Flex Foods (BOM:523672) Gross Margin % : 40.34% (As of Dec. 2023)

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What is Flex Foods Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Flex Foods's Gross Profit for the three months ended in Dec. 2023 was ₹112 Mil. Flex Foods's Revenue for the three months ended in Dec. 2023 was ₹276 Mil. Therefore, Flex Foods's Gross Margin % for the quarter that ended in Dec. 2023 was 40.34%.

Warning Sign:

Flex Foods Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.3%.

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

BOM:523672' s Gross Margin % Range Over the Past 10 Years
Min: 45.3 Med: 55.81 Max: 62.76
Current: 55.33

During the past 13 years, the highest Gross Margin % of Flex Foods was 62.76%. The lowest was 45.30%. And the median was 55.81%.

BOM:523672's Gross Margin % is ranked better than
88.45% of 1810 companies
in the Consumer Packaged Goods industry
Industry Median: 25.235 vs BOM:523672: 55.33

Flex Foods had a gross margin of 40.34% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Flex Foods was -4.30% per year.

Flex Foods Gross Margin % Historical Data

The historical data trend for Flex Foods'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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Flex Foods Gross Margin % Chart

Flex Foods Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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58.80

54.14

50.22

48.24

45.30

Flex Foods Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															57.85	9.71	99.73	91.41	40.34

Competitive Comparison of Flex Foods's Gross Margin %

For the Packaged Foods subindustry, Flex Foods'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.

Flex Foods's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Flex Foods's Gross Margin % distribution charts can be found below:

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

Flex Foods Gross Margin % Calculation

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

Flex Foods's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	514	/	1134.512
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1134.512 - 620.54)	/	1134.512
	=	45.30 %

Flex Foods'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 )
	=	111.5	/	276.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(276.4 - 164.9)	/	276.4
	=	40.34 %

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.

Flex Foods (BOM:523672) 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

Flex Foods had a gross margin of 40.34% for the quarter that ended in Dec. 2023 => Durable 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.

Flex Foods Gross Margin % Related Terms

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

Flex Foods (BOM:523672) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Flex Foods Ltd (BOM:523672) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

A-108, Sector - 4, Noida, UP, IND, 201301

Website

https://www.flexfoodsltd.com

Flex Foods Ltd is engaged in the business of processed foods. The company is engaged in the cultivation and processing of Culinary Herbs, Mushrooms, Fruits, and Vegetables. The company offers a wide range of Vacuum Freeze-Dried, Air-Dried, Frozen, and IQF (Individually Quick Frozen) products. The company's operations are conducted in India and it also exports to the United States, Australia, Europe, and Asia. Geographically, the company generates the majority of its revenue from outside India.

Flex Foods (BOM:523672) Headlines

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