Gross Margin % is calculated as gross profit divided by its revenue. CALBEE's Gross Profit for the
three
months ended in Mar. 2024 was $162 Mil. CALBEE's Revenue for the
three
months ended in Mar. 2024 was $505 Mil. Therefore, CALBEE's Gross Margin % for the quarter that ended in Mar. 2024 was 32.16%.
Warning Sign:
CALBEE Inc gross margin has been in long-term decline. The average rate of decline per year is -7.3%.
The historical rank and industry rank for CALBEE's Gross Margin % or its related term are showing as below:
CBCFF'
s Gross Margin % Range Over the Past 10 Years
Min: 32.29 Med: 43.71 Max: 44.97
Current: 33.65
During the past 13 years, the highestGross Margin % of CALBEE was 44.97%. The lowest was 32.29%. And the median was 43.71%.
CBCFF's Gross Margin % is ranked better than 67.75% of 1808
companies
in the Consumer Packaged Goods industry
Industry Median: 25.085
vs CBCFF: 33.65
CALBEE had a gross margin of 32.16% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for CALBEE was -7.30% per year.
CALBEE Gross Margin % Historical Data
The historical data trend for CALBEE'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.
For the Packaged Foods subindustry, CALBEE'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.
CALBEE's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CALBEE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CALBEE's Gross Margin % falls into.
* 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.
CALBEE (OTCPK:CBCFF) 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
CALBEE had a gross margin of 32.16% for the quarter that ended in Mar. 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.
CALBEE Gross Margin % Related Terms
Thank you for viewing the detailed overview of CALBEE's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Calbee, listed in 2011, is a leader in Japan's snack food industry with nearly 54% of the domestic market. Potato snacks, including chips and the company's original Jagarico and Jagabee potato strips, are a core strength, demonstrated by a dominant 71% share in potato chips. Growth in the Frugra brand, the best-selling cereal product with a 38% share in the domestic cereal market, is the latest growth driver in China. The overseas business, constituting 16% of group sales, has been undergoing restructuring since the partnership with Tingyi and PepsiCo unwound. Apart from China and the U.S., Indonesia and the U.K. are emerging as new growth drivers. Easing competition should end losses in Indonesia while the integration of Calbee U.K. and Seabrook will enhance cost efficiencies.
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