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Dubai Refreshments PSC (DFM:DRC) Gross Margin % : 33.68% (As of Dec. 2023)


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What is Dubai Refreshments PSC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dubai Refreshments PSC's Gross Profit for the three months ended in Dec. 2023 was د.إ68.8 Mil. Dubai Refreshments PSC's Revenue for the three months ended in Dec. 2023 was د.إ204.2 Mil. Therefore, Dubai Refreshments PSC's Gross Margin % for the quarter that ended in Dec. 2023 was 33.68%.


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

DFM:DRC' s Gross Margin % Range Over the Past 10 Years
Min: 32.19   Med: 35.76   Max: 37.37
Current: 35.47


During the past 13 years, the highest Gross Margin % of Dubai Refreshments PSC was 37.37%. The lowest was 32.19%. And the median was 35.76%.

DFM:DRC's Gross Margin % is ranked worse than
55.96% of 109 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 36.72 vs DFM:DRC: 35.47

Dubai Refreshments PSC had a gross margin of 33.68% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Dubai Refreshments PSC was 1.40% per year.


Dubai Refreshments PSC Gross Margin % Historical Data

The historical data trend for Dubai Refreshments PSC'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.

Dubai Refreshments PSC Gross Margin % Chart

Dubai Refreshments PSC 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 35.21 35.04 36.96 34.60 35.47

Dubai Refreshments PSC Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 33.91 35.37 36.78 35.96 33.68

Competitive Comparison of Dubai Refreshments PSC's Gross Margin %

For the Beverages - Non-Alcoholic subindustry, Dubai Refreshments PSC'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.


Dubai Refreshments PSC's Gross Margin % Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Dubai Refreshments PSC's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dubai Refreshments PSC's Gross Margin % falls into.



Dubai Refreshments PSC Gross Margin % Calculation

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

Dubai Refreshments PSC'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 )
=284.9 / 803.068
=(Revenue - Cost of Goods Sold) / Revenue
=(803.068 - 518.205) / 803.068
=35.47 %

Dubai Refreshments PSC'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 )
=68.8 / 204.225
=(Revenue - Cost of Goods Sold) / Revenue
=(204.225 - 135.451) / 204.225
=33.68 %

* 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.


Dubai Refreshments PSC  (DFM:DRC) 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

Dubai Refreshments PSC had a gross margin of 33.68% 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.


Dubai Refreshments PSC Gross Margin % Related Terms

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


Dubai Refreshments PSC (DFM:DRC) Business Description

Traded in Other Exchanges
N/A
Address
Dubai Investment Park 2, Street 49, P.O Box 420, Dubai, ARE
Dubai Refreshments PSC is operating in the refreshments industry engaged in the canning, bottling, distribution, and trading of soft drinks and related beverages products. The Company is engaged in bottling and selling Pepsi Cola International products in Dubai, Sharjah, and the other Northern Emirates of UAE. The Company also exports Pepsi Cola International products from time to time to foreign countries after obtaining authorization from Pepsi Cola International. The Company holds 7Up and Aquafina bottling and selling rights for the whole of the UAE.

Dubai Refreshments PSC (DFM:DRC) Headlines

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