Lenovo’s annual profit and revenue fell due to lower demand for PCs – Kommersant

Chinese Lenovo published results fiscal year ending March. As follows from the manufacturer’s statements, revenue for the reporting period decreased by 14%, to $61.9 billion, net profit fell by 21%, to $1.6 billion. Earnings per share decreased from $0.1745 to $0.135. Lenovo management notes that “weakness” in the global PC market is behind the fall in overall financial performance.

Particularly difficult period of the financial year, according to the financial statements, was the fourth quarter. Lenovo’s revenue has been falling for the last three quarters, and in the fourth it fell 24% year-over-year to $12.63 billion. reduction PC sales in the world in the first three months of this year. During this period, according to the estimates of the analytical company IDC, 56.9 million personal computers were sold in the world. This is 29% less than at the beginning of 2022.

Meanwhile, Lenovo notes that against the backdrop of a decline in the PC business, indicators of its other divisions that are not related to the production of computers began to grow very actively. And now they account for 40% of the company’s revenue. Most of all – by 37% – revenue from the Infrastructure Solutions division grew, it reached a record $10 billion. Revenue from the Solutions and Services division grew by 22%, it amounted to $6.7 billion, which is also a record.

Lenovo expects the PC and smart device market to stabilize and move to growth in the second half of 2023. Lenovo shares on the Hong Kong stock exchange after the publication of financial statements are depreciating by 7.65%. Over the past month, they have lost 9.6% of the cost.

Alena Miklashevskaya