Lenovo Group: Full Year Financial Results 2021/22

Lenovo delivers another record year – crossing the US$70 billion revenue milestone and reaching US$2 billion in net income

HONG KONG — (BUSINESS WIRE) — May 25, 2022Lenovo Group (HKSE: 992) (ADR: LNVGY) today announced record fiscal year results for the Group, with historic highs for both profit and revenue. Annual net income reached the US$2 billion mark, up 72% year on year, with revenue growing by US$10 billion for the second year running to over US$71 billion. All main business groups were profitable for the full fiscal year - with strong growth momentum in mobile, infrastructure, and solutions and services businesses.

Lenovo successfully overcame macro-environmental challenges and demonstrated both agility and resilience as it navigated industry-wide supply shortages, pandemic disruption, geopolitical uncertainties, and higher inflation to deliver a record year.

The digital and intelligent transformation trend continues to accelerate, presenting the Group with strong growth opportunities. More than 50% of companies now have digitalization as part of their corporate strategy, up from just over one third two years ago. The hybrid work model is a long-term change that will continue to drive strong demand not only for smart devices and data center infrastructure, but also for scenario-driven solutions such as smart collaboration, smart home, and smart office.

Lenovo continued to strengthen its competitiveness to drive sustainable profitable growth. It has already made strong progress toward doubling R&D investments within three years from fiscal year 2021/2022, up 43% year on year to US$2 billion. And will continue to realize its ESG goals and commitments. The company is confident that by leveraging its clear strategy, competing with its unique competitive advantage of global-local model, and the right balance between innovation and efficiency, it can overcome any challenges to capture opportunities.

Lenovo’s Board of Directors declared a final dividend of 3.8 US cents or 30.0 HK cents per share for the fiscal year ended March 31, 2022.

Financial Highlights:

 

FY 21/22

US$ millions

FY 20/21

US$ millions

Change

 

 

Q4 21/22

US$ millions

Q4 20/21

US$ millions

Change

 

Group Revenue

71,618

60,742

18%

16,694

15,630

7%

Pre-tax income

2,768

1,774

56%

520

380

37%

Net Income (profit attributable to equity holders)

2,030

1,178

72%

412

260

58%

 

 

Basic earnings per share (US cents)

17.45

9.54

7.91

3.52

2.19

1.33

Chairman and CEO quote – Yuanqing Yang:

“Although last year was challenging for the world, with the accelerated global digital and intelligent transformation, Lenovo delivered a record year of profit and revenue,” said Yuanqing Yang, Lenovo Chairman and CEO. “All our main businesses are now profitable for the full year, and our new growth engines – SSG, ISG and Mobile – are showing strong momentum. We will capture this window of opportunity, double our R&D investment, drive service-led transformation, realize our ESG goals, and stay flexible and resilient to bring the entire company to new heights.”

Solutions and Services Group (SSG): delivering strong growth and high margins - driving higher overall profitability for the Group

Opportunity:

The trillion-dollar IT services market continues to expand. With the hybrid work model, the demand for digital workplace services is expected to reach US$93 billion by 2025. Equally, research is showing that more than 90% of CIOs are willing to consider adopting as-a-service offerings.

FY21/22 performance:

  • In the last year SSG delivered high profitability and high growth, with revenue reaching an all-time high of US$5.4 billion, up almost 30% year on year. Operating margin was 22%.
  • There was strong double-digit growth across all segments, in particular for managed services where revenue grew more than 60% year on year, with strong growth from the TruScale as-a-service business. Project and solution services saw revenue grow 28% year on year, as vertical solutions more than doubled on the previous year.
  • Revenue from managed services and project and solution services now accounts for almost half of SSG’s business.

1 | 2 | 3  Next Page »



Review Article Be the first to review this article
Featured Video
Latest Blog Posts
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
The Math of Inflation and the Self-Correcting Base Level Effect
Jobs
BIM Specialist - Architecture for Microdesk at Nashua, New Hampshire
ASIC Architects and Hardware Engineers at D. E. Shaw Research for D. E. Shaw Research at New York, New York
GIS Specialist for Washington City Utah at Washington, Utah
Mechanical Engineer Advisor for Halliburton at Houston, Texas
Account Executive - ArcGIS Hub for ESRI at Redlands, California
GIS Technician for City of Saratoga Springs at Saratoga Springs, Utah
Upcoming Events
Building Innovation 2022 at Mayflower Hotel MD - Sep 26 - 28, 2022
10th Annual Global EPC Summit London September 2022 at London, UK United Kingdom - Sep 28 - 30, 2022



© 2022 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise