SHSE:600597's Gross Margin % is ranked worse than 63.62% of 1806
companies
in the Consumer Packaged Goods industry
Industry Median: 25.285
vs SHSE:600597: 19.57
Bright Dairy & Food Co had a gross margin of 19.64% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Bright Dairy & Food Co was -11.80% per year.
Bright Dairy & Food Co Gross Margin % Historical Data
The historical data trend for Bright Dairy & Food 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.
For the Packaged Foods subindustry, Bright Dairy & Food 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.
Bright Dairy & Food Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Bright Dairy & Food Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bright Dairy & Food Co's Gross Margin % falls into.
* 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.
Bright Dairy & Food Co (SHSE:600597) 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
Bright Dairy & Food Co had a gross margin of 19.64% for the quarter that ended in Mar. 2024 => 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.
Bright Dairy & Food Co Gross Margin % Related Terms
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Bright Dairy & Food Co (SHSE:600597) Business Description
Bright Dairy & Food Co Ltd engages in the development, production, and sale of animal husbandry and dairy products in China. It offers fresh milk, fresh yogurt, lactic acid bacteria drinks, room temperature milk, room temperature yogurt, cheese, butter, and other products, as well as pregnant women, adult, and baby milk powder. It also provides sour milk, flavored milk, and children's products, as well as cream, infant formula milk powder, and flavored fermented milk.
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