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Maple Leaf Foods (Maple Leaf Foods) Gross Margin % : 11.50% (As of Dec. 2023)


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What is Maple Leaf Foods Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Maple Leaf Foods's Gross Profit for the three months ended in Dec. 2023 was $101 Mil. Maple Leaf Foods's Revenue for the three months ended in Dec. 2023 was $878 Mil. Therefore, Maple Leaf Foods's Gross Margin % for the quarter that ended in Dec. 2023 was 11.50%.

Warning Sign:

Maple Leaf Foods Inc gross margin has been in long-term decline. The average rate of decline per year is -11.6%.


The historical rank and industry rank for Maple Leaf Foods's Gross Margin % or its related term are showing as below:

MLFNF' s Gross Margin % Range Over the Past 10 Years
Min: 6.91   Med: 14.79   Max: 17.74
Current: 9.27


During the past 13 years, the highest Gross Margin % of Maple Leaf Foods was 17.74%. The lowest was 6.91%. And the median was 14.79%.

MLFNF's Gross Margin % is ranked worse than
84.78% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.03 vs MLFNF: 9.27

Maple Leaf Foods had a gross margin of 11.50% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Maple Leaf Foods was -11.60% per year.


Maple Leaf Foods Gross Margin % Historical Data

The historical data trend for Maple Leaf Foods'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.

Maple Leaf Foods Gross Margin % Chart

Maple Leaf Foods Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.99 16.34 14.58 8.95 9.27

Maple Leaf Foods Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 8.48 6.51 7.37 11.72 11.50

Competitive Comparison of Maple Leaf Foods's Gross Margin %

For the Packaged Foods subindustry, Maple Leaf Foods'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.


Maple Leaf Foods's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Maple Leaf Foods's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Maple Leaf Foods's Gross Margin % falls into.



Maple Leaf Foods Gross Margin % Calculation

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

Maple Leaf Foods's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=336.4 / 3628.45
=(Revenue - Cost of Goods Sold) / Revenue
=(3628.45 - 3292.005) / 3628.45
=9.27 %

Maple Leaf Foods'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 )
=101 / 878.32
=(Revenue - Cost of Goods Sold) / Revenue
=(878.32 - 777.34) / 878.32
=11.50 %

* 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.


Maple Leaf Foods  (OTCPK:MLFNF) 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

Maple Leaf Foods had a gross margin of 11.50% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


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.


Maple Leaf Foods Gross Margin % Related Terms

Thank you for viewing the detailed overview of Maple Leaf Foods's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Maple Leaf Foods (Maple Leaf Foods) Business Description

Traded in Other Exchanges
Address
6985 Financial Drive, Mississauga, ON, CAN, L5N 0A1
Maple Leaf Foods Incs is a producer of food products under leading brands, including Maple Leaf, Maple Leaf PrimeMaple Leaf Natural Selections, Schneiders, Schneiders Country Naturals, Mina, Greenfield Natural Meat Co., Lightlife, and Field Roast. The Company's portfolio includes prepared meats, ready-to-cook and ready-toserve meals, and valued-added fresh pork and poultry, and plant protein products. Its main markets are Canada, the United States, Japan, and China. The key brands are Maple Leaf and Schneiders, Maple Leaf Prime Naturally, Shopsy, Mitchell's Gourmet Food, Larse, Parm, and Hygrade.