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THE ULTIMATE CPG DICTIONARY
Gross-to-Net Sales
The difference between gross sales and the net revenue realized after discounts, promotions, and trade spend are deducted.
How it's Calculated:
Gross Sales – Trade Promotions – Discounts – Returns = Net Sales.
Example:
A beverage company has $10M in gross sales but $2M in trade promotions and discounts, resulting in $8M net sales.
Category:
Financial/Distribution Metrics
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