Lancaster Colony Corp gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Lancaster Colony's Gross Margin % or its related term are showing as below:
LANC'
s Gross Margin % Range Over the Past 10 Years
Min: 21.22 Med: 24.88 Max: 26.83
Current: 22.84
During the past 13 years, the highestGross Margin % of Lancaster Colony was 26.83%. The lowest was 21.22%. And the median was 24.88%.
LANC's Gross Margin % is ranked worse than 55.06% of 1807
companies
in the Consumer Packaged Goods industry
Industry Median: 25.07
vs LANC: 22.84
Lancaster Colony had a gross margin of 22.16% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lancaster Colony was -3.50% per year.
Lancaster Colony Gross Margin % Historical Data
The historical data trend for Lancaster Colony'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.
Competitive Comparison of Lancaster Colony's Gross Margin %
For the Packaged Foods subindustry, Lancaster Colony'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.
Lancaster Colony's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lancaster Colony's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lancaster Colony'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
Lancaster Colony had a gross margin of 22.16% for the quarter that ended in Mar. 2024 => 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.
Lancaster Colony Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lancaster Colony's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lancaster Colony (Lancaster Colony) Business Description
Lancaster Colony Corp is a manufacturer and marketer of speciality food products. The company's segments include Retail and Foodservice. By product segment, the company divides its portfolio into non frozen (roughly 70% of net sales) and frozen food. The key products and brands are salad dressing and sauces (Cardini's, Girard's, Marzetti), frozen garlic breads (New York Brand Bakery, Mamma Bella), vegetable dips and fruit dips (Marzetti), frozen parkerhouse-style yeast rolls and dinner rolls (Sister Schubert's, Mary B's), premium dry egg noodles (Amish Kitchen), frozen speciality noodles (Reames, Aunt Vi's), croutons and salad toppings, flatbread wraps, and pizza crusts.
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