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Pu`er Lancang Ancient Tea Co (HKSE:06911) Gross Margin % : 72.23% (As of Dec. 2023)


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What is Pu`er Lancang Ancient Tea Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Pu`er Lancang Ancient Tea Co's Gross Profit for the six months ended in Dec. 2023 was HK$233.3 Mil. Pu`er Lancang Ancient Tea Co's Revenue for the six months ended in Dec. 2023 was HK$323.0 Mil. Therefore, Pu`er Lancang Ancient Tea Co's Gross Margin % for the quarter that ended in Dec. 2023 was 72.23%.


The historical rank and industry rank for Pu`er Lancang Ancient Tea Co's Gross Margin % or its related term are showing as below:

HKSE:06911' s Gross Margin % Range Over the Past 10 Years
Min: 65.89   Med: 66.46   Max: 70.4
Current: 66.96

During the past 4 years, the highest Gross Margin % of Pu`er Lancang Ancient Tea Co was 70.40%. The lowest was 65.89%. And the median was 66.46%.

HKSE:06911's Gross Margin % is ranked better than
93.11% of 1813 companies
in the Consumer Packaged Goods industry
Industry Median: 25.25 vs HKSE:06911: 66.96

Pu`er Lancang Ancient Tea Co had a gross margin of 72.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Pu`er Lancang Ancient Tea Co was 0.00% per year.

Pu`er Lancang Ancient Tea Co Gross Margin % Historical Data

The historical data trend for Pu`er Lancang Ancient Tea Co'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.

Pu`er Lancang Ancient Tea Co Gross Margin % Chart

Pu`er Lancang Ancient Tea Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Gross Margin %
70.40 65.95 65.89 66.96

Pu`er Lancang Ancient Tea Co Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial - 60.88 70.77 60.26 72.23

Competitive Comparison of Pu`er Lancang Ancient Tea Co's Gross Margin %

For the Farm Products subindustry, Pu`er Lancang Ancient Tea Co'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.

Pu`er Lancang Ancient Tea Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Pu`er Lancang Ancient Tea Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Pu`er Lancang Ancient Tea Co's Gross Margin % falls into.


Pu`er Lancang Ancient Tea Co Gross Margin % Calculation

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

Pu`er Lancang Ancient Tea Co'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 )
=386.2 / 576.799
=(Revenue - Cost of Goods Sold) / Revenue
=(576.799 - 190.566) / 576.799
=66.96 %

Pu`er Lancang Ancient Tea Co'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 )
=233.3 / 323.011
=(Revenue - Cost of Goods Sold) / Revenue
=(323.011 - 89.716) / 323.011
=72.23 %

* 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.

Pu`er Lancang Ancient Tea Co  (HKSE:06911) 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

Pu`er Lancang Ancient Tea Co had a gross margin of 72.23% for the quarter that ended in Dec. 2023 => 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.

Pu`er Lancang Ancient Tea Co Gross Margin % Related Terms

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Pu`er Lancang Ancient Tea Co (HKSE:06911) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Pu`er Lancang Ancient Tea Co Ltd (HKSE:06911) » Definitions » Gross Margin %
Comparable Companies
Traded in Other Exchanges
N/A
Address
Pingzhang Road, West Suburb Hot Spring Community, Lancang Lahu Ethnic Autonomous County, Yunnan Province, Menglang Town, Puer, CHN
Website
http://www.lcgc.cn
Pu`er Lancang Ancient Tea Co Ltd is principally engaged in the development, manufacturing and sales of tea products, primarily Pu'er tea products in China.
Executives
China Credit Trust Co., Ltd 2201 Interest of corporation controlled by you
Harvest Fund Management Co., Ltd. 2201 Interest of corporation controlled by you
Lan Cang Lv Se Zi Yuan Tou Zi You Xian Gong Si 2101 Beneficial owner
Lan Cang Xian Guo You Zi Chan Jing Ying You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Lan Cang Xian Tou Zi Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Sheng Song Lan Cang Sheng Shi Cha Xiang Yi Hao Si Mu Zheng Quan Tou Zi Ji Jin 2101 Beneficial owner
Dong Xing An Xin Hao Dan Yi Zi Chan Guan Li Ji Hua 2301 Trustee
Wang Chen 2201 Interest of corporation controlled by you
Zhang Liang 2201 Interest of corporation controlled by you
Zhong Guo Hai Jing Ji Tuan You Xian Gong Si 2101 Beneficial owner
Wang Chunyu 2101 Beneficial owner

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