Lenovo Australia and New Zealand has seen its profits for the latest financial year sink despite an upswell of revenue.
For the year ended March 2019, the Chinese vendor saw its net profit after tax (NPAT) sink by almost 75 per cent, from $12.5 million to just $3.3 million year-on-year.
The company this year also paid a tax bill of $3.3 million, having gained a relief of $7.3 million the year previously.
However, things looked rosier on a revenue front as Lenovo’s revenue rose by 10 per cent from $728 million to $799 million this year.
The bulk of this came down to hardware sales, including personal computers, desktops, and tablets, which increased by roughly 10 per cent to $748 million.
Behind this, its support sales which rose from a dip of $23 million in 2018 to $37.9 million this year, a rise of around 60 per cent.
Nevertheless, revenue marked as ‘other operating’ took a significant dive, falling from $11.9 million in 2018 to $1.24 million this year.
Although profits were down, 2019 market a better year for Lenovo than 2017 when a large tax bill left it with a balance of just $700,000.
Lenovo's 2019 results do not include enterprise sales of servers, storage and data centre solutions following the company’s decision to split its data centre operations off into a new legal entity.
Lenovo A/NZ has been contacted for comment.