Ausnutria Dairy Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.1%.
The historical rank and industry rank for Ausnutria Dairy's Gross Margin % or its related term are showing as below:
HKSE:01717'
s Gross Margin % Range Over the Past 10 Years
Min: 28.05 Med: 43.29 Max: 52.45
Current: 38.64
During the past 13 years, the highestGross Margin % of Ausnutria Dairy was 52.45%. The lowest was 28.05%. And the median was 43.29%.
HKSE:01717's Gross Margin % is ranked better than 75.57% of 1805
companies
in the Consumer Packaged Goods industry
Industry Median: 25.35
vs HKSE:01717: 38.64
Ausnutria Dairy had a gross margin of 35.63% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ausnutria Dairy was -5.10% per year.
Ausnutria Dairy Gross Margin % Historical Data
The historical data trend for Ausnutria Dairy'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 Ausnutria Dairy's Gross Margin %
For the Packaged Foods subindustry, Ausnutria Dairy'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.
Ausnutria Dairy's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Ausnutria Dairy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ausnutria Dairy'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
Ausnutria Dairy had a gross margin of 35.63% for the quarter that ended in Dec. 2023 => 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.
Ausnutria Dairy Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ausnutria Dairy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ausnutria Dairy Corp Ltd is active in the dairy industry. Its business activities include research and development, milk collection, processing, production, packaging, marketing, and sales of dairy products. The company operates through Dairy and related products and Nutrition product segments. It generates maximum revenue from the Dairy and related products segment. Geographically, it derives a majority of its revenue from the PRC and also has a presence in European Union; the Middle East; North and South America; Australia; New Zealand, and other countries.
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