Lenovo delivers record fourth quarter results and new fiscal year milestone – Surges past US$60 billion revenue mark, with record annual profits
HONG KONG–(BUSINESS WIRE)–$lenovo #earnings—Lenovo Group (HKSE: 992) (PINK SHEETS: LNVGY) today announced record results for the Group for both its fourth quarter and fiscal year, with phenomenal growth across all parts of the business. The results demonstrate the Group�s resilience and ability to achieve balanced, consistent, and sustainable growth as it continues to diversify and transform in line with its 3S (Smart IoT, Smart Infrastructure, Smart Solutions) corporate strategy.
Fourth quarter Group revenue grew at 48% year-to-year to US$15.6 billion. Profit recorded its highest growth rate in two years with pre-tax income of US$380 million and net income of US$260 million up 392% and 512% respectively. The Q4 results closed out a record year, with annual Group revenue surging past US$60 billion, adding more than US$10 billion on the previous fiscal year. Profit grew even faster, with pre-tax income of almost US$1.8 billion and net income of US$1.2 billion both up more than 70% year-on-year.
Lenovos Board of Directors declared a final dividend of 3.09 US cents or 24 HK cents per share for the fiscal year ended March 31, 2021.
Financial Highlights:
|
FY 20/21 |
FY 19/20 | Change |
|
Q4 20/21 |
Q4 19/20 | Change |
Group Revenue | 60,742 | 50,716 | 20% | 15,630 | 10,579 | 48% | |
Pre-tax income | 1,774 | 1,018 | 74% | 380 | 77 | 392% | |
Net Income (profit attributable to equity holders) | 1,178 | 665 | 77% | 260 | 43 | 512% | |
|
| ||||||
Basic earnings per share (US cents) | 9.54 | 5.58 | 3.96 | 2.19 | 0.36 | 1.83 |
Chairman and CEO quote Yuanqing Yang:
Last quarter, we delivered our fastest growing quarter in almost a decade and closed the fiscal year with the new milestone of passing US$60 billion in revenue and significant growth in profit to a new record. These historic highs were achieved by leveraging our core competencies of a clear strategy, innovative products, operational excellence, and global-local model to meet the new needs in the New Normal. said Yuanqing Yang, Lenovo Chairman and CEO. Looking forward, we will capture the huge growth opportunities created by the market trends of information consumption upgrade, infrastructure upgrade and application upgrade to drive long-term sustainable growth and ensure we can build an even smarter future in the years ahead.
Fourth quarter record driven by simultaneous double-digit revenue growth across all core businesses
Fiscal year milestone fueled by leveraging core competencies of clear strategy, product innovation, operational excellence, and Global/Local model
Operational highlights
Business outlook
The challenges of FY 20/21 continue, in varying degrees, into the new year. Nevertheless, with the permanent market changes accelerated over the past year the Groups outlook for the rest of 2021 and the 21/22 fiscal year remains positive. The market changes over the past year are fueling three major trends that the Group is capitalizing on. Firstly, the consumption upgrade, with customers spending more time on their devices, buying more, and upgrading more often. Secondly, the infrastructure upgrade, with customers moving from buying data center products to buying total infrastructure solutions. And finally, the application upgrade, with digitalization greatly accelerated and intelligent transformation, enabled by A.I., becoming a reality. Lenovos proven track record for execution, its global-local operating model, and new organizational structure aligns to these trends, will further strengthen the Groups ability to drive long-term, sustainable growth.
* invoiced revenue
About Lenovo
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$60 billion revenue Fortune Global 500 company serving customers in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that power (through devices and infrastructure) and empower (through solutions, services and software) millions of customers every day and together create a more inclusive, trustworthy and sustainable digital society for everyone, everywhere. To find out more visit https://www.lenovo.com and read about the latest news via our StoryHub.
LENOVO GROUP
FINANCIAL SUMMARY For the fiscal quarter and full year ended March 31, 2021 (in US$ millions, except per share data) | ||||||||
|
|
Q4 |
Q4 |
Y/Y CHG |
|
FY20/21 |
FY19/20 |
Y/Y CHG |
Revenue |
| 15,630 | 10,579 | 48% |
| 60,742 | 50,716 | 20% |
Gross profit |
| 2,688 | 1,861 | 44% |
| 9,768 | 8,357 | 17% |
Gross profit margin |
| 17.2% | 17.6% | (0.4)pts |
| 16.1% | 16.5% | (0.4)pts |
Operating expenses |
| (2,209) | (1,695) | 30% |
| (7,588) | (6,918) | 10% |
Expenses–to-revenue ratio |
| 14.1% | 16.0% | (1.9)pts |
| 12.5% | 13.6% | (1.1)pts |
Operating profit |
| 479 | 166 | 188% |
| 2,180 | 1,439 | 52% |
Other non-operating expenses – net |
| (99) | (89) | 11% |
| (406) | (421) | (3)% |
Pre-tax income |
| 380 | 77 | 392% |
| 1,774 | 1,018 | 74% |
Taxation |
| (95) | (14) | 585% |
| (461) | (213) | 116% |
Profit for the period/year |
| 285 | 63 | 350% |
| 1,313 | 805 | 63% |
Non-controlling interests |
| (25) | (20) | 20% |
| (135) | (140) | (3)% |
Profit attributable to equity holders |
|
| 43 |
|
|
|
|
|
Earnings per share (US cents) |
|
|
|
|
|
|
|
|
Basic | 2.19 | 0.36 | 1.83 | 9.54 | 5.58 | 3.96 | ||
Diluted | 1.94 | 0.35 | 1.59 | 8.91 | 5.43 | 3.48 |
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
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