Margins During the first quarter ended March 31, 2021, revenue increased by 10%, but cost of goods sold increased by 29%. The increase in cost of goods sold was higher than the increase in revenue which has contributed to an overall decrease in the gross margin percentage from 56% to 48%. While the gross margin percentage in the first quarter of 2021 at 48% was lower than the comparative quarter in 2020, it does represent an improvement over the 37% margin experienced in the fourth quarter of 2020 following the integration of two manufacturing sites under one single site.
Margins got squeezed slighly with higher input costs and fine tuning for newer equipment/edmonton plant. However, now we are under one roof. This should normalize over time.