Norwegian Cruise Line Holdings Ltd (NCLH)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	3,790,960	3,081,340	576,674	-960,051	-413,153
Revenue	US$ in thousands	9,479,650	8,549,920	4,843,760	647,986	1,279,910
Gross profit margin		39.99%	36.04%	11.91%	-148.16%	-32.28%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $3,790,960K ÷ $9,479,650K
= 39.99%

The gross profit margin of Norwegian Cruise Line Holdings Ltd has exhibited significant fluctuations in recent years.

At the end of December 31, 2020, the company reported a negative gross profit margin of -32.28%, indicating that its cost of goods sold exceeded its revenue from sales. This negative margin suggests operational inefficiencies or pricing challenges during that period.

The situation worsened in December 31, 2021, with a drastic decline in the gross profit margin to -148.16%. This sharp decrease implies a substantial increase in costs relative to revenue, possibly driven by external factors such as the impact of the COVID-19 pandemic on the cruise industry.

However, the company showed signs of improvement in its performance by December 31, 2022, with a positive gross profit margin of 11.91%. This turnaround indicates that Norwegian Cruise Line Holdings Ltd was able to manage its costs more effectively and generate a higher profit margin on its core operations.

By December 31, 2023, the gross profit margin further improved to 36.04%, reflecting a more efficient cost structure and better revenue generation compared to the previous years.

Lastly, at the end of December 31, 2024, the gross profit margin increased to 39.99%, indicating that the company continued its positive momentum and was able to sustain and even expand its profitability.

Overall, the fluctuating trend in Norwegian Cruise Line Holdings Ltd's gross profit margin highlights the company's ability to adapt to changing market conditions and improve its operational efficiency over time. It will be crucial for the company to maintain this positive trajectory to ensure sustainable growth and profitability in the future.