Australian Dairy NutritionalsASX:AHF -5.26% Gross Margin % is 22.76% as of Dec. 2025, which is 37% above its 10-year median of 16.58. The stock has 4 warning signs investors should review. Among 1,900 Consumer Packaged Goods companies, Australian Dairy Nutritionals ranks worse than 99.11% on this metric.
ASX:AHF's Gross Margin % is ranked worse than 99.11% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs ASX:AHF: -21.73
Australian Dairy Nutritionals had a gross margin of 22.76% for the quarter that ended in Dec. 2025 => Competition eroding margins
Australian Dairy Nutritionals (ASX:AHF) 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
Australian Dairy Nutritionals had a gross margin of 22.76% for the quarter that ended in Dec. 2025 => 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.
Australian Dairy Nutritionals Gross Margin % Related Terms
Australian Dairy Nutritionals Gross Margin % Historical Data
* 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.
Australian Dairy Nutritionals Gross Margin % Chart
For the Packaged Foods subindustry, Australian Dairy Nutritionals'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.
Australian Dairy Nutritionals Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Australian Dairy Nutritionals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Australian Dairy Nutritionals'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.
Australian Dairy Nutritionals (ASX:AHF) has a Gross Margin % of 22.76% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Australian Dairy Nutritionals and its competitors. This is 37% above median its historical median of 16.58. According to the industry distribution chart, Australian Dairy Nutritionals ranks #1883 out of 1900 companies in the Consumer Packaged Goods industry, placing it in the top 99.1%.
Is Australian Dairy Nutritionals' Gross Margin % too high?
Australian Dairy Nutritionals' current Gross Margin % of 22.76% is 37% above median its 10-year median of 16.58. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Australian Dairy Nutritionals' value of 22.76% is 13.7% below this industry median. Based on the distribution chart, Australian Dairy Nutritionals ranks #1883 out of 1900 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers.
How does Australian Dairy Nutritionals' Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Australian Dairy Nutritionals ranks #1883 out of 1900 companies for Gross Margin %. This places Australian Dairy Nutritionals in the lower half of its industry. The industry median Gross Margin % is 26.37. Australian Dairy Nutritionals' value of 22.76% is 13.7% below this benchmark. While the company's 10-year median is 16.58 vs. the industry median of 26.37, Australian Dairy Nutritionals has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,900 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Australian Dairy Nutritionals's current Gross Margin % of 22.76% is 13.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Australian Dairy Nutritionals and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Dairy Nutritionals's current Gross Margin % is 22.76%, which is 37% above median its own 10-year median of 16.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Dairy Nutritionals stock overvalued right now?
Based on GuruFocus' analysis, Australian Dairy Nutritionals (ASX:AHF) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.02, compared to a current price of A$0.02 — trading 10% below its estimated fair value. The current Gross Margin % is 22.76%, which is 37% above median its 10-year median of 16.58 and 13.7% below the Consumer Packaged Goods industry median of 26.37. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Australian Dairy Nutritionals (ASX:AHF), the current Gross Margin % is 22.76% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Australian Dairy Nutritionals Business Description
Australian Dairy Nutritionals Ltd is a vertically integrated dairy producer in Australia. The company's reportable segments include Nutritional Powders and Dairy Farms. It generates maximum revenue from the Dairy Farms segment which includes the ownership and operation of dairy farms and dairy livestock for the production and sale of fresh raw milk for conversion to milk and milk products. The Nutritional Powders segment includes the processing and sale of dairy and nutritional products to domestic and international markets. Its product portfolio includes milk; yogurt; butter and stockist among others. Geographically, it derives a majority of its revenue from Australia.
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