Beijing, NFAPost: China’s Lenovo Group posted a 6.8% rise in fourth-quarter revenue, its slowest growth in seven quarters, the company’s revenue for the whole fiscal rose 18% to touch all time record at $71.6 billion since listing.
The fourth quarter slum is primarily due to reluctance among consumer to shop more hardware which they did during the peak months of strong pandemic wave.
Revenue rose to $16.69 billion in the quarter ended March 31 from $15.63 billion a year earlier, below an average analyst estimate of $17.36 billion drawn from 9 analysts, according to Refinitiv.
But net income attributable to shareholders for the world’s biggest maker of personal computers rose to $412 million, exceeding analysts’ expectations.
A bellwether for the global PC market, the Beijing-based company led the market with a 23.1% share in the January-March period, according to data from research firm Counterpoint.
A rush to buy PCs during the pandemic culminated in record sales and profit for Lenovo in the December quarter. But sales have begun to lose steam as China, the company’s biggest market, has been hit by the Omicron variant, prompting many cities to impose lockdowns and shut factories.
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 the 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.
Counterpoint reported in April that global PC shipments fell 4.3% in the first quarter of 2022, as the war in Ukraine and China’s lockdowns pressured already fragile supply chains and added to shortages of components.
