HP reports Q1 revenue and profits increase
HP Inc. has reported revenue growth for its printing business in Q1. Printing net revenue was $5.0 billion, up 7% year over year. The operating profit was at $998 million, taking up 19.8% of HP’s revenue.
In total, HP Inc. and its subsidiaries reported a net revenue of $15.6 billion, up 7.0% from the prior-year period. The APJ region took up 21% of the total net revenue, down 5% from the previous year.
In a webcast, HP president and chief executive Enrique Lores said: “Print is off to a terrific start to the year. This quarter demonstrated the power of print to help people learn, create and perform with 7% revenue growth, 16% unit growth, and 32% profit growth.”
“In industrial printing, we continue to see growth in digital labels and packaging, with double-digit growth in impressions and square meters printed. Georgia-Pacific, one of the world's largest packaging and paper goods providers, is deploying their third inkjet web press to expand their digital printing business. This is a great milestone and validation of our technology. We are excited for the disruptive potential in this sector as our innovative technology opens up entirely new possibilities in personalization and digital manufacturing,” said Lores.
“Commercial Print improved in Q1 with most product categories showing sequential revenue growth. In CQ4, total Print market units grew 6%. We continue to expect a gradual recovery in the overall Commercial Print market, though the pace might be uneven given the varying pace of economic recovery,” said Lores.
Total hardware units were up 16% with consumer hardware units up 18%. Commercial hardware units were “flat”. While consumer net revenue increased 55%, commercial net revenue decreased 11%. Supplies net revenue was up 3%.
“HP is outperforming its printing peers and remains uniquely well-positioned given our leadership across both Consumer and Commercial Print,” said Lores. “Our strong Consumer business is a clear competitive advantage as hybrid work and school becomes the norm. We have seen that people who didn't have home printers went and bought them, and people sign up for Instant Ink in record numbers, accelerating an already growing part of our business.”
“We continue to execute on our strategy to modernize Print and evolve our Print business models. In Q1, we roll out our end-to-end platform strategy called HP+, that combined convenient Instant Ink and HP Smart app services with innovative hardware. It's early days, but we are already seeing positive adoption. In the coming quarters, we will be rolling HP+ out more broadly across multiple markets and product lines,” Lores continued. The company reported double-digit growth in instant ink subscriptions, surpassing 9 million subscribers.