Lenovo’s New Zealand branch bolstered its sales revenue by 21% in the year ending 31 March 2015, with the company’s profit after tax jumping 389%.
Company records show the New Zealand branch of the global IT vendor made revenue of $48.4 million for the year, up from $40.0 million the previous year.
But while sales saw a healthy boost, it was services that shone for the company, with a 522% increase – albeit off a small base – to record $2.1 million in services revenue, up from just $347,167 a year earlier.
Those increases aided the company to a before tax profit of $475,839, more than double the previous year’s $203,067, and an after tax profit of $342,470, up from just $70,044 a year earlier.
The results helped make for a good year for the global giant in ANZ, with the company recording an 50% jump in sales revenue across the Australia and New Zealand business, with services revenue also improving across the board.
While Australia’s results were no doubt influenced by Lenovo’s entry into the consumer market through retailers Harvey Norman and JB Hi-Fi late last year, the effects from the vendor’s entry into the New Zealand consumer market aren’t included in the latest financials.
Lenovo confirmed its entry into the New Zealand consumer market in June, launching the range via Harvey Norman, JB Hi-Fi and Noel Leeming.
The move followed the appointment of former Synnex New Zealand boss Richard Harri as Lenovo’s retail channel manager.
In Australia, Lenovo quickly took 12% market share after launching its consumer/retail offerings, something the company is hoping to emulate here.
Globally, last year saw Lenovo acquire IBM’s x86 server business with the company setting ambitious local targets for sales in that area, and expecting a services boost off the deal as well.