Kumba Iron Ore (JSE:KIO) Gross Margin % : 85.89% (As of Jun. 2024)

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What is Kumba Iron Ore Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kumba Iron Ore's Gross Profit for the six months ended in Jun. 2024 was R30,751 Mil. Kumba Iron Ore's Revenue for the six months ended in Jun. 2024 was R35,802 Mil. Therefore, Kumba Iron Ore's Gross Margin % for the quarter that ended in Jun. 2024 was 85.89%.

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

JSE:KIO' s Gross Margin % Range Over the Past 10 Years
Min: 59.49 Med: 75.69 Max: 92.35
Current: 88.08

During the past 13 years, the highest Gross Margin % of Kumba Iron Ore was 92.35%. The lowest was 59.49%. And the median was 75.69%.

JSE:KIO's Gross Margin % is ranked better than
99.34% of 602 companies
in the Steel industry
Industry Median: 11.805 vs JSE:KIO: 88.08

Kumba Iron Ore had a gross margin of 85.89% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kumba Iron Ore was 5.10% per year.

Kumba Iron Ore Gross Margin % Historical Data

The historical data trend for Kumba Iron Ore'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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Kumba Iron Ore Gross Margin % Chart

Kumba Iron Ore Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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81.12

88.71

89.84

92.35

89.89

Kumba Iron Ore 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															88.73	97.36	90.11	89.72	85.89

Competitive Comparison of Kumba Iron Ore's Gross Margin %

For the Steel subindustry, Kumba Iron Ore'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.

Kumba Iron Ore's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Kumba Iron Ore's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kumba Iron Ore's Gross Margin % falls into.

Kumba Iron Ore Gross Margin % Calculation

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

Kumba Iron Ore'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 )
	=	77517	/	86234
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(86234 - 8717)	/	86234
	=	89.89 %

Kumba Iron Ore'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 )
	=	30751	/	35802
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(35802 - 5051)	/	35802
	=	85.89 %

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.

Kumba Iron Ore (JSE:KIO) 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

Kumba Iron Ore had a gross margin of 85.89% 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.

Kumba Iron Ore Gross Margin % Related Terms

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Kumba Iron Ore Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Kumba Iron Ore Ltd (JSE:KIO) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

KIROY:USA KUI:Germany

Address

144 Oxford Road, Rosebank, Melrose, Johannesburg, GT, ZAF, 2196

Website

https://www.angloamericankumba.com

Kumba Iron Ore Ltd is engaged in the exploration, mining, processing blending, and sale of iron ore to the global steel industry. The company primarily operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake in, located near the town of Kathu in the Northern Cape Province. The Sishen mine is an opencast mine and produces the bulk of the group's iron ore, most of which is exported. It also holds interest in Kolomela mine. The company also generates revenue from Shipping operations. The majority of the company's revenue is generated from its products.