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Whole Earth Brands (Whole Earth Brands) Gross Margin % : 28.81% (As of Mar. 2024)


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What is Whole Earth Brands Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Whole Earth Brands's Gross Profit for the three months ended in Mar. 2024 was $37.3 Mil. Whole Earth Brands's Revenue for the three months ended in Mar. 2024 was $129.5 Mil. Therefore, Whole Earth Brands's Gross Margin % for the quarter that ended in Mar. 2024 was 28.81%.


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

FREE' s Gross Margin % Range Over the Past 10 Years
Min: 26.05   Med: 32.14   Max: 42.3
Current: 27.13


During the past 6 years, the highest Gross Margin % of Whole Earth Brands was 42.30%. The lowest was 26.05%. And the median was 32.14%.

FREE's Gross Margin % is ranked better than
54.68% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.09 vs FREE: 27.13

Whole Earth Brands had a gross margin of 28.81% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Whole Earth Brands was 0.00% per year.


Whole Earth Brands Gross Margin % Historical Data

The historical data trend for Whole Earth Brands'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.

Whole Earth Brands Gross Margin % Chart

Whole Earth Brands Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 39.87 - 32.14 26.05 26.08

Whole Earth Brands Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 24.42 25.12 27.92 26.74 28.81

Competitive Comparison of Whole Earth Brands's Gross Margin %

For the Packaged Foods subindustry, Whole Earth Brands'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.


Whole Earth Brands's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Whole Earth Brands's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Whole Earth Brands's Gross Margin % falls into.



Whole Earth Brands Gross Margin % Calculation

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

Whole Earth Brands'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 )
=143.7 / 550.913
=(Revenue - Cost of Goods Sold) / Revenue
=(550.913 - 407.236) / 550.913
=26.08 %

Whole Earth Brands's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=37.3 / 129.5
=(Revenue - Cost of Goods Sold) / Revenue
=(129.5 - 92.193) / 129.5
=28.81 %

* 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.


Whole Earth Brands  (NAS:FREE) 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

Whole Earth Brands had a gross margin of 28.81% 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.


Whole Earth Brands Gross Margin % Related Terms

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


Whole Earth Brands (Whole Earth Brands) Business Description

Traded in Other Exchanges
Address
125 South Wacker Drive, Suite 3150, Chicago, IL, USA, 60606
Whole Earth Brands Inc is a food company enabling healthier lifestyles and providing access to high-quality, plant-based sweeteners, flavor enhancers and other foods through diverse portfolio of trusted brands and delicious products. The company operates in two segments namely, Branded CPG and Flavors & Ingredients. Its portfolio consists of three main product groups: sweeteners, adjacencies and ingredients.
Executives
Rajnish Ohri officer: Interim Co-CEO 125 S. WACKER DRIVE, SUITE 1250, CHICAGO IL 60606
Sababa Holdings Free Llc 10 percent owner C/O MARIPOSA CAPITAL, 500 SOUTH POINTE DRIVE STE 240, MIAMI BEACH FL 33139
Michael F Goss director BAIN CAPITAL PARTNERS LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
Bernardo Fiaux officer: Chief Financial Officer 125 S. WACKER DRIVE, SUITE 1250, CHICAGO IL 60606
Michael E. Franklin director 125 S. WACKER DRIVE, SUITE 1250, CHICAGO IL 60606
Trisha L Fox officer: Chief Human Resources Officer 125 S. WACKER DRIVE, SUITE 3150, CHICAGO IL 60606
Martin E Franklin 10 percent owner C/O MARIPOSA CAPITAL, LLC, 5200 BLUE LAGOON DRIVE, SUITE 855, MIAMI FL 33126
Duane A Portwood officer: Chief Financial Officer 836 BARN OWL ROAD, MARIETTA GA 30068
Jeffrey S. Robinson officer: President, Mafco Worldwide LLC 125 S. WACKER DRIVE, SUITE 3150, CHICAGO IL 60606
Brian Litman officer: Chief Accounting Officer 125 S. WACKER DRIVE, SUITE 3150, CHICAGO IL 60606
John M. Mcmillin director 1345 AVENUE OF THE AMERICAS 11TH FLOOR, NEW NY 10105
Irwin D Simon director C/O THE HAIN CELESTIAL GROUP INC., 1111 MARCUS AVENUE, LAKE SUCCESS NY 11042
Ira J Lamel director C/O THE HAIN CELESTIAL GROUP, INC., 1111 MARCUS AVENUE, LAKE SUCCESS NY 11042
Anuraag Agarwal director 1345 AVENUE OF THE AMERICAS 11TH FL, NEW YORK NY 10105
Denise M Faltischek director C/O THE HAIN CELESTIAL GROUP, INC., 1111 MARCUS AVENUE, LAKE SUCCESS NY 11042