Little Green Pharma (ASX:LGP) Gross Margin % : 41.24% (As of Sep. 2023)

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What is Little Green Pharma Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Little Green Pharma's Gross Profit for the six months ended in Sep. 2023 was A$5.22 Mil. Little Green Pharma's Revenue for the six months ended in Sep. 2023 was A$12.65 Mil. Therefore, Little Green Pharma's Gross Margin % for the quarter that ended in Sep. 2023 was 41.24%.

The historical rank and industry rank for Little Green Pharma's Gross Margin % or its related term are showing as below:

ASX:LGP' s Gross Margin % Range Over the Past 10 Years
Min: 41.24 Med: 61.21 Max: 82.47
Current: 41.24

During the past 4 years, the highest Gross Margin % of Little Green Pharma was 82.47%. The lowest was 41.24%. And the median was 61.21%.

ASX:LGP's Gross Margin % is ranked worse than
61.31% of 990 companies
in the Drug Manufacturers industry
Industry Median: 46.8 vs ASX:LGP: 41.24

Little Green Pharma had a gross margin of 41.24% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Little Green Pharma was 0.00% per year.

Little Green Pharma Gross Margin % Historical Data

The historical data trend for Little Green Pharma's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Little Green Pharma Gross Margin % Chart

Little Green Pharma Annual Data

Trend

Jun19

Jun20

Jun21

Mar23

Gross Margin %

52.31

82.47

61.21

Little Green Pharma Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial			67.06	100.46	60.71	-	41.24

Competitive Comparison of Little Green Pharma's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Little Green Pharma's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Little Green Pharma's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Little Green Pharma's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Little Green Pharma's Gross Margin % falls into.

Little Green Pharma Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Little Green Pharma's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	12	/	19.568
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(19.568 - 7.59)	/	19.568
	=	61.21 %

Little Green Pharma's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	5.2	/	12.651
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12.651 - 7.434)	/	12.651
	=	41.24 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Little Green Pharma (ASX:LGP) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Little Green Pharma had a gross margin of 41.24% for the quarter that ended in Sep. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Little Green Pharma Gross Margin % Related Terms

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Little Green Pharma (ASX:LGP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Little Green Pharma Ltd (ASX:LGP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

66 Kings Park Road, Level 2, Suite 2, West Perth, Perth, WA, AUS, 6005

Website

https://www.littlegreenpharma.com

Little Green Pharma Ltd is engaged in the vertically integrated medicinal cannabis business. The business activities of the company include cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products. The company's two key types of products available at Little Green Pharma are oils (which are ingested) and flowers (which are usually inhaled through vaporizing). The company offers LGP-branded medicinal cannabis oil products in the Australian and European markets.

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