Gross Margin % is calculated as gross profit divided by its revenue. Perrigo Co's Gross Profit for the
three
months ended in Jun. 2022 was $372 Mil. Perrigo Co's Revenue for the
three
months ended in Jun. 2022 was $1,122 Mil. Therefore, Perrigo Co's Gross Margin % for the quarter that ended in Jun. 2022 was 33.17%.
Warning Sign:
Perrigo Co PLC gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Perrigo Co's Gross Margin % or its related term are showing as below:
PRGO'
s Gross Margin % Range Over the Past 10 Years
Min: 32.43 Med: 37.08 Max: 40.02
Current: 32.43
During the past 13 years, the highestGross Margin % of Perrigo Co was 40.02%. The lowest was 32.43%. And the median was 37.08%.
PRGO's Gross Margin % is ranked worse than 71.84% of 1019
companies
in the Drug Manufacturers industry
Industry Median: 46.85
vs PRGO: 32.43
Perrigo Co had a gross margin of 33.17% for the quarter that ended in Jun. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Perrigo Co was -2.70% per year.
Perrigo Co Gross Margin % Historical Data
The historical data trend for Perrigo Co'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.
Perrigo Co Annual Data
Trend
Jun12
Jun13
Jun14
Jun15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
40.02
38.71
37.05
36.57
34.22
Perrigo Co Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
35.57
32.26
32.80
31.44
33.17
Competitive Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co'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.
Perrigo Co Gross Margin % Distribution
For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Perrigo Co's Gross Margin % falls into.
* 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.
Perrigo Co (NYSE:PRGO) 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
Perrigo Co had a gross margin of 33.17% for the quarter that ended in Jun. 2022 => 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.
Perrigo Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Perrigo Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Perrigo Co PLC is a leading private label supplier of generic over the counter (OTC) drugs in the U.S. and Europe. The company's product offerings fall under traditional OTC drug categories (i.e. cough, cold, allergy, pain), in addition to oral care, infant nutrition (formula), and nicotine cessation aids. In addition to private label manufacturing, the company also sells products under its own brands (largely in the skincare and oral-care category). The company became a pure-play in OTC consumer healthcare in 2021, following a series of divestitures over several years (sold off generic prescription topicals, animal health, and active pharmaceutical ingredient business). In late 2021, Perrigo signed an offer to acquire HRA Pharma.
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