Probi AB (OSTO:PROB) Gross Margin % : 32.70% (As of Mar. 2024)

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What is Probi AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Probi AB's Gross Profit for the three months ended in Mar. 2024 was kr49.6 Mil. Probi AB's Revenue for the three months ended in Mar. 2024 was kr151.7 Mil. Therefore, Probi AB's Gross Margin % for the quarter that ended in Mar. 2024 was 32.70%.

Warning Sign:

Probi AB gross margin has been in long-term decline. The average rate of decline per year is -4.8%.

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

OSTO:PROB' s Gross Margin % Range Over the Past 10 Years
Min: 32.39 Med: 45.71 Max: 69.26
Current: 32.39

During the past 13 years, the highest Gross Margin % of Probi AB was 69.26%. The lowest was 32.39%. And the median was 45.71%.

OSTO:PROB's Gross Margin % is ranked worse than
74.55% of 990 companies
in the Drug Manufacturers industry
Industry Median: 46.8 vs OSTO:PROB: 32.39

Probi AB had a gross margin of 32.70% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Probi AB was -4.80% per year.

Probi AB Gross Margin % Historical Data

The historical data trend for Probi AB'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.

Probi AB Gross Margin % Chart

Probi AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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46.57

43.22

43.76

41.32

35.08

Probi AB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															42.49	32.51	32.83	31.55	32.70

Competitive Comparison of Probi AB's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Probi AB'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.

Probi AB's Gross Margin % Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Probi AB's Gross Margin % falls into.

Probi AB Gross Margin % Calculation

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

Probi AB'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 )
	=	220.2	/	627.687
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(627.687 - 407.474)	/	627.687
	=	35.08 %

Probi AB's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	49.6	/	151.674
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(151.674 - 102.082)	/	151.674
	=	32.70 %

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.

Probi AB (OSTO:PROB) 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

Probi AB had a gross margin of 32.70% for the quarter that ended in Mar. 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.

Probi AB Gross Margin % Related Terms

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Probi AB (OSTO:PROB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Probi AB (OSTO:PROB) » Definitions » Gross Margin %

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Traded in Other Exchanges

PBBIF:USA

Address

Ideongatan 1 A, Lund, SWE, SE-223 70

Website

https://www.probi.com

Probi AB is engaged in probiotic research and development, manufacturing and sales of effective and well-documented probiotics. The company's research relates to living microorganisms with scientific health benefits. The main fields of research are gut health, immune system and nutrient absorption, iron absorption, bone health and stress and recovery. It operates in Consumer Healthcare (CHC) and Functional Food (FF). The company operates in United States, Americas, excluding the United States , Sweden, EMEA, excluding Sweden, and APAC. The company's business is divided into three operating segments. These segments are based on a geographical division and consist of the regions Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia and the Pacific).

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