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Goodman Fielder (NZSE:GFF) Gross Margin % : 36.41% (As of Dec. 2014)


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What is Goodman Fielder Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Goodman Fielder's Gross Profit for the six months ended in Dec. 2014 was NZ$413 Mil. Goodman Fielder's Revenue for the six months ended in Dec. 2014 was NZ$1,134 Mil. Therefore, Goodman Fielder's Gross Margin % for the quarter that ended in Dec. 2014 was 36.41%.


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


NZSE:GFF's Gross Margin % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 25.19
* Ranked among companies with meaningful Gross Margin % only.

Goodman Fielder had a gross margin of 36.41% for the quarter that ended in Dec. 2014 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Goodman Fielder was 0.00% per year.


Goodman Fielder Gross Margin % Historical Data

The historical data trend for Goodman Fielder'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.

Goodman Fielder Gross Margin % Chart

Goodman Fielder Annual Data
Trend Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.14 36.63 36.23 37.06 35.11

Goodman Fielder Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14
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 36.24 37.89 35.14 35.08 36.41

Competitive Comparison of Goodman Fielder's Gross Margin %

For the Confectioners subindustry, Goodman Fielder'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.


Goodman Fielder's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Goodman Fielder's Gross Margin % falls into.



Goodman Fielder Gross Margin % Calculation

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

Goodman Fielder's Gross Margin for the fiscal year that ended in Jun. 2014 is calculated as

Gross Margin % (A: Jun. 2014 )=Gross Profit (A: Jun. 2014 ) / Revenue (A: Jun. 2014 )
=838.9 / 2389.404
=(Revenue - Cost of Goods Sold) / Revenue
=(2389.404 - 1550.468) / 2389.404
=35.11 %

Goodman Fielder's Gross Margin for the quarter that ended in Dec. 2014 is calculated as


Gross Margin % (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=413 / 1134.206
=(Revenue - Cost of Goods Sold) / Revenue
=(1134.206 - 721.216) / 1134.206
=36.41 %

* 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.


Goodman Fielder  (NZSE:GFF) 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

Goodman Fielder had a gross margin of 36.41% for the quarter that ended in Dec. 2014 => 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.


Goodman Fielder Gross Margin % Related Terms

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Goodman Fielder (NZSE:GFF) Business Description

Traded in Other Exchanges
N/A
Address
Goodman Fielder Limited manufactures, markets & distributes food ingredients & consumer branded food, beverage & related products, including packaged bread & other related goods, biscuits, dairy products, small goods, flour, edible oils & meal components.