Lenovo Group has announced the second quarter results for the Group, with profitability improving year-on-year for the 10th consecutive quarter. Lenovo Southern Africa has dominated the local PC market with a remarkable 24,8% in Q2 for FY22/23 and has come up as the number one technology company amongst its competitors. The business’s performance has been consistent with the Q1’s FY22/23 results and depicts a healthy growth in market share.
All main businesses contributed positive operating profit, demonstrating further progress towards the Group’s goal of doubling profitability in the medium-term. Additionally, the diversified growth engines continued to drive strong performance with both the solutions and services business, as well as the infrastructure business, seeing high double-digit year-on-year growth. Non-PC businesses now make up more than 37% of total group revenue. The Group’s healthy cash balance means it remains committed to doubling investments in Research and Development (R&D) in the medium-term, having grown R&D spending 15% year-on-year in the quarter.
While current external challenges persist, Lenovo remains agile and focused on pursuing its strategy and ensuring ongoing profitability by rebalancing resources towards its diversified growth engines and driving efficiencies and expense reduction through the business. It sees long-term opportunities built on its foundation of New IT – client, edge, cloud, network, and intelligence – as the global trends of digitalization and intelligent transformation accelerate. Last quarter’s results, as well as the past three years, have demonstrated that the combination of Lenovo’s strategy, strong execution, and resilient operations are enabling it to transcend the industry cycle. This, combined with its high-quality and innovative portfolio, unique hybrid manufacturing and supply chain, global/local principle and capability, as well as healthy liquidity will help drive further opportunities to deliver sustainable growth, and improve profitability.
Following a volatile period affected by the pandemic, Lenovo has impressively maintained market leadership in South Africa, thanks to its strong performance, particularly in the Consumer and Enterprise business units. I am proud to say that according to IDC preliminary reports Lenovo Intelligent Devices Group (IDG) in South Africa holds the no.1 position in terms of market share standing at 24.8% which mirrors our global market share leadership. Due to the complexity of hybrid work and even greater customer demands, innovative solutions will need to be constantly refined and addressed to ensure seamless remote workflows across various verticals in the region. Lenovo’s key investment areas during the past period, and in future, will look at advancing its premium services to meet the needs of customers; increasing supply and availability of premium products throughout the country; and to invest in the rapidly growing gaming sector. In addition, Lenovo will also be leveraging our experience within Infrastructure Solutions Group (ISG) and Services and Solutions Group (SSG) to develop smarter infrastructure and tailored solutions for organizations of all sizes.
Yugen Naidoo, General Manager of Lenovo, Southern Africa
