Huawei suffers the largest drop in profit since 2014, but reports small revenue growth

Huawei’s profit fell by almost 69 percent in 2022 compared to the previous year, partly due to the US sanctions. This is the company’s lowest profit since 2014. Despite this, the company managed to achieve a small growth in turnover of 0.9 percent.

According to the company’s chief financial officer, Sabrina Meng, Huawei has pulled itself out of “crisis mode” in 2022. “The US sanctions are now the new normal and business is back to normal,” Meng said at a news conference which Reuters writes about, among others. The Chinese company states that it is making great progress in replacing parts that it can no longer import from America. According to Huawei, this is the reason why the research and development department spent 13.2 percent more last year than in 2021, which is about 21.63 billion euros.

The company’s net profit lay in 2022 at 35.6 billion yuan, or 4.77 billion euros, while in 2021 it was still 15.23 billion euros. It must be said that the profit in 2021 was unprecedentedly high as a result of Huawei’s sale of its subsidiary brand Honor. Still, last year’s profit is the lowest since 2014, when the company posted a profit of 27.9 billion yuan, the equivalent of 3.74 billion euros. The turnover in 2022 was 642.3 billion yuan, or 86.02 billion euros.

Net profit of Huawei since 2014 (source: Telecom TV)