Gross Margin % is calculated as gross profit divided by its revenue. Alicorp's Gross Profit for the
three
months ended in Mar. 2024 was S/.619 Mil. Alicorp's Revenue for the
three
months ended in Mar. 2024 was S/.2,831 Mil. Therefore, Alicorp's Gross Margin % for the quarter that ended in Mar. 2024 was 21.86%.
Warning Sign:
Alicorp SA gross margin has been in long-term decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for Alicorp's Gross Margin % or its related term are showing as below:
LIM:ALICORC1'
s Gross Margin % Range Over the Past 10 Years
Min: 17.93 Med: 26.01 Max: 30.29
Current: 19.03
During the past 13 years, the highestGross Margin % of Alicorp was 30.29%. The lowest was 17.93%. And the median was 26.01%.
LIM:ALICORC1's Gross Margin % is ranked worse than 64.66% of 1814
companies
in the Consumer Packaged Goods industry
Industry Median: 25.285
vs LIM:ALICORC1: 19.03
Alicorp had a gross margin of 21.86% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Alicorp was -7.90% per year.
Alicorp Gross Margin % Historical Data
The historical data trend for Alicorp'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.
Competitive Comparison of Alicorp's Gross Margin %
For the Household & Personal Products subindustry, Alicorp'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.
Alicorp's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Alicorp's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alicorp's Gross Margin % falls into.
* 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.
Alicorp (LIM:ALICORC1) 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
Alicorp had a gross margin of 21.86% for the quarter that ended in Mar. 2024 => Competition eroding margins
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.
Alicorp Gross Margin % Related Terms
Thank you for viewing the detailed overview of Alicorp's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Alicorp S.A.A. is a Peruvian company that manufactures, imports, exports and distributes mass consumption products across South America. Products are offered through four operating segments: mass Consumption, which contributes to the majority of firm revenue, B2B and aquaculture. Mass consumption products include various oils, hair care products, noodles, drinks, and food products. The B2B segment is the next largest contributor to revenue and manufactures and supplies products for industrial use such as laundry detergents, soap and stain removers, as well as beauty products. Aquaculture involves the provision of nutritional animal food and the Grinding segment. The company earns the majority of revenue domestically, with the rest coming from other South American countries.
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