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Brikor (JSE:BIK) Gross Margin % : 11.14% (As of Feb. 2024)


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What is Brikor Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Brikor's Gross Profit for the six months ended in Feb. 2024 was R17.9 Mil. Brikor's Revenue for the six months ended in Feb. 2024 was R160.5 Mil. Therefore, Brikor's Gross Margin % for the quarter that ended in Feb. 2024 was 11.14%.

Warning Sign:

Brikor Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.1%.


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

JSE:BIK' s Gross Margin % Range Over the Past 10 Years
Min: 14.53   Med: 22.71   Max: 27.41
Current: 19.97


During the past 13 years, the highest Gross Margin % of Brikor was 27.41%. The lowest was 14.53%. And the median was 22.71%.

JSE:BIK's Gross Margin % is ranked worse than
65.25% of 377 companies
in the Building Materials industry
Industry Median: 25.36 vs JSE:BIK: 19.97

Brikor had a gross margin of 11.14% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Brikor was -4.10% per year.


Brikor Gross Margin % Historical Data

The historical data trend for Brikor'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.

Brikor Gross Margin % Chart

Brikor Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.36 25.19 14.53 16.20 19.97

Brikor Semi-Annual Data
Feb12 Aug12 Aug13 Feb15 Feb16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 5.63 13.74 19.07 27.42 11.14

Competitive Comparison of Brikor's Gross Margin %

For the Building Materials subindustry, Brikor'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.


Brikor's Gross Margin % Distribution in the Building Materials Industry

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

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



Brikor Gross Margin % Calculation

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

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

Gross Margin % (A: Feb. 2024 )=Gross Profit (A: Feb. 2024 ) / Revenue (A: Feb. 2024 )
=70 / 350.549
=(Revenue - Cost of Goods Sold) / Revenue
=(350.549 - 280.556) / 350.549
=19.97 %

Brikor's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=17.9 / 160.471
=(Revenue - Cost of Goods Sold) / Revenue
=(160.471 - 142.598) / 160.471
=11.14 %

* 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.


Brikor  (JSE:BIK) 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

Brikor had a gross margin of 11.14% for the quarter that ended in Feb. 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.


Brikor Gross Margin % Related Terms

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Brikor (JSE:BIK) Business Description

Traded in Other Exchanges
N/A
Address
1 Marievale Road, Vorsterskroon, Nigel, GT, ZAF, 1490
Brikor Ltd is a conglomerate company engaged in the manufacturing and supplying of bricks and mining of coal. The company operates in two segments which are Bricks, which include manufacturing and sales of bricks, and Coal which includes mining and sale of coal. The company earns the majority of its revenue from the Bricks segment.

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