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AFC Group Holdings (NZSE:AFC) Gross Margin % : 72.64% (As of Sep. 2024)


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What is AFC Group Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. AFC Group Holdings's Gross Profit for the six months ended in Sep. 2024 was NZ$0.29 Mil. AFC Group Holdings's Revenue for the six months ended in Sep. 2024 was NZ$0.40 Mil. Therefore, AFC Group Holdings's Gross Margin % for the quarter that ended in Sep. 2024 was 72.64%.


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

NZSE:AFC' s Gross Margin % Range Over the Past 10 Years
Min: -38.18   Med: 13.77   Max: 73.19
Current: 70.74


During the past 13 years, the highest Gross Margin % of AFC Group Holdings was 73.19%. The lowest was -38.18%. And the median was 13.77%.

NZSE:AFC's Gross Margin % is not ranked
in the Retail - Defensive industry.
Industry Median: 23.17 vs NZSE:AFC: 70.74

AFC Group Holdings had a gross margin of 72.64% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for AFC Group Holdings was 0.00% per year.


AFC Group Holdings Gross Margin % Historical Data

The historical data trend for AFC Group Holdings'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.

AFC Group Holdings Gross Margin % Chart

AFC Group Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.77 -38.18 7.47 70.05 73.19

AFC Group Holdings Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 83.16 48.27 79.14 69.82 72.64

Competitive Comparison of AFC Group Holdings's Gross Margin %

For the Food Distribution subindustry, AFC Group Holdings'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.


AFC Group Holdings's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, AFC Group Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where AFC Group Holdings's Gross Margin % falls into.


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AFC Group Holdings Gross Margin % Calculation

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

AFC Group Holdings's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=1 / 1.324
=(Revenue - Cost of Goods Sold) / Revenue
=(1.324 - 0.355) / 1.324
=73.19 %

AFC Group Holdings's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=0.3 / 0.402
=(Revenue - Cost of Goods Sold) / Revenue
=(0.402 - 0.11) / 0.402
=72.64 %

* 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.


AFC Group Holdings  (NZSE:AFC) 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

AFC Group Holdings had a gross margin of 72.64% for the quarter that ended in Sep. 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.


AFC Group Holdings Gross Margin % Related Terms

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


AFC Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
Level 15, Tower 2, 205 Queen Street, Auckland, NZL, 1010
AFC Group Holdings Ltd operates in the production, manufacture, distribution, and purchase of food, health, and cosmetic products. The business activities of the group are operated through International Marketing and distribution; Vineyard and Winery and Manufacturing segments. International Marketing segment which generates majority revenue sources packaged food, cosmetics, and health products. Vineyard and Winery segment produces and sells a number of varietals and blends of wine. Manufacturing segment covers a face-mask production line.