HP Inc Australia turned a profit in the 2017 financial year ending in 31 October 2017 following a loss in the previous period, according to its annual report lodged with the Australian Securities & Investments Commission.
The PC and printing vendor, which had 391 staff in Australia at the end of the financial year, reported steady revenue at $1.47 billion for the year, up $11.2 million from the previous corresponding period. Profit was $25.6 million, compared with a loss of $2.75 million in the previous year.
The report marked the second full financial year for the company, which is listed under HP PPS Australia. The previously combined company, Hewlett-Packard Australia, split into two entities in 2015 as part of a major global separation.
One driver of the improved profit was foreign exchange. In 2016, HP's net foreign exchange loss was $46.8 million; in 2017, forex loss was just $14.8 million.
The profit represents positive news for the company, which, as a combined entity, had been unprofitable in Australia for years. The last time the combined group posted an Australian profit was 2011. HPE Australia turned a small profit of $1.3 million in 2016, its first standalone year.
CRN has reached out to HP Inc Australia for a comment.
Globally, HP Inc has been on an upward trajectory, with its share price rising consistently from US$9.90 at the time of the split in 2015 to US$16.52 at its last trade.
According to figures published by Gartner in October 2017, HP remains the leader in PC shipments, against a backdrop of weak overall numbers. The company has been on an upward trend with five consecutive quarters of global PC growth.
HP Inc reported US$52.1 billion in revenue for its 2017 fiscal year, up 8 percent from US$48.2 billion the year prior. Profits were down 5 percent to US$2.5 billion in 2017, compared with US$2.7 billion.
“Our results demonstrate that HP is strong and getting stronger,” HP Inc global chief executive Dion Weisler said at the time.
“We posted top-line growth across both Personal Systems and Print, with broad-based, double-digit growth in all three regions, while also growing operating profit and non-GAAP EPS year-over-year.”
The company's US operations recently expanded its device-as-a-service offering to include devices from Apple such as the iPhone, iPad and MacBook Pro, with plans to open the offering to US channel partners in the coming year.