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Galenica (XSWX:GALE) Gross Margin % : 27.96% (As of Dec. 2023)


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What is Galenica Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Galenica's Gross Profit for the six months ended in Dec. 2023 was CHF530 Mil. Galenica's Revenue for the six months ended in Dec. 2023 was CHF1,895 Mil. Therefore, Galenica's Gross Margin % for the quarter that ended in Dec. 2023 was 27.96%.


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

XSWX:GALE' s Gross Margin % Range Over the Past 10 Years
Min: 24.01   Med: 25.14   Max: 27.81
Current: 27.81


During the past 11 years, the highest Gross Margin % of Galenica was 27.81%. The lowest was 24.01%. And the median was 25.14%.

XSWX:GALE's Gross Margin % is ranked better than
71.87% of 96 companies
in the Medical Distribution industry
Industry Median: 16.315 vs XSWX:GALE: 27.81

Galenica had a gross margin of 27.96% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Galenica was 2.00% per year.


Galenica Gross Margin % Historical Data

The historical data trend for Galenica'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.

Galenica Gross Margin % Chart

Galenica 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 25.83 25.45 25.24 27.46 27.81

Galenica Semi-Annual Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 25.31 27.28 27.63 27.64 27.96

Competitive Comparison of Galenica's Gross Margin %

For the Medical Distribution subindustry, Galenica'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.


Galenica's Gross Margin % Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Galenica's Gross Margin % distribution charts can be found below:

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



Galenica Gross Margin % Calculation

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

Galenica'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 )
=1041.6 / 3746.011
=(Revenue - Cost of Goods Sold) / Revenue
=(3746.011 - 2704.432) / 3746.011
=27.81 %

Galenica'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 )
=529.8 / 1894.821
=(Revenue - Cost of Goods Sold) / Revenue
=(1894.821 - 1364.983) / 1894.821
=27.96 %

* 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.


Galenica  (XSWX:GALE) 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

Galenica had a gross margin of 27.96% 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.


Galenica Gross Margin % Related Terms

Thank you for viewing the detailed overview of Galenica's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Galenica (XSWX:GALE) Business Description

Traded in Other Exchanges
Address
Untermattweg 8, Bern, CHE, 3027
Galenica Ltd is an integrated healthcare service provider in Switzerland. The business is primarily operated from two segments Products & Care and Logistics & IT. The Products & Care segment comprises the Retail business area with offerings for patients and end customers and the Professionals business area with offerings for business customers and partners in the healthcare sector. The Logistics & IT segment comprises the two sectors Wholesale and Logistics & IT Services. These provide services for all those involved in the healthcare sector - pharmacies, drugstores, doctors, hospitals and care homes, partners and suppliers.

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