Spar Group (JSE:SPP) Gross Margin % : 11.95% (As of Sep. 2023)

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What is Spar Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Spar Group's Gross Profit for the six months ended in Sep. 2023 was R9,130 Mil. Spar Group's Revenue for the six months ended in Sep. 2023 was R76,400 Mil. Therefore, Spar Group's Gross Margin % for the quarter that ended in Sep. 2023 was 11.95%.

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

JSE:SPP' s Gross Margin % Range Over the Past 10 Years
Min: 8.26 Med: 10.7 Max: 12.02
Current: 12.02

During the past 13 years, the highest Gross Margin % of Spar Group was 12.02%. The lowest was 8.26%. And the median was 10.70%.

JSE:SPP's Gross Margin % is ranked worse than
81.94% of 310 companies
in the Retail - Defensive industry
Industry Median: 22.835 vs JSE:SPP: 12.02

Spar Group had a gross margin of 11.95% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Spar Group was 2.80% per year.

Spar Group Gross Margin % Historical Data

The historical data trend for Spar 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.

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Spar Group Gross Margin % Chart

Spar Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Gross Margin %

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10.65

11.89

12.00

12.02

Spar Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															12.23	11.87	12.16	12.09	11.95

Competitive Comparison of Spar Group's Gross Margin %

For the Food Distribution subindustry, Spar 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.

Spar Group's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Spar Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Spar Group's Gross Margin % falls into.

Spar Group Gross Margin % Calculation

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

Spar Group's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	17945.7	/	149324.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(149324.3 - 131378.6)	/	149324.3
	=	12.02 %

Spar Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	9129.8	/	76399.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(76399.7 - 67269.9)	/	76399.7
	=	11.95 %

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.

Spar Group (JSE:SPP) 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

Spar Group had a gross margin of 11.95% for the quarter that ended in Sep. 2023 => 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.

Spar Group Gross Margin % Related Terms

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

Spar Group (JSE:SPP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Spar Group Ltd (JSE:SPP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SGPPY:USA

Address

22 Chancery Lane, P.O. Box 1589, Pinetown, NL, ZAF, 3600

Website

https://www.spar.co.za

Spar Group Ltd is a wholesaler and distributor of goods and services to the group's retail outlets such as SPAR stores, Build it builders' merchandise outlets, TOPS at SPAR liquor stores, and others across Southern Africa. The company also has operations that comprise independently owned SPAR, MACE, XL and Londis stores in Ireland and southwest England. The company provides independent retailers the option to own or lease its stores and operate under the SPAR brand. The Southern Africa segment represents the majority of group revenue, with Ireland contributing an increasing proportion. The company delivers goods to the stores by a fleet of trucks and trailers owned by the SPAR Group. The group has two primary private brands namely SPAR and SaveMor.

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