Xiaomi Results in 2020: Increase in Income and Profits

In the last two years we are witnessing an important change in the chips that make up the board of the manufacturers that sell the most smartphones around the world. The Huawei veto has turned the top positions upside down, something that Xiaomi is benefiting from , as confirmed by the 2020 financial year results that have just been announced.

Xiaomi has announced the results corresponding to the past financial year 2020, in which the upward trend in the activity of the Chinese company has been consolidated, both in revenues and profits.

Solid growth of Xiaomi’s business in 2020

The results published by Xiaomi have not yet been audited, but they advance a great exercise for the Chinese firm. These results show the company’s balance sheet as of December 31. During 2020 Xiaomi’s income was 245.9 billion yuan, more than 30 billion euros at the exchange rate, which represents an increase of 19.4% compared to the same period of the previous year of 2019. Regarding the gross profit, it has been of 36,800 million yuan, about 4,700 million euros, also increasing compared to the previous year, specifically 28.7%.

Xiaomi Mi 11 Lite

The net profit of the Chinese company without IFRS has been 13,000 million yuan, almost 1,700 million euros , which represents a growth over the previous year of 12.8% . Regarding earnings per share, this was equivalent to 0.849 yuan, just over 10 euro cents.

The best quarter in its history

The last of the quarters of 2020 has been a record in the history of Xiaomi , having reached total revenues of 70,500 million yuan, more than 9,000 million euros , which has meant a growth compared to the same quarter of 2019 of 24.8 %. Gross profit during this period was 11.3 billion yuan, almost 1.5 billion euros, which translates into a 44.4% increase compared to the same period of 20219.

Xiaomi im i11

In the case of adjusted net profit without IFRS, it has been 3.2 billion yuan, more than 400 million euros. In this case with an increase in profit of 36.7% compared to the same period of the previous year. These figures give a historic result for Xiaomi, which has finished 2020 with an unprecedented upward trend.

It extends its good results to Europe and Spain

These results have more value if possible considering the havoc that the COVID pandemic has generated in the market. The need to telework or study remotely for millions of people around the world has positively influenced the company’s balance sheets. Although it is evident that this situation has been joined by an increasingly delicate Huawei situation due to the United States veto. Xiaomi is occupying the space left by its great Chinese rival, especially in the West, where both in Europe and Spain it has established itself as one of the main companies. In fact, in Central and Eastern Europe it has become the first mobile manufacturer by sales, with a share of 24.7% and a year-on-year growth of 17.5%.

Xiaomi tienda

In Western Europe Xiaomi has been placed among the three main manufacturers, with a growth of 57.3% compared to the same period of the previous year, signing a market share of 10.9%. In the specific case of Spain, Xiaomi has been the manufacturer that has sold the most in the fourth quarter of 2020 , reaching a market share of 27% with a growth of 16% compared to 2019. All these results have been collected by the Canalys consultancy.