Orora (ASX:ORA) Gross Margin % : 19.57% (As of Jun. 2024)

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What is Orora Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Orora's Gross Profit for the six months ended in Jun. 2024 was A$501 Mil. Orora's Revenue for the six months ended in Jun. 2024 was A$2,559 Mil. Therefore, Orora's Gross Margin % for the quarter that ended in Jun. 2024 was 19.57%.

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

ASX:ORA' s Gross Margin % Range Over the Past 10 Years
Min: 18.03 Med: 18.8 Max: 19.49
Current: 19.49

During the past 11 years, the highest Gross Margin % of Orora was 19.49%. The lowest was 18.03%. And the median was 18.80%.

ASX:ORA's Gross Margin % is ranked worse than
57.11% of 380 companies
in the Packaging & Containers industry
Industry Median: 21.03 vs ASX:ORA: 19.49

Orora had a gross margin of 19.57% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Orora was 1.00% per year.

Orora Gross Margin % Historical Data

The historical data trend for Orora'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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Orora Gross Margin % Chart

Orora Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Gross Margin %

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18.32

19.06

18.89

18.64

19.49

Orora Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Gross Margin %	Get a 7-Day Free Trial															18.66	18.79	18.47	19.41	19.57

Competitive Comparison of Orora's Gross Margin %

For the Packaging & Containers subindustry, Orora'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.

Orora's Gross Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Orora's Gross Margin % distribution charts can be found below:

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

Orora Gross Margin % Calculation

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

Orora's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )	=	Gross Profit (A: Jun. 2024 )	/	Revenue (A: Jun. 2024 )
	=	915.7	/	4697.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4697.6 - 3781.9)	/	4697.6
	=	19.49 %

Orora's Gross Margin for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )	=	Gross Profit (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	500.6	/	2558.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2558.5 - 2057.9)	/	2558.5
	=	19.57 %

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.

Orora (ASX:ORA) 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

Orora had a gross margin of 19.57% for the quarter that ended in Jun. 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.

Orora Gross Margin % Related Terms

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Orora Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Orora Ltd (ASX:ORA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ORRAF:USA ORRYY:USA OORD:Germany

Address

109-133 Burwood Road, Hawthorn, Melbourne, VIC, AUS, 3122

Website

https://www.ororagroup.com

Orora Ltd was created in late 2013 when Amcor demerged its Australasian fibre and beverage packaging operations and North American packaging distribution business. Orora's Australasian business is focused on glass bottles, beverage cans, and wine closures, after agreeing to divest its fibre business in late 2019. Orora has the number-one position in beverage cans and number-two position in glass bottles and wine closures. Its primary competitors are Visy Group and Owens-Illinois. The North American business is focused on packaging distribution, but has also expanded into point-of-purchase retail display solutions.