Lenovo Australia and New Zealand saw profit slide to AU$3 million for 2019

Growing tax commitment hit the bottom line of Lenovo ANZ during the 2019 financial year.
Written by Aimee Chanthadavong, Contributor

Lenovo's Australia and New Zealand operations has seen profit after tax tip just pass AU$3 million for the period ending 31 March 2019, a significant drop from the same period last year when it recorded AU$12.6 million.

The local arm of the Chinese PC conglomerate, which employed 229 staff across Australia and New Zealand during the period, indicated its profit after tax was impacted by the AU$3 million in aggregate income tax the company paid during the financial year. The amount paid followed on from the AU$7 million income tax benefit the company received last year.

In addition, tax paid at the statutory rate of 30% was AU$2 million, a small climb from AU$1.6 million reported last year.

Net foreign exchange of AU$7.8 million was also to blame for the profit decline.

Meanwhile, the company reported that its consolidated revenue slightly increased to AU$799 million from the AU$728.9 million recorded during the corresponding period last year.

Of that, AU$788 million was revenue from contracts with customers that consisted of AU$748.8 million in sale of goods, while another AU$37.9 million was related to services.

Specifically, revenue accrued from notebooks made up a majority of total revenue for the year, coming in at AU$426.5 million, followed by desktops at AU$146 million. Chromebooks accounted for AU$11.4 million, with workstations making up AU$24 million in revenue, and tablets generating AU$29 million.

The company also paid AU$92 million less to its related entity Lenovo PC HK Limited for 2019, paying AU$588 million for goods and services compared to AU$680 million a year ago.

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