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United Foods Co PSC (DFM:UFC) Gross Margin % : 20.27% (As of Mar. 2024)


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What is United Foods Co PSC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. United Foods Co PSC's Gross Profit for the three months ended in Mar. 2024 was د.إ31.8 Mil. United Foods Co PSC's Revenue for the three months ended in Mar. 2024 was د.إ157.0 Mil. Therefore, United Foods Co PSC's Gross Margin % for the quarter that ended in Mar. 2024 was 20.27%.

Warning Sign:

United Foods Co PSC gross margin has been in long-term decline. The average rate of decline per year is -5%.


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

DFM:UFC' s Gross Margin % Range Over the Past 10 Years
Min: 12.37   Med: 16.16   Max: 20.68
Current: 17.69


During the past 13 years, the highest Gross Margin % of United Foods Co PSC was 20.68%. The lowest was 12.37%. And the median was 16.16%.

DFM:UFC's Gross Margin % is ranked worse than
67.2% of 1811 companies
in the Consumer Packaged Goods industry
Industry Median: 25.34 vs DFM:UFC: 17.69

United Foods Co PSC had a gross margin of 20.27% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for United Foods Co PSC was -5.00% per year.


United Foods Co PSC Gross Margin % Historical Data

The historical data trend for United Foods Co PSC'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.

United Foods Co PSC Gross Margin % Chart

United Foods Co PSC 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 20.68 18.65 13.38 12.37 16.26

United Foods Co PSC 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 15.43 14.31 15.44 20.03 20.27

Competitive Comparison of United Foods Co PSC's Gross Margin %

For the Packaged Foods subindustry, United Foods Co PSC'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.


United Foods Co PSC's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

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



United Foods Co PSC Gross Margin % Calculation

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

United Foods Co PSC'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 )
=91.9 / 565.266
=(Revenue - Cost of Goods Sold) / Revenue
=(565.266 - 473.346) / 565.266
=16.26 %

United Foods Co PSC'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 )
=31.8 / 156.98
=(Revenue - Cost of Goods Sold) / Revenue
=(156.98 - 125.156) / 156.98
=20.27 %

* 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.


United Foods Co PSC  (DFM:UFC) 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

United Foods Co PSC had a gross margin of 20.27% 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.


United Foods Co PSC Gross Margin % Related Terms

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United Foods Co PSC (DFM:UFC) Business Description

Traded in Other Exchanges
N/A
Address
Al Quoz 1, P.O. Box 5836, Dubai, ARE
United Foods Co PSC is engaged in manufacturing, processing, and marketing of vegetable ghee, cooking oil, margarine, butter products, and fat including trading of other food products. Geographically, It operates in the United Arab Emirates, GCC other than UAE and the rest of the world, out of which the majority is from the United Arab Emirates. The Company operates under the following brands- Aseel, Nawar, Safi, Mumtaz, Della Terra and Super Sun. The company's business units are Oil & Fats, Frozen & Chilled and Water & Beverages.

United Foods Co PSC (DFM:UFC) Headlines

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