BRF (BSP:BRFS3) Gross Margin % : 22.13% (As of Dec. 2023)

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What is BRF Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. BRF's Gross Profit for the three months ended in Dec. 2023 was R$3,193 Mil. BRF's Revenue for the three months ended in Dec. 2023 was R$14,426 Mil. Therefore, BRF's Gross Margin % for the quarter that ended in Dec. 2023 was 22.13%.

Warning Sign:

BRF SA gross margin has been in long-term decline. The average rate of decline per year is -3.9%.

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

BSP:BRFS3' s Gross Margin % Range Over the Past 10 Years
Min: 15.12 Med: 21.45 Max: 31.34
Current: 16.48

During the past 13 years, the highest Gross Margin % of BRF was 31.34%. The lowest was 15.12%. And the median was 21.45%.

BSP:BRFS3's Gross Margin % is ranked worse than
69.01% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.03 vs BSP:BRFS3: 16.48

BRF had a gross margin of 22.13% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for BRF was -3.90% per year.

BRF Gross Margin % Historical Data

The historical data trend for BRF'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.

BRF Gross Margin % Chart

BRF Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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23.79

22.71

20.05

15.12

16.48

BRF 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															16.51	12.70	12.17	17.98	22.13

Competitive Comparison of BRF's Gross Margin %

For the Packaged Foods subindustry, BRF'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.

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

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

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

BRF Gross Margin % Calculation

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

BRF'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 )
	=	8833.7	/	53615.44
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(53615.44 - 44781.739)	/	53615.44
	=	16.48 %

BRF'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 )
	=	3192.7	/	14426.294
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(14426.294 - 11233.626)	/	14426.294
	=	22.13 %

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.

BRF (BSP:BRFS3) 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

BRF had a gross margin of 22.13% for the quarter that ended in Dec. 2023 => 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.

BRF Gross Margin % Related Terms

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

BRF (BSP:BRFS3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » BRF SA (BSP:BRFS3) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

BRFS:USA BRFS:Mexico P5Y:Germany BRFS:Argentina

Address

Avenida das Nacoes Unidas, 8501 – 1st Floor, Pinheiros, Sao Paulo, SP, BRA, 05425-070

Website

https://www.brf-global.com

BRF SA is an international producer of fresh and frozen protein foods. The firm's segments are In natura (poultry, pork, bovine, and other), Processed foods, and Other sales. The product portfolio includes marinated, frozen, whole and cut meat, specialty meats, portioned products, and frozen prepared entrees. The company also offers margarine, sweet specialties, sandwiches, mayonnaise, and animal feed. Its most well-known brands are Sadia, Chester, Perdix, Paty, Perdigao, and Qualy. Internationally, the portfolio's leading brand is Sadia, which is present in multiple categories in Middle Eastern countries. Geographically, sales are distributed evenly between Brazil and international markets.

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