JDE Peets NV gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for JDE Peets NV's Gross Margin % or its related term are showing as below:
WBO:JDEP'
s Gross Margin % Range Over the Past 10 Years
Min: 36.85 Med: 42.47 Max: 43.34
Current: 37.55
During the past 8 years, the highestGross Margin % of JDE Peets NV was 43.34%. The lowest was 36.85%. And the median was 42.47%.
WBO:JDEP's Gross Margin % is ranked better than 72.28% of 1840
companies
in the Consumer Packaged Goods industry
Industry Median: 25.825
vs WBO:JDEP: 37.55
JDE Peets NV had a gross margin of 39.98% for the quarter that ended in Jun. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for JDE Peets NV was -3.50% per year.
JDE Peets NV Gross Margin % Historical Data
The historical data trend for JDE Peets NV'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.
Competitive Comparison of JDE Peets NV's Gross Margin %
For the Packaged Foods subindustry, JDE Peets NV'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.
JDE Peets NV's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, JDE Peets NV's Gross Margin % distribution charts can be found below:
* The bar in red indicates where JDE Peets NV's Gross Margin % falls into.
* 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.
JDE Peets NV (WBO:JDEP) 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
JDE Peets NV had a gross margin of 39.98% for the quarter that ended in Jun. 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.
JDE Peets NV Gross Margin % Related Terms
Thank you for viewing the detailed overview of JDE Peets NV's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Formed by a merger of D.E. Master Blenders and Mondelez International's coffee assets in 2015 and augmented by the acquisition of Peet's Coffee in 2019, JDE Peet's is the world's largest pure-play coffee and tea group by revenue, with operations in more than 100 developed and emerging countries. Its portfolio of over 50 brands includes global labels such as Peet's, Jacobs, L'Or, Senseo, Tassimo, and Pickwick; regional brands like Douwe Egberts, Stumptown, Kenco, Moccona, Intelligentsia, OldTown, Super, and Ofcay; and local marques such as Maison du Cafe in France, Harris in Australia, and Mighty Leaf Tea in the U.S. Offerings reach across the CPG, out-of-home, retail, and online channels. JDE Peet's was first listed in 2020, with Acorn Holdings and Mondelez owning the majority of shares.
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