GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Treasury Wine Estates Ltd (OTCPK:TSRYY) » Definitions » Gross Margin %

Treasury Wine Estates (Treasury Wine Estates) Gross Margin % : 39.96% (As of Dec. 2023)


View and export this data going back to 2011. Start your Free Trial

What is Treasury Wine Estates Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Treasury Wine Estates's Gross Profit for the six months ended in Dec. 2023 was $344 Mil. Treasury Wine Estates's Revenue for the six months ended in Dec. 2023 was $860 Mil. Therefore, Treasury Wine Estates's Gross Margin % for the quarter that ended in Dec. 2023 was 39.96%.


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

TSRYY' s Gross Margin % Range Over the Past 10 Years
Min: 27.57   Med: 37.67   Max: 42.39
Current: 39.69


During the past 13 years, the highest Gross Margin % of Treasury Wine Estates was 42.39%. The lowest was 27.57%. And the median was 37.67%.

TSRYY's Gross Margin % is ranked better than
51.21% of 207 companies
in the Beverages - Alcoholic industry
Industry Median: 38.78 vs TSRYY: 39.69

Treasury Wine Estates had a gross margin of 39.96% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Treasury Wine Estates was -0.60% per year.


Treasury Wine Estates Gross Margin % Historical Data

The historical data trend for Treasury Wine Estates'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.

Treasury Wine Estates Gross Margin % Chart

Treasury Wine Estates Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.39 40.03 35.43 39.90 41.66

Treasury Wine Estates 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 38.31 41.56 43.67 39.39 39.96

Competitive Comparison of Treasury Wine Estates's Gross Margin %

For the Beverages - Wineries & Distilleries subindustry, Treasury Wine Estates'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.


Treasury Wine Estates's Gross Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Treasury Wine Estates's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Treasury Wine Estates's Gross Margin % falls into.



Treasury Wine Estates Gross Margin % Calculation

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

Treasury Wine Estates's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=677.4 / 1626.174
=(Revenue - Cost of Goods Sold) / Revenue
=(1626.174 - 948.791) / 1626.174
=41.66 %

Treasury Wine Estates'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 )
=343.5 / 859.639
=(Revenue - Cost of Goods Sold) / Revenue
=(859.639 - 516.132) / 859.639
=39.96 %

* 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.


Treasury Wine Estates  (OTCPK:TSRYY) 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

Treasury Wine Estates had a gross margin of 39.96% 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.


Treasury Wine Estates Gross Margin % Related Terms

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


Treasury Wine Estates (Treasury Wine Estates) Business Description

Traded in Other Exchanges
Address
161 Collins Street, Level 8, Melbourne, VIC, AUS, 3000
Treasury Wine Estates is an Australia-based global wine company that demerged from Foster's Group in 2011. The company is among the world's top five wine producers, and owns a portfolio that includes Australian labels such as Penfolds and Wolf Blass, U.S. wines like Chateau St Jean and Sterling, and newly launched names such as 19 Crimes and Maison de Grand Esprit. An acquisition of Diageo's wine business in 2016 added additional U.S. brands including BV and Stags' Leap. Treasury owns over 130 wineries, with more than 13,000 planted hectares.

Treasury Wine Estates (Treasury Wine Estates) Headlines

From GuruFocus

David Herro Comments on Treasury Wine Estates

By Holly LaFon Holly LaFon 01-11-2016

Treasury Wine Estates Growing With Global Wine Interest

By Holmes Osborne, CFA Holmes Osborne, CFA 04-26-2019

Treasury Wine Estates Won't Stay Down Forever

By Holmes Osborne, CFA Holmes Osborne, CFA 05-14-2021

Treasury Wine Estates Works to Integrate Diageo's Wine Unit

By Holmes Osborne, CFA Holmes Osborne, CFA 08-23-2016