Bentley H1 Results and Beyond100 Business Strategy

As mentioned at the beginning it is Bentley that stands out even more. The Crewe automaker delivered 4,918 units, a 2.8% increase over the 4,785 of 2019. Sales were slightly below at 4,569 compared to the prior year's 4,670. Revenues increased by 2.9% to €860 million while operating results were down €99 million due to amortisation, depreciation, and one-off restructuring expenses.

As visible in the graph, strong sales y-o-y in Q1 were the major contributor to this success. Deliveries were also higher in Q1 and in Q2 maintained a consistent level with 2019.

The dealerships closure and subsequent delivery slowdown in Western countries have been likely offset by the reopening of its China Retailer network on April 24th, which is consistent also with Bentley’s fairly high reliance on the Asian market. As can be observed in the Financials Section of the Website the APAC region sales accounted for 28.2% of Bentley’s global market in 2019, significantly more than all of its direct competitors.

Bentley put great attention on customer service while reopening its network too. From extended working hours to safety measures within the dealers and, of course, flexible, online sales options.

Production at the Crewe headquarter resumed on May 11th and, naturally, sales have been slower compared to the previous year’s Q2, but thanks to the strong Q1 they remained in line with 2019. As observed previously in the Phase 2 Analysis during Q1, the luxury sector suffered a minor impact from the pandemic. Also, Bentley had just come out of its strongest year ever, thanks to availability in every continent of the renewed strong lineup including the new Continental GT, Continental GT Convertible, and Bentayga in Hybrid and Speed versions visible below.

The success at the beginning of the year that allowed the firm to overcome the initial phase of the virus outbreak has been likely due to a number of other factors. Bentley, in fact, enriched its services.

By observing three measures implemented by Bentley at the beginning of 2020,  it is clear how instead of just enhancing their strengths, the company’s strategy is at the same time to expand as much as possible. And it is done in a smart way. Bentley is strengthening aspects of its business that aim at a diverse customer base, which is key to keep growing from the 2019 success and might as well have contributed to its outstanding success.

On the 8th of January, the new ‘Certified by Bentley’ has been announced. This program is set to improve Bentley’s pre-owned market. It is important for different reasons. First, it might in turn limit depreciation, which is something that affects many luxury manufacturers and limits the attractiveness of its used cars. Secondly, Bentley offers also exclusive access to events and a brand lifestyle that was likely reserved for those who bought new models before. By making its preowned market more appealing from both a value and an experience point of view the automaker ensures to expand its reach to clients who might not be able to afford a new model but now get the confidence of the Bentley directly supervising their purchase.

*Source: BentleyMedia©