Star Africa (XZIM:SACL.ZW) Gross Margin % : 18.26% (As of Mar. 2024)

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What is Star Africa Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Star Africa's Gross Profit for the six months ended in Mar. 2024 was ZWG27,450 Mil. Star Africa's Revenue for the six months ended in Mar. 2024 was ZWG150,342 Mil. Therefore, Star Africa's Gross Margin % for the quarter that ended in Mar. 2024 was 18.26%.

Warning Sign:

Star Africa Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.8%.

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

XZIM:SACL.ZW' s Gross Margin % Range Over the Past 10 Years
Min: 15.87 Med: 20.62 Max: 25.41
Current: 18.33

During the past 6 years, the highest Gross Margin % of Star Africa was 25.41%. The lowest was 15.87%. And the median was 20.62%.

XZIM:SACL.ZW's Gross Margin % is ranked worse than
67.93% of 1846 companies
in the Consumer Packaged Goods industry
Industry Median: 25.93 vs XZIM:SACL.ZW: 18.33

Star Africa had a gross margin of 18.26% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Star Africa was -7.80% per year.

Star Africa Gross Margin % Historical Data

The historical data trend for Star Africa'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.

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Star Africa Gross Margin % Chart

Star Africa Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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25.00

18.89

22.34

15.87

18.33

Star Africa Semi-Annual Data
	Mar19	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23	Mar24
Gross Margin %	Get a 7-Day Free Trial			-	19.47	15.69	19.68	18.26

Competitive Comparison of Star Africa's Gross Margin %

For the Confectioners subindustry, Star Africa'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.

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

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

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

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Star Africa Gross Margin % Calculation

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

Star Africa'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 )
	=	29079.9	/	158624.333
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(158624.333 - 129544.448)	/	158624.333
	=	18.33 %

Star Africa's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	27450.1	/	150342.344
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(150342.344 - 122892.24)	/	150342.344
	=	18.26 %

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.

Star Africa (XZIM:SACL.ZW) 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

Star Africa had a gross margin of 18.26% for the quarter that ended in Mar. 2024 => 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.

Star Africa Gross Margin % Related Terms

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Star Africa Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Star Africa Corp Ltd (XZIM:SACL.ZW) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

49 Douglas Road, P. O. Box 396, Southerton, Workington, Harare, ZWE

Website

https://www.starafricacorporation.com

Star Africa Corp Ltd is a Zimbabwe-based sugar manufacturer. The company operates its business activities in two reportable operating segments including the Food segment and the Property segment. The Food segment is a manufacturer of sugar products such as purified sugar for household and industrial consumption and sugar specialties comprising icing sugar, castor sugar, syrups, and caramel. The property segment manages offices, manufacturing, and residential premises. Star Africa derives the majority of its revenue from its Food segment.

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