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Uni-President China Holdings (HKSE:00220) Gross Margin %

: 31.11% (As of Jun. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Uni-President China Holdings's Gross Profit for the six months ended in Jun. 2023 was HK$4,958 Mil. Uni-President China Holdings's Revenue for the six months ended in Jun. 2023 was HK$15,938 Mil. Therefore, Uni-President China Holdings's Gross Margin % for the quarter that ended in Jun. 2023 was 31.11%.

Warning Sign:

Uni-President China Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.5%.


The historical rank and industry rank for Uni-President China Holdings's Gross Margin % or its related term are showing as below:

HKSE:00220' s Gross Margin % Range Over the Past 10 Years
Min: 28.98   Med: 33.42   Max: 36.83
Current: 30.47


During the past 13 years, the highest Gross Margin % of Uni-President China Holdings was 36.83%. The lowest was 28.98%. And the median was 33.42%.

HKSE:00220's Gross Margin % is ranked worse than
70.37% of 108 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 36.665 vs HKSE:00220: 30.47

Uni-President China Holdings had a gross margin of 31.11% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Uni-President China Holdings was -1.50% per year.


Uni-President China Holdings Gross Margin % Historical Data

The historical data trend for Uni-President China Holdings'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.

Uni-President China Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.96 35.44 32.58 28.98 30.47

Uni-President China Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 30.16 30.12 27.86 31.11 29.81

Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, Uni-President China Holdings'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.


Uni-President China Holdings Gross Margin % Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Uni-President China Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Uni-President China Holdings's Gross Margin % falls into.



Uni-President China Holdings Gross Margin % Calculation

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

Uni-President China Holdings's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=9143.6 / 31555.49
=(Revenue - Cost of Goods Sold) / Revenue
=(31555.49 - 22411.923) / 31555.49
=28.98 %

Uni-President China Holdings's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=4958 / 15938.436
=(Revenue - Cost of Goods Sold) / Revenue
=(15938.436 - 10980.443) / 15938.436
=31.11 %

* 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.


Uni-President China Holdings  (HKSE:00220) 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

Uni-President China Holdings had a gross margin of 31.11% for the quarter that ended in Jun. 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.


Uni-President China Holdings Gross Margin % Related Terms

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Uni-President China Holdings (HKSE:00220) Business Description

Traded in Other Exchanges
Address
No. 131, Linhong Road, Shanghai Hongqiao Linkong Economic Zone, Changning District, Shanghai, CHN, 200335
Uni-President China is one of the leading instant food and beverage producers in mainland China. Its major products include RTD tea, coffee, juice, and instant food such as instant noodles and self-heating packaged food. It is majority-owned by parent company Uni-President Enterprises Corporation, Taiwan's leading food conglomerate.

Uni-President China Holdings (HKSE:00220) Headlines

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