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Kirin Holdings Co (TSE:2503) Operating Margin % : 6.48% (As of Dec. 2023)


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What is Kirin Holdings Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kirin Holdings Co's Operating Income for the three months ended in Dec. 2023 was 円38,015 Mil. Kirin Holdings Co's Revenue for the three months ended in Dec. 2023 was 円586,522 Mil. Therefore, Kirin Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 was 6.48%.

Warning Sign:

Kirin Holdings Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.3%.

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

TSE:2503' s Operating Margin % Range Over the Past 10 Years
Min: 3.74   Med: 5.76   Max: 11.32
Current: 7.04


TSE:2503's Operating Margin % is ranked worse than
53.81% of 210 companies
in the Beverages - Alcoholic industry
Industry Median: 8.42 vs TSE:2503: 7.04

Kirin Holdings Co's 5-Year Average Operating Margin % Growth Rate was -4.30% per year.

Kirin Holdings Co's Operating Income for the three months ended in Dec. 2023 was 円38,015 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円150,293 Mil.


Kirin Holdings Co Operating Margin % Historical Data

The historical data trend for Kirin Holdings Co's Operating 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.

Kirin Holdings Co Operating Margin % Chart

Kirin Holdings Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.52 5.56 3.74 5.83 7.04

Kirin Holdings Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating 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 -2.33 2.44 4.99 13.05 6.48

Competitive Comparison of Kirin Holdings Co's Operating Margin %

For the Beverages - Brewers subindustry, Kirin Holdings Co's Operating Margin %, along with its competitors' market caps and Operating 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.


Kirin Holdings Co's Operating Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Kirin Holdings Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kirin Holdings Co's Operating Margin % falls into.



Kirin Holdings Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Kirin Holdings Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=150294 / 2134393
=7.04 %

Kirin Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=38015 / 586522
=6.48 %

* 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.


Kirin Holdings Co  (TSE:2503) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Kirin Holdings Co Operating Margin % Related Terms

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Kirin Holdings Co (TSE:2503) Business Description

Traded in Other Exchanges
Address
Nakano Central Park South, 10-2, Nakano 4-chome, Nakano-ku, Tokyo, JPN, 164-0001
Kirin is the second largest brewer by value in Japan, with an estimated 35.7% volume share in beer and beer-like category as of 2022. It holds a top share in happoshu (low-malt beer) and new genre (no-malt beer) categories. Apart from beer, it also operates a wide range of acholic and soft beverage products in Japan. It made several acquisitions including Lion Nathan and National Foods in Oceania, the Brazilian brewer Schincariol, and Myanmar Brewery, but has divested most of the acquired businesses except Lion. It has shifted focus back to the domestic brewery after a painful exit from Brazil in 2017 and identified craft beer and wellness as new growth drivers. Overseas business represents about 40% of group's sales. It also owns a 48.6% stake in the largest Filipino brewer San Miguel.

Kirin Holdings Co (TSE:2503) Headlines

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