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Campofrio Food Group (XMAD:CFG) Gross Margin % : 40.38% (As of Sep. 2017)


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What is Campofrio Food Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Campofrio Food Group's Gross Profit for the three months ended in Sep. 2017 was €207 Mil. Campofrio Food Group's Revenue for the three months ended in Sep. 2017 was €512 Mil. Therefore, Campofrio Food Group's Gross Margin % for the quarter that ended in Sep. 2017 was 40.38%.


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

XMAD:CFG' s Gross Margin % Range Over the Past 10 Years
Min: 42.07   Med: 44.93   Max: 49.79
Current: 42.07


During the past 13 years, the highest Gross Margin % of Campofrio Food Group was 49.79%. The lowest was 42.07%. And the median was 44.93%.

XMAD:CFG's Gross Margin % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 25.25 vs XMAD:CFG: 42.07

Campofrio Food Group had a gross margin of 40.38% for the quarter that ended in Sep. 2017 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Campofrio Food Group was -0.60% per year.


Campofrio Food Group Gross Margin % Historical Data

The historical data trend for Campofrio Food Group'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.

Campofrio Food Group Gross Margin % Chart

Campofrio Food Group Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.70 43.67 43.72 43.94 44.58

Campofrio Food Group Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 43.55 42.37 45.04 42.50 40.38

Competitive Comparison of Campofrio Food Group's Gross Margin %

For the Packaged Foods subindustry, Campofrio Food Group'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.


Campofrio Food Group's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Campofrio Food Group's Gross Margin % falls into.



Campofrio Food Group Gross Margin % Calculation

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

Campofrio Food Group's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )=Gross Profit (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=865.5 / 1941.465
=(Revenue - Cost of Goods Sold) / Revenue
=(1941.465 - 1075.966) / 1941.465
=44.58 %

Campofrio Food Group's Gross Margin for the quarter that ended in Sep. 2017 is calculated as


Gross Margin % (Q: Sep. 2017 )=Gross Profit (Q: Sep. 2017 ) / Revenue (Q: Sep. 2017 )
=206.6 / 511.502
=(Revenue - Cost of Goods Sold) / Revenue
=(511.502 - 304.932) / 511.502
=40.38 %

* 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.


Campofrio Food Group  (XMAD:CFG) 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

Campofrio Food Group had a gross margin of 40.38% for the quarter that ended in Sep. 2017 => 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.


Campofrio Food Group Gross Margin % Related Terms

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Campofrio Food Group (XMAD:CFG) Business Description

Traded in Other Exchanges
N/A
Address
Avda. de Europa, 24, Parque Empresarial La Moraleja, Alcobendas, Madrid, ESP, 28018
Campofrio Food Group SA manufacture and distribute all kinds of processed and canned meat and derivatives from pork and beef by-products and other food products. The company has Southern Europe, Northern Europe, and Other geographic segments. It derives the majority of its revenues from Southern Europe segment. The company operates in Spain at factories and through its investees in France, Belgium, the Netherlands, Portugal, Germany, Italy, United Kingdom, USA, and Romania.