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Halwani Bros (SAU:6001) Gross Margin % : 30.54% (As of Mar. 2024)


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What is Halwani Bros Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Halwani Bros's Gross Profit for the three months ended in Mar. 2024 was ﷼82.6 Mil. Halwani Bros's Revenue for the three months ended in Mar. 2024 was ﷼270.4 Mil. Therefore, Halwani Bros's Gross Margin % for the quarter that ended in Mar. 2024 was 30.54%.

Warning Sign:

Halwani Bros gross margin has been in long-term decline. The average rate of decline per year is -4.3%.


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

SAU:6001' s Gross Margin % Range Over the Past 10 Years
Min: 20.51   Med: 30.03   Max: 33.85
Current: 21.42


During the past 13 years, the highest Gross Margin % of Halwani Bros was 33.85%. The lowest was 20.51%. And the median was 30.03%.

SAU:6001's Gross Margin % is ranked worse than
58.59% of 1811 companies
in the Consumer Packaged Goods industry
Industry Median: 25.21 vs SAU:6001: 21.42

Halwani Bros had a gross margin of 30.54% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Halwani Bros was -4.30% per year.


Halwani Bros Gross Margin % Historical Data

The historical data trend for Halwani Bros'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.

Halwani Bros Gross Margin % Chart

Halwani Bros Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.67 33.85 31.54 26.43 20.51

Halwani Bros Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 27.92 20.08 14.18 18.49 30.54

Competitive Comparison of Halwani Bros's Gross Margin %

For the Packaged Foods subindustry, Halwani Bros'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.


Halwani Bros's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Halwani Bros's Gross Margin % falls into.



Halwani Bros Gross Margin % Calculation

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

Halwani Bros's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=182.4 / 889.046
=(Revenue - Cost of Goods Sold) / Revenue
=(889.046 - 706.668) / 889.046
=20.51 %

Halwani Bros's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=82.6 / 270.364
=(Revenue - Cost of Goods Sold) / Revenue
=(270.364 - 187.796) / 270.364
=30.54 %

* 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.


Halwani Bros  (SAU:6001) 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

Halwani Bros had a gross margin of 30.54% for the quarter that ended in Mar. 2024 => 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.


Halwani Bros Gross Margin % Related Terms

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Halwani Bros (SAU:6001) Business Description

Traded in Other Exchanges
N/A
Address
Jeddah Industrial Area, fourth stage, PO Box 690, Jeddah, SAU, 21421
Halwani Bros is a Saudi Arabia based company engaged in the manufacturing, packaging, wholesale and retail trade of food products. It is into the production, marketing, and distribution of chilled and frozen meat, and sesame products. It offers sweets, bakery products stuffed with dates, dairy products, processed meat products, jams, and juices; Halawa; tahini; and packaging products. Substantial revenue is generated from the domestic sale of sesame products. The Group uses the geographical segment only as it operates in manufacturing, filling, whole and retail trade of food products.

Halwani Bros (SAU:6001) Headlines

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