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Lenovo Group today said its net profit for the first quarter of this fiscal increased by 30 per cent year-on-year to $141 million, driven by robust sales in developing market economies.
The company had posted a net profit of $108 million in the year-ago period.
However, profit growth rate for the quarter ended June 30 was lower than the previous quarter’s 59 per cent increase, Lenovo said in a statement.
The quarterly sales of the company in the June quarter stood at $8 billion, a 35 per cent increase from 5.9 billion in the same period last year.
“Although the economic environment is somewhat similar to the 2008-2009 downturn, Lenovo’s results are much stronger because we have the right strategy and great execution,” Lenovo Chairman and CEO Yang Yuanqing said.
Yuanqing added, “Our businesses in emerging markets outside of China, our consumer business and MIDH (Mobile Internet/Digital Home) business all achieved rapid expansion, providing the balanced pillars to support our overall performance.”
The latest growth was supported by strong sales in developing economies with PC shipments in the Asia Pacific/ Latin America region for the quarter witnessed a rise of 59.2 per cent, in Europe Middle East/Africa it increased at an impressive 62.3 per cent year-on-year.
“Although we are in a challenging environment, we are confident that by continuing to execute our Protect and Attack strategy, Lenovo can achieve sustainable growth and healthy returns in the PC+ era,” Yuanqing said.
As markets today have evolved to the PC Plus era, Lenovo has moved aggressively to ensure that the company is well-positioned as the industry shifts to include more tablets, Smart TVs and smartphones in the product mix, it added.
Meanwhile, the company’s gross profit for the first fiscal quarter increased 30 per cent year-over-year, with gross margin at 12 per cent.
Operating profit for the quarter grew 48 per cent year-over-year to $182 million. Basic earnings per share for the first fiscal quarter was 1.37 US cents, or 10.63 HK cents, the company said.
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