Vir Biotechnology Inc (VIR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	83,415	1,469,480	1,029,550	76,368	8,091
Revenue	US$ in thousands	86,180	1,615,800	1,095,420	76,368	8,091
Gross profit margin		96.79%	90.94%	93.99%	100.00%	100.00%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $83,415K ÷ $86,180K
= 96.79%

Vir Biotechnology Inc's gross profit margin has shown fluctuations over the past five years. In 2019 and 2020, the company reported a perfect gross profit margin of 100%, indicating that the company was able to generate revenue to cover the direct costs of production completely.

In 2021, the gross profit margin decreased slightly to 93.99%, possibly due to increased production costs or changes in pricing strategies. However, the margin remained relatively high, indicating efficient operations and strong pricing power.

The following year, in 2022, the gross profit margin decreased further to 90.94%, suggesting a potential decrease in profitability or an increase in production costs that outpaced revenue growth. However, the margin remained relatively high compared to industry averages.

By the end of 2023, the gross profit margin rebounded significantly to 96.79%, indicating an improvement in managing production costs or an increase in revenues outpacing cost increases. This recovery suggests that the company may have implemented cost-saving measures or successfully increased selling prices.

Overall, while Vir Biotechnology Inc's gross profit margin has experienced fluctuations over the years, the company has demonstrated the ability to maintain relatively high margins, which is indicative of efficient operations and effective cost management. It is essential for the company to continue monitoring and managing its production costs and pricing strategies to sustain profitability in the long term.