Carmakers would want to make profits as long as they can. After all, the business of building vehicles is a capital-intensive venture, as carmakers may need to spend millions of dollars to ensure they can operate. Once they took costs and expenses into account, carmakers would want nothing but see positive numbers in their financial statements.
Sadly, though, a carmaker might run out of money, and if things go from bad to worse, it might become bankrupt. The reasons could be diverse – an unpopular vehicle lineup, massive recalls, and even corporate mismanagement. Moreover, continuing challenges such as the COVID-19 pandemic and uncertainty in the global economy might hurt the company’s sales and profit.
Bentley Motors isn’t exempt from the problems hounding the global automotive market. With a strong presence in most parts of the world, Bentley is bound to the effects of various global events and even regional issues.
Nevertheless, the British premium carmaker managed to weather the storm and looks ready to end 2022 with a strong sales and fiscal performance. Just how it is dominating the current year against all odds isn’t really a surprise.
Strong Half Year Despite Sales Decline In China
Even in the first half of 2022, Bentley’s sales and financial results were already encouraging. Strong sales in Europe, the United Kingdom and Asia Pacific were more than enough to offset a 25% decrease in China (Mainland, Hongkong and Macau). In fact, Bentley sold 199 more vehicles in the first half of 2022 than in the same period in 2021 to 7,398 vehicles (plus 3%). Bentley blamed the extended COVID-19 lockdowns for the sharp drop in sales in the Asian giant.
The high-in-demand Bentayga luxury SUV accounted for 40% of first-half sales, while the Continental GT Grand Tourer and Flying Spur sedan took up 33% and for 27% of sales, respectively. Overall, revenues at the British carmaker surged 29% in the first half of 2022 to around €1.7, while operating results jumped 124% to around €398 million.
Bentley attributed its robust first half to a strong base pricing position, increased revenue through optionality, and favorable foreign exchange rates. The company, however, proved that its first-half results were not a fluke as it continued its momentum through the next three months.
Third Quarter Rides On First-Half Momentum
Bentley remained unfazed in the third quarter of 2022, its strong performance through record operating profits for the first nine months of the year. Region-wise through the first nine months of the year, Bentley’s sales jumped 25% in the UK (1,126 vehicles), 18% in Europe (2,133), and 17% in the Asia Pacific (1,531).
With a 7% increase in sales in the first three quarters of 2022 (3,154 cars), the Americas is now Bentley’s largest market. It easily surpassed the China mainland, Hong Kong and Macau, which sales dropped 17% in the period to just 2,693 vehicles. Bentley also saw its sales in the Middle East, Africa and India plummet 5% to 679 cars. Overall, the carmaker sold 11,316 vehicles in the first nine months of 2022, for a year-on-year jump of 3%.
While overall sales in the January-September 2022 period soared just 3%, Bentley saw its revenues leap 28% to €2.490 billion. Interestingly, operating profit in the nine-month period surged 107% to €575 million, which is already more than its best full-year operating profit (€389 million).
Reasons For Strong Results In The First Three Quarters
As to how Bentley managed to post these strong nine-month numbers, the carmaker attributed a large part of the results to the popularity of new model derivatives as well personalization options available through Bentley Mulliner. These new models include the GT Mulliner -- which Bentley touts as the most powerful, fastest, and most luxurious Continental GT so far – the new S range for the GT family and Flying Spur, as well as the new Azure range.
Expectedly, the Bentayga SUV accounted for a large chunk of sales in the first nine months of 2022 at 41%. Meanwhile, the Continental GT and GTC ultimate grand tourers combined for 32% of sales, while Flying Spur luxury sedan grabbed 27% of the pie, which Bentley attributed to the new Hybrid model.
Further Dominance Expected By The End Of 2022
With the highly encouraging sales and financial numbers in the first nine months of 2022, Bentley is very upbeat with its position by the end of the year. By the way things look; the carmaker might continue its strong momentum in the last three months of 2022.
The carmaker expects a strong end to the year, particularly thanks to the newly introduced Bentayga Extended Wheelbase (EWB) model, which it regards as the new luxury flagship SUV. Bentley noted that so far, around 40% of Bentayga orders have been the EWB version since launch.
Bentley’s strong performance in 2022 so far came as the carmaker looks to implement its Beyond100 strategy. The British carmaker is seeking to electrify its entire product range, with an aim to achieve a carbon neutral status by 2030. As part of this strategy, Bentley is launching a €3-billion, 10-year investment program in future products and at its Pyms Lane factory in Crewe.
Source: Bentley Motors