Lenovo has announced results for the period July to September 2021, its second fiscal quarter, with record numbers across the board. The company has increased its revenues by 23% compared to the same period of 2020, from 14,519 million to 17,869 million dollars.
Lenovo has presented the results for its second fiscal quarter of 2021, from July to September, with an increase in all business figures, despite the production crisis derived from the shortage of semiconductors.
Thus, the company has increased its revenues to 17,869 million dollars, that is, 23% more than the same period last year, when they were 14,519 million dollars.
In terms of net income, they have risen 65%, from 310 million dollars in 2020 to 512 million dollars in 2021, while operating profit has reached 817 million dollars.
“Throughout the last quarter, both our net profit and revenue have posted new highs and we are on the right track to double our net margin in 3 years”Celebrated Yuanqing Yang, CEO and president of Lenovo. “At the same time, our investment in R&D has increased remarkably, by almost 60%”.
In infrastructure solutions (ISG), revenues have been 2,000 million dollars (1,731.09 million euros), with a year-on-year growth of almost 34%. In this sense, the provision of cloud services and the business of SMEs grew by 50% and 20%, respectively.
In solutions and services (SSG), revenue growth has been 30%, to 1,360 million dollars (1,177.14 million euros), that is, 7.3% for the entire company.
In smart devices (IDG), demand for computers remains high and Lenovo expects the market to grow 18%. During this quarter, the company has increased its revenues by 21%, to 15,300 million dollars (13,242.84 million euros).
Taking a look at Spain, Alberto Ruano, CEO of Lenovo Iberia has offered a positive figure for the company: they have a 24.8% market share. At a general level, in Iberia it occupies the second position, with a 23.1% share.
Although all this without taking into account that demand has not fallen, but some orders have not been delivered, which are pending to be supplied to customers, due to the lack of product.
Finally, Ruano has expressed that the company believes that as of April or May 2022, the crisis situation will return to normal.
The long-term future forecasts of LenovoIn addition, they go through the integration of post-consumer recycled materials in 100% of their computer products by 2025.
With a view to the medium term (3 years), the company will continue to invest in research and development, on a quarterly basis, in order to continue growing.
“Going forward, we will continue to advance our goal of doubling R&D spending in three years to drive our intelligent services-led transformation”, Has qualified Yang.
This article was published in Business Insider Spain by Abraham Andreu.