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The Original Juice Co (ASX:OJC) Gross Margin % : 25.04% (As of Dec. 2023)


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What is The Original Juice Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Original Juice Co's Gross Profit for the six months ended in Dec. 2023 was A$5.67 Mil. The Original Juice Co's Revenue for the six months ended in Dec. 2023 was A$22.64 Mil. Therefore, The Original Juice Co's Gross Margin % for the quarter that ended in Dec. 2023 was 25.04%.

Warning Sign:

The Original Juice Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


The historical rank and industry rank for The Original Juice Co's Gross Margin % or its related term are showing as below:

ASX:OJC' s Gross Margin % Range Over the Past 10 Years
Min: 14.6   Med: 30.56   Max: 47.98
Current: 26.3


During the past 12 years, the highest Gross Margin % of The Original Juice Co was 47.98%. The lowest was 14.60%. And the median was 30.56%.

ASX:OJC's Gross Margin % is ranked better than
52.6% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 25.085 vs ASX:OJC: 26.30

The Original Juice Co had a gross margin of 25.04% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Original Juice Co was -1.80% per year.


The Original Juice Co Gross Margin % Historical Data

The historical data trend for The Original Juice Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Original Juice Co Gross Margin % Chart

The Original Juice Co Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.89 14.60 28.49 32.23 28.83

The Original Juice Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.57 29.92 30.39 27.54 25.04

Competitive Comparison of The Original Juice Co's Gross Margin %

For the Packaged Foods subindustry, The Original Juice Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Original Juice Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Original Juice Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Original Juice Co's Gross Margin % falls into.



The Original Juice Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Original Juice Co's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=12.2 / 42.482
=(Revenue - Cost of Goods Sold) / Revenue
=(42.482 - 30.234) / 42.482
=28.83 %

The Original Juice Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=5.7 / 22.638
=(Revenue - Cost of Goods Sold) / Revenue
=(22.638 - 16.97) / 22.638
=25.04 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


The Original Juice Co  (ASX:OJC) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The Original Juice Co had a gross margin of 25.04% for the quarter that ended in Dec. 2023 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


The Original Juice Co Gross Margin % Related Terms

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The Original Juice Co (ASX:OJC) Business Description

Traded in Other Exchanges
N/A
Address
20 Heaths Court, Mill Park, VIC, AUS, 3082
The Original Juice Co Ltd is an Australian beverage and wellness supplement company, specialising in the development of innovative health focused products for retail in Australia and Asia.

The Original Juice Co (ASX:OJC) Headlines

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