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Victorias Milling Co (PHS:VMC) Gross Margin % : 8.46% (As of Feb. 2024)


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What is Victorias Milling Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Victorias Milling Co's Gross Profit for the three months ended in Feb. 2024 was ₱329 Mil. Victorias Milling Co's Revenue for the three months ended in Feb. 2024 was ₱3,893 Mil. Therefore, Victorias Milling Co's Gross Margin % for the quarter that ended in Feb. 2024 was 8.46%.

Warning Sign:

Victorias Milling Co Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


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

PHS:VMC' s Gross Margin % Range Over the Past 10 Years
Min: 15.4   Med: 20.28   Max: 38.93
Current: 17.18


During the past 13 years, the highest Gross Margin % of Victorias Milling Co was 38.93%. The lowest was 15.40%. And the median was 20.28%.

PHS:VMC's Gross Margin % is ranked worse than
68.26% of 1815 companies
in the Consumer Packaged Goods industry
Industry Median: 25.25 vs PHS:VMC: 17.18

Victorias Milling Co had a gross margin of 8.46% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Victorias Milling Co was -2.50% per year.


Victorias Milling Co Gross Margin % Historical Data

The historical data trend for Victorias Milling Co'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.

Victorias Milling Co Gross Margin % Chart

Victorias Milling Co Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.50 21.44 15.44 18.93 19.12

Victorias Milling Co Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 9.40 18.40 74.51 14.84 8.46

Competitive Comparison of Victorias Milling Co's Gross Margin %

For the Confectioners subindustry, Victorias Milling Co'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.


Victorias Milling Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Victorias Milling Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Victorias Milling Co's Gross Margin % falls into.



Victorias Milling Co Gross Margin % Calculation

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

Victorias Milling Co's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )=Gross Profit (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=2973.1 / 15546.991
=(Revenue - Cost of Goods Sold) / Revenue
=(15546.991 - 12573.936) / 15546.991
=19.12 %

Victorias Milling Co's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=329.2 / 3893.232
=(Revenue - Cost of Goods Sold) / Revenue
=(3893.232 - 3564.026) / 3893.232
=8.46 %

* 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.


Victorias Milling Co  (PHS:VMC) 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

Victorias Milling Co had a gross margin of 8.46% for the quarter that ended in Feb. 2024 => No sustainable 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.


Victorias Milling Co Gross Margin % Related Terms

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


Victorias Milling Co (PHS:VMC) Business Description

Traded in Other Exchanges
N/A
Address
J.J. Ossorio Street, VMC Compound, Barangay XVI, Victorias, NEC, PHL, 6119
Victorias Milling Co Inc is a Philippines-based company engaged in sugar manufacturing. The company also focuses on producing and selling canned sardines, hot Bangus, mackerel, luncheon meat, and other meat products. It is also involved in developing and selling real estate properties, operating golf clubs, and other activities. The company operates in business segments that are Sugar Milling, Distillery Operations, Power Generation and others. The Sugar Milling segment generates maximum revenue for the company.

Victorias Milling Co (PHS:VMC) Headlines

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