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Adbri (ADLDY) Gross Margin % : 33.93% (As of Dec. 2023)


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What is Adbri Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Adbri's Gross Profit for the six months ended in Dec. 2023 was $226 Mil. Adbri's Revenue for the six months ended in Dec. 2023 was $666 Mil. Therefore, Adbri's Gross Margin % for the quarter that ended in Dec. 2023 was 33.93%.

Warning Sign:

Adbri Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

ADLDY' s Gross Margin % Range Over the Past 10 Years
Min: 31.96   Med: 35.31   Max: 38.49
Current: 33.21


During the past 13 years, the highest Gross Margin % of Adbri was 38.49%. The lowest was 31.96%. And the median was 35.31%.

ADLDY's Gross Margin % is ranked better than
71.77% of 372 companies
in the Building Materials industry
Industry Median: 24.765 vs ADLDY: 33.21

Adbri had a gross margin of 33.93% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Adbri was -1.80% per year.


Adbri Gross Margin % Historical Data

The historical data trend for Adbri'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.

Adbri Gross Margin % Chart

Adbri Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.13 35.44 34.24 31.96 33.21

Adbri Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 33.76 31.79 32.11 32.43 33.93

Competitive Comparison of Adbri's Gross Margin %

For the Building Materials subindustry, Adbri'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.


Adbri's Gross Margin % Distribution in the Building Materials Industry

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

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



Adbri Gross Margin % Calculation

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

Adbri's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=426.8 / 1285.207
=(Revenue - Cost of Goods Sold) / Revenue
=(1285.207 - 858.433) / 1285.207
=33.21 %

Adbri's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=226 / 666.265
=(Revenue - Cost of Goods Sold) / Revenue
=(666.265 - 440.228) / 666.265
=33.93 %

* 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.


Adbri  (OTCPK:ADLDY) 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

Adbri had a gross margin of 33.93% for the quarter that ended in Dec. 2023 => 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.


Adbri Gross Margin % Related Terms

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


Adbri (ADLDY) Business Description

Traded in Other Exchanges
Address
157 Grenfell Street, Level 1, GPO Box 2155, Adelaide, SA, AUS, 5001
Adbri specializes in the production and supply of construction materials, including cement, lime, concrete, aggregates, and masonry, from a nationwide network of plants and quarries. Selling about five million metric tons of cement per year and almost one million metric tons of lime, Adbri is the second-largest cement producer and largest lime producer in Australia, with a focus on customers in the residential construction, infrastructure, and mining sectors.

Adbri (ADLDY) Headlines

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