Lenovo financials

2023:14% drop in revenue to $61.95 billion as demand for PCs and smartphones collapses

According to the results of the 2022-2023 financial year, which ended on March 31, 2023, the Chinese multinational corporation Lenovo Group received revenue of $61.95 billion. This is 14% less than the result for the previous fiscal year, which amounted to $71.62 billion. Such data are reflected in the report published on May 24, 2023.

According to Lenovo, the fall is associated with a sharp reduction in demand in the consumer segment against the background of the current macroeconomic situation and high inflation. Customers around the world have begun to save on new desktops, laptops, smartphones and other equipment.

The fall in Lenovo sales is associated with a sharp decrease in demand in the consumer segment against the background of the current macroeconomic situation and high inflation

In the division of Intelligent Devices Group (IDG), which combines the business of producing PCs and smart devices, revenue in the 2022-2023 fiscal year amounted to $49.37 billion. For comparison: a year earlier, sales reached $62.31 billion. It is noted that Lenovo was able to maintain its leading position in the global personal computer market with a share of about 23.2%. At the same time, premium products brought in approximately 30% of the total revenue of the IDG group.

The Solutions and Services Group (SSG) division, which includes all Lenovo IT solutions and services for PCs, as well as additional services, showed revenue of $6.66 billion, which is 22% more on an annualized basis ($5.44 billion in the 2021-2022 fiscal year). Another approximately $9.76 billion was provided by the Infrastructure Solutions Group (ISG), which supplies infrastructure products to organizations and business customers: year-on-year growth was recorded at 37% ($7.14 billion a year earlier).

The report also states that Lenovo's net annual profit was approximately $1.61 billion against $2.03 billion a year earlier. Thus, the fall was at around 21%.^[1]

2022: Revenue growth by 18%, to $71.62 billion, profit - by 63%, to $2.15 billion

At the end of the 2021-2022 financial year, Lenovo earned a record $71.62 billion in revenue, which is 18% more than a year earlier. The net profit of the Chinese company also turned out to be the maximum for all time - $2.15 billion. This is 63% higher than the profit of a year ago.

The Lenovo Intelligent Devices Group division, which takes into account sales of personal computers and smartphones, registered annual revenue of $62.31 billion against $53 billion for the previous reporting year. As noted in the company, the turnover updated the record, despite the numerous difficulties faced by Lenovo, namely, with the problematic supply organization, weak demand for IT equipment in the educational sector and lockdowns amid the COVID-19 coronavirus pandemic. In fiscal 2021-2022, sales of Lenovo gaming computers increased by 37%.

Revenue growth by 18%, to $71.62 billion, profit - by 63%, to $2.15 billion

At Infrastructure Solutions Group data centers , Lenovo's annual revenues increased from $6.3 billion to $7.14 billion. In the direction of IT Solutions and Services Group, annual revenue rose from $4.19 billion to $5.44 billion.

Lenovo sales in the Chinese market in 2021-2022 increased by 29% compared to the previous year, in the countries of the North and South America - by 24%, in the region EMEA (,,) Europe- Middle East Africa by 15%. At the same time, in the Asia-Pacific region, the company's revenue decreased - by 1% - largely due to a drop in the supply of computers the Japanese to educational institutions.

The Lenovo report also states that during the 2021-2022 fiscal year, the company spent more than $2 billion on research and development (+ 43% compared to the previous year), which was an absolute record for the manufacturer^[2]

2020

Global Server Market Share - 5.8%

Lenovo's share of the global server market was 5.8% (IDC data ). Read more here.

Revenue growth by 20%, to $60.74 billion, profit - by 77%, to $1.18 billion

Lenovo ended fiscal 2021 with revenue of $60.74 billion, which is 20% higher than a year ago. Most of the turnover came from the computer division (PC & Smart Device Business Group, PCSD), in which annual sales grew by 22%, to $48.52 billion.

In the direction of the production of smartphones (Mobile Business Group, MBG), the revenue of the Chinese company in 2021 reached $5.57 billion, which is 9% more than a year earlier. The weak first half of the year, which turned out to be so due to the COVID-19 coronavirus pandemic, was more than compensated for by the strong second half of the year, when MBG's revenue increased by 39%. At the same time, the telephone division recorded annual losses of $41 million.

Lenovo ended the year with record revenue of $4.86 billion

Speaking about its results in the smartphone market, Lenovo noted a record share in the markets of North and Latin America, as well as double-digit sales growth in monetary terms in Europe. According to the company, its success in the smartphone market was the result of several factors, namely:

• expanding the product portfolio;
• launching a strategy to increase the availability of 5G technology to users;
• attracting more and more telecom operators to cooperation.

In the server division (Data Center Business Group, DCG), Lenovo's revenue in 2021 was $6.33 billion, an increase of 15% compared to the previous year. The company called this rise a record and linked it to high demand for cloud services, as well as improved product sales in all segments.

In fiscal 2021, the revenue of Lenovo's division responsible for software and services rose 39% to $4.86 billion.

Lenovo's net profit increased more than revenue - by 77% to $1.18 billion.^[3]

2019:1% decline in revenue to $50.72 billion

In the 2019-2020 fiscal year, Lenovo raised $50.72 billion, down 1% from a year earlier. The company notes that its sales are above $50 billion for the second year in a row.

Lenovo's revenue has grown since 2016, but in the 2019-2020 fiscal year it contracted due to the COVID-19 coronavirus pandemic, which led to a shutdown of enterprises in China.

Lenovo financials

Over the past 12 months, the industry has faced a number of challenges, including geopolitical uncertainty, a shortage of component supplies, the impact of foreign exchange rates, and the coronavirus pandemic joined in the fourth quarter, Lenovo said.

Lenovo believes that the company's global presence can help it mitigate macroeconomic risks and support stable financial results. The massive transition to remote work and online education should contribute to a long-term surge in demand for computers and equipment for data centers, the company said.

In the meantime, the group will exercise disciplined cost control to optimize its liquidity and financial condition, Lenovo said in a statement.

In fiscal 2019-2020, Lenovo's computer division earned about $40 billion in revenue, up 3.6% from a year earlier. In the division responsible for the release of solutions for data centers, revenues decreased by 8.7%. The company does not give an absolute indicator.

In its report, Lenovo noted a 296 percent increase in revenue from sales of smart Internet of Things solutions, as well as a 43.2 percent increase in software and service sales (up to $3.5 billion).

At the end of the 12-month reporting period, which ended at the end of March 2020 calendar year, Lenovo's net profit amounted to $665 million, an increase of 12% compared to profit a year ago.^[4]

2018: Record revenue of $51bn

In the 2018-2019 fiscal year, which ended at the end of March 2019 calendar, Lenovo's revenue reached a record $51 billion, an increase of 12.5% compared to the previous year.

The computer division of PC and Smart Devices Group also recorded the highest sales in the history of the company - $38.5 billion. At the end of the fiscal year, Lenovo took first place in PC shipments with a record 23.4 percent share and showed the largest increase in shipments (by 9.5%) in the top five on the market, according to IDC analysts, which are reported by the Chinese vendor.

Lenovo financials

At the end of the 2018-2019 fiscal year, Lenovo's server division (Data Center Group) registered turnover at $6.02 billion (the highest result), which is 37% higher than a year ago. This growth rate was the highest since the acquisition of IBM's server business. This increase was due to an increase in revenues from hyperscale infrastructure by 240% and from software-defined solutions by 96%.

Annual sales of software and services from Lenovo jumped 18.9% to $2.4 billion. The company's annual expenses decreased from $1.5 billion to $1 billion.

For the reporting three-month period, closed in March 2019, Lenovo's net profit amounted to $597 million, while a year earlier the company's net losses were measured at $189 million.

Profit in PC and Smart Devices Group seemed equal to $1.98 billion, in the mobile division - $464 million.^[5]

The growth strategy of PC and Smart Devices Group, focused on the commercial, fast-growing and premium segments, paid off with record revenue for the fiscal year, "said Yang Yuanqing, CEO and Chairman of the Board of Directors of Lenovo.

2017: Biggest losses in nine years - $189 million

In the 2017-2018 fiscal year, which ended on March 31, 2018 for Lenovo, the company's revenue amounted to $45.35 billion, an increase of 5% compared to the previous year, largely due to the computer business.

At the same time, the Chinese manufacturer of computers and mobile devices registered the largest loss since 2009 - at $189 million. A year earlier, there was a net profit of $535 million. At the same time, analysts interviewed by Thomson Reuters expected not so large losses - $161.3 million.

Lenovo financials

Cash losses are associated with the expected write-off of deferred income tax assets ($400 million) due to tax reform in the United States. In addition, a significant decrease in income from the sale of property affected - from $10.89 million in the 2016-2017 financial year to only $0.3 million a year later.

Revenue in the computer division jumped 16%, the strongest gain in four years. However, rising costs, including the purchase of memory chips and other components, led to a 2% drop in business profits.

In fiscal 2017-2018, Lenovo's server division (Data Center Group) received $4.4 billion in revenue, up 8% from a year earlier.

The division for the production of smartphones (Mobile Business Group) recorded a turnover of $7.2 billion. The company noted a 40% increase in sales in Latin America and a 57% increase in North America. Lenovo promises to continue cutting costs in the mobile business and return it to profit.

Commenting on the financial results, Lenovo CEO Yang Yuanqing noted that at the end of the reporting year, the company's revenue began to grow again by more than 10%, and profitability improved significantly. Lenovo has entered a new phase of growth, he said.

After the publication of financial results, Lenovo quotes increased by 4.4%.^[6]

2016: Falling revenue after losing leadership in the PC market

On May 25, 2017, Lenovo released its results in the 2016-2017 fiscal year. The company's revenue shrank 4% after the company lost its lead in the global computer market.

For the 12-month reporting period, which ended on March 31, 2017, Lenovo sales amounted to $43 billion against $44.9 billion a year earlier. Net profit reached $535 million, while at the end of the previous reporting year there were equal to $128 million losses. Analysts polled by Thomson Reuters expected a profit of $569 million from the Chinese manufacturer of PCs and mobile devices.

Lenovo returned to profit in fiscal 2016-2017

Lenovo considers the reorganization in the telephone and server divisions, as well as the difficult macroeconomic situation and the shortage of components for computers and mobile devices to be the reasons for the fall in annual revenue.

Although market conditions will remain difficult in the short term, Lenovo ended the year with a stronger organizational structure, thanks to which the company will be able to focus more on customers and offer more competitive product lines throughout our business, said Yang Yuanqing, Chairman of the Board of Directors and CEO of Lenovo.

In the first quarter of 2017, Lenovo for the first time in four years lost the lead in the supply of desktops and laptops in the world, skipping ahead HP Inc. (data from IDC analysts). For the 2016-2017 fiscal year, Lenovo shipped 55.7 million computers, down 1% from a year earlier, while the entire market sank 3%, the company said in a report.

Lenovo's mobile business recorded annual losses of $566 million, its server division had cash losses of $343 million, and revenue of $4.1 billion (-10.6% annualized).^[7]

2015: First loss in 6 years

May 26, 2016 Lenovo presented the results of operations in the 2015-2016 financial year. The company recorded a loss for the first time in six years. The cash losses of the Chinese manufacturer are associated with acquisition and restructuring costs, as well as weakening sales of computers and mobile devices, reports Reuters.

For the reporting 12-month period, which ended on March 31, 2016, Lenovo's net loss reached $128 million against net profit of $829 million a year earlier. Revenue fell 3% to $44.9 billion.

Lenovo year results: first losses in 6 years

Lenovo's decline in sales was affected by currency fluctuations and weak demand for PCs, said Yang Yuanqing in a statement to the Hong Kong Stock Exchange. Excluding the impact of the currency factor, Lenovo's annual revenue rose 3%.

The annual supply of Lenovo computers decreased by 6%, amounting to 56 million units. The entire global PC market fell 12%.^[8]

Lenovo's losses are largely related to the cost of $923 million for the restructuring and liquidation of stocks of unsold smartphones.

In the 2015-2016 fiscal year, Lenovo shipped 66.1 million smartphones to the global market against 76 million a year earlier. Outside of China, tube shipments rose 63% to 51 million units. The release of smartphones under the Motorola brand amounted to 5 million units in January-March 2016, which brought Lenovo about $1 billion in revenue.

Lenovo noted that competition in the Chinese market remains very intense, and demand remains weak due to problems in the country's economy. Under these conditions, the company intends to focus on selling more expensive devices to restore its business in the PRC.

For the reporting year, the server division (Enterprise Business Group) brought Lenovo about $4.6 billion in revenue, which is 73% more than a year earlier. The rise was due to hyperscale projects in China.

2014: Record revenue

On May 21, 2015, Lenovo released a progress report for the 2014-2015 fiscal year. The company released a record number of smartphones and personal computers, allowing the Chinese manufacturer to receive the largest revenue in its history.

For the 12-month reporting period, closed on March 31, 2015, Lenovo sales amounted to a record $46.3 billion, which is 20% more than a year earlier. Excluding currency fluctuations, the company's revenue grew by 23%.

Lenovo updates all-time revenue high with record PC sales

Lenovo's annual net profit reached $829 million, an increase of only 1% compared to the 2013-2014 fiscal year. According to the results of the fourth financial quarter, profit fell by 37% (to $100 million). This drop in revenue is largely due to the cost of connecting part of IBM's server business and mobile phone developer Motorola.

The Lenovo PC Group division responsible for personal computers and Windows tablets completed the 2014-2015 financial year with a record profit of $1.77 billion (+ 51% compared to the previous year) and revenue of $33.3 billion (+ 5%), which in Lenovo consolidated sales took 72%. The company shipped a record number of PCs for the year - 60 million units. At the same time, the Chinese manufacturer holds the lead in the computer market for eight quarters in a row, according to the vendor's report, citing unnamed analysts.

Lenovo increased shipments of corporate PCs by 3% in the 2014-2015 fiscal year, while the entire market for these devices showed a decline of the same 3%. The company's share in the market of desktops and laptops purchased by enterprises and organizations around the world reached 20.9%.

For the reporting year, Lenovo prepared 76 million smartphones for sale, which is the largest value for the company. The purchase of Motorola helped her set the record. Lenovo's entire mobile division showed 71 percent revenue growth to $9.1 billion.

Even more - by 420% - the revenue of the Enterprise Group division, which oversees the development and sale of servers, storage systems, software and services, increased. Here, annual sales reached $2.6 billion. At the same time, the division received a loss of $121 million.^[9]

2011: Revenue of $29.5 billion

In the 2011/2012 fiscal year (FY 11/12), which ended March 31, 2012, its sales amounted to $29.574 billion, which is 37% higher than the 2010/2011 FY. At the same time, profit before taxes amounted to $582 million, which is 63% higher than the same figure in 2010/2011 FY.

Even "cooler" indicators of the IV quarter of this financial year (Q4 11/12): sales volume - $7.496 billion, profit before taxes - $102 million, which is 54% and 69% better than the same indicator Q4 10/11. The company notes that globally it has been growing faster than the IT market as a whole for 12 consecutive quarters.

Notes