RFG Holdings (JSE:RFG) Gross Margin % : 25.42% (As of Sep. 2023)

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What is RFG Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. RFG Holdings's Gross Profit for the six months ended in Sep. 2023 was R1,045 Mil. RFG Holdings's Revenue for the six months ended in Sep. 2023 was R4,108 Mil. Therefore, RFG Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 25.42%.

Warning Sign:

RFG Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.3%.

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

JSE:RFG' s Gross Margin % Range Over the Past 10 Years
Min: 21.65 Med: 23.83 Max: 29.27
Current: 25.08

During the past 9 years, the highest Gross Margin % of RFG Holdings was 29.27%. The lowest was 21.65%. And the median was 23.83%.

JSE:RFG's Gross Margin % is ranked better than
50.3% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.03 vs JSE:RFG: 25.08

RFG Holdings had a gross margin of 25.42% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for RFG Holdings was -2.30% per year.

RFG Holdings Gross Margin % Historical Data

The historical data trend for RFG 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.

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RFG Holdings Gross Margin % Chart

RFG Holdings Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Gross Margin %

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21.69

22.56

23.83

21.65

22.62

RFG Holdings Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															20.52	22.05	23.12	24.71	25.42

Competitive Comparison of RFG Holdings's Gross Margin %

For the Packaged Foods subindustry, RFG 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.

RFG Holdings's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where RFG Holdings's Gross Margin % falls into.

RFG Holdings Gross Margin % Calculation

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

RFG Holdings's Gross Margin for the fiscal year that ended in Sep. 2022 is calculated as

Gross Margin % (A: Sep. 2022 )	=	Gross Profit (A: Sep. 2022 )	/	Revenue (A: Sep. 2022 )
	=	1640.8	/	7255.15
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7255.15 - 5614.361)	/	7255.15
	=	22.62 %

RFG Holdings's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	1044.5	/	4108.244
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4108.244 - 3063.739)	/	4108.244
	=	25.42 %

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.

RFG Holdings (JSE:RFG) 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

RFG Holdings had a gross margin of 25.42% for the quarter that ended in Sep. 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.

RFG Holdings Gross Margin % Related Terms

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RFG Holdings (JSE:RFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » RFG Holdings Ltd (JSE:RFG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Pniel Road, Groot Drakenstein, Cape Town, WC, ZAF, 7680

Website

https://www.rfg.com

RFG Holdings Ltd is a South Africa based company engaged in supplying fresh, frozen, and convenience meal solutions. The product range offered by the company includes canned fruit, jam, vegetable and meat products, bottled salads, fruit juices and purees, fresh ready meals, pies, pastries, bakery, and dairy products. The business operates under two divisions namely, Long life foods and Fresh products. Long life foods division, which includes canned fruits and vegetables, jams, bottled salads, fruit juice, fruit purees, baby food, and canned meat, contributes majorly to the group's revenue. The company's reportable segments include, Regional which is the key revenue generating segment, and International.