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HomeBusinessBentley bounces back from pandemic with record half-year profits

Bentley bounces back from pandemic with record half-year profits


Bentley introduced report half-year earnings because it bounces again out of the Covid-crisis with booming gross sales. 

A serious turnaround plan and an progressive well being technique helped maintain its present on the street by means of the pandemic.

The Crewe-based luxurious automobile agency says its working revenue of €178million (£151.51million) for the primary six months of this 12 months is bigger than any revenue determine it has posted for a full-year and together with hovering gross sales is ‘unmatched in Bentley’s 102-year historical past’.

Fuelled by in style fashions such because the Bentayga SUV, Continental GT, and new flagship Flying Spur, retail gross sales across the globe thus far elevated by 50 per cent from a pre-Covid determine in 2019 of 4,785 as much as 7,199 in 2021.

Bentley has introduced report half-year earnings and introduced

Bentley stated its income for the primary six months of 2021 was €1.32billion (£1.12billion) – up from a pre-Covid determine of €834.8 million (£710.85million) in 2019. 

It stated its working results of €178million (£151.51million) helped ship a report excessive return on gross sales of 13 per cent.

Gross sales have been ‘well-balanced’ between the marque’s three mannequin traces: the Bentayga SUV (2,767), Continental GT (2,318) and flagship Flying Spur (2,063).

Bentley’s 2021 monetary outcomes in comparison with 2020 and 2019
  HY2021 HY2020  HY2019   
Income  €1.32bn €860m  €834.8m   
Working outcome   €178m  -€99m  €56.9m   
Return on gross sales  13%  -12%  6.8%   
Supply: Bentley, appropriate as at 30 July, 2021

Absolutely electrical plans

The outcomes come simply as the corporate embarks on formidable plans to totally electrify its complete mannequin vary inside a decade, and with its first absolutely electrical automobile already within the pipeline. 

Bosses stated they have been on observe of their turnaround plan – referred to as Beyond100 – to being ‘financially resilient and recession-proof.’

However Bentley warned that the widespread and far criticised ‘pingdemic’ forcing workers to self-isolate risked placing the brakes on its accelerating efficiency – echoing wider considerations within the trade.

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

There are formidable plans to totally electrify Bentley’s complete mannequin vary inside a decade

Bentley defined: ‘To place these figures in context, Bentley’s earlier report half-year efficiency was in 2014, with a income of €887million and an working results of €95.2million. 

‘That 12 months closed as Bentley’s most profitable 12 months with a revenue of €170million, already exceeded on the half-year level 2021.’

Incomes important export earnings for the UK, 12 months on 12 months in opposition to the primary half of 2020 world gross sales have been up 46 per cent.

Even on the peak of the Covid disaster in 2020 – and with its personal office well being coverage in place – Bentley nonetheless managed to extend manufacturing by three per cent to 4,918 vehicles, although working earnings have been £99million within the purple and return on gross sales was minus 12 per cent, reflecting a loss on each automobile produced.

The automobile agency, which has gained awards for its Covid technique to maintain workers secure and manufacturing line operating, stated it stays ‘cautiously optimistic’ for the total 12 months however warned there have been nonetheless challenges ‘because of growing Covid-19 numbers and ensuing affect 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'

Within the driver’s seat? Bentley’s chairman and CEO Adrian Hallmark might be steered by the affect of the ‘pingdemic’

Saying its outcomes, the corporate stated: ‘Bentley Motors has immediately posted the corporate’s 2021 half-year efficiency, with gross sales and revenue ranges unmatched in Bentley’s 102-year historical past.

‘This consists of an working revenue of €178million, higher than any revenue determine posted for a full-year interval by the corporate. Furthermore, retail gross sales elevated by 50 per cent from a pre-Covid 2019 determine of 4,785 to 7,199 in 2021.’

But it surely harassed: ‘These constructive outcomes are in opposition to a backdrop of continued uncertainty which might negatively affect the second half of the 12 months. 

The growing Covid-19 numbers in lots of elements of the world might threaten future manufacturing within the worst-case, or see additional retail restrictions posing each a gross sales and monetary threat to forecasts.’

Pingdemic affect 

The Society of Motor Producers and Merchants warned yesterday that the pingdemic threatens to place the brakes on Britain’s motor trade after its weakest ‘regular’ June since 1953 – with some companies dropping as much as a 3rd of their employees.

Bentley is now a part of the large Volkswagen Group and, as a part of a latest inner re-organisation forward of higher electrification, now falls below the umbrella of group model Audi which already has a rising efficiency electric-car line up.

Earlier this month Bentley unveiled its new plug-in hybrid petrol-electric Flying Spur luxurious saloon which the agency hailed as ‘a big step’ on its street to its first absolutely electrical automobile in 2025 and a full electric-only vary by 2030.

International gross sales

Bentley stated its gross sales have been ‘extra evenly balanced’ throughout its 4 world market areas.

China (2,155 vehicles) was Bentley’s greatest promoting marketplace for the primary time in almost a decade, forward of the Americas (2,049), and adopted intently 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

China was Bentley’s greatest promoting marketplace for the primary time in almost a decade. Gross sales elevated by 73% to 2,155

Asia Pacific purchased 778 vehicles, with Bentley’s dwelling UK market contributing 554, simply forward of the Center East, Africa and India on 521. 

Bentley additionally elevated its dealership community to 240 retailers in 67 nations.

Bentley chairman and chief government Adrian Hallmark stated: ‘These outcomes are an essential milestone on our mission Beyond100, specifically to turn into the main sustainable luxurious mobility firm by 2030.

‘They’re the result of beneficial market circumstances, mixed with three years of arduous work inside Bentley, the place we now have reinvented our merchandise, restructured our operations, managed three crises, and outlined our 2030 technique.’

He added: ‘Now we have labored relentlessly to rework our complete organisation by means of productiveness enhancements and price efficiencies, and the double-digit return on gross sales is validation that we’re on the best path to allow a sustainable enterprise mannequin.’

However he harassed: ‘Whereas we have a good time these outcomes, we’re not taking the total 12 months outlook as a right as we all know there are nonetheless sizeable dangers to the year-end, notably the growing variety of colleagues having Covid enforced self-isolation intervals.’

‘Our monetary energy is a constructive signal and as we proceed on our greatest transformation and funding programme in historical past, Beyond100, absolutely electrifying our complete mannequin vary inside a decade, we proceed on observe with our purpose to turn into the world’s benchmark luxurious automobile enterprise, financially resilient and recession-proof.

The luxurious automobile agency famous: ‘This 12 months can even mark Bentley’s greatest 12 months of latest mannequin introductions, with 9 product debuts, two of which introduce hybrid energy within the type of the Bentayga Hybrid and Flying Spur Hybrid, supporting Bentley’s Beyond100 path to full electrification.’

Bentley stated its Bentayga SUV was its greatest vendor as full market availability was reached for the primary time. 

Petrol electrical Hybrid and sporty S fashions have additionally been introduced. 

Gross sales of its Continental GT ‘might attain report numbers’, boosted by introduction of the excessive efficiency velocity variant within the second half of the 12 months, it stated.

Bentley added: ‘The market launch of Flying Spur in China, now Bentley’s greatest gross sales area, contributed to the mannequin line’s share of 29 per cent of world gross sales additional helped by the addition of the V8 engine.’

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