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1957. (Hospitality) (HKSE:08495) Gross Margin % : 42.00% (As of Dec. 2023)


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What is 1957. (Hospitality) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. 1957. (Hospitality)'s Gross Profit for the three months ended in Dec. 2023 was HK$54.8 Mil. 1957. (Hospitality)'s Revenue for the three months ended in Dec. 2023 was HK$130.4 Mil. Therefore, 1957. (Hospitality)'s Gross Margin % for the quarter that ended in Dec. 2023 was 42.00%.

Warning Sign:

1957 & Co. (Hospitality) Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.7%.


The historical rank and industry rank for 1957. (Hospitality)'s Gross Margin % or its related term are showing as below:

HKSE:08495' s Gross Margin % Range Over the Past 10 Years
Min: 30.72   Med: 35.83   Max: 71.82
Current: 34.55


During the past 9 years, the highest Gross Margin % of 1957. (Hospitality) was 71.82%. The lowest was 30.72%. And the median was 35.83%.

HKSE:08495's Gross Margin % is ranked worse than
70.59% of 340 companies
in the Restaurants industry
Industry Median: 47.36 vs HKSE:08495: 34.55

1957. (Hospitality) had a gross margin of 42.00% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for 1957. (Hospitality) was -1.70% per year.


1957. (Hospitality) Gross Margin % Historical Data

The historical data trend for 1957. (Hospitality)'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.

1957. (Hospitality) Gross Margin % Chart

1957. (Hospitality) Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 36.22 32.99 35.08 30.72 34.55

1957. (Hospitality) Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 37.20 29.30 31.90 33.81 42.00

Competitive Comparison of 1957. (Hospitality)'s Gross Margin %

For the Restaurants subindustry, 1957. (Hospitality)'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.


1957. (Hospitality)'s Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, 1957. (Hospitality)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where 1957. (Hospitality)'s Gross Margin % falls into.



1957. (Hospitality) Gross Margin % Calculation

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

1957. (Hospitality)'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 )
=163 / 471.849
=(Revenue - Cost of Goods Sold) / Revenue
=(471.849 - 308.846) / 471.849
=34.55 %

1957. (Hospitality)'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 )
=54.8 / 130.393
=(Revenue - Cost of Goods Sold) / Revenue
=(130.393 - 75.631) / 130.393
=42.00 %

* 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.


1957. (Hospitality)  (HKSE:08495) 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

1957. (Hospitality) had a gross margin of 42.00% 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.


1957. (Hospitality) Gross Margin % Related Terms

Thank you for viewing the detailed overview of 1957. (Hospitality)'s Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


1957. (Hospitality) (HKSE:08495) Business Description

Traded in Other Exchanges
N/A
Address
391–407 Jaffe Road, 33rd Floor, Times Tower, Hong Kong, HKG
1957 & Co. (Hospitality) Ltd is a Hong Kong-based restaurant operation and management company. Together with its subsidiaries, the firm operates full-service restaurants under various brands and serves Japanese, Thai, Vietnamese, Shanghainese and Italian cuisines. The Group is engaged in the operation of restaurants and provision of catering management and consultancy services segment. Apart from its restaurant operation business the company also provides catering management and consultancy services in Hong Kong and the People's Republic of China. It derives the majority of the revenue from the operation of restaurants.
Executives
Cai Weike 2201 Interest of corporation controlled by you
Real Hero Ventures Limited 2101 Beneficial owner
Zhang Meiyun 2202 Interest of your spouse
Chan Siu Wan 2202 Interest of your spouse
Leung Chi Tien Steve 2201 Interest of corporation controlled by you
Kwan Wing Kuen Tino 2101 Beneficial owner
Kwan Wai Ling Alicia 2202 Interest of your spouse
1957 & Co. Limited 2201 Interest of corporation controlled by you
Sino Explorer Limited 2101 Beneficial owner
All Victory Global Limited

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