HomeChoice International (JSE:HIL) Gross Margin % : 83.61% (As of Jun. 2024)

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What is HomeChoice International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. HomeChoice International's Gross Profit for the six months ended in Jun. 2024 was R1,678 Mil. HomeChoice International's Revenue for the six months ended in Jun. 2024 was R2,007 Mil. Therefore, HomeChoice International's Gross Margin % for the quarter that ended in Jun. 2024 was 83.61%.

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

JSE:HIL' s Gross Margin % Range Over the Past 10 Years
Min: 49.3 Med: 71.31 Max: 82.36
Current: 82.36

During the past 11 years, the highest Gross Margin % of HomeChoice International was 82.36%. The lowest was 49.30%. And the median was 71.31%.

JSE:HIL's Gross Margin % is ranked better than
98.45% of 1099 companies
in the Retail - Cyclical industry
Industry Median: 36.93 vs JSE:HIL: 82.36

HomeChoice International had a gross margin of 83.61% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for HomeChoice International was 2.70% per year.

HomeChoice International Gross Margin % Historical Data

The historical data trend for HomeChoice International'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.

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HomeChoice International Gross Margin % Chart

HomeChoice International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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70.52

69.86

72.73

76.47

80.96

HomeChoice International Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Gross Margin %	Get a 7-Day Free Trial															76.52	76.43	80.87	81.05	83.61

Competitive Comparison of HomeChoice International's Gross Margin %

For the Specialty Retail subindustry, HomeChoice International'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.

HomeChoice International's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, HomeChoice International's Gross Margin % distribution charts can be found below:

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

HomeChoice International Gross Margin % Calculation

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

HomeChoice International'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 )
	=	2973	/	3672
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3672 - 699)	/	3672
	=	80.96 %

HomeChoice International's Gross Margin for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )	=	Gross Profit (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	1678	/	2007
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2007 - 329)	/	2007
	=	83.61 %

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.

HomeChoice International (JSE:HIL) 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

HomeChoice International had a gross margin of 83.61% for the quarter that ended in Jun. 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.

HomeChoice International Gross Margin % Related Terms

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HomeChoice International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » HomeChoice International PLC (JSE:HIL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

c/o Sanlam Trustees International Limited, Labourdonnais Village, Riviere du Rempart, Mapou, MUS, 31803

Website

https://www.homechoiceinternational.com

HomeChoice International PLC is an investment holding company. The company through its subsidiaries operates as a home shopping retailer. The company sells homewares merchandise, personal electronics, and loan products to the middle-income market in Southern Africa. The operating business segments are Weaver Fintech, Retail, Property, and Other. The Retail segment consists of the group's HomeChoice omni-channel retail operations focused on homeware categories. The Weaver Fintech segment consists of payments, personal loans, and insurance products for customers and services to merchants in the Buy Now, Pay Later solutions sold under the PayJustNow (PJN) brand. e group's property company, which owns commercial properties utilized within the group, is included in the Property segment.