Lenovo gets FY13 off to a flier

EMEA success a key driver for huge growth in sales and profit for fast-growing Chinese vendor

Stratospheric growth in EMEA helped Lenovo expand its top line by more than a third year on year during a stellar first fiscal quarter for the firm.

For the three months to the end of June, the Chinese PC maker grew revenue by 35 per cent year on year to $8bn (£5.1bn). Net profit growth lagged a little, but was still up 30 per cent to $141m. EMEA was the vendor's fastest-growing region, with sales rising 62.3 per cent to $1.6bn, representing 20 per cent of total turnover.

The desktop and notebook markets both provided solid growth for the vendor, with laptop sales rising 23 per cent annually to $4.3bn. Desktop PC revenue spiked 26 per cent to $2.5bn. Lenovo chief executive Yang Yuanqing claimed his firm can continue to grow strongly, despite the economic headwinds.

"Although the economic environment is somewhat similar to the 2008-2009 downturn, Lenovo's results are much stronger because we have the right strategy and great execution," he said. "Our businesses in emerging markets outside of China, our consumer business and MIDH (Mobile Internet Digital Home) business all achieved rapid expansion, providing the balanced pillars to support our overall performance.

"Our business in China and our global commercial business maintained strong profitability, which allows us to secure plenty of resources to invest in growth areas and ensure the company's overall healthy performance. Although we are in a challenging environment, we are confident that by continuing to execute our ‘Protect and Attack' strategy, Lenovo can achieve sustainable growth and healthy returns in the PC+ era."

Over the past year Lenovo has surged up the PC vendor rankings, becoming the world's second-biggest computer manufacturer in Q2, with a market share of 14.9 per cent, according to IDC research. But market watchers have since warned the vendor that a build-up of channel inventory could hurt its sell-in numbers and average selling prices for the rest of the year.