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Papel Prensa (BUE:PREN1) Gross Margin % : 20.41% (As of Jun. 2024)


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What is Papel Prensa Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Papel Prensa's Gross Profit for the three months ended in Jun. 2024 was ARS4,891 Mil. Papel Prensa's Revenue for the three months ended in Jun. 2024 was ARS23,971 Mil. Therefore, Papel Prensa's Gross Margin % for the quarter that ended in Jun. 2024 was 20.41%.


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

BUE:PREN1' s Gross Margin % Range Over the Past 10 Years
Min: 6.75   Med: 14.67   Max: 31.97
Current: 29.44


During the past 13 years, the highest Gross Margin % of Papel Prensa was 31.97%. The lowest was 6.75%. And the median was 14.67%.

BUE:PREN1's Gross Margin % is not ranked
in the Forest Products industry.
Industry Median: 19.11 vs BUE:PREN1: 29.44

Papel Prensa had a gross margin of 20.41% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Papel Prensa was 21.20% per year.


Papel Prensa Gross Margin % Historical Data

The historical data trend for Papel Prensa'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.

Papel Prensa Gross Margin % Chart

Papel Prensa Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.98 15.16 20.39 28.81 31.97

Papel Prensa Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.27 31.39 33.41 31.59 20.41

Competitive Comparison of Papel Prensa's Gross Margin %

For the Paper & Paper Products subindustry, Papel Prensa'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.


Papel Prensa's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Papel Prensa's Gross Margin % distribution charts can be found below:

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



Papel Prensa Gross Margin % Calculation

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

Papel Prensa'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 )
=23435.2 / 73313.529
=(Revenue - Cost of Goods Sold) / Revenue
=(73313.529 - 49878.344) / 73313.529
=31.97 %

Papel Prensa'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 )
=4891.3 / 23970.785
=(Revenue - Cost of Goods Sold) / Revenue
=(23970.785 - 19079.466) / 23970.785
=20.41 %

* 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.


Papel Prensa  (BUE:PREN1) 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

Papel Prensa had a gross margin of 20.41% for the quarter that ended in Jun. 2024 => 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.


Papel Prensa Gross Margin % Related Terms

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Papel Prensa Business Description

Traded in Other Exchanges
N/A
Address
Bartolome Mitre 739, 4th Floor, Buenos Aires, ARG, 1036
Papel Prensa SA operates in the paper industry. It is engaged in the production of newsprint paper. The company is also engaged in the forestry sector. It offers various products, produced for different usage, papers for publications, books, catalogues, notebooks and pads; papers for advertising material and packaging papers.

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