Bentley is celebrating record results on its ambitious drive toward full electrification, as wealthy customers spent more on higher-value custom and custom-built luxury models that delivered a higher profit margin, despite a “rollercoaster” year “.
Operating profit of 708 million euros (£622 million) for 2022 marked an increase of 319 million euros (£280 million) in 2021, and rose nearly 1 billion euros (£880 million) in the €288 million (£253 million) losses of 2018 before the pandemic.
The profit boost came as Bentley also celebrated record 2022 sales of 15,174 cars, the first time it had sold more than 15,000 cars in a year.
But it was customer spending on lucrative extras, rather than extra sales volume, that helped drive overall revenue up 19 percent year-on-year, as turnover hit 3.38 billion euros (£2.97 billion). ).
Record results: Bentley has confirmed a large increase in operating profit as vehicle sales in 2022 surpass 15,000 units annually for the first time in its history
Bentley said: “The latest annual figures show a profit of €708m (£622m), representing 82% growth in profit against 4% growth in volume.”
Return on sales rose to 20.9% in 2022, an increase from 13.7% in 2021 and the highest in Bentley’s 104-year history.
This was driven by a “significant shift” in buying patterns, as well-heeled customers chose higher-spec derivatives, options and more expensive custom extras, and invested more in exclusive limited editions and “collectible items” such as the Bacalar, which cost around £2 million. each.
The average price of a car sold has skyrocketed from €165,000 (£145,000) in 2018 to €220,000 (£193,000) in 2022, driven by increased demand for customisation, not price increases, Hallmark said.
But the best “milestone” year ever for both sales and financial performance also came in the face of unprecedented turbulence and ten separate crises, four of which could have shut down the prestigious British carmaker for up to six months. , admitted the president and CEO of Bentley. Adrian Hallmark.
The average price of a car sold skyrocketed from €165,000 (£145,000) in 2018 to €220,000 (£193,000) in 2022, driven by increased demand for personalization, not price increases.
Adrian Hallmark joined Bentley as chief executive in 2017 after leaving Jaguar Land Rover.
He said it was a testament to Bentley’s resilience, crisis planning, cost-cutting efficiencies, restructuring and its ‘value over volume’ strategy that meant the company not only survived but thrived in the face of such growth challenges. ‘roller coaster’ that included shortages of key parts. caused by the war in Ukraine, economic uncertainty and rampant inflation, and Covid.
The strong performance means Bentley, part of the giant Volkswagen Group, can self-finance its own investment, including €3bn (£2.64bn) to transform its Crewe factory over a decade for electrification and expansion of its lucrative custom arm. mulliner.
Five new five-year pure electric car launches start from 2026 as part of its Beyond100 strategy.
Bentley aims to electrify its entire product range and achieve carbon-neutral status by 2030 while saying goodbye to the gas-guzzling 12-cylinder petrol engine: “We are fully committed to going fully electric,” Hallmark said.
Order banks for 2023 show “great potential” to sustain performance, although sales for the next three years will not reach new all-time highs and the business environment, while less frenetic than 2022, is still becoming “more volatile.” and the risk factors are increasing. Hallmark said.
Hallmark said its goal is to “bombproof” the company to survive future turmoil.
Actions last year to keep production running at Crewe, which currently employs around 4,000 people, included: laying off or redeploying 1,000 staff and cutting costs by a quarter.
Bentley said: “This rapid financial transformation of the company supports an unparalleled future investment program in the luxury automobile sector, which will enable Bentley to grow from the world’s largest producer of 12-cylinder engines to a company of all-electric cars in a decade.
Hallmark noted: “Since the nadir of 2018, the entire Crewe team has been working intensively to restructure the business model. Last year marked a milestone on this journey.
“A profit turnaround of almost €1bn (£880m) has been achieved since 2018 despite an unprecedented period of disruptions and crises including Brexit, Covid, semiconductor supply, Ukraine and UK economic instability “.
Order banks for 2023 show “great potential” to sustain performance, although sales for the next three years will not reach new all-time highs and the business environment, while less frenetic than 2022, is still becoming “more volatile.” and the risk factors are increasing. – said seal
The best-seller in 2022 was Bentley’s Bentayga SUV, which accounted for 42% of total sales, with the Continental GT and Convertible (pictured) accounting for a third of orders.
Government bureaucracy was hindering his switch to electrification, he said: “We’re not complaining, we’re just moving on.”
The best-seller in 2022 was Bentley’s Bentayga SUV, accounting for 42% of total sales, with the Continental GT and Convertible coming in third (of which the performance-oriented GT Speed accounted for nearly 31%). of the combination of models).
The flagship Flying Spur four-door grand tourer achieved 28 percent of total sales, driven by a hybrid version.
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