Lenovo Group: First Quarter Financial Results 2024/25
Lenovo Group (HKSE: 992) (ADR: LNVGY) reported strong Q1 FY 2024/25 results, with revenue up 20% year-on-year to US$15.4 billion and net income up 65% to US$315 million on a non-HKFRS basis. The company saw profitability improvements across all business areas and made significant progress in capturing hybrid AI opportunities. Non-PC revenue mix reached a historic high of 47%, up five points year-to-year.
Lenovo is positioning itself to lead in the era of hybrid AI with its full-stack portfolio, including AI PCs and servers. The company expects AI PCs to represent over 50% of the PC market by 2027. R&D spending increased 6% year-on-year to US$476 million. Lenovo also announced a strategic collaboration with Alat, a PIF subsidiary, involving convertible bonds and warrants issuance to accelerate transformation and expand in the Middle East.
Il gruppo Lenovo (HKSE: 992) (ADR: LNVGY) ha riportato risultati forti per il primo trimestre dell'anno fiscale 2024/25, con un aumento del fatturato del 20% rispetto all'anno precedente, raggiungendo i 15,4 miliardi di dollari e un aumento del 65% dell'utile netto, pari a 315 milioni di dollari su base non HKFRS. L'azienda ha registrato miglioramenti della redditività in tutte le aree aziendali e ha fatto significativi progressi nel catturare opportunità di AI ibrida. La percentuale di ricavi non legati ai PC ha raggiunto un massimo storico del 47%, in aumento di cinque punti rispetto all'anno precedente.
Lenovo si sta posizionando per guidare nell'era dell'AI ibrida con il suo portafoglio completo, inclusi PC e server basati su AI. L'azienda si aspetta che i PC basati su AI rappresentino oltre il 50% del mercato dei PC entro il 2027. La spesa per R&D è aumentata del 6% rispetto all'anno precedente, raggiungendo i 476 milioni di dollari. Lenovo ha anche annunciato una collaborazione strategica con Alat, una controllata del PIF, che prevede l'emissione di obbligazioni convertibili e warrant per accelerare la trasformazione e espandersi in Medio Oriente.
El grupo Lenovo (HKSE: 992) (ADR: LNVGY) reportó fuertes resultados para el primer trimestre del año fiscal 2024/25, con ingresos que aumentaron un 20% interanual, alcanzando los 15.4 mil millones de dólares y un incremento del 65% en el ingreso neto, que llegó a 315 millones de dólares en base no HKFRS. La compañía vio mejoras en la rentabilidad en todas las áreas de negocio y avanzó significativamente en la captura de oportunidades de IA híbrida. La mezcla de ingresos no relacionados con PC alcanzó un máximo histórico del 47%, cinco puntos más que el año anterior.
Lenovo se está posicionando para liderar en la era de la IA híbrida con su portafolio de stack completo, que incluye PCs y servidores de IA. La compañía prevé que los PCs de IA representen más del 50% del mercado de PCs para 2027. El gasto en I+D aumentó un 6% interanual, alcanzando los 476 millones de dólares. Lenovo también anunció una colaboración estratégica con Alat, una subsidiaria del PIF, que involucra la emisión de bonos convertibles y warrants para acelerar la transformación y expandirse en el Medio Oriente.
레노버 그룹 (HKSE: 992) (ADR: LNVGY)는 2024/25 회계연도 1분기 강력한 실적을 보고했으며, 매출은 지난해 대비 20% 증가한 154억 달러에 달하고, 순이익은 65% 증가한 3억 1500만 달러를 기록했습니다(비 HKFRS 기준). 회사는 모든 사업 분야에서 수익성 개선을 보았고, 하이브리드 AI 기회를 포착하는 데 상당한 진전을 이루었습니다. 비 PC 매출 비율은 역사적인 최고치인 47%에 도달했으며, 이는 지난해 대비 5포인트 상승한 수치입니다.
레노버는 AI PC 및 서버를 포함한 풀스택 포트폴리오로 하이브리드 AI 시대를 선도할 입지를 다지고 있습니다. 회사는 AI PC가 2027년까지 PC 시장의 50% 이상을 차지할 것으로 예상하고 있습니다. 연구개발(R&D) 지출은 지난해 대비 6% 증가하여 4억 7600만 달러에 달했습니다. 또한 레노버는 PIF의 자회사인 Alat와의 전략적 협력을 발표하며, 이를 통해 전환을 가속화하고 중동 지역에서의 확장을 위해 전환사채 및 워런트 발행을 추진하고 있습니다.
Le groupe Lenovo (HKSE: 992) (ADR: LNVGY) a annoncé de bons résultats pour le premier trimestre de l'exercice 2024/25, avec un chiffre d'affaires en hausse de 20% par rapport à l'année précédente, atteignant 15,4 milliards de dollars et un bénéfice net en hausse de 65%, s'élevant à 315 millions de dollars sur une base non HKFRS. L'entreprise a observé des améliorations de rentabilité dans tous les secteurs d'activité et a réalisé des progrès significatifs dans la capture des opportunités d'IA hybride. La part des revenus non liés aux PC a atteint un niveau record de 47%, soit cinq points de pourcentage de plus par rapport à l'année précédente.
Lenovo se positionne pour devenir un leader à l'ère de l'IA hybride avec son portefeuille complet, comprenant des PC et serveurs alimentés par l'IA. L'entreprise prévoit que les PC alimentés par l'IA représenteront plus de 50% du marché des PC d'ici 2027. Les dépenses en R&D ont augmenté de 6% par rapport à l'année précédente, atteignant 476 millions de dollars. Lenovo a également annoncé une collaboration stratégique avec Alat, une filiale du PIF, impliquant l'émission d'obligations convertibles et de bons de souscription pour accélérer la transformation et s'étendre au Moyen-Orient.
Die Lenovo Group (HKSE: 992) (ADR: LNVGY) hat starke Ergebnisse für das erste Quartal des Geschäftsjahres 2024/25 gemeldet, mit einem Umsatzwachstum von 20% im Vergleich zum Vorjahr auf 15,4 Milliarden US-Dollar und einem Anstieg des Nettogewinns um 65% auf 315 Millionen US-Dollar auf non-HKFRS-Basis. Das Unternehmen verzeichnete Gewinnverbesserungen in allen Geschäftsbereichen und machte bedeutende Fortschritte beim Erschließen hybrider KI-Möglichkeiten. Der Anteil der Nicht-PC-Umsätze erreichte mit 47% einen historischen Höchststand, fünf Punkte mehr als im Vorjahr.
Lenovo positioniert sich, um in der Ära der hybriden KI mit seinem Full-Stack-Portfolio, einschließlich KI-PCs und -Servern, zu führen. Das Unternehmen erwartet, dass KI-PCs bis 2027 über 50% des PC-Marktes ausmachen werden. Die Investitionen in Forschung und Entwicklung stiegen im Jahresvergleich um 6% auf 476 Millionen US-Dollar. Lenovo kündigte auch eine strategische Zusammenarbeit mit Alat, einer Tochtergesellschaft des PIF, an, die die Emission von wandelbaren Anleihen und Warrants umfasst, um die Transformation zu beschleunigen und im Nahen Osten zu expandieren.
- Revenue increased 20% year-on-year to US$15.4 billion
- Net income up 65% year-on-year to US$315 million (non-HKFRS)
- Non-PC revenue mix reached a historic high of 47%
- PC business retained market leadership with 23% global market share
- Smartphone and tablet businesses delivered strong year-on-year revenue growth of around 30%
- ISG achieved record quarterly revenue of US$3.2 billion, up 65% year-on-year
- SSG delivered 13th consecutive quarter of double-digit year-on-year revenue growth
- R&D spending increased 6% year-on-year to US$476 million
- ISG operating losses, although narrowed both quarter-on-quarter and year-on-year
Lenovo delivers strong FY Q1 performance - improves profitability across all businesses, significant progress in capturing hybrid AI opportunities
The Group is both uniquely positioned and well-prepared to lead in an era of hybrid AI with its full-stack portfolio featuring AI devices like AI PCs, AI servers that support all major architectures, as well as rich AI native and AI embedded solutions and services. User feedback from Lenovo’s AI PCs, defined by five key characteristics, have been encouraging, with the first AI PCs having launched in May and many more to come during IFA and Tech World later this year. The Group is confident that it will lead the industry in market share for next-generation AI PCs, which overall are expected to be more than
Looking ahead to growth, in May 2024 Lenovo announced a strategic collaboration with Alat, a subsidiary of PIF, an investment in the form of convertible bonds from Alat, and a warrants issuance. These transactions will greatly benefit the Group’s efforts to accelerate its transformation through greater financial flexibility, seize the enormous business growth momentum in the
Chairman and CEO quote – Yuanqing Yang:
“The great start to our fiscal year has been driven by our clear strategy and strong execution, our persistent innovation and operational excellence, as well as our globalization advantages. Looking ahead, we are both well-prepared and uniquely positioned in the market with our full-stack AI portfolio to lead in the era of hybrid AI and seize the enormous growth opportunities across our entire business. I’m confident that, with a recovering ICT market, the combination of our solid performance and continued progress in hybrid AI will keep enabling us to achieve sustainable growth and profitability increases.”
Financial Highlights:
|
Q1 FY 24/25 US$ millions |
Q1 FY 23/24 US$ millions |
Change
|
|
Group Revenue |
15,447 |
12,900 |
|
|
Pre-tax income |
313 |
228 |
|
|
Net Income (profit attributable to equity holders) |
243 |
177 |
|
|
Net Income (profit attributable to equity holders – non-HKFRS) [1] |
315 |
191 |
|
|
|
||||
Basic earnings per share (US cents) |
1.99 |
1.48 |
0.51 |
|
Intelligent Devices Group (IDG): Double-digit revenue growth with leading profitability, winning in personal AI
Q1 FY24/25 performance:
-
IDG delivered a strong quarter of double-digit year-on-year revenue growth with revenue of
US and almost 1 point improvement in operating margin year-on-year.$11.4 billion -
The PC business retained in market leadership in both shipments and device activations, with
23% global market share and a premium to the market in growth. -
Both the smartphone and tablet businesses delivered strong year-on-year revenue growth of around
30% , with hypergrowth in premium smartphones.
Opportunities and Sustainable Growth:
-
IDG is encouraged by positive feedback from the initial launch of its AI PCs for the
China market, with further global launches at IFA and Tech World later this year. -
The PC market is entering a new refresh cycle driven by AI PCs, with this category expected to grow to represent over
50% of the total PC market by 2027. The Group is confident it will lead the industry in market share for next-generation AI PCs. - IDG will continue to deliver ground-breaking innovations across its portfolio to achieve the full potential of a personal AI agent, while at the same time leveraging and deepening its strategic partnerships to build a more diversified portfolio and richer ecosystem.
Infrastructure Solutions Group (ISG): Hypergrowth with improved profitability, driving hybrid infrastructure
Q1 FY24/25 performance:
-
Driven by strong growth in its Cloud Service Provider business, ISG delivered a record quarterly revenue of
US , up$3.2 billion 65% year-on-year, and narrowed operating losses both quarter-on-quarter and year-on-year. -
Combined revenue from storage, software and services achieved significant growth of
59% year-on-year, setting a new record. -
Revenue from ISG’s Neptune TM liquid cooled servers grew more than
50% , driven by its unique sustainability benefits amidst the industry’s growing AI workload needs.
Opportunities and Sustainable Growth:
- ISG is focused on driving the recovery of profitability by optimizing the business model for its enterprise and SMB business, in particular simplifying portfolios and improving operations.
- It will continue to leverage the industry-leading liquid cooling technology to meet growing AI workload demands, as well as the new growth opportunities in the market for AI servers and storage.
- In addition, ISG will continue to grow key strategic partnerships and build infrastructure platforms that support hybrid AI solutions.
Solutions and Services Group (SSG): High margin with double-digit growth, building enterprise AI
Q1 FY24/25 performance:
-
SSG delivered its 13th consecutive quarter of double-digit year-on-year revenue growth, with revenue of
US .$1.9 billion -
Operating margin in Q1 was over
20% – strengthening its position as the Group’s growth engine and profit contributor. -
Managed services and project and solutions services revenue mix grew three points year-on-year to account for
55% of SSG’s revenue.
Opportunities and Sustainable Growth:
- AI services are expected to grow almost twice as fast as the market in general to become the primary driver of the IT services market over the next few years.
- Lenovo will continue to embed AI in its key offerings, such as Digital Workplace Solutions, Hybrid Cloud and Sustainability solutions.
- SSG will develop more AI native services to drive adoption and measurable ROI of AI for customers and accelerate their transformation.
ESG and corporate highlights
Achievements, announcements, and notable commitments over the past quarter include:
- Lenovo has been ranked as one of the world’s best supply chains, ranking tenth in the list of global companies across all industries with the most exceptional supply chains in the world in the Gartner Supply Chain Top 25 for 2024. The renowned annual ranking evaluates across multiple criteria including financial and corporate social responsibility data and community opinion.
- Lenovo has appointed Doug Fisher as Chief Security and AI officer, expanding his existing remit of security to include overall AI governance including championing the Group’s corporate AI policy and working with its Responsible AI Committee.
- In July, Lenovo announced the appointment of Dr. Tolga Kurtoglu as the group’s new Chief Technology Officer, succeeding Dr. Yong Rui in further accelerating the Group’s technology vision and AI leadership. At the same time, it also announced the formation of a new Emerging Technology Group that is charged with incubating and commercializing new technologies. The Emerging Technology Group is being led by Dr. Yong Rui.
[1] Non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges, gain on deemed disposal of a subsidiary, impairment and write-off of intangible assets; and the corresponding income tax effects, if any.
About Lenovo
Lenovo is a
LENOVO GROUP FINANCIAL SUMMARY For the quarter ended June 30, 2024 (in US$ millions, except per share data) |
||||
|
|
|
|
|
Revenue |
|
15,447 |
12,900 |
|
Gross profit |
|
2,560 |
2,252 |
|
Gross profit margin |
|
|
|
(0.9) pts |
Operating expenses |
|
(2,066) |
(1,862) |
|
R&D expenses
|
|
(476) |
(451) |
|
Expenses-to-revenue ratio |
|
|
|
(1.0) pts |
Operating profit |
|
494 |
390 |
|
Other non-operating income/(expenses) - net |
|
(181) |
(162) |
|
Pre-tax income |
|
313 |
228 |
|
Taxation |
|
(60) |
(45) |
|
Profit for the period |
|
253 |
183 |
|
Non-controlling interests |
|
(10) |
(6) |
|
Profit attributable to equity holders |
|
243 |
177 |
|
Profit attributable to equity holders- non-HKFRS [1] |
|
315 |
191 |
|
EPS (US cents)
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814460489/en/
Zeno Group - LenovoWWcorp@zenogroup.com
Source: Lenovo Group Limited
FAQ
What was Lenovo's (LNVGY) revenue in Q1 FY 2024/25?
How much did Lenovo's (LNVGY) net income increase in Q1 FY 2024/25?
What percentage of Lenovo's (LNVGY) revenue came from non-PC sources in Q1 FY 2024/25?
What is Lenovo's (LNVGY) global market share in PC shipments and device activations?
How much did Lenovo (LNVGY) spend on R&D in Q1 FY 2024/25?
