Gross Margin % is calculated as gross profit divided by its revenue. KAL Group's Gross Profit for the
six
months ended in Mar. 2024 was R1,651 Mil. KAL Group's Revenue for the
six
months ended in Mar. 2024 was R12,057 Mil. Therefore, KAL Group's Gross Margin % for the quarter that ended in Mar. 2024 was 13.69%.
Warning Sign:
KAL Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.9%.
The historical rank and industry rank for KAL Group's Gross Margin % or its related term are showing as below:
JSE:KAL'
s Gross Margin % Range Over the Past 10 Years
Min: 12.76 Med: 15.09 Max: 17.03
Current: 13.64
During the past 10 years, the highestGross Margin % of KAL Group was 17.03%. The lowest was 12.76%. And the median was 15.09%.
JSE:KAL's Gross Margin % is ranked worse than 87.32% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.56
vs JSE:KAL: 13.64
KAL Group had a gross margin of 13.69% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for KAL Group was -4.90% per year.
KAL Group Gross Margin % Historical Data
The historical data trend for KAL Group'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 KAL Group's Gross Margin %
For the Specialty Retail subindustry, KAL Group'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.
KAL Group's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, KAL Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KAL Group'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.
KAL Group (JSE:KAL) 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
KAL Group had a gross margin of 13.69% for the quarter that ended in Mar. 2024 => 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.
KAL Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of KAL Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kaap Agri Ltd engages in the retail and trading of agricultural, and fuel, and related products. Its segments include the Agrimark segment which derives the majority of its revenue provides a range of production inputs, mechanization equipment and services, and other goods to agricultural producers as well as the public, The Retail Fuel and Convenience provides a full retail fuel offering to a diverse range of customers, including a convenience store and quick service restaurant outlets; Agrimark Grain segment includes the sale of grain products and provides a complete range of services including storage and handling of grain products and the Manufacturing segment manufactures and sells dripper pipe, other irrigation equipment, food-grade plastic bulk bins for the agricultural market.
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