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Kencana Agri (SGX:BNE) Gross Margin % : 16.04% (As of Jun. 2023)


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What is Kencana Agri Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kencana Agri's Gross Profit for the six months ended in Jun. 2023 was S$13.3 Mil. Kencana Agri's Revenue for the six months ended in Jun. 2023 was S$83.2 Mil. Therefore, Kencana Agri's Gross Margin % for the quarter that ended in Jun. 2023 was 16.04%.


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

SGX:BNE' s Gross Margin % Range Over the Past 10 Years
Min: 10.6   Med: 20.97   Max: 32.05
Current: 20.9


During the past 13 years, the highest Gross Margin % of Kencana Agri was 32.05%. The lowest was 10.60%. And the median was 20.97%.

SGX:BNE's Gross Margin % is ranked worse than
60.44% of 1805 companies
in the Consumer Packaged Goods industry
Industry Median: 25.35 vs SGX:BNE: 20.90

Kencana Agri had a gross margin of 16.04% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kencana Agri was 10.20% per year.


Kencana Agri Gross Margin % Historical Data

The historical data trend for Kencana Agri'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.

Kencana Agri Gross Margin % Chart

Kencana Agri Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.48 21.47 27.02 32.05 28.58

Kencana Agri Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
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 35.43 28.71 33.54 24.49 16.04

Competitive Comparison of Kencana Agri's Gross Margin %

For the Farm Products subindustry, Kencana Agri'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.


Kencana Agri's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Kencana Agri's Gross Margin % falls into.



Kencana Agri Gross Margin % Calculation

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

Kencana Agri's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=58.9 / 206.205
=(Revenue - Cost of Goods Sold) / Revenue
=(206.205 - 147.273) / 206.205
=28.58 %

Kencana Agri's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=13.3 / 83.162
=(Revenue - Cost of Goods Sold) / Revenue
=(83.162 - 69.824) / 83.162
=16.04 %

* 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.


Kencana Agri  (SGX:BNE) 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

Kencana Agri had a gross margin of 16.04% for the quarter that ended in Jun. 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.


Kencana Agri Gross Margin % Related Terms

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


Kencana Agri (SGX:BNE) Business Description

Traded in Other Exchanges
Address
Jalan Raya Meruya llir No. 88, Kencana Tower, 8th Floor, Business Park Kebon Jeruk, Jakarta Barat, Jakarta, IDN, 11620
Kencana Agri Ltd operates as a plantation company. The group is engaged in the cultivation of oil palms; the processing of fresh fruit bunches (FFB) into crude palm oil (CPO), crude palm kernel oil (CPKO), and palm kernel cake (PKC); refining of CPO. It operates through the palm oil plantation business segment. The company's plantation segment which earns the majority revenue for the firm consists of plantations, palm oil mills, and kernel crushing plants. The majority of revenue gets generated through Indonesia.

Kencana Agri (SGX:BNE) Headlines