Balchem Corporation (BCPC)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	336,206	302,056	280,451	243,174	223,897
Revenue	US$ in thousands	953,684	922,439	942,358	799,023	703,644
Gross profit margin		35.25%	32.75%	29.76%	30.43%	31.82%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $336,206K ÷ $953,684K
= 35.25%

From the data provided, we can observe the trend in Balchem Corporation's gross profit margin over the years. The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold, representing the efficiency of the company in managing its production costs.

Balchem Corporation's gross profit margin has shown a slight decline from 31.82% in December 2020 to 30.43% in December 2021 and further to 29.76% in December 2022. This decline may suggest challenges in controlling production costs or pricing pressures impacting their profitability during these periods.

However, the company's gross profit margin rebounded in December 2023 to 32.75%, indicating an improvement in cost management or better pricing strategies. Furthermore, in December 2024, the gross profit margin increased significantly to 35.25%, signaling enhanced efficiency in generating profits from sales compared to the previous periods.

Overall, the fluctuation in Balchem Corporation's gross profit margin over the years highlights the importance of closely monitoring and adjusting cost structures and pricing strategies to maintain profitability and enhance financial performance.