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Ghitha Holding PJSC (ADX:GHITHA) Gross Margin % : 18.56% (As of Sep. 2024)


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What is Ghitha Holding PJSC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ghitha Holding PJSC's Gross Profit for the three months ended in Sep. 2024 was د.إ227 Mil. Ghitha Holding PJSC's Revenue for the three months ended in Sep. 2024 was د.إ1,220 Mil. Therefore, Ghitha Holding PJSC's Gross Margin % for the quarter that ended in Sep. 2024 was 18.56%.


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

ADX:GHITHA' s Gross Margin % Range Over the Past 10 Years
Min: 10.25   Med: 11.57   Max: 19.63
Current: 19.63


During the past 5 years, the highest Gross Margin % of Ghitha Holding PJSC was 19.63%. The lowest was 10.25%. And the median was 11.57%.

ADX:GHITHA's Gross Margin % is ranked worse than
61.98% of 313 companies
in the Retail - Defensive industry
Industry Median: 23.21 vs ADX:GHITHA: 19.63

Ghitha Holding PJSC had a gross margin of 18.56% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ghitha Holding PJSC was 0.00% per year.


Ghitha Holding PJSC Gross Margin % Historical Data

The historical data trend for Ghitha Holding PJSC'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.

Ghitha Holding PJSC Gross Margin % Chart

Ghitha Holding PJSC Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
10.25 11.08 11.57 16.82 16.93

Ghitha Holding PJSC Quarterly Data
Dec19 Jun20 Sep20 Dec20 Jun21 Sep21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23 Jun24 Sep24
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 15.40 17.22 19.81 20.52 18.56

Competitive Comparison of Ghitha Holding PJSC's Gross Margin %

For the Food Distribution subindustry, Ghitha Holding PJSC'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.


Ghitha Holding PJSC's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Ghitha Holding PJSC's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ghitha Holding PJSC's Gross Margin % falls into.



Ghitha Holding PJSC Gross Margin % Calculation

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

Ghitha Holding PJSC'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 )
=773.2 / 4566.913
=(Revenue - Cost of Goods Sold) / Revenue
=(4566.913 - 3793.674) / 4566.913
=16.93 %

Ghitha Holding PJSC's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=226.5 / 1220.21
=(Revenue - Cost of Goods Sold) / Revenue
=(1220.21 - 993.679) / 1220.21
=18.56 %

* 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.


Ghitha Holding PJSC  (ADX:GHITHA) 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

Ghitha Holding PJSC had a gross margin of 18.56% for the quarter that ended in Sep. 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.


Ghitha Holding PJSC Gross Margin % Related Terms

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Ghitha Holding PJSC Business Description

Traded in Other Exchanges
N/A
Address
Al Faymah Street, PO Box 53314, Business Avenue Tower, Unit 1501, Al Danah, Abu Dhabi, ARE
Ghitha Holding PJSC is engaged in trading, re-packaging, and distribution of food products. Its segments include Consumer goods, Catering, Facility Management Services, Manufacturing, Contracting, and Others. The majority of its revenue is generated from the Consumer goods segment which includes retail and wholesale of traded and manufactured consumer products.

Ghitha Holding PJSC Headlines

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