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Lonza Group (CHIX:LONNZ) Gross Margin % : 36.51% (As of Jun. 2024)


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What is Lonza Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lonza Group's Gross Profit for the six months ended in Jun. 2024 was CHF1,116 Mil. Lonza Group's Revenue for the six months ended in Jun. 2024 was CHF3,057 Mil. Therefore, Lonza Group's Gross Margin % for the quarter that ended in Jun. 2024 was 36.51%.

Warning Sign:

Lonza Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.4%.


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

CHIX:LONNz' s Gross Margin % Range Over the Past 10 Years
Min: 28.9   Med: 37.08   Max: 41.91
Current: 29.21


During the past 13 years, the highest Gross Margin % of Lonza Group was 41.91%. The lowest was 28.90%. And the median was 37.08%.

CHIX:LONNz's Gross Margin % is ranked worse than
77.72% of 202 companies
in the Medical Diagnostics & Research industry
Industry Median: 47.865 vs CHIX:LONNz: 29.21

Lonza Group had a gross margin of 36.51% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Lonza Group was -4.40% per year.


Lonza Group Gross Margin % Historical Data

The historical data trend for Lonza Group'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.

* Premium members only.

Lonza Group Gross Margin % Chart

Lonza Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.91 40.99 39.01 39.18 29.00

Lonza Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.11 38.32 36.00 23.08 36.51

Competitive Comparison of Lonza Group's Gross Margin %

For the Diagnostics & Research subindustry, Lonza Group'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.


Lonza Group's Gross Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lonza Group's Gross Margin % falls into.



Lonza Group Gross Margin % Calculation

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

Lonza Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1948 / 6717
=(Revenue - Cost of Goods Sold) / Revenue
=(6717 - 4769) / 6717
=29.00 %

Lonza Group's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=1116 / 3057
=(Revenue - Cost of Goods Sold) / Revenue
=(3057 - 1941) / 3057
=36.51 %

* 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.

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.


Lonza Group  (CHIX:LONNz) 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

Lonza Group had a gross margin of 36.51% for the quarter that ended in Jun. 2024 => Competition eroding margins


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.


Lonza Group Gross Margin % Related Terms

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Lonza Group Business Description

Address
Muenchensteinerstrasse 38, Basel, CHE, CH-4002
Lonza Group is a contract development and manufacturing organization, or CDMO. It operates under four segments: small molecules, biologics, cell & gene, and capsules & health ingredients. Lonza derives its revenue primarily from long-term supply agreements with pharmaceutical customers. The company provides a range of development and manufacturing services throughout the entire lifecycle of a product from drug research to commercial supply. The majority of Lonza's customers are pharmaceutical and biotechnology companies, academic institutions, and government research organizations.

Lonza Group Headlines

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