HomeCo Daily Needs REIT (ASX:HDN) Gross Margin % : 68.49% (As of Dec. 2023)

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What is HomeCo Daily Needs REIT Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. HomeCo Daily Needs REIT's Gross Profit for the six months ended in Dec. 2023 was A$122.4 Mil. HomeCo Daily Needs REIT's Revenue for the six months ended in Dec. 2023 was A$178.7 Mil. Therefore, HomeCo Daily Needs REIT's Gross Margin % for the quarter that ended in Dec. 2023 was 68.49%.

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

ASX:HDN' s Gross Margin % Range Over the Past 10 Years
Min: 68.4 Med: 68.76 Max: 68.99
Current: 68.4

During the past 2 years, the highest Gross Margin % of HomeCo Daily Needs REIT was 68.99%. The lowest was 68.40%. And the median was 68.76%.

ASX:HDN's Gross Margin % is ranked worse than
51.1% of 634 companies
in the REITs industry
Industry Median: 68.745 vs ASX:HDN: 68.40

HomeCo Daily Needs REIT had a gross margin of 68.49% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for HomeCo Daily Needs REIT was 0.00% per year.

HomeCo Daily Needs REIT Gross Margin % Historical Data

The historical data trend for HomeCo Daily Needs REIT'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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HomeCo Daily Needs REIT Gross Margin % Chart

HomeCo Daily Needs REIT Annual Data

Trend

Jun22

Jun23

Gross Margin %

68.53

68.99

HomeCo Daily Needs REIT Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	63.80	70.44	69.73	68.31	68.49

Competitive Comparison of HomeCo Daily Needs REIT's Gross Margin %

For the REIT - Retail subindustry, HomeCo Daily Needs REIT'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.

HomeCo Daily Needs REIT's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, HomeCo Daily Needs REIT's Gross Margin % distribution charts can be found below:

* The bar in red indicates where HomeCo Daily Needs REIT's Gross Margin % falls into.

HomeCo Daily Needs REIT Gross Margin % Calculation

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

HomeCo Daily Needs REIT's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	239.6	/	347.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(347.3 - 107.7)	/	347.3
	=	68.99 %

HomeCo Daily Needs REIT'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 )
	=	122.4	/	178.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(178.7 - 56.3)	/	178.7
	=	68.49 %

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.

HomeCo Daily Needs REIT (ASX:HDN) 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

HomeCo Daily Needs REIT had a gross margin of 68.49% for the quarter that ended in Dec. 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.

HomeCo Daily Needs REIT Gross Margin % Related Terms

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HomeCo Daily Needs REIT (ASX:HDN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » HomeCo Daily Needs REIT (ASX:HDN) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Macquarie Place, Level 7, Gateway, Sydney, NSW, AUS, 2000

Website

https://www.home-co.com.au

HomeCo Daily Needs REIT, or HomeCo, is an externally managed property trust run by HMC Capital which also runs HealthCo Healthcare and Wellness REIT and unlisted funds. HomeCo targets 50% of assets in neighbourhood malls, 30% large-format, and 20% in health and services. After merging with Aventus Retail REIT in 2022, HomeCo is overweight large-format (just under half its portfolio) and underweight neighbourhood (one third of the portfolio), with health and services slightly below target. The plan is to move back to the target via redevelopment and tenant remixing, and potentially acquisitions. HomeCo seeks tenant leases before commencing developments, so we expect development opportunities will arise gradually, as population growth adds demand in HomeCo's catchments.

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