Lenovo Group announced record results for the Group’s first fiscal quarter. The company has seen significant improvements in profitability. The first quarter ends with a turnover of 16.9 billion dollars and an increase on an annual basis of +27%. All the main financial items of the group are growing, confirming Lenovo’s winning strategy in recent months.
Record results for Lenovo Group in the first fiscal quarter
Lenovo Group’s fiscal first quarter results are very positive. The company registers a pre-tax profit nearly doubled to $ 650 million (up 96%). Note that even thenet profit is growing strongly (plus 119%), as a net profit margin reached 2.8%. For the future, the group underlines its willingness to aim for profitable and sustainable growth. Investments in research and development increased by 40% in the quarter. Over the next three years, investment in research and development will double.
The division drives the results of the group Intelligent Devices Group. This division reported a profit of $ 1.1 billion, up 43% year-on-year and revenue of $ 14.7 billion, up 28% year-on-year. Of note is the growth in the non-PC segments which now account for 18% of the total revenue of the Lenovo division.
Yuanqing Yang, Chairman and CEO at Lenovo, underlines: “In the future we will continue to increase investments in research and development, aiming to double them in the next three years; we will further improve our operational excellence; and we remain committed to green innovation and corporate citizenship to achieve an increase in long-term sustainable profitability ”.