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Brickworks (ASX:BKW) Gross Margin % : 30.04% (As of Jan. 2024)


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What is Brickworks Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Brickworks's Gross Profit for the six months ended in Jan. 2024 was A$163 Mil. Brickworks's Revenue for the six months ended in Jan. 2024 was A$543 Mil. Therefore, Brickworks's Gross Margin % for the quarter that ended in Jan. 2024 was 30.04%.

Warning Sign:

Brickworks Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


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

ASX:BKW' s Gross Margin % Range Over the Past 10 Years
Min: 26.66   Med: 29.87   Max: 31.83
Current: 29.86


During the past 13 years, the highest Gross Margin % of Brickworks was 31.83%. The lowest was 26.66%. And the median was 29.87%.

ASX:BKW's Gross Margin % is ranked better than
64.52% of 372 companies
in the Building Materials industry
Industry Median: 24.765 vs ASX:BKW: 29.86

Brickworks had a gross margin of 30.04% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Brickworks was -1.10% per year.


Brickworks Gross Margin % Historical Data

The historical data trend for Brickworks'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.

Brickworks Gross Margin % Chart

Brickworks Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.83 28.52 28.48 30.55 29.30

Brickworks Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 29.59 31.48 28.89 29.69 30.04

Competitive Comparison of Brickworks's Gross Margin %

For the Building Materials subindustry, Brickworks'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.


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

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

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



Brickworks Gross Margin % Calculation

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

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

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=345.3 / 1178.508
=(Revenue - Cost of Goods Sold) / Revenue
=(1178.508 - 833.217) / 1178.508
=29.30 %

Brickworks's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=163.2 / 543.334
=(Revenue - Cost of Goods Sold) / Revenue
=(543.334 - 380.14) / 543.334
=30.04 %

* 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.


Brickworks  (ASX:BKW) 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

Brickworks had a gross margin of 30.04% for the quarter that ended in Jan. 2024 => 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.


Brickworks Gross Margin % Related Terms

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


Brickworks (ASX:BKW) Business Description

Traded in Other Exchanges
Address
738 - 780 Wallgrove Road, Horsley Park, Sydney, NSW, AUS, 2175
Brickworks is a conglomerate consisting of brickmaking operations, industrial property management, and a cross-shareholding in investment firm, Washington H. Soul Pattinson, or Soul Patts (ASX: SOL). Brickworks' operating business manufactures brick products for the Australian and North American markets. However, most earnings are from the property and investment segments. The property segment principally redevelops warehouses on industrial land, with joint venture partner narrow-moat Goodman Group. The investment segment represents a cross-shareholding in Soul Patts, an investment firm with a portfolio encompassing diversified investments, including large holdings in no-moat New Hope coal miner and narrow-moat TPG Telecom.

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