Profitability

Terragrow: sales are growing, so why is the margin shrinking?

Terragrow, a US crop protection company with $6B of revenue.

Why is Terragrow's margin falling, and what should it do?

Skills tested

• Structure
• Quantitative analysis
• Exhibits and insights
• Business sense
• Synthesis and communication

Concepts

• margin by product line
• product mix
• weighted average margin
• incremental profit vs a baseline
• growth options comparison
• own brand vs distributed brands