Sunday, September 22, 2019
News
NEWS HOME
»
PRESS RELEASES

Lenovo Kick-Starts FY19/20 With Industry Leading Growth, Doubling Year-on-Year Income Through Strong Customer Focus and Acceleration of Intelligent Transformation Strategy
  SocialTwist Tell-a-Friend  
   


Date: 16-08-2019 11:00AM
Source: Lenovo Group
Category: Business/ Finance, Banking & Financial Services, Consumer Electronics, Financial Analyst & Investors, Technology, General, Manufacturing Companies
Location: Hong Kong

Business Wire India

  • Group revenue grew year-on-year for eight consecutive quarters, reaching US$12.5B in Q1 FY19/20
  • PTI more than doubled to US$240M year-on-year, up US$127M
  • Net income was US$162M, up US$85M year-on-year, also more than doubling
  • One in every four PCs built worldwide is a Lenovo PC, thanks to record market share of 24.9%


Lenovo Group (HKSE: 0992) (PINK SHEETS: LNVGY) announced group revenue in the first quarter reached US$12.5 billion, the eighth consecutive quarter of growth. Pre-tax income more than doubled year-on-year, growing by US$127 million to reach US$240 million. Net income also more than doubled, up US$85 million to US$162 million.

Basic earnings per share for the first quarter were 1.37 US cents or 10.74 HK cents.

“This fiscal year kicked off to an excellent start. Once again, this quarter’s strong results provided solid evidence that Lenovo’s Intelligent Transformation is enabling the company to drive sustainable, profitable growth in today’s dynamic and changing world. Our persistent execution and operational efficiency allows us to bring our vision to life and deliver smarter technology for all,” said Yang Yuanqing, Lenovo Chairman and CEO.

Global trade environment

The first quarter results signal that Lenovo continues to thrive – outperforming the market and leading the global tech sector in spite of industry-wide geopolitical and trade uncertainties. Lenovo is positioned better than most given a globally balanced revenue mix, footprint across 180 markets, and more flexible majority-owned manufacturing base. To date there has been negligible material impact on the business. Looking ahead, the global scale and breadth of the business ensures Lenovo is well positioned to manage complex and dynamic market conditions, while delivering sustainable long-term results.

Business Group Overview

The strong results are led by the Intelligent Devices Group (IDG). The PC and Smart Devices Group (PCSD), one of its two business units, continued double-digit (12%) revenue growth while achieving its highest-ever profit in a fiscal first quarter, and further improving industry leading profitability. Pre-tax income was US$524 million, up US$98 million. Americas and Asia Pacific achieved 20% and 40% year-on-year revenue growth respectively and all four geographies (Americas, Asia Pacific, China, EMEA) each delivered over US$2 billion in revenue, demonstrating the geographical balance and sustainability of this business.

In PCs, volume outgrew the market, which as a whole is experiencing a recovery, by over 13 points, and the group hit an all-time record PC market share of 24.9%. This means one in every four PCs built in the world is a Lenovo PC – cementing Lenovo’s position as the worldwide number one in PCs.

These strong results are driven by innovation, a customer-centric product portfolio and continuing focus on operational excellence. This strategy enables the company to outgrow the market significantly across high-growth and premium categories including Workstation, Thin and Light, Visuals, Gaming PCs and Chromebook. Looking forward, the PC and Smart Device group will continue to drive premium-to-market growth and industry-leading profitability by focusing on premium segments as well as innovating in Smart IoT, commercial Smart IoT and developing new devices for homes and offices.

IDG’s second business unit, the Mobile Business Group (MBG), delivered another profitable quarter and improved pre-tax income by US$100 million for the 4th consecutive quarter. In the North America market, volume outgrew the market by more than 37 points and pre-tax income margin improved by over 14 points year-on-year. In the company’s Latin America stronghold, volume has grown with or above the market for 11 quarters.

Going forward, the mobile business will continue to maintain profitability and seek opportunities to drive profitable growth in new markets with new innovative products.

The Data Center Group (DCG) continued to improve profitability year-on-year for the eighth consecutive quarter. Storage revenue grew more than 80% year-on-year and Software Defined Infrastructure (SDI) continued to grow at a double-digit rate year-on-year. Overall revenue declined due to a small number of large cloud customers reducing their purchasing after rapid infrastructure growth over the past year and a lower average unit revenue due to declining component prices. In High Performance Computing the company extended the Number 1 position in the Top 500 Supercomputer list to 173 systems across 20 markets – continuing to support ground-breaking scientific research and applications around the world.

The group will continue to expand as a full stack Data Center player, driving SDI, storage, networking, HPC, AI, IoT, service and solution led sales while strengthening in-house design and manufacturing capability for Hyperscale. In addition, the business will further improve routes-to-market and operational excellence to achieve premium to market growth, while improving profitability.

About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$50 billion Fortune Global 500 company, with 57,000 employees and operating in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. By designing, engineering and building the world’s most complete portfolio of smart devices and infrastructure, we are also leading an Intelligent Transformation – to create better experiences and opportunities for millions of customers around the world. To find out more visit https://www.lenovo.com, follow us on LinkedIn, Facebook, Twitter, YouTube, Instagram, Weibo and read about the latest news via our StoryHub.

LENOVO GROUP

FINANCIAL SUMMARY

For the first quarter ended June 30, 2019

(in US$ millions, except per share data)

Q1 19/20

Q1 18/19

Y/Y CHG

Revenue

12,512

11,913

5%

Gross profit

2,048

1,632

26%

Gross profit margin

16.4%

13.7%

2.7pts

Operating expenses

(1,705)

(1,452)

18%

Expenses-to-revenue ratio

13.6%

12.2%

1.4pts

Operating profit

343

180

90%

Other non-operating expenses - net

(103)

(67)

52%

Pre-tax income

240

113

113%

Taxation

(48)

(28)

75%

Profit for the period

192

85

125%

Non-controlling interests

(30)

(8)

259%

Profit attributable to equity holders

162

77

111%

EPS (US cents)

Basic

1.37

0.65

0.72

Diluted

1.32

0.65

0.67



CONTACTS :

Hong Kong – Angela Lee,angelalee@lenovo.com, +852 2516 4810
London – Charlotte West, cwest@lenovo.com, +44 7825 605720
Zeno Group - LenovoWWcorp@zenogroup.com

More Press Releases

Spirit of Wipro Run Brings Together Participants from 110 Cities Across 34 Nations

RELX Technology Continues to Take the Lead, Accounting for 60% of China’s E-cigarette Market Share

In Need of Emergency Funds - Avail the Fastest Loan Against Property From Bajaj Housing Finance Limited

Mr. Rohit Gupta, Elected the New Chairman of ASCI

RoboSense RS-LiDAR-M1 Smart LiDAR Sensor Wins AutoSens Awards 2019

Gourmet Passport by Dineout Returns With GOURMETLICIOUS 2019

Myntra Recognized as One of the 100 Best Companies for Women in India

Alliance Group CMD Awarded the Global Indian of the Year 2018-19 for Real Estate

Take Your Business to New Heights With the Bajaj Finserv Business Loan

Boehringer Ingelheim Partners with Inflammasome Therapeutics to Develop Novel Therapies for Patients with Retinal Diseases

Visa B2B Connect Expands to 32 New Countries and Announces Integration With Infosys

DHL Express Announces Annual Price Adjustments for 2020 in India

CSS Corp's Manish Tandon Recognized as the CEO of the Year at CMO Asia Awards 2019

ACG Selects Salesforce to Build 360-Degree Customer View

Toshiba Memory Holdings Corporation Appoints Lorenzo A. Flores as Vice Chairman

IPG Photonics to Showcase Latest Innovations at LASER World of PHOTONICS INDIA 2019

CGLytics and Glass Lewis Set a New Standard for Transparency in Equity-based Compensation

Rimini Street Wins Gold Stevie® Award for “Company of the Year – Computer Services” in both the 2019 American Business Awards and the 2019 International Business Awards

Business Tech Leader Zoho Advances Australian Presence, Launches Local Cloud

Amazon Co-founds The Climate Pledge, Setting Goal to Meet the Paris Agreement 10 Years Early

“S BLOCK Dubai 2.0 Summit” Focus Preview

The Number of NIPPON Tablet Terminals Exceeded 80,000 Units!

Andersen Global Expands Reach in London

Limelight Recognized as Leader in Innovation by Frost & Sullivan

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Pre-poll bonanza for Delhi's unauthorise...
Kalaburagi: 'No Helmet, No Petrol' idea ...
Delhi: 4 unidentified assailants fire at...
Bhubaneswar: Women's bike rally organise...
Khattar govt only did event management: ...
IMD predicts rainfall, thunderstorm in p...
More...    
 
 Top Stories
Looking to help Betis regain presen... 
Greta Thunberg seek UN action again... 
The heroine-centric film moves to i... 
The B'wood hero: Get real or perish... 
Granada stun Messi's Barcelona to g... 
Small is big when it comes to profi... 
Kalaburagi: 'No Helmet, No Petrol' ... 
Help Sindh attain independence from...