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Nippn (TSE:2001) Gross Margin % : 23.94% (As of Sep. 2024)


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What is Nippn Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nippn's Gross Profit for the three months ended in Sep. 2024 was 円24,641 Mil. Nippn's Revenue for the three months ended in Sep. 2024 was 円102,940 Mil. Therefore, Nippn's Gross Margin % for the quarter that ended in Sep. 2024 was 23.94%.

Warning Sign:

Nippn Corp gross margin has been in long-term decline. The average rate of decline per year is -4.5%.


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

TSE:2001' s Gross Margin % Range Over the Past 10 Years
Min: 21.91   Med: 25.81   Max: 28.3
Current: 23.89


During the past 13 years, the highest Gross Margin % of Nippn was 28.30%. The lowest was 21.91%. And the median was 25.81%.

TSE:2001's Gross Margin % is ranked worse than
54.34% of 1842 companies
in the Consumer Packaged Goods industry
Industry Median: 25.81 vs TSE:2001: 23.89

Nippn had a gross margin of 23.94% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nippn was -4.50% per year.


Nippn Gross Margin % Historical Data

The historical data trend for Nippn'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.

Nippn Gross Margin % Chart

Nippn 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 28.30 24.16 23.32 21.91 23.47

Nippn Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 24.35 22.83 24.15 23.94 24.55

Competitive Comparison of Nippn's Gross Margin %

For the Packaged Foods subindustry, Nippn'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.


Nippn's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Nippn's Gross Margin % falls into.


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Nippn Gross Margin % Calculation

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

Nippn'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 )
=94000 / 400514
=(Revenue - Cost of Goods Sold) / Revenue
=(400514 - 306514) / 400514
=23.47 %

Nippn'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 )
=24641 / 102940
=(Revenue - Cost of Goods Sold) / Revenue
=(102940 - 78299) / 102940
=23.94 %

* 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.


Nippn  (TSE:2001) 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

Nippn had a gross margin of 23.94% for the quarter that ended in Sep. 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.


Nippn Gross Margin % Related Terms

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Nippn Business Description

Traded in Other Exchanges
N/A
Address
4-8 Kojimachi, Chiyoda-ku, Tokyo, JPN, 102-0083
Nippn Corp along with its subsidiaries is into the business of flour milling, manufacture and sale of food ingredients, processed foods, meal solutions, frozen foods, manufacture and sell of health foods, cosmetics, pet foods and other business including management of sports facilities and bioscience business. The company operates in Japan, United States, Indonesia, and Thailand.

Nippn Headlines

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