Gross Margin % is calculated as gross profit divided by its revenue. Fevertree Drinks's Gross Profit for the
six
months ended in Dec. 2023 was £63.2 Mil. Fevertree Drinks's Revenue for the
six
months ended in Dec. 2023 was £188.8 Mil. Therefore, Fevertree Drinks's Gross Margin % for the quarter that ended in Dec. 2023 was 33.47%.
Warning Sign:
Fevertree Drinks PLC gross margin has been in long-term decline. The average rate of decline per year is -9.8%.
The historical rank and industry rank for Fevertree Drinks's Gross Margin % or its related term are showing as below:
LSE:FEVR'
s Gross Margin % Range Over the Past 10 Years
Min: 32.11 Med: 50.7 Max: 55.19
Current: 32.11
During the past 13 years, the highestGross Margin % of Fevertree Drinks was 55.19%. The lowest was 32.11%. And the median was 50.70%.
LSE:FEVR's Gross Margin % is ranked worse than 67.59% of 108
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 36.665
vs LSE:FEVR: 32.11
Fevertree Drinks had a gross margin of 33.47% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Fevertree Drinks was -9.80% per year.
Fevertree Drinks Gross Margin % Historical Data
The historical data trend for Fevertree Drinks'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.
Fevertree Drinks Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
50.48
46.13
42.08
34.50
32.11
Fevertree Drinks 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 %
40.40
37.35
32.01
30.64
33.47
Competitive Comparison
For the Beverages - Non-Alcoholic subindustry, Fevertree Drinks'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.
Fevertree Drinks Gross Margin % Distribution
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Fevertree Drinks's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fevertree Drinks'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.
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
Fevertree Drinks had a gross margin of 33.47% 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.
Fevertree Drinks Gross Margin % Related Terms
Thank you for viewing the detailed overview of Fevertree Drinks's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fevertree Drinks PLC is a UK based holding and investment company. The company is engaged in the business activity of developing and marketing premium mixer drinks. Its product portfolio includes Indian tonic water, Mediterranean tonic water, Elderflower tonic water, Aromatic tonic water, Clementine tonic water, Lemon tonic water, Ginger beer, Ginger ale, Smoky ginger ale, Spiced orange ginger ale, Madagascan cola, Sicilian lemonade, Lemonade, Premium Soda Water and Mediterranean Orange. The company operates in the UK, USA, Europe, and other countries, of which most of the revenue is from the United Kingdom.
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