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Global Sweeteners Holdings (HKSE:03889) Gross Margin % : 6.73% (As of Dec. 2023)


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What is Global Sweeteners Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Global Sweeteners Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$16.6 Mil. Global Sweeteners Holdings's Revenue for the six months ended in Dec. 2023 was HK$247.2 Mil. Therefore, Global Sweeteners Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 6.73%.

Warning Sign:

Global Sweeteners Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.4%.


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

HKSE:03889' s Gross Margin % Range Over the Past 10 Years
Min: -6.5   Med: 9.22   Max: 11.07
Current: 8.31


During the past 13 years, the highest Gross Margin % of Global Sweeteners Holdings was 11.07%. The lowest was -6.50%. And the median was 9.22%.

HKSE:03889's Gross Margin % is ranked worse than
86.82% of 1813 companies
in the Consumer Packaged Goods industry
Industry Median: 25.25 vs HKSE:03889: 8.31

Global Sweeteners Holdings had a gross margin of 6.73% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Global Sweeteners Holdings was -7.40% per year.


Global Sweeteners Holdings Gross Margin % Historical Data

The historical data trend for Global Sweeteners Holdings'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.

Global Sweeteners Holdings Gross Margin % Chart

Global Sweeteners Holdings 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 10.61 10.13 5.71 7.58 8.31

Global Sweeteners Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 7.53 7.22 7.86 10.32 6.73

Competitive Comparison of Global Sweeteners Holdings's Gross Margin %

For the Packaged Foods subindustry, Global Sweeteners Holdings'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.


Global Sweeteners Holdings's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Global Sweeteners Holdings's Gross Margin % falls into.



Global Sweeteners Holdings Gross Margin % Calculation

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

Global Sweeteners Holdings'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 )
=36.6 / 440.813
=(Revenue - Cost of Goods Sold) / Revenue
=(440.813 - 404.195) / 440.813
=8.31 %

Global Sweeteners Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=16.6 / 247.152
=(Revenue - Cost of Goods Sold) / Revenue
=(247.152 - 230.514) / 247.152
=6.73 %

* 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.


Global Sweeteners Holdings  (HKSE:03889) 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

Global Sweeteners Holdings had a gross margin of 6.73% for the quarter that ended in Dec. 2023 => 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.


Global Sweeteners Holdings Gross Margin % Related Terms

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


Global Sweeteners Holdings (HKSE:03889) Business Description

Traded in Other Exchanges
Address
18 Hung Luen Road, Suite 1002, 10th Floor, Tower A, Cheung Kei Center, Hung Hom, Kowloon, Hong Kong, HKG
Global Sweeteners Holdings Ltd is an investment holding company. The company through its subsidiaries is engaged in the manufacturing and selling of corn refined products and corn-based sweetener products. Its segments include Corn refined products segment and Corn sweeteners segment. The Corn refined products segment which comprises the manufacture and sale of corn starch, gluten meal, corn oil and other corn refined products. The Corn sweeteners segment which comprises the manufacture and sale of glucose syrup, maltose syrup, high fructose corn syrup, crystallized glucose, and maltodextrin.
Executives
Wang Tieguang 2101 Beneficial owner
Kong Zhanpeng 2101 Beneficial owner
Hong Kong Huasheng Company Limited 2101 Beneficial owner
Li Tingsheng 2201 Interest of corporation controlled by you
Ji Lin Sheng Hua Sheng Shang Mao You Xian Gong Si 2201 Interest of corporation controlled by you
Global Bio-chem Technology Group Company Limited 2201 Interest of corporation controlled by you
Global Corn Bio-chem Technology Company Limited 2101 Beneficial owner
Modern Agricultural Industry Investment Holdings Limited 2201 Interest of corporation controlled by you
Modern Agricultural Industry Investment Limited 2201 Interest of corporation controlled by you
Ji Lin Sheng Ren Min Zheng Fu Guo You Zi Chan Jian Du Guan Li Wei Yuan Hui 2201 Interest of corporation controlled by you
Ji Lin Sheng Xian Dai Nong Ye Chan Ye Ji Jin You Xian Gong Si 2201 Interest of corporation controlled by you
Ji Lin Sheng Xian Dai Nong Ye Chan Ye Tou Zi Ji Jin You Xian He Huo 2201 Interest of corporation controlled by you
Ji Lin Sheng Nong Ye Tou Zi Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Hartington Profits Limited 2101 Beneficial owner

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