Fonterra Co-operative Group (NZSE:FCG) Gross Margin % : 21.30% (As of Jul. 2023)

Fonterra Co-operative Group Gross Margin % Chart

Fonterra Co-operative Group Annual Data
	Trend	Jul14	Jul15	Jul16	Jul17	Jul18	Jul19	Jul20	Jul21	Jul22	Jul23
Gross Margin %		Get a 7-Day Free Trial					14.93	15.10	14.51	15.24	18.94

Fonterra Co-operative Group Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23
Gross Margin %	Get a 7-Day Free Trial															12.15	13.77	16.49	16.59	21.30

Competitive Comparison of Fonterra Co-operative Group's Gross Margin %

For the Packaged Foods subindustry, Fonterra Co-operative Group'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.

Fonterra Co-operative Group's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Fonterra Co-operative Group's Gross Margin % falls into.

Fonterra Co-operative Group Gross Margin % Calculation

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

Fonterra Co-operative Group's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Fonterra Co-operative Group's Gross Margin for the quarter that ended in Jul. 2023 is calculated as

* 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.

Fonterra Co-operative Group  (NZSE:FCG) 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

Fonterra Co-operative Group had a gross margin of 21.30% for the quarter that ended in Jul. 2023 => 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.

Fonterra Co-operative Group Gross Margin % Related Terms

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

Fonterra Co-operative Group (NZSE:FCG) Business Description