Lenovo's NZ sales surge as tax, exchange rates lower profit
- 12 November, 2019 06:30
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.