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McColl's Retail Group (LSE:MCLS) Gross Margin % : 23.45% (As of May. 2021)


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What is McColl's Retail Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. McColl's Retail Group's Gross Profit for the six months ended in May. 2021 was £134 Mil. McColl's Retail Group's Revenue for the six months ended in May. 2021 was £573 Mil. Therefore, McColl's Retail Group's Gross Margin % for the quarter that ended in May. 2021 was 23.45%.


The historical rank and industry rank for McColl's Retail Group's Gross Margin % or its related term are showing as below:


LSE:MCLS's Gross Margin % is not ranked *
in the Retail - Defensive industry.
Industry Median: 22.795
* Ranked among companies with meaningful Gross Margin % only.

McColl's Retail Group had a gross margin of 23.45% for the quarter that ended in May. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for McColl's Retail Group was 0.00% per year.


McColl's Retail Group Gross Margin % Historical Data

The historical data trend for McColl's Retail Group'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.

McColl's Retail Group Gross Margin % Chart

McColl's Retail Group Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.11 26.76 25.86 25.90 23.92

McColl's Retail Group Semi-Annual Data
Nov11 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21
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 25.37 26.44 24.92 22.99 23.45

Competitive Comparison of McColl's Retail Group's Gross Margin %

For the Grocery Stores subindustry, McColl's Retail Group'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.


McColl's Retail Group's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, McColl's Retail Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where McColl's Retail Group's Gross Margin % falls into.



McColl's Retail Group Gross Margin % Calculation

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

McColl's Retail Group's Gross Margin for the fiscal year that ended in Nov. 2020 is calculated as

Gross Margin % (A: Nov. 2020 )=Gross Profit (A: Nov. 2020 ) / Revenue (A: Nov. 2020 )
=300.9 / 1258.1
=(Revenue - Cost of Goods Sold) / Revenue
=(1258.1 - 957.2) / 1258.1
=23.92 %

McColl's Retail Group's Gross Margin for the quarter that ended in May. 2021 is calculated as


Gross Margin % (Q: May. 2021 )=Gross Profit (Q: May. 2021 ) / Revenue (Q: May. 2021 )
=134.3 / 572.7
=(Revenue - Cost of Goods Sold) / Revenue
=(572.7 - 438.4) / 572.7
=23.45 %

* 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.


McColl's Retail Group  (LSE:MCLS) 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

McColl's Retail Group had a gross margin of 23.45% for the quarter that ended in May. 2021 => 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.


McColl's Retail Group Gross Margin % Related Terms

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McColl's Retail Group (LSE:MCLS) Business Description

Traded in Other Exchanges
N/A
Address
One London Road, Ground Floor West, Brentwood, Essex, GBR, CM14 4QW
McColl's Retail Group PLC is a retailer operator of convenience and newsagent stores. The company's products and services include everyday groceries, milk, baked beans, fruit pots, snacks, and ready meals, Lotto, Paypoint, and beers, wines, and spirits. The group operates more than 800 convenience stores and approximately 400 newsagent stores. It derives most of the revenue from convenience stores.

McColl's Retail Group (LSE:MCLS) Headlines

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