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Neighbourly Pharmacy (FRA:7RQ) Gross Margin % : 39.92% (As of Dec. 2023)


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What is Neighbourly Pharmacy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Neighbourly Pharmacy's Gross Profit for the three months ended in Dec. 2023 was €77.5 Mil. Neighbourly Pharmacy's Revenue for the three months ended in Dec. 2023 was €194.1 Mil. Therefore, Neighbourly Pharmacy's Gross Margin % for the quarter that ended in Dec. 2023 was 39.92%.

Warning Sign:

Neighbourly Pharmacy Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.


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

FRA:7RQ' s Gross Margin % Range Over the Past 10 Years
Min: 37.07   Med: 38.91   Max: 42.8
Current: 39.68


During the past 6 years, the highest Gross Margin % of Neighbourly Pharmacy was 42.80%. The lowest was 37.07%. And the median was 38.91%.

FRA:7RQ's Gross Margin % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 41.535 vs FRA:7RQ: 39.68

Neighbourly Pharmacy had a gross margin of 39.92% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Neighbourly Pharmacy was -2.40% per year.


Neighbourly Pharmacy Gross Margin % Historical Data

The historical data trend for Neighbourly Pharmacy'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.

Neighbourly Pharmacy Gross Margin % Chart

Neighbourly Pharmacy Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial 41.84 38.74 37.43 37.07 39.07

Neighbourly Pharmacy Quarterly Data
Mar18 Mar19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 39.03 40.11 38.86 39.74 39.92

Competitive Comparison of Neighbourly Pharmacy's Gross Margin %

For the Pharmaceutical Retailers subindustry, Neighbourly Pharmacy'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.


Neighbourly Pharmacy's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Neighbourly Pharmacy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Neighbourly Pharmacy's Gross Margin % falls into.



Neighbourly Pharmacy Gross Margin % Calculation

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

Neighbourly Pharmacy'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 )
=199.8 / 511.368
=(Revenue - Cost of Goods Sold) / Revenue
=(511.368 - 311.552) / 511.368
=39.07 %

Neighbourly Pharmacy's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=77.5 / 194.089
=(Revenue - Cost of Goods Sold) / Revenue
=(194.089 - 116.614) / 194.089
=39.92 %

* 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.


Neighbourly Pharmacy  (FRA:7RQ) 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

Neighbourly Pharmacy had a gross margin of 39.92% for the quarter that ended in Dec. 2023 => 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.


Neighbourly Pharmacy Gross Margin % Related Terms

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Neighbourly Pharmacy (FRA:7RQ) Business Description

Traded in Other Exchanges
N/A
Address
190 Attwell Drive, Unit 400, Toronto, ON, CAN, M9W 6H8
Neighbourly Pharmacy Inc is a network of community pharmacies. Its pharmacies act as the centre of care within their communities, representing an indispensable source of both healthcare delivery and trusted advice for their patients.

Neighbourly Pharmacy (FRA:7RQ) Headlines

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