On May 23, Lenovo Group Limited released its financial performance for the fiscal year 2024.
In the fiscal year 2023, Lenovo’s revenue was $56.864 billion, a decrease of 8% compared to the previous year; net profit attributable to equity holders (net profit) was $1.011 billion, a decrease of 37% compared to the previous year. Both figures have declined for the second consecutive year. Lenovo stated in its financial report that the decline in performance was mainly due to overall market weakness in the first half of the period.
However, with the recovery of the PC market, Lenovo’s performance improved in the fourth quarter of fiscal year 2023. In Q4, Lenovo’s revenue was $13.833 billion, an increase of 9% compared to last year. At the same time, due to increased contribution from high-margin businesses within Solution Services Group and changes in sales mix, Lenovo’s net profit in Q4 increased by 118% to $0.248 billion; gross margin was at 17.6%, up by 0.6% compared to last year.
The financial report disclosed that as of fiscal year 2023, Lenovo had a total global workforce of 77,000 employees which decreased to arounds 69,500 employees for fiscal year ending on March 31st , meaning that over past one years they reduced their headcount by approximately 7,500 people.
Lenovo also mentioned under “expense categories” in its financial report that it incurred severance and related costs amountingto$55 million due industry challenges.
SEE ALSO: Lenovo’s Revenue Growth Exceeds 100 Billion Yuan in 3 Years
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