Gross Margin % is calculated as gross profit divided by its revenue. Fan Milk's Gross Profit for the
three
months ended in Dec. 2022 was GHS12.9 Mil. Fan Milk's Revenue for the
three
months ended in Dec. 2022 was GHS154.8 Mil. Therefore, Fan Milk's Gross Margin % for the quarter that ended in Dec. 2022 was 8.33%.
The historical rank and industry rank for Fan Milk's Gross Margin % or its related term are showing as below:
XGHA:FML's Gross Margin % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 26.37 * Ranked among companies with meaningful Gross Margin % only.
Fan Milk had a gross margin of 8.33% for the quarter that ended in Dec. 2022 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fan Milk was 0.00% per year.
Fan Milk (XGHA:FML) 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
Fan Milk had a gross margin of 8.33% for the quarter that ended in Dec. 2022 => 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.
Fan Milk Gross Margin % Related Terms
Fan Milk Gross Margin % Historical Data
* Premium members only.
The historical data trend for Fan Milk'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.
XGHA:FML vs KHC, GIS, HRL: Gross Margin % Comparison
For the Packaged Foods subindustry, Fan Milk'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.
Fan Milk Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fan Milk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fan Milk'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.
Fan Milk (XGHA:FML) has a Gross Margin % of 8.33% as of Dec. 2022. Gross margin is the ratio of total gross profit to net sales. View historical data on Fan Milk and its competitors.
Is Fan Milk's Gross Margin % too high?
Fan Milk's current Gross Margin % is 8.33%. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Fan Milk's value of 8.33% is 68.4% below this industry median. Overall, Fan Milk has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Fan Milk's Gross Margin % compare to KHC and GIS?
Fan Milk's Gross Margin % of 8.33% can be compared against companies in the Consumer Packaged Goods industry. The industry median Gross Margin % is 26.37. Fan Milk's value of 8.33% is 68.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,902 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fan Milk's current Gross Margin % of 8.33% is 68.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Fan Milk and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fan Milk's current Gross Margin % is 8.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fan Milk stock overvalued right now?
Fan Milk (XGHA:FML) has a current Gross Margin % of 8.33%. The current Gross Margin % is 8.33% and 68.4% below the Consumer Packaged Goods industry median of 26.37. Fan Milk's overall GF Score™ is 13/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Fan Milk (XGHA:FML), the current Gross Margin % is 8.33% as of Dec. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Fan Milk PLC engages in the manufacturing and distribution of dairy products and fruit drinks. The company's milk-based products consist of frozen ice creams, chocolate, and yoghurt that includes FanYogo (yoghurt), FanChoco (chocolate), and FanIce (ice cream). Its fruit-based products include FanDango (fruit drink) and FanPop. It distributes its products through independent distributors and agents. The majority of the revenue is derived from the manufacturing and distribution of dairy products and fruit drinks.
13GF Score
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