Home > Brands > EXCLUSIVE: Lenovo Sales Up 10% Profits Fall 69%

EXCLUSIVE: Lenovo Sales Up 10% Profits Fall 69%

Lenovo has reported a 10% lift in revenues however profits have fallen 69% from $12.5 million in 2018 to $3.37 in 2019.

Revenue went from from $728M in the 2018/2019 financial year to $799M in their latest filings.

A major supplier of notebooks to Officeworks, JB Hi Fi, The Good Guys and Harvey Norman the #1 global PC Company saw top line sales increase by 10% B2b services accounted for $38.8M.

ChannelNews understands that the NSW based Company has won several services contracts from competitors.

54% of their notebook sales were Windows based Intel powered machines followed by Chromebooks of $11.4M.

Overall sales of notebooks was $426M.

The Company sold $28M worth of tablets, workstations accounted for $24M in sales.

Rebates to retailers are believed to have had an impact on the Company’s overall profits.

Currently the Company is making a move to gain further share in the PC gaming market with a new range of Legion gaming PC’s.

They have entered the voice activated smart home market which is seen by retailers as a growth market with the Chinese Company now ranging smart light bulbs.

Property Plant and equipment (fixed assets) dropped by over $1M during the past year, which reveals a slowdown in local investment.

In 2018 the Company spent $568K Vs $385K in the current financial year on local infrastructure.

One of the biggest impacts on the accounts in 2019 is the $7.7m FX loss, which was caused by the volatility in the Australian dollar.

Another big impact in 2019 was the accounting for their receivable allowance (rebates; returns; bad debts).

This increased by$ 1.2M however no explanation has been given for this increase other than a more conservative treatment on their debtors.

Share based payment issued in 2019 increased to $292K Vs $6K in 2018.

There are several payments to interrelated Lenovo entities

You may also like
Shanghai Launch Tipped For New Lenovo Mini
All New Lenovo PCs To Have AI Capabilities By 2027
JB Hi-Fi Shares Climb To Record High
The Tab K11 Plus (Image: Sourced from Lenovo website)
Lenovo Adds New Device To K-Series Tab Lineup
Lenovo Begins Launching New Tab Plus