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Associated British Foods (LSE:ABF) Gross Margin % : 0.00% (As of Feb. 2024)


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What is Associated British Foods Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Associated British Foods's Gross Profit for the six months ended in Feb. 2024 was £9,734 Mil. Associated British Foods's Revenue for the six months ended in Feb. 2024 was £9,734 Mil. Therefore, Associated British Foods's Gross Margin % for the quarter that ended in Feb. 2024 was 0.00%. If there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.

Warning Sign:

Associated British Foods PLC gross margin has been in long-term decline. The average rate of decline per year is -1.5%.


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

LSE:ABF' s Gross Margin % Range Over the Past 10 Years
Min: 21.08   Med: 23   Max: 24.34
Current: 21.08


During the past 13 years, the highest Gross Margin % of Associated British Foods was 24.34%. The lowest was 21.08%. And the median was 23.00%.

LSE:ABF's Gross Margin % is ranked worse than
58.72% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.07 vs LSE:ABF: 21.08

Associated British Foods had a gross margin of N/A% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Associated British Foods was -1.50% per year.


Associated British Foods Gross Margin % Historical Data

The historical data trend for Associated British Foods'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.

Associated British Foods Gross Margin % Chart

Associated British Foods Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.98 22.51 22.55 22.23 21.08

Associated British Foods Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 - - - - -

Competitive Comparison of Associated British Foods's Gross Margin %

For the Packaged Foods subindustry, Associated British Foods'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.


Associated British Foods's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Associated British Foods's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Associated British Foods's Gross Margin % falls into.



Associated British Foods Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue. (Note that if there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.)

Associated British Foods's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )=Gross Profit (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=4163 / 19750
=(Revenue - Cost of Goods Sold) / Revenue
=(19750 - 15587) / 19750
=21.08 %

Associated British Foods's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=9734 / 9734
=(Revenue - Cost of Goods Sold) / Revenue
=(9734 - 0) / 9734
=N/A %

* 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.


Associated British Foods  (LSE:ABF) 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

Associated British Foods had a gross margin of N/A% for the quarter that ended in Feb. 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.


Associated British Foods Gross Margin % Related Terms

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Associated British Foods (LSE:ABF) Business Description

Traded in Other Exchanges
Address
10 Grosvenor Street, Weston Centre, London, GBR, W1K 4QY
Associated British Foods is a diversified international retail, food, and ingredients group with 130,000 employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia, and Australia. The group sells branded grocery products, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the popular Primark clothing retail chain. It also supplies ingredients like baker's yeast, enzymes, lipids, and cereal specialities. Some 40% of sales are in the U.K., and Primark generates more than half of the firm's operating profit.

Associated British Foods (LSE:ABF) Headlines

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