In case anyone is interested, or still a little confused...
Gross Margin or Gross Profit = % of profit of sales after the costs of raw materials and manufacturing the goods, in this instance BTM product.
90% stated GM (or GP) means that every $1000 in sales provides $900 in Gross Margin. If the GM was 70%, $1000 in sales would provide $700 in Gross Profit. This is what pays for all the business activities - not the headline sales, but the Gross Profit.
Do not confuse this with Operating Margin or Operating Profit. Operating Margin takes into account cost of manufacturing the goods,
PLUS administration fees, sales staff costs, freight, rent, etc, etc.
I've come up with the below with the 18/19 figures from the annual report which may help underline the above. You can put this in a spreadsheet and play with the GM % and annual sales growth, etc as you like. I've used Sales doubling per year, Employee costs rising 50% year on year and Corporate costs rising 70% year on year (Employee costs and Corporate costs rose by these amounts from 17/18). BARDA receipts have been ignored and R&D costs have been relatively steady. Changing the numbers in your spreadsheet will show you the effects of changing margins or sales growth over time and what this means to OP / OM.
| | 18/19 | 20/21 | 21/22 | 22/23 | 23/24 | 24/25 |
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| 1 | Sales | $7,768,050.00 | $15,536,100.00 | $31,072,200.00 | $62,144,400.00 | $124,288,800.00 | $248,577,600.00 |
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| 2 | GM | 90% | $13,982,490.00 | $27,964,980.00 | $55,929,960.00 | $111,859,920.00 | $223,719,840.00 |
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| 4 | Operating Leases | $193,597.00 | $193,597.00 | $193,597.00 | $193,597.00 | $193,597.00 | $193,597.00 |
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| 5 | Employee Costs | $8,549,240.00 | $12,823,860.00 | $19,235,790.00 | $28,853,685.00 | $43,280,527.50 | $64,920,791.25 |
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| 6 | R&D | $3,248,426.00 | $3,248,426.00 | $3,248,426.00 | $3,248,426.00 | $3,248,426.00 | $3,248,426.00 |
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| 7 | Corporate | $3,972,809.00 | $6,753,775.30 | $11,481,418.01 | $19,518,410.62 | $33,181,298.05 | $56,408,206.68 |
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| 9 | Total Costs | $15,964,072.00 | $23,019,658.30 | $34,159,231.01 | $51,814,118.62 | $79,903,848.55 | $124,771,020.93 |
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| 10 | |
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| 11 | Net Operating Profit | $ (15,964,071.10) | $(9,037,168.30) | $(6,194,251.01) | $4,115,841.38 | $31,956,071.45 | $98,948,819.07 |
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| 12 | Net Operating Margin | -206% | -58% | -20% | 7% | 26% | 40% |
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(20min delay)