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Perrigo Co Gross Margin %

: 33.17% (As of Jun. 2022)
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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 highest Gross 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 %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 % 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 Premium Member Only Premium Member Only Premium Member Only 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.



Perrigo Co Gross Margin % Calculation

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

Perrigo Co's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1416.2 / 4138.7
=(Revenue - Cost of Goods Sold) / Revenue
=(4138.7 - 2722.5) / 4138.7
=34.22 %

Perrigo Co's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=372.1 / 1121.7
=(Revenue - Cost of Goods Sold) / Revenue
=(1121.7 - 749.6) / 1121.7
=33.17 %

* 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 Business Description

Perrigo Co logo
Address
The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74
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.
Executives
Ives Alison officer: EVP & Chief Scientific Officer C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Hanson Kyle officer: EVP & General Counsel
Bezerra Eduardo Guarita officer: EVP & Chief Financial Officer C/O FRESH DEL MONTE PRODUCE INC. PO BOX 149222 CORAL GABLES FL 33134
Ashford Orlando D director C/O AMERANT BANK 220 ALHAMBRA CR. CORAL GABLES FL 33134
Doyle Katherine C. director 100 ABBOTT PARK ROAD, AP6C-1N D032L ABBOTT PARK IL 60064
Sorota Richard S officer: EVP & President CSCA HARMAN INTERNATIONAL INDUSTRIES, INC. 1101 PENNSYLVANIA AVE, NW, #1010 WASHINGTON DC 20004
Mann Erica L director ONE KELLOGG SQUARE P.O. BOX 3599 BATTLE CREEK MI 49016-3599
Silcock Raymond officer: EVP, Chief Financial Officer 399 JEFFERSON ROAD PARSIPPANY NJ 07054
Willis Robert officer: Acting CHRO C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Dillard James E Iii officer: EVP, Chief Scientific Officer 6601 WEST BROAD STREET RICHMOND VA 23230
Kessler Murray S director, officer: CEO 714 GREEN VALLEY ROAD GREENSBORO NC 27408
Smith Jeffrey C director 777 THIRD AVENUE, 18TH FLOOR NEW YORK NY 10017
Roehrhoff Uwe director, officer: CEO C/O PERRIGO COMPANY PLC TREASURY BUILDING, LOWER GRAND CANAL ST DUBLIN L2 D2
Classon Rolf A director C/O CATALENT, INC. 14 SCHOOLHOUSE ROAD SOMERSET NJ 08873
Karaboutis Adriana director C/O BIOGEN IDEC INC. 225 BINNEY ST. CAMBRIDGE MA 02142

Perrigo Co Headlines

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