Waterloo Brewing (TSX:WBR) Gross Margin % : 20.49% (As of Oct. 2022)

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What is Waterloo Brewing Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Waterloo Brewing's Gross Profit for the three months ended in Oct. 2022 was C$5.4 Mil. Waterloo Brewing's Revenue for the three months ended in Oct. 2022 was C$26.2 Mil. Therefore, Waterloo Brewing's Gross Margin % for the quarter that ended in Oct. 2022 was 20.49%.

Warning Sign:

Waterloo Brewing Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.4%.

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

TSX:WBR' s Gross Margin % Range Over the Past 10 Years
Min: 21.61 Med: 27.04 Max: 34.78
Current: 21.61

During the past 13 years, the highest Gross Margin % of Waterloo Brewing was 34.78%. The lowest was 21.61%. And the median was 27.04%.

TSX:WBR's Gross Margin % is not ranked
in the Beverages - Alcoholic industry.
Industry Median: 39.73 vs TSX:WBR: 21.61

Waterloo Brewing had a gross margin of 20.49% for the quarter that ended in Oct. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Waterloo Brewing was -5.40% per year.

Waterloo Brewing Gross Margin % Historical Data

The historical data trend for Waterloo Brewing'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.

Waterloo Brewing Gross Margin % Chart

Waterloo Brewing Annual Data

Trend

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Gross Margin %

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28.68

25.91

29.59

23.87

25.65

Waterloo Brewing Quarterly Data
	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22
Gross Margin %	Get a 7-Day Free Trial															22.17	23.25	18.64	23.17	20.49

Competitive Comparison of Waterloo Brewing's Gross Margin %

For the Beverages - Brewers subindustry, Waterloo Brewing'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.

Waterloo Brewing's Gross Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Waterloo Brewing's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Waterloo Brewing's Gross Margin % falls into.

Waterloo Brewing Gross Margin % Calculation

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

Waterloo Brewing's Gross Margin for the fiscal year that ended in Jan. 2022 is calculated as

Gross Margin % (A: Jan. 2022 )	=	Gross Profit (A: Jan. 2022 )	/	Revenue (A: Jan. 2022 )
	=	28.7	/	111.765
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(111.765 - 83.093)	/	111.765
	=	25.65 %

Waterloo Brewing's Gross Margin for the quarter that ended in Oct. 2022 is calculated as

Gross Margin % (Q: Oct. 2022 )	=	Gross Profit (Q: Oct. 2022 )	/	Revenue (Q: Oct. 2022 )
	=	5.4	/	26.155
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(26.155 - 20.797)	/	26.155
	=	20.49 %

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.

Waterloo Brewing (TSX:WBR) 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

Waterloo Brewing had a gross margin of 20.49% for the quarter that ended in Oct. 2022 => 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.

Waterloo Brewing Gross Margin % Related Terms

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Waterloo Brewing (TSX:WBR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Waterloo Brewing Ltd (TSX:WBR) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

400 Bingemans Centre Drive, Kitchener, ON, CAN, N2B 3X9

Website

https://www.waterloobrewing.com

Waterloo Brewing Ltd engages in the production and distribution of alcohol-based products. Its products are distributed to end consumers primarily through The Beer Store in Ontario and Provincial Liquor Boards across Canada. It operates in a single industry segment which involves the production, distribution and sale of alcohol-based products. Some of the products of company are Waterloo Dark, Waterloo Amber, Waterloo IPA and many more.

Waterloo Brewing (TSX:WBR) Headlines

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