Lenovo Group annual earnings soar by 77pc to US$1.17b

Lenovo Group recorded a 77 percent increase in profit to US$1.17 billion, for the fiscal year ended March 31, from the year before, the company announced.

Group revenue reached US$60.7 billion, up 20 percent year-on-year.

Lenovo said the group, “achieved multiple performance records, despite challenges from the industry-wide component shortages.”

The company said the 77 percent profit increase was “unprecedented.”

The group added a record US$10 billion to its revenue base with a 20 percent year-on-year increase, the highest rate of growth in 9 years, Lenovo said.

Group pre-tax profit margin reached a 13-year high, Lenovo said.

Full-year earnings per share were US 9.54 cents.

Lenovo recommended a final dividend of 24 HK cents per share for the year ended March 31, 2021.

The data center group achieved 15 percent revenue growth on record-high sales, and improved bottom line by US$57 million to a pre-tax loss of US$169 million.

Lenovo’s mobile business group sales recovered from earlier challenges from the pandemic. Revenue increased by 39 percent in the second half of the year, thanks to record market share in Latin America and North America, among other factors. Full-year sales were up by 9 percent and a pre-tax loss narrowed to US$41 million.

The software and services business, which carries the highest margin profile among all products, saw its invoiced and deferred revenue surging by 39 and 32 percent, respectively, driven by a record penetration rate and landmark deals, Lenovo reported.

Net cash generated from operating activities was US$3.7 billion, up US$1.4 billion year-on-year

Lenovo said the PC and smart device group remained the global leader for the third year.

Lenovo reported double-digit revenue increase across America, Europe-Middle East-Africa, and China.

In Asia Pacific (excluding China) where sector growth was impacted by a sharp slowdown in commercial PC spending, group revenue grew by 5 percent year-on-year benefiting from buoyant demand in the education sector and a booming cloud market, Lenovo reported.

In China, Lenovo booked 31 percent year-on-year revenue growth on the back of swift market recovery and massive market share gain in its PC and smart device business and the enterprise and small and medium business segment under the data center group.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.