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Farmer Bros Co (Farmer Bros Co) Gross Margin % : 40.37% (As of Dec. 2023)


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What is Farmer Bros Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Farmer Bros Co's Gross Profit for the three months ended in Dec. 2023 was $36.1 Mil. Farmer Bros Co's Revenue for the three months ended in Dec. 2023 was $89.5 Mil. Therefore, Farmer Bros Co's Gross Margin % for the quarter that ended in Dec. 2023 was 40.37%.


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

FARM' s Gross Margin % Range Over the Past 10 Years
Min: 27.55   Med: 34.35   Max: 48.41
Current: 48.41


During the past 13 years, the highest Gross Margin % of Farmer Bros Co was 48.41%. The lowest was 27.55%. And the median was 34.35%.

FARM's Gross Margin % is ranked better than
84.69% of 1809 companies
in the Consumer Packaged Goods industry
Industry Median: 25.04 vs FARM: 48.41

Farmer Bros Co had a gross margin of 40.37% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Farmer Bros Co was 3.70% per year.


Farmer Bros Co Gross Margin % Historical Data

The historical data trend for Farmer Bros Co'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.

Farmer Bros Co Gross Margin % Chart

Farmer Bros Co Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.05 27.55 36.57 42.51 33.71

Farmer Bros Co 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 34.89 23.08 -75.52 37.60 40.37

Competitive Comparison of Farmer Bros Co's Gross Margin %

For the Packaged Foods subindustry, Farmer Bros Co'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.


Farmer Bros Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Farmer Bros Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Farmer Bros Co's Gross Margin % falls into.



Farmer Bros Co Gross Margin % Calculation

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

Farmer Bros Co'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 )
=114.6 / 339.964
=(Revenue - Cost of Goods Sold) / Revenue
=(339.964 - 225.351) / 339.964
=33.71 %

Farmer Bros Co'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 )
=36.1 / 89.453
=(Revenue - Cost of Goods Sold) / Revenue
=(89.453 - 53.344) / 89.453
=40.37 %

* 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.


Farmer Bros Co  (NAS:FARM) 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

Farmer Bros Co had a gross margin of 40.37% 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.


Farmer Bros Co Gross Margin % Related Terms

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


Farmer Bros Co (Farmer Bros Co) Business Description

Traded in Other Exchanges
Address
1912 Farmer Brothers Drive, Northlake, TX, USA, 76262
Farmer Bros Co is engaged in manufacturing, wholesaling, and distributing coffee, tea, and culinary products to food-service establishments and retailers in the United States. The company's customers include restaurants, hotels, offices, casinos, convenience stores, healthcare facilities, and other food-service providers. The company's product categories consist of roast and ground coffee, frozen liquid coffee, flavoured and unflavored iced and hot teas, culinary products, spices, and other beverages including cappuccino, cocoa, granitas, and ready-to-drink iced coffee. The products are sold under the brands of Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, and China Mist.
Executives
David Pace director
Brad Bollner officer: Interim CFO 1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Bradley Louis Radoff director 2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Thomas E. Bauer officer: Vice President, Head of DSD 1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Moore John E. Iii officer: Vice President, Head of Coffee 1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Moragne Maurice S.j. officer: Chief Sales Officer 1912 FARMER BROTHERS DRIVE, NORTHLAKE TX 76262
Family Foundation Radoff other: See Footnote 1 2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Todd E Diener other: See Footnote 1
Jcp Investment Management, Llc other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partnership, Lp other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partners, Lp other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Holdings, Llc other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
James C Pappas other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
22nw Gp, Inc. 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw Fund, Lp 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107