Lenovo Group 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.”