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Diamond Estates Wines & Spirits (TSXV:DWS) Gross Margin % : 54.17% (As of Dec. 2024)


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What is Diamond Estates Wines & Spirits Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Diamond Estates Wines & Spirits's Gross Profit for the three months ended in Dec. 2024 was C$3.47 Mil. Diamond Estates Wines & Spirits's Revenue for the three months ended in Dec. 2024 was C$6.41 Mil. Therefore, Diamond Estates Wines & Spirits's Gross Margin % for the quarter that ended in Dec. 2024 was 54.17%.

Warning Sign:

Diamond Estates Wines & Spirits Inc gross margin has been in long-term decline. The average rate of decline per year is -3.7%.


The historical rank and industry rank for Diamond Estates Wines & Spirits's Gross Margin % or its related term are showing as below:

TSXV:DWS' s Gross Margin % Range Over the Past 10 Years
Min: 31.81   Med: 38.83   Max: 52.54
Current: 52.54


During the past 13 years, the highest Gross Margin % of Diamond Estates Wines & Spirits was 52.54%. The lowest was 31.81%. And the median was 38.83%.

TSXV:DWS's Gross Margin % is ranked better than
74.02% of 204 companies
in the Beverages - Alcoholic industry
Industry Median: 40.99 vs TSXV:DWS: 52.54

Diamond Estates Wines & Spirits had a gross margin of 54.17% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Diamond Estates Wines & Spirits was -3.70% per year.


Diamond Estates Wines & Spirits Gross Margin % Historical Data

The historical data trend for Diamond Estates Wines & Spirits'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.

Diamond Estates Wines & Spirits Gross Margin % Chart

Diamond Estates Wines & Spirits 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 42.37 39.13 34.74 31.81 38.19

Diamond Estates Wines & Spirits 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 24.04 63.24 42.01 51.98 54.17

Competitive Comparison of Diamond Estates Wines & Spirits's Gross Margin %

For the Beverages - Wineries & Distilleries subindustry, Diamond Estates Wines & Spirits'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.


Diamond Estates Wines & Spirits's Gross Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diamond Estates Wines & Spirits's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Diamond Estates Wines & Spirits's Gross Margin % falls into.


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Diamond Estates Wines & Spirits Gross Margin % Calculation

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

Diamond Estates Wines & Spirits'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 )
=10.9 / 28.505
=(Revenue - Cost of Goods Sold) / Revenue
=(28.505 - 17.62) / 28.505
=38.19 %

Diamond Estates Wines & Spirits's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=3.5 / 6.411
=(Revenue - Cost of Goods Sold) / Revenue
=(6.411 - 2.938) / 6.411
=54.17 %

* 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.


Diamond Estates Wines & Spirits  (TSXV:DWS) 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

Diamond Estates Wines & Spirits had a gross margin of 54.17% for the quarter that ended in Dec. 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.


Diamond Estates Wines & Spirits Gross Margin % Related Terms

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Diamond Estates Wines & Spirits Business Description

Traded in Other Exchanges
Address
1067 Niagara Stone Road, Niagara-On-The-Lake, ON, CAN, L0S 1J0
Diamond Estates Wines & Spirits Inc is a Canada-based firm engaged in the production, marketing, and sale of wine and through its agency division, operating as Trajectory Beverage Partners, distribution and marketing activities for various beverage alcohol brands that it represents in Canada. Its operating segments are Distribution and sales of products represented in Canada under agency agreements with third parties, and sales of manufactured wines. It generates a majority of its revenue from the sale of wines. Some of the firm's products include rose wine, white wine, red wine and others.
Executives
Oakwest Corporation Limited 10% Security Holder
Andrew Douglas Green Senior Officer
Austin Cecil Beutel Director or Senior Officer of 10% Security Holder
J. Murray Souter Senior Officer
David Michael Beutel Director

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