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Fufeng Group (FRA:FFO1) Gross Margin % : 17.19% (As of Jun. 2024)


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What is Fufeng Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fufeng Group's Gross Profit for the six months ended in Jun. 2024 was €294 Mil. Fufeng Group's Revenue for the six months ended in Jun. 2024 was €1,712 Mil. Therefore, Fufeng Group's Gross Margin % for the quarter that ended in Jun. 2024 was 17.19%.


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

FRA:FFO1' s Gross Margin % Range Over the Past 10 Years
Min: 16.06   Med: 19.67   Max: 26.25
Current: 20.13


During the past 13 years, the highest Gross Margin % of Fufeng Group was 26.25%. The lowest was 16.06%. And the median was 19.67%.

FRA:FFO1's Gross Margin % is ranked worse than
55.59% of 1504 companies
in the Chemicals industry
Industry Median: 22.12 vs FRA:FFO1: 20.13

Fufeng Group had a gross margin of 17.19% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fufeng Group was 5.10% per year.


Fufeng Group Gross Margin % Historical Data

The historical data trend for Fufeng Group'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.

Fufeng Group Gross Margin % Chart

Fufeng Group 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 20.16 16.87 18.13 26.25 22.31

Fufeng Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 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 27.69 24.97 21.77 22.81 17.19

Competitive Comparison of Fufeng Group's Gross Margin %

For the Specialty Chemicals subindustry, Fufeng Group'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.


Fufeng Group's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Fufeng Group's Gross Margin % distribution charts can be found below:

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



Fufeng Group Gross Margin % Calculation

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

Fufeng Group'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 )
=802.3 / 3596.861
=(Revenue - Cost of Goods Sold) / Revenue
=(3596.861 - 2794.523) / 3596.861
=22.31 %

Fufeng Group'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 )
=294.3 / 1711.841
=(Revenue - Cost of Goods Sold) / Revenue
=(1711.841 - 1417.563) / 1711.841
=17.19 %

* 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.


Fufeng Group  (FRA:FFO1) 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

Fufeng Group had a gross margin of 17.19% for the quarter that ended in Jun. 2024 => No sustainable 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.


Fufeng Group Gross Margin % Related Terms

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


Fufeng Group Business Description

Traded in Other Exchanges
Address
12/F, Tower 3,33 Canton Road, Suite 1204B–7A China, Tsim Sha Tsui, Kowloon, Hong Kong City, HKG
Fufeng Group Ltd manufactures and sells a variety of chemicals primarily used by the food and agricultural industries. The company's operating segments include Food additives; Animal nutrition; High-end amino acid; Colloid and others. It generates maximum revenue from the Food additives segment. The Food additives segment is engaged in the manufacturing and sale of food additives products, including monosodium glutamate (MSG), starch sweeteners, glutamic acid, compound seasoning, and corn oil. The majority of revenue comes from China.

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