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Lenovo's NZ sales surge as tax, exchange rates lower profit

Notebooks are Lenovo NZ's top sales category by a mile

Lenovo's New Zealand sales surged in the year ended 31 March, 2019, but tax and exchange rate changes took a chunk out of the company's bottom line.

Revenue grew from $80.6 million to $91.3 million while net profit after tax fell from $1.6 million to $188,449.

Profit before tax, however, lifted from $228,706 to $486,154 even as cost of sales increased year-on-year from $76.5 million to $86.1 million.

Lenovo's NZ PCs and smart devices (PCSD) business delivered an exceptionally strong performance with 13.3 per cent growth in top line revenue, standing at $91.4 million [includes interest earned].

Lenovo NZ's top three category earners were notebooks, delivering $52.7 million followed by desktops at $13.6 million with workstations contributing $6 million.

Lenovo ANZ reported sales increased from A$729 million to A$799 million for the same period and a similar lift in profit before tax as seen in New Zealand. 

However, also as seen in NZ, profit after tax fell, from A$12.8 million to A$3.7 million.