Lenovo Group has announced its second quarter results, with profitability improving year-on-year for the 10th consecutive quarter.
During the quarter, Lenovo Southern Africa dominated the local PC market with a 24,8% market share and experienced business performance has been consistent with the global results.
Lenovo’s non-PC businesses now make up more than 37% of total group revenue, with a healthy cash balance allowing the group to grow R&D spending 15% year-on-year.
Financial highlights:
| Q2 22/23
US$ millions |
Q2 21/22
US$ millions |
Change
|
||
| Group Revenue | 17,090 | 17,869 | (4%) | |
| Pre-tax income | 710 | 742 | (4%) | |
| Net Income (profit attributable to equity holders) | 541 | 512 | 6% | |
| Net Income (profit attributable to equity holder – non-HKFRS) [1] | 591 | 591 | (0%) | |
| Basic earnings per share (US cents) | 4.54 | 4.42 | 0.12 | |
Yugen Naidoo, GM of Lenovo, Southern Africa, comments: “Following a volatile period affected by the pandemic, Lenovo has impressively maintained market leadership in South Africa, thanks to its strong performance, particularly in the Consumer and Enterprise business units.
“I am proud to say that according to IDC preliminary reports Lenovo Intelligent Devices Group (IDG) in South Africa holds the number one position in terms of market share standing at 24,8% which mirrors our global market share leadership.
“Due to the complexity of hybrid work and even greater customer demands, innovative solutions will need to be constantly refined and addressed to ensure seamless remote workflows across various verticals in the region,” Naidoo adds.
“Lenovo’s key investment areas during the past period, and in future, will look at advancing its premium services to meet the needs of customers; increasing supply and availability of premium products throughout the country; and to invest in the rapidly growing gaming sector.
“In addition, Lenovo will also be leveraging our experience within Infrastructure Solutions Group (ISG) and Services and Solutions Group (SSG) to develop smarter infrastructure and tailored solutions for organizations of all sizes.”
Globally, Solutions and Services Group (SSG) revenue grew by 26% year-on-year, improving its operating margin to 21,4%. For the first time, revenue from non-hardware-tied solutions and services accounts for more than half of SSG’s business.
The Infrastructure Solutions Group (ISG) reported record revenue of $2,6-billion, up 33% year-on-year, with operating profit reaching an all-time high of $36-million, marking the fourth consecutive quarter of profitability. The Cloud Service Provider and Enterprise/SMB segments both outgrew the market forecast, while revenue from Edge Computing almost quadrupled and Storage more than doubled year-on-year, both setting new records.
The Intelligent Devices Group (IDG) maintained profitability of 7,4%, outperforming key competitors and strengthening its global position as the top PC company in the world.
The smartphone business achieved its tenth consecutive quarter of profitability and the Smart Collaboration business continued to grow at high double-digit year-on-year. Revenue from the Gaming scenario business set a new record.