Scotts Miracle-Gro Company (SMG)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 657,300 | 872,900 | 1,469,000 | 1,347,000 | 1,019,600 |
| Revenue | US$ in thousands | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 | 3,315,200 |
| Gross profit margin | 19.49% | 22.94% | 30.38% | 33.25% | 30.76% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $657,300K ÷ $3,371,900K
= 19.49%
The gross profit margin of Scotts Miracle-Gro Company has exhibited a declining trend over the last five years, with a noticeable decrease from 32.99% in 2020 to 23.74% in 2023. This decline indicates a decrease in the percentage of revenue retained as gross profit after accounting for the cost of goods sold. Potential reasons for this trend may include increases in the cost of goods sold, pricing pressures, or shifts in product mix. It will be important for the company to closely examine the factors impacting the gross profit margin and consider potential strategies to improve operational efficiency and pricing dynamics in order to reverse this trend.
Peer comparison
Sep 30, 2023