SSP Group (SSP Group) Gross Margin % : 43.25% (As of Sep. 2023)

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What is SSP Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SSP Group's Gross Profit for the six months ended in Sep. 2023 was $905 Mil. SSP Group's Revenue for the six months ended in Sep. 2023 was $2,093 Mil. Therefore, SSP Group's Gross Margin % for the quarter that ended in Sep. 2023 was 43.25%.

Warning Sign:

SSP Group PLC gross margin has been in long-term decline. The average rate of decline per year is -2%.

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

SSPPF' s Gross Margin % Range Over the Past 10 Years
Min: 29.63 Med: 41.53 Max: 45.76
Current: 41.69

During the past 13 years, the highest Gross Margin % of SSP Group was 45.76%. The lowest was 29.63%. And the median was 41.53%.

SSPPF's Gross Margin % is ranked worse than
59.18% of 343 companies
in the Restaurants industry
Industry Median: 46.87 vs SSPPF: 41.69

SSP Group had a gross margin of 43.25% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SSP Group was -2.00% per year.

SSP Group Gross Margin % Historical Data

The historical data trend for SSP 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.

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SSP Group Gross Margin % Chart

SSP Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Gross Margin %

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42.17

33.73

29.63

40.66

41.69

SSP Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															36.07	37.56	42.45	39.68	43.25

Competitive Comparison of SSP Group's Gross Margin %

For the Restaurants subindustry, SSP 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.

SSP Group's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, SSP Group's Gross Margin % distribution charts can be found below:

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

SSP Group Gross Margin % Calculation

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

SSP Group's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	1552.8	/	3724.876
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3724.876 - 2172.029)	/	3724.876
	=	41.69 %

SSP Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	905.3	/	2093.193
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2093.193 - 1187.871)	/	2093.193
	=	43.25 %

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.

SSP Group (OTCPK:SSPPF) 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

SSP Group had a gross margin of 43.25% for the quarter that ended in Sep. 2023 => Durable 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.

SSP Group Gross Margin % Related Terms

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SSP Group (SSP Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » SSP Group PLC (OTCPK:SSPPF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SSPGl:UK SSPG:UK

Address

32 Jamestown Road, London, GBR, NW1 7HW

Website

https://www.foodtravelexperts.com

SSP Group PLC operates food and beverage units in travel locations such as airports and railway stations. Units range from coffee shops and sandwich bars to casual and fine-dining restaurants. Its units operate under more than 300 different brand names, including both proprietary brands and franchised brands, such as Starbucks and Burger King. Its segments include the UK, Continental Europe, North America and the APAC and EEME.