HP Inc financials

2023: Record 14.6% drop in revenue to $53.72 billion

At the end of fiscal year 2023, which was closed on October 31, 2023, HP received revenue of $53.72 billion. This is 14.6% less than the result for the previous fiscal year, when the figure was $62.91 billion. Such figures are reflected in a report published on November 21, 2023.

There are several reasons for the record decline in annual revenue. This is, in particular, a decrease in demand for personal computers after peak sales COVID-19 during the pandemic, when consumers around the world actively purchased equipment for working from home. In addition, a difficult macroeconomic situation, a crisis USA in and a high level have a negative impact on the HP business. inflations

We continue to see weak demand in China - both in the consumer and commercial segment. At the moment [as of November 2023], we do not expect the situation to change dramatically in the near future, "says Enrique Lores, President and CEO of the company.

In the division of personal systems, annual revenue was recorded at $35.68 billion: this is 19% less than the result for fiscal 2022, when HP received $44.01 billion. Of the total amount in this group, commercial products accounted for $24.71 billion, consumer solutions - $10.97 billion. The printing business in 2023 brought in $18.03 billion against $18.9 billion a year earlier: in this area, sales decreased by about 5%.

HP's net profit in fiscal 2023 was $3.26 billion against $3.13 billion a year earlier, which corresponds to a 4% increase. Profit in terms of one security was fixed at $3.26, while a year earlier it was $2.98. In fiscal 2023, long-term debt worth $1.6 billion was repaid.^[1]

2021: Revenue - $63.49 billion, profit - $6.5 billion

HP Inc. registered revenue of $63.49 billion at the end of fiscal 2021, which is 12.1% more than a year earlier. Most of the sales came from the computer division - $43.36 billion. This is 11% higher than the result of a year ago.

The revenue of the American company from the sale of laptops on an annualized basis rose by 18% and exceeded $30.52 billion. In other segments of the personal computer market, revenues decreased. Thus, sales of desktops decreased by 4% (to $9.38 billion), workstations - by 8% (to $1.67 billion). The high demand for laptops was facilitated by the COVID-19 coronavirus pandemic, due to which people began to work and learn more often from home, as a result of which they needed portable solutions.

HP Inc. registered revenue of $63.49 billion at the end of fiscal 2021, which is 12.1% more than a year earlier

According to the CEO of HP Inc. Enrique Loresa, the demand for computer equipment is growing, but the lack of inexpensive components limits the company's ability to process all orders that it receives. The top manager expects demand to remain strong.

Direction in the field of printing in 2021 financial year from HP Inc. received revenue in the amount of $20.13 billion, which is 14% more than in 2020. Sales of printers and other printing equipment to corporate clients increased by 19% to $4.21 billion. In the consumer segment, the rise was higher - by 31%, to $3.29 billion. The company earned about $12.63 billion on consumables for printing equipment, which is 9% higher than a year ago.

Net profit HP Inc. in 2021 amounted to just over $6.5 billion, while a year earlier it was measured at $2.84 billion.

Due to the fact that HP Inc. revenues were higher than market expectations, the company's shares rose more than 8% on the day the financial statements were published, CNBC said.^[2]

2020: Lower sales due to collapse in demand for desktops and printing equipment in companies

In fiscal 2020, HP Inc. revenue fell to $56.64 billion from $58.76 billion a year earlier. The decline was due to a collapse in demand for desktops and printing equipment in companies.

At the end of 2020, sales in the computer division of HP Inc. amounted to almost $39 billion, which is 1% higher than a year ago. The supply of laptops in monetary terms rose by 12%, to $25.77 billion, which was facilitated by the COVID-19 coronavirus pandemic, which forced many people to work and study from home. The remote format of work and education led to a surge in sales of portable PCs, which cannot be said about desktops: the annual revenue of the American company in this segment sank by 19%, to $9.81 billion. The sale of workstations decreased by 24% to $1.82 billion.

Sales of HP Inc. fell due to a collapse in demand for desktops and printing equipment in companies

The pandemic revived sales of home printers, but HP Inc. revenue from this equipment in the 2020 reporting year still decreased - by 1%, to $2.52 billion. In the segment of corporate printing equipment, a 23 percent decline in income was registered (to $3.54 billion), and shipments of consumables for printing devices decreased by 11% to $11.59 billion, according to the company's financial report.

Approximately 43% of HP Inc.'s annual turnover was in the Americas. Revenues in EMEA amounted to 35% of the total, and the share of the Asia-Pacific region in the company's revenue was equal to 22%. In all of these regions, HP Inc. sales declined on an annualized basis. Revenue decreased the most in the Asia-Pacific region - by 5%.

HP Inc. ended the 12-month reporting period, closed on October 31, 2020 calendar year, with a net profit of $2.84 billion, which did not reach the profit of the previous year ($3.15 billion).^[3]

2019

Marginal sales growth to $58.76 billion

At the end of fiscal 2019, HP Inc. revenue was $58.76 billion, slightly increasing compared to the previous year ($58.47 billion).

Sales of the company increased only thanks to computers, as the printing business is in decline. For the 12-month reporting period, closed on October 31, 2019 of the calendar year, the PC division recorded a turnover of $38.69 billion, which is 3% more than a year earlier.

At the end of fiscal 2019, HP Inc. revenue was $58.76 billion, slightly increasing compared to the previous year.

Sales of HP laptops and desktops increased by 2% and 4%, reaching $22.93 billion and $12.05 billion, respectively. In the workstation segment, growth was even stronger - by 6% to $2.39 billion. The company's most profitable product category is laptops, whose share in revenue for the year was 39%.

HP's printing division recorded a 4% drop in revenue to $20.07 billion. Sales of consumer printers and MFPs decreased the most - by 7%. At the same time, in the corporate solutions sector, there was a rise of 2% to $4.61 billion. Supplies of consumables in fiscal 2019 compared to 2018 decreased by 5% to $12.92 billion.

The largest market for HP equipment and services remains the countries of the Americas - they accounted for 42% of the company's revenue in 2019. At the same time, income there decreased by 2%. In EMEA, where the manufacturer earns about 35% of revenue, annual sales decreased by 1%. In the Asia-Pacific region (23%), turnover increased by 7%. Outside the United States, HP generates about 65% of sales.

HP's net profit in 2019 was $3.15 billion, which is significantly lower than the profit a year ago ($5.33 billion).

HP's computer division recorded a profit of $1.9 billion, while in fiscal 2018 it was $1.4 billion. Profits in the printer business decreased from $3.2 billion to $3.31 billion.^[4]

Sales growth of more than $1.6 billion (+ 69%) due to sustainable development initiatives

HP Inc., June 30, 2020, released the 2019 Sustainable Impact Report, which highlights the company's key achievements in developing social diversity and inclusion, reducing negative environmental impacts and supporting local communities around the world.

The sustainability initiatives implemented by HP in 2019 led to additional sales growth in 2019 by more than $1.6 billion. UNITED STATES. This is 69% higher than in 2018, reflecting the market's growing interest in companies with a conscious approach to doing business.

HP adheres to a culture of inclusive society and socio-cultural diversity at all levels of corporate structure and continuously fights against any manifestations of racial discrimination. HP's board of directors remains the most diversified among American technology companies (42% of the composition are women, 58% are representatives of socio-cultural minorities).

In 2019, women made up 40% of HP's newly hired workforce. As part of the global supplier diversity program, $374 million was spent on supporting businesses owned by people with disabilities and women. US, which brought the total economic effect equivalent to $698 million. UNITED STATES.

The HP Foundation has allocated $500,000 . US public organizations focused on fighting for social justice and countering systemic racism and inequality in society.

HP also announced a target to reduce single-use plastic packaging by 75% by 2025. The company plans to achieve this result by changing the design of the device packaging and switching to shaped cellulose packaging pads.

HP's environmental packaging strategy aims to reduce the use of plastic and other potentially problematic materials as much as possible. In 2019, HP decided to abandon plastic ties and plastic bags for documents in the packaging of equipment. HP has also moved to more recyclable alternative paper-based materials. To achieve its goal faster, HPis moving from foam packaging pads to 100% recycled molded pulp pads in packaging, laptops desktop PERSONAL COMPUTER , and displays. The switch to cellulose pillows in the packaging of PC devices allowed last year to abandon the use of 933 tons of hard-to-recycle foam.

HP reduced the use of foam in the packaging of printing products by 40% and in 2019 avoided the use of more than 95 tons of this material only by changing the design of the packaging of printers. In addition, the first HP printer with zero use of plastic packaging was released in 2019 - HP TangoTerra. This was made possible by the combination of shaped fiber pads and pergamine instead of foam and a polyethylene bag. Developing innovations in 3D printing, HP recently announced the release of a material called PP polypropylene, which reduces waste by reusing residual powder 100 percent.

HP is also increasing the use of recycled plastic materials in its printing products and personal systems. HP used more than 25,000 tonnes of recycled recycled plastic in 2019, equivalent to 9% of all plastic used by the company. HP is working to increase that to 30% by 2025.

The company also recycled 771 tons of ocean plastic, the equivalent of 60 million bottles, and released the world's first laptops, displays, mobile workstations and corporate chromebooks made using this recyclable material. HP has 111 EPEAT gold certified products in its portfolio and 268 EPEAT silver certified products.

In 2019, HP entered into a partnership agreement with the World Wildlife Fund (WWF) and launched the HP Sustainable Forest Collaborative project, which aims to restore, protect and preserve more than 80,000 hectares of forest, which is equivalent to the area of ​ ​ New York. In five years, HP will transfer $11 million to WWF. The United States to restore the threatened Brazilian Atlantic forest, as well as to maintain the concept of sustainable management of state farms and forest plantations in China. In both countries, HP, with the support of WWF, is developing scientific research on forests in order to quantify the effectiveness of restoration measures.

Comprehensive access to technologies, tools and materials that can improve the quality of people's education is one of the key elements of HP's sustainability strategy. In 2019, 6.3 million personal computers were sent to schools around the world.

As part of a wide list of actions taken by HP to help combat, COVID-19 more than 2.3 million essential funds printed on: 3D printers face shields, masks, swabs for taking nasal swabs, and so on were delivered to hospitals. HP has pledged to donate about $8 million. The United States partly with its products, partly with grants in support of mixed learning and local communities.

In addition, together with more than 155 companies, HP signed a Recover Better statement calling on the governments of world powers to coordinate their efforts to restore the economy from the consequences of the COVID-19 pandemic.

2018: Sales up 12% to $58.5 billion

In the 2018 fiscal year, which ended at the end of October 2018 calendar, HP Inc. sales amounted to $58.5 billion, which is 12% more than a year earlier.

In the computer division, revenue increased by 13%, reaching $37.7 billion. The company earned $22.5 billion on the sale of laptops, which is 14% more than a year ago. Sales of desktops rose by 12% (to $11.6 billion), workstations - by 10% (to $2.2 billion).

Financial performance of HP Inc.

The printing equipment division recorded sales at $20.8 billion against $18.8 billion in 2017. Sales of HP printers and MFPs in the corporate segment jumped 23%, amounting to $4.7 billion. Sales of consumer printing devices increased by 6% to $2.6 billion. Most of the income of the printer division still falls on consumables: here the company's revenue in fiscal 2018 was equal to $13.6 billion, rising 8% on an annualized basis.

Net income of HP Inc. for the 12-month reporting period, which ended on October 31, 2018, amounted to $5.3 billion, which is 111% more than a year earlier.

Most (44%) of HP Inc. turnover is generated by countries in the Americas. In  EMEA countries (Europe, Middle East, Africa), the company earned 34% of revenue for the year. Another 22% was brought by the Asia-Pacific region, which became the fastest growing market for the American vendor.

The company said that financial results do not take into account any consequences from the possible introduction of new duties or changes in demand due to growing geopolitical uncertainty. HP Inc. allows an increase in product prices due to the introduction of duties on the import of certain goods from China into the United States.

Since the release of the annual accounts, HP Inc. shares have been little changed in price.^[5]

2017: Revenue growth of 8% thanks to laptops

In the fiscal year 2017, which ended October 31, 2017, HP Inc. revenue reached $52.06 billion, which is 8% higher than a year ago. Excluding currency fluctuations, sales climbed 9%. The company's annual net profit fell from $2.7 billion to $2.5 billion.

HP Inc.'s financial upswing is driven by strong computer sales. The corresponding unit ended the reporting year with a turnover of $33.4 billion, which is 11% more than a year earlier.

HP Inc. Revenue Breakdown by Product Division and Region

Laptop sales grew the most - by 16% - to $19.8 billion. The implementation of desktops at HP Inc. increased by 3% (to $10.3 billion), workstations - by 6% (to $1.3 billion). The PC business brought the company 64% of revenue, the remaining 34% share was provided by the printer division.

The latter in 2017 recorded revenue of $18.8 billion against $18.3 billion in 2016. Revenues from the supply of consumables for printing equipment increased by 5%, to $12.4 billion. Sales of printers and MFPs in the consumer segment increased by 3% (to $2.4 billion), while in the corporate sector revenue decreased by 2% (to $3.97 billion).

Dynamics of HP Inc. Revenue Changes

The printer business took 72% of HP Inc.'s annual profit, while the computer business took only 28%. This leadership of the division for the production of printing devices is due to the high profitability of sales of "consumables." In the financial year 2017, the indicators of printer assets that HP Inc. acquired from Samsung for $1 billion were taken into account.

A significant share of HP Inc.'s business is concentrated in the United States (37% at the end of fiscal 2017). In EMEA countries (Europe, Middle East, Africa), the company earned 34% of revenue for the year. Another 20% was brought by the Asia-Pacific region, which became the fastest growing market for the American vendor (+ 11% in fiscal year 2017). In EMEA, revenues increased by 8%.^[6]

2016:6% drop in revenue to $48.2 billion due to weak printer sales

On November 22, 2016, HP Inc. released its fiscal 2016 performance report. Both revenue and profit for the American company are falling largely due to weak sales in the printing device market.

According to the results of the 12-month reporting period closed on October 31, 2016, HP Inc. raised $48.2 billion, which is 6% less than a year ago. Net profit decreased even more - by 28% to $2.7 billion.

In 2016, the net profit of HP Inc. fell by 28%.

The annual revenue of the computer division of HP Inc. almost reached $30 billion, down 5% compared to the 2015 fiscal year. Desktop and workstation revenues fell the most - by 9% to $10 billion and $1.1 billion, respectively. Laptop sales decreased by 2%, amounting to $17 billion.

According to estimates by research agency Gartner for the third quarter of 2016, HP Inc.'s share in the global personal computer market in physical terms is measured at 20.4%, compared to 18.8% a year earlier. In terms of quantitative delivery of systems, HP Inc. ranks second after Lenovo, and in terms of revenue - first.

HP Inc. is worst of all in the print business. Its turnover in 2016 fiscal fell by 14% compared to 2015 - to $18.3 billion. Sales of consumer printing equipment collapsed by 30% (to $1.3 billion), and corporate systems - by 6% (to $5.1 billion). Sales of consumables (cartridges, toners, ink, paper) decreased by 15% to $11.9 billion.

In the context of this regression, Dion Weisler found positive aspects: in August-October 2016, sales of HP Inc. printers in monetary terms rose by 1% - for the first time in Wisler's memory. In addition, other indicators of the printing division are not falling as much as at the beginning of 2016, the head of the American company said.^[7]

Notes