results, the company said: ‘Bentley Motors has today posted the company’s 2021 half-year performance, with sales and profit levels unmatched in Bentley’s 102-year history.

‘This includes an operating profit of €178million, greater than any profit figure posted for a full-year period by the company. Moreover, retail sales increased by 50 per cent from a pre-Covid 2019 figure of 4,785 to 7,199 in 2021.’

But it stressed: ‘These positive results are against a backdrop of continued uncertainty which could negatively impact the second half of the year. 

The increasing Covid-19 numbers in many parts of the world could threaten future production in the worst-case, or see further retail restrictions posing both a sales and financial risk to forecasts.’

Pingdemic impact 

The Society of Motor Manufacturers and Traders warned yesterday that the pingdemic threatens to put the brakes on Britain’s motor industry after its weakest ‘normal’ June since 1953 – with some firms losing up to a third of their workers.

Bentley is now part of the giant Volkswagen Group and, as part of a recent internal re-organisation ahead of greater electrification, now falls under the umbrella of group brand Audi which already has a growing performance electric-car line up.

Earlier this month Bentley unveiled its new plug-in hybrid petrol-electric Flying Spur luxury saloon which the firm hailed as ‘a significant step’ on its road to its first fully electric car in 2025 and a full electric-only range by 2030.

Global sales

Bentley said its sales were ‘more evenly balanced’ across its four global market regions.

China (2,155 cars) was Bentley’s biggest selling market for the first time in nearly a decade, ahead of the Americas (2,049), and followed closely behind by ‘strongly performing’ Europe (1,142).

China was Bentley’s biggest selling market for the first time in nearly a decade. Sales increased by 73% to 2,155

Asia Pacific bought 778 cars, with Bentley’s home UK market contributing 554, just ahead of the Middle East, Africa and India on 521. 

Bentley also increased its dealership network to 240 retailers in 67 countries.

Bentley chairman and chief executive Adrian Hallmark said: ‘These results are an important milestone on our mission Beyond100, namely to become the leading sustainable luxury mobility company by 2030.

‘They are the outcome of favourable market conditions, combined with three years of hard work within Bentley, where we have reinvented our products, restructured our operations, managed three crises, and defined our 2030 strategy.’

He added: ‘We have worked relentlessly to transform our entire organisation through productivity improvements and cost efficiencies, and the double-digit return on sales is validation that we are on the right path to enable a sustainable business model.’

But he stressed: ‘While we celebrate these results, we are not taking the full year outlook for granted as we know there are still sizeable risks to the year-end, notably the increasing number of colleagues having Covid enforced self-isolation periods.’

‘Our financial strength is a positive sign and as we continue on our biggest transformation and investment programme in history, Beyond100, fully electrifying our entire model range within a decade, we continue on track with our aim to become the world’s benchmark luxury car business, financially resilient and recession-proof.

The luxury car firm noted: ‘This year will also mark Bentley’s biggest year of new model introductions, with nine product debuts, two of which introduce hybrid power in the form of the Bentayga Hybrid and Flying Spur Hybrid, supporting Bentley’s Beyond100 path to full electrification.’

Bentley said its Bentayga SUV was its best seller as full market availability was reached for the first time. 

Petrol electric Hybrid and sporty S models have also been announced. 

Sales of its Continental GT ‘could reach record numbers’, boosted by introduction of the high performance speed variant in the second half of the year, it said.

Bentley added: ‘The market launch of Flying Spur in China, now Bentley’s biggest sales region, contributed to the model line’s share of 29 per cent of global sales further helped by the addition of the V8 engine.’

This post first appeared on Dailymail.co.uk