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Loungers (FRA:LP0) Gross Margin % : 40.89% (As of Oct. 2024)


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What is Loungers Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Loungers's Gross Profit for the six months ended in Oct. 2024 was €87.3 Mil. Loungers's Revenue for the six months ended in Oct. 2024 was €213.4 Mil. Therefore, Loungers's Gross Margin % for the quarter that ended in Oct. 2024 was 40.89%.


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

FRA:LP0' s Gross Margin % Range Over the Past 10 Years
Min: 39.52   Med: 41.06   Max: 43.37
Current: 41.28


During the past 9 years, the highest Gross Margin % of Loungers was 43.37%. The lowest was 39.52%. And the median was 41.06%.

FRA:LP0's Gross Margin % is ranked worse than
60.06% of 333 companies
in the Restaurants industry
Industry Median: 47.1 vs FRA:LP0: 41.28

Loungers had a gross margin of 40.89% for the quarter that ended in Oct. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Loungers was -0.30% per year.


Loungers Gross Margin % Historical Data

The historical data trend for Loungers'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.

Loungers Gross Margin % Chart

Loungers Annual Data
Trend Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 40.83 41.06 43.37 39.91 40.78

Loungers Semi-Annual Data
Apr16 Apr17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24
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 39.17 40.48 39.64 41.62 40.89

Competitive Comparison of Loungers's Gross Margin %

For the Restaurants subindustry, Loungers'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.


Loungers's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Loungers's Gross Margin % distribution charts can be found below:

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



Loungers Gross Margin % Calculation

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

Loungers's Gross Margin for the fiscal year that ended in Apr. 2024 is calculated as

Gross Margin % (A: Apr. 2024 )=Gross Profit (A: Apr. 2024 ) / Revenue (A: Apr. 2024 )
=168.1 / 412.327
=(Revenue - Cost of Goods Sold) / Revenue
=(412.327 - 244.184) / 412.327
=40.78 %

Loungers's Gross Margin for the quarter that ended in Oct. 2024 is calculated as


Gross Margin % (Q: Oct. 2024 )=Gross Profit (Q: Oct. 2024 ) / Revenue (Q: Oct. 2024 )
=87.3 / 213.434
=(Revenue - Cost of Goods Sold) / Revenue
=(213.434 - 126.168) / 213.434
=40.89 %

* 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.


Loungers  (FRA:LP0) 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

Loungers had a gross margin of 40.89% for the quarter that ended in Oct. 2024 => Durable 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.


Loungers Gross Margin % Related Terms

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


Loungers Business Description

Traded in Other Exchanges
Address
26 Baldwin Street, Bristol, GBR, BS1 1SE
Loungers PLC is an operator of cafe bars and restaurants. Geographically, the company operates only in the United Kingdom. It generates revenue from the sale of food and drink.

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