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Watawala Plantations (COL:WATA.N0000) Gross Margin % : 22.42% (As of Mar. 2024)


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What is Watawala Plantations Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Watawala Plantations's Gross Profit for the three months ended in Mar. 2024 was රු412 Mil. Watawala Plantations's Revenue for the three months ended in Mar. 2024 was රු1,838 Mil. Therefore, Watawala Plantations's Gross Margin % for the quarter that ended in Mar. 2024 was 22.42%.


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

COL:WATA.N0000' s Gross Margin % Range Over the Past 10 Years
Min: 11.78   Med: 37.1   Max: 55.04
Current: 37.91


During the past 13 years, the highest Gross Margin % of Watawala Plantations was 55.04%. The lowest was 11.78%. And the median was 37.10%.

COL:WATA.N0000's Gross Margin % is ranked better than
73.77% of 1815 companies
in the Consumer Packaged Goods industry
Industry Median: 25.25 vs COL:WATA.N0000: 37.91

Watawala Plantations had a gross margin of 22.42% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Watawala Plantations was 1.20% per year.


Watawala Plantations Gross Margin % Historical Data

The historical data trend for Watawala Plantations'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.

Watawala Plantations Gross Margin % Chart

Watawala Plantations Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.14 48.95 55.04 40.35 37.91

Watawala Plantations Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 25.30 41.99 45.48 38.92 22.42

Competitive Comparison of Watawala Plantations's Gross Margin %

For the Farm Products subindustry, Watawala Plantations'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.


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

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

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



Watawala Plantations Gross Margin % Calculation

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

Watawala Plantations's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=3154.6 / 8320.903
=(Revenue - Cost of Goods Sold) / Revenue
=(8320.903 - 5166.312) / 8320.903
=37.91 %

Watawala Plantations's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=412 / 1837.567
=(Revenue - Cost of Goods Sold) / Revenue
=(1837.567 - 1425.574) / 1837.567
=22.42 %

* 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.


Watawala Plantations  (COL:WATA.N0000) 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

Watawala Plantations had a gross margin of 22.42% for the quarter that ended in Mar. 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.


Watawala Plantations Gross Margin % Related Terms

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Watawala Plantations (COL:WATA.N0000) Business Description

Traded in Other Exchanges
N/A
Address
No 60, Dharmapala Mawatha, Colombo, LKA, 03
Watawala Plantations PLC engages in the provision of agricultural products. It operates through the following segments: Palm Oil, Dairy, and others. Its Dairy segment provides various dairy products. The Palm Oil segment includes producing crude and kernel palm oil and generates the majority of revenue for the company. It is also involved in the marketing of tea products.

Watawala Plantations (COL:WATA.N0000) Headlines

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