Viva Energy Group (ASX:VEA) Gross Margin % : 1.39% (As of Dec. 2023)

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What is Viva Energy Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Viva Energy Group's Gross Profit for the six months ended in Dec. 2023 was A$180 Mil. Viva Energy Group's Revenue for the six months ended in Dec. 2023 was A$12,893 Mil. Therefore, Viva Energy Group's Gross Margin % for the quarter that ended in Dec. 2023 was 1.39%.

Warning Sign:

Viva Energy Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.6%.

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

ASX:VEA' s Gross Margin % Range Over the Past 10 Years
Min: 4.78 Med: 8.33 Max: 11.02
Current: 4.78

During the past 6 years, the highest Gross Margin % of Viva Energy Group was 11.02%. The lowest was 4.78%. And the median was 8.33%.

ASX:VEA's Gross Margin % is ranked worse than
87.39% of 928 companies
in the Oil & Gas industry
Industry Median: 27.905 vs ASX:VEA: 4.78

Viva Energy Group had a gross margin of 1.39% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Viva Energy Group was -6.60% per year.

Viva Energy Group Gross Margin % Historical Data

The historical data trend for Viva Energy 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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Viva Energy Group Gross Margin % Chart

Viva Energy Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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7.94

8.63

11.02

8.32

4.78

Viva Energy Group Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial							9.96	13.56	4.21	8.22	1.39

Competitive Comparison of Viva Energy Group's Gross Margin %

For the Oil & Gas Refining & Marketing subindustry, Viva Energy 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.

Viva Energy Group's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Viva Energy Group's Gross Margin % distribution charts can be found below:

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

Viva Energy Group Gross Margin % Calculation

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

Viva Energy Group'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 )
	=	1225.1	/	25615.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(25615.4 - 24390.3)	/	25615.4
	=	4.78 %

Viva Energy Group'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 )
	=	179.7	/	12892.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12892.6 - 12712.9)	/	12892.6
	=	1.39 %

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.

Viva Energy Group (ASX:VEA) 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

Viva Energy Group had a gross margin of 1.39% for the quarter that ended in Dec. 2023 => 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.

Viva Energy Group Gross Margin % Related Terms

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Viva Energy Group (ASX:VEA) Business Description

Industry

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2AH:Germany

Address

720 Bourke Street, Level 16, Docklands, Melbourne, VIC, AUS, 3008

Website

https://www.vivaenergy.com.au

Viva is Australia's second-largest vertically integrated refined transport fuel supplier. We rate Viva as the second-most-significant pipeline owner, and at approximately 1,155 locations, Viva supplies the third-largest number of retail sites in Australia behind Ampol at approximately 1,985 and BP at 1,400.Vitol bought Shell's Australian downstream operations in 2014, and renamed them Viva Energy. Viva subsequently bought Shell's Australian aviation operations and a 50% investment in Liberty Oil. In 2016, Viva sold (and leased back) a portfolio of its retail sites to Viva Energy REIT and listed Viva Energy REIT on the ASX. It has since sold its entire REIT stake for AUD 734 million.