Seed Co (XZIM:SEED.ZW) Gross Margin % : 64.66% (As of Sep. 2023)

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What is Seed Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Seed Co's Gross Profit for the six months ended in Sep. 2023 was ZWL38,610 Mil. Seed Co's Revenue for the six months ended in Sep. 2023 was ZWL59,710 Mil. Therefore, Seed Co's Gross Margin % for the quarter that ended in Sep. 2023 was 64.66%.

Warning Sign:

Seed Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.5%.

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

XZIM:SEED.ZW' s Gross Margin % Range Over the Past 10 Years
Min: 33.13 Med: 51.06 Max: 66.08
Current: 66.08

During the past 8 years, the highest Gross Margin % of Seed Co was 66.08%. The lowest was 33.13%. And the median was 51.06%.

XZIM:SEED.ZW's Gross Margin % is ranked better than
95.74% of 235 companies
in the Agriculture industry
Industry Median: 24.59 vs XZIM:SEED.ZW: 66.08

Seed Co had a gross margin of 64.66% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Seed Co was -5.50% per year.

Seed Co Gross Margin % Historical Data

The historical data trend for Seed Co'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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Seed Co Gross Margin % Chart

Seed Co Annual Data

Trend

Mar09

Mar11

Mar12

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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54.60

64.88

64.06

33.13

40.92

Seed Co Semi-Annual Data
	Mar09	Mar11	Sep11	Mar12	Sep12	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial										26.80	35.79	27.08	72.61	64.66

Competitive Comparison of Seed Co's Gross Margin %

For the Agricultural Inputs subindustry, Seed Co'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.

Seed Co's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Seed Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Seed Co's Gross Margin % falls into.

Seed Co Gross Margin % Calculation

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

Seed Co's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	17452.8	/	42653.218
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(42653.218 - 25200.404)	/	42653.218
	=	40.92 %

Seed Co's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	38610	/	59710
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(59710 - 21100)	/	59710
	=	64.66 %

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.

Seed Co (XZIM:SEED.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

Seed Co had a gross margin of 64.66% for the quarter that ended in Sep. 2023 => 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.

Seed Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Seed Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Seed Co (XZIM:SEED.ZW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Seed Co Ltd (XZIM:SEED.ZW) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Shamwari Road, Stapleford, Westgate, P.O. Box WGT 64, Harare, ZWE

Website

https://www.seedcogroup.com

Seed Co Ltd is engaged in the business of processing agricultural seeds. The company is involved in the breeding, multiplication, and distribution of mainly hybrid seed varieties for crops such as maize, wheat, soya beans, sugar beans, cowpeas, sorghum, groundnuts, and vegetables. It generates maximum revenue from the maize crop.

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