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Swiss Water Decaffeinated Coffee (TSX:SWP) Gross Margin % : 16.77% (As of Dec. 2023)


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What is Swiss Water Decaffeinated Coffee Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Swiss Water Decaffeinated Coffee's Gross Profit for the three months ended in Dec. 2023 was C$6.9 Mil. Swiss Water Decaffeinated Coffee's Revenue for the three months ended in Dec. 2023 was C$41.2 Mil. Therefore, Swiss Water Decaffeinated Coffee's Gross Margin % for the quarter that ended in Dec. 2023 was 16.77%.

Warning Sign:

Swiss Water Decaffeinated Coffee Inc gross margin has been in long-term decline. The average rate of decline per year is -6.8%.


The historical rank and industry rank for Swiss Water Decaffeinated Coffee's Gross Margin % or its related term are showing as below:

TSX:SWP' s Gross Margin % Range Over the Past 10 Years
Min: 11.31   Med: 14.89   Max: 17.17
Current: 11.31


During the past 13 years, the highest Gross Margin % of Swiss Water Decaffeinated Coffee was 17.17%. The lowest was 11.31%. And the median was 14.89%.

TSX:SWP's Gross Margin % is ranked worse than
80.69% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.07 vs TSX:SWP: 11.31

Swiss Water Decaffeinated Coffee had a gross margin of 16.77% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Swiss Water Decaffeinated Coffee was -6.80% per year.


Swiss Water Decaffeinated Coffee Gross Margin % Historical Data

The historical data trend for Swiss Water Decaffeinated Coffee'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.

Swiss Water Decaffeinated Coffee Gross Margin % Chart

Swiss Water Decaffeinated Coffee Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.96 16.04 14.08 14.74 11.31

Swiss Water Decaffeinated Coffee 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 13.09 9.98 7.87 10.96 16.77

Competitive Comparison of Swiss Water Decaffeinated Coffee's Gross Margin %

For the Packaged Foods subindustry, Swiss Water Decaffeinated Coffee'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.


Swiss Water Decaffeinated Coffee's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Swiss Water Decaffeinated Coffee's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Swiss Water Decaffeinated Coffee's Gross Margin % falls into.



Swiss Water Decaffeinated Coffee Gross Margin % Calculation

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

Swiss Water Decaffeinated Coffee's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=18.8 / 166.277
=(Revenue - Cost of Goods Sold) / Revenue
=(166.277 - 147.479) / 166.277
=11.31 %

Swiss Water Decaffeinated Coffee'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 )
=6.9 / 41.237
=(Revenue - Cost of Goods Sold) / Revenue
=(41.237 - 34.321) / 41.237
=16.77 %

* 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.


Swiss Water Decaffeinated Coffee  (TSX:SWP) 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

Swiss Water Decaffeinated Coffee had a gross margin of 16.77% for the quarter that ended in Dec. 2023 => No sustainable 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.


Swiss Water Decaffeinated Coffee Gross Margin % Related Terms

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


Swiss Water Decaffeinated Coffee (TSX:SWP) Business Description

Traded in Other Exchanges
Address
7750 Beedie Way, Delta, BC, CAN, V4G 0A5
Swiss Water Decaffeinated Coffee Inc is a specialty coffee company, that offers green coffee decaffeination, and Seaforth Supply Chain Solutions Inc provides green coffee handling and storage services. It is a premium decaffeination of green coffee in Canadian British Columbia. It employs the proprietary Swiss Water Process to decaffeinate green coffee without the use of chemicals, leveraging science-based systems and controls to produce coffee. The company's sales are generated in a single segment of decaffeination of green coffee beans. It also operates in three geographic areas - Canada, the United States, and other international markets, and the majority of revenue comes from the United States.