Heavitree Brewery (LSE:HVT) Gross Margin % : 43.93% (As of Oct. 2023)

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What is Heavitree Brewery Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Heavitree Brewery's Gross Profit for the six months ended in Oct. 2023 was £1.77 Mil. Heavitree Brewery's Revenue for the six months ended in Oct. 2023 was £4.02 Mil. Therefore, Heavitree Brewery's Gross Margin % for the quarter that ended in Oct. 2023 was 43.93%.

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

LSE:HVT' s Gross Margin % Range Over the Past 10 Years
Min: 29.45 Med: 40.75 Max: 43.93
Current: 42.91

During the past 13 years, the highest Gross Margin % of Heavitree Brewery was 43.93%. The lowest was 29.45%. And the median was 40.75%.

LSE:HVT's Gross Margin % is ranked worse than
56.73% of 342 companies
in the Restaurants industry
Industry Median: 47.32 vs LSE:HVT: 42.91

Heavitree Brewery had a gross margin of 43.93% for the quarter that ended in Oct. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Heavitree Brewery was 1.00% per year.

Heavitree Brewery Gross Margin % Historical Data

The historical data trend for Heavitree Brewery'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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Heavitree Brewery Gross Margin % Chart

Heavitree Brewery Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Gross Margin %

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40.42

32.76

29.45

43.24

42.91

Heavitree Brewery Semi-Annual Data
	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
Gross Margin %	Get a 7-Day Free Trial															37.70	38.42	47.22	41.67	43.93

Competitive Comparison of Heavitree Brewery's Gross Margin %

For the Restaurants subindustry, Heavitree Brewery'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.

Heavitree Brewery's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Heavitree Brewery's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Heavitree Brewery's Gross Margin % falls into.

Heavitree Brewery Gross Margin % Calculation

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

Heavitree Brewery's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )	=	Gross Profit (A: Oct. 2023 )	/	Revenue (A: Oct. 2023 )
	=	3.2	/	7.346
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7.346 - 4.194)	/	7.346
	=	42.91 %

Heavitree Brewery's Gross Margin for the quarter that ended in Oct. 2023 is calculated as

Gross Margin % (Q: Oct. 2023 )	=	Gross Profit (Q: Oct. 2023 )	/	Revenue (Q: Oct. 2023 )
	=	1.8	/	4.02
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4.02 - 2.254)	/	4.02
	=	43.93 %

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.

Heavitree Brewery (LSE:HVT) 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

Heavitree Brewery had a gross margin of 43.93% for the quarter that ended in Oct. 2023 => Durable 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.

Heavitree Brewery Gross Margin % Related Terms

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Heavitree Brewery (LSE:HVT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Heavitree Brewery PLC (LSE:HVT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

HVTA:UK

Address

Heavitree Brewery, Trood Lane, Matford, Exeter, GBR, EX2 8YP

Website

https://www.heavitreebrewery.co.uk

Heavitree Brewery PLC is a UK-based company engaged in the business of leasing and operating public houses. Its geographical segments include the United Kingdom and the United States. The firm mainly involves running and developing tenanted and leased estate. The company owns over 60 pubs which include The Anchor Inn, The Ashcott Inn, The Atmospheric Railway, The Beach Hotel, The Bell Inn, The Brunswick Arms, and others. It also owns land in the United States through its subsidiary while the majority of its revenues are generated from the pubs that it owns in the United Kingdom.