Lenovo Group reported financial results for its fourth quarter and fiscal year. Its revenue crossed $60 billion for the first time.
Fourth quarter
Group revenue grew at 48 percent to $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 percent and 512 percent respectively.
Annual Group revenue surged past $60 billion, adding more than $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 percent year-on-year.
“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,” Lenovo Chairman and CEO Yuanqing Yang said.
HIGHLIGHTS
Fourth quarter record driven by simultaneous double-digit revenue growth across all core businesses
Best fourth quarter ever for PC and Smart Devices (PCSD) with US$12.4 billion in revenue, up 46 percent and profitability at an all-time high of 6.7 percent.
All geographies realized high double-digit growth in PCSD revenue and PC volume outgrew the market – further strengthening the company’s global #1 ranking in PCs.
Tablets had a breakthrough quarter, with shipments growing 157 percent – around three times as fast as the market.
High growth and premium segment volumes (Gaming, Thin & Light, Chromebooks, Visuals) continue to outgrow the market and deliver strong double to triple-digit growth rates.
Revenue from the Mobile Business Group (MBG) achieved hyper-growth, up 86 percent year-on-year to US$1.54 billion – achieving pre-tax income of US$21 million – a record high since the Motorola acquisition.
Expanded carrier relationships and a strong product portfolio, including 5G products, saw smartphone volumes grow at triple digit rate in North America, Europe, and Asia Pacific.
Smartphone market share in our Latin America stronghold reached a record of nearly 21 percent.
Revenue for the Data Center Group (DCG) was strong, growing 32 percent to US$1.6 billion, the fifth straight quarter of premium-to-market growth. Profitability improved 4.4 points year-on-year.
The Cloud Service Provider business grew 73 percent and at a 61-point premium to the market.
Record high fourth quarter revenue was achieved for Server, Storage, Software Defined Infrastructure, Software, and HPC/AI. Traditional storage was a particular highlight growing at 73 percent year-on-year.
Burgeoning Edge business delivering strong signs of future growth.
Transformation businesses also achieved record growth, fueled by ongoing strong growth in services and software revenue up 44 percent. Managed Services revenue (DaaS, TruScale) nearly doubled, and Solutions revenue grew 65 percent.
Fiscal year milestone fueled by leveraging core competencies of clear strategy, product innovation, operational excellence, and Global/Local model
For the first time, Group revenue surged past US$60 billion, adding more than US$10 billion, or 20 percent growth in one year.
Intelligent Devices Group (PCSD and MBG) and Data Center Group achieved revenue growth of 20 percent and 15 percent respectively.
The Group’s Service-led transformation is forging ahead. Software and Services revenue grew twice as fast at the overall Group revenue, at almost 40 percent to a record US$4.9 billion – now makes up 8 percent of Group revenue.
