About this lesson
Percentage change and margins
Percentage change is new ÷ old − 1: =C2/B2-1. A margin is profit ÷ revenue, for example gross margin =B4/B2. When a margin moves from 13.9% to 12.3%, that's a fall of 1.5 percentage points (=(C9-B9)*100), not 1.5%.
=C2/B2-1What you'll practise
Prepare Mallee Foods' FY26 results summary: year-on-year % change, gross and EBITDA margins, and the change in margin in percentage points.
4 steps · 40 points · the cells outlined in gold below
- percentage change
- gross margin
- EBITDA margin
- percentage points
The data
| A | B | C | D | |
|---|---|---|---|---|
| 1 | ($m) | FY25 | FY26 | % change |
| 2 | Revenue | 742.6 | 801.3 | |
| 3 | Cost of goods sold | 468.3 | 512.9 | |
| 4 | Gross profit | 274.3 | 288.4 | |
| 5 | Operating expenses | 171.4 | 189.6 | |
| 6 | EBITDA | 102.9 | 98.8 | |
| 7 | Margins | FY25 | FY26 | Change (pp) |
| 8 | Gross margin | |||
| 9 | EBITDA margin |