Lenovo Australia revenue cracks AU$1b mark as hardware sales stay strong

Lenovo Australia has filed its latest financial results to the Australian Securities and Investments Commission, reporting revenue reached the AU$1 billion mark in 2021.

For the period ending March 31, the Australian arm of Chinese PC maker continued with strong hardware sales, which helped it gain AU$942 million in revenue, while the remainder of achieved through activities including the provisioning of service and extended warranty.

Specifically, revenue accrued from notebooks made up just over half of total revenue, coming in at AU$531 million, followed by desktop at AU$105 million. Chromebooks accounted for AU$55.7 million, visuals AU$71 million, and tablets generated AU$56.6 million.

However, the amount gained was offset by AU$903 million in costs associated with sales of good, administration expenses of AU$30.6 million, and AU$73 million in marketing and distribution expenses. Lenovo Australia was able to recover AU$7 million though from net foreign exchange.

The tax bill for the financial year was AU$50,652, a significant reduction compared to the AU$5.61 million the company paid up during the 2020 financial year. Of the total tax amount, AU$9.43 million was tax expenses, another AU$190,000 was adjustments in respect to prior years, and deferred tax expenses amounted to AU$9.57 million. In its cash flow statement, the company revealed AU$3 million of deferred tax relates to the release of a provision for impairment against deferred tax assets that is no longer required.

In the end, the company wrapped up the 2021 full year with after-tax income of AU$13 million, more than double last year's AU$6.16 million.

Lenovo had 256 employees all up during the year.

The Australian company said its immediate parent entity is Lenovo International incorporated in the Netherlands, with the ultimate company being Hong Kong-based Lenovo Group.

Announcing its first-quarter results last month, Lenovo Group reported net income spiked by 119% to $466 million while group revenue lifted 27% from $13.3 million to just shy of $17 million.

The company said the success was fuelled by opportunities created by digitalisation and IT upgrades in devices, infrastructure, and applications.

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