Acer Australia Delivers Record Revenues During COVID-19 Despite Major Supply Restrictions
Acer Australia who are a major supplier to Government and education departments and a market leader in gaming PCs has seen revenue climb by 17% to $341 Million for the 12-month period ending December 2020 despite supply constraints.
In the prior year, the Sydney based business had revenues of $286 Million.
Operating profit of $4.6M was up on 2019 OP of $2.92 million.
Despite the increases profit after tax fell from $2.03 in 2019 to $1.092 in 2020.
Like most PC Companies Acer has faced major supply issues with CEO Darren Simmons telling ChannelNews that he is now having to forecast supply for 2022 due to worldwide shortages in components.
Financials filed with the Australian Securities and Investment Commission also reveal that there have been no changes to the directors at the Company who recently showed off their 2021 product range at an event in Sydney.
A big contributor to Acer growth has been their Predator gaming range and demand for their Chromebooks.
The Company is also a major partner of Harvey Norman who have had a lot of success selling Acer notebooks and gaming machines.
According to GFK data Harvey Norman is “significantly” outselling JB Hi Fi with their Acer offering.
According to Darren Simmons 2020 was “A big year” for the Taiwanese PC manufacturer.
The PC manufacturer’s strategy is to build multiple business engines with the Australian operation looking at new business markets including intelligent business display screens.
Globally Acer recently reported 190% year on year growth. For the period ending December 31, 2020, the business had consolidated revenues of NT$277.11 billion, gross profits of NT$30.12 billion with 10.9% margin, operating income of NT$8.94 billion.
A Simply Wall Street Analysts wrote recently of the global PC Company, “I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners.
They Added “It’s good to see that Acer insiders have a significant amount of capital invested in the stock. With a whopping NT$2.4b worth of shares as a group, insiders have plenty riding on the company’s success. This should keep them focused on creating long term value for shareholders”.