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Food Empire Holdings (SGX:F03) Gross Margin % : 31.63% (As of Dec. 2023)


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What is Food Empire Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Food Empire Holdings's Gross Profit for the six months ended in Dec. 2023 was S$95.8 Mil. Food Empire Holdings's Revenue for the six months ended in Dec. 2023 was S$303.0 Mil. Therefore, Food Empire Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 31.63%.

Warning Sign:

Food Empire Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.2%.


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

SGX:F03' s Gross Margin % Range Over the Past 10 Years
Min: 29.26   Med: 37.21   Max: 46.19
Current: 33.24


During the past 13 years, the highest Gross Margin % of Food Empire Holdings was 46.19%. The lowest was 29.26%. And the median was 37.21%.

SGX:F03's Gross Margin % is ranked worse than
63.3% of 109 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 37.31 vs SGX:F03: 33.24

Food Empire Holdings had a gross margin of 31.63% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Food Empire Holdings was -5.20% per year.


Food Empire Holdings Gross Margin % Historical Data

The historical data trend for Food Empire Holdings'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.

Food Empire Holdings Gross Margin % Chart

Food Empire Holdings 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 38.73 38.34 29.26 29.83 33.23

Food Empire Holdings 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 26.72 29.31 30.25 35.06 31.63

Competitive Comparison of Food Empire Holdings's Gross Margin %

For the Beverages - Non-Alcoholic subindustry, Food Empire Holdings'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.


Food Empire Holdings's Gross Margin % Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Food Empire Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Food Empire Holdings's Gross Margin % falls into.



Food Empire Holdings Gross Margin % Calculation

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

Food Empire Holdings'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 )
=188.4 / 567.095
=(Revenue - Cost of Goods Sold) / Revenue
=(567.095 - 378.668) / 567.095
=33.23 %

Food Empire Holdings'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 )
=95.8 / 303.011
=(Revenue - Cost of Goods Sold) / Revenue
=(303.011 - 207.174) / 303.011
=31.63 %

* 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.


Food Empire Holdings  (SGX:F03) 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

Food Empire Holdings had a gross margin of 31.63% 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.


Food Empire Holdings Gross Margin % Related Terms

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


Food Empire Holdings (SGX:F03) Business Description

Traded in Other Exchanges
N/A
Address
31 Harrison Road, No. 08-01, Food Empire Building, Singapore, SGP, 369649
Food Empire Holdings Ltd is a branding and manufacturing company specializing in the food and beverage industry. Its portfolio of products includes instant beverages, frozen convenience food, confectionery, and snacks. The company produces a wide variety of instant beverages such as regular and flavored coffee mixes and cappuccinos, chocolate drinks and flavored fruit teas. It also markets instant breakfast cereal, assorted easy-to-prepare frozen foods, and snack items such as potato crisps. In addition, it also sells raw ingredients like instant coffee and non-dairy creamer to other food manufacturers. The company's product brands are MacCoffee, Petrovskaya Sloboda, Cafe Pho, Klassno, CafeRite, NutriRite, Hillway, Hyson, and many more. Most of its revenue is earned from Russia.

Food Empire Holdings (SGX:F03) Headlines

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