Lenovo Reports 36% Increase in Non-HKFRS Net Profit to $1.4 Billion, Driven by Balanced Global Sales Growth
Lenovo Group Limited reported a 36% increase in non-HKFRS net profit to $1.4 billion, driven by balanced global sales growth. Profit attributable to equity holders also rose by 37% year-on-year. All business groups improved segment margins, with revenue contributions from Asia Pacific, China, EMEA, and the Americas ranging from 19% to 34%. Corporate expenses increased to $528 million, primarily due to higher employee benefits and advertising costs. Lenovo's focus on innovation and R&D remains crucial for its financial success.
Lenovo Group Limited reported its financial results, highlighting a significant increase in profitability. The company's non-HKFRS net profit grew by 36 percent year-on-year, reaching US$1.4 billion. On an HKFRS basis, profit attributable to equity holders also rose by 37 percent year-on-year to US$1.4 billion. These results underscore Lenovo's focus on advancing overall profitability, with all three business groups reporting improved segment margins. The company achieved balanced growth across regions, with Asia Pacific, China, EMEA (Europe, Middle East, and Africa), and the Americas contributing between 19 to 34 percent to total revenue. Lenovo has taken strategic measures to strengthen its global operations in response to a challenging trade regulatory environment, aiming to enhance business agility and secure long-term growth. Additionally, an increase in corporate expenses was noted, amounting to US$528 million, up from US$351 million in the previous period. This rise was mainly due to higher employee benefit costs driven by performance-based bonuses, increased advertising and promotional expenses, net foreign exchange losses, and provisions for claims. Lenovo's commitment to innovation and research and development continues to be a key factor in its financial performance.
