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Allegro.EU (WAR:ALE) Gross Margin % : 75.73% (As of Dec. 2023)


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What is Allegro.EU Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Allegro.EU's Gross Profit for the three months ended in Dec. 2023 was zł2,298 Mil. Allegro.EU's Revenue for the three months ended in Dec. 2023 was zł3,035 Mil. Therefore, Allegro.EU's Gross Margin % for the quarter that ended in Dec. 2023 was 75.73%.

Warning Sign:

Allegro.EU SA gross margin has been in long-term decline. The average rate of decline per year is -5.4%.


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

WAR:ALE' s Gross Margin % Range Over the Past 10 Years
Min: 73.26   Med: 93.63   Max: 97.12
Current: 77.2


During the past 7 years, the highest Gross Margin % of Allegro.EU was 97.12%. The lowest was 73.26%. And the median was 93.63%.

WAR:ALE's Gross Margin % is ranked better than
98.17% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.61 vs WAR:ALE: 77.20

Allegro.EU had a gross margin of 75.73% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Allegro.EU was -5.40% per year.


Allegro.EU Gross Margin % Historical Data

The historical data trend for Allegro.EU'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.

Allegro.EU Gross Margin % Chart

Allegro.EU Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 95.36 94.43 93.63 73.26 77.20

Allegro.EU Quarterly Data
Dec17 Dec18 Jun19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 66.34 74.48 78.08 80.78 75.73

Competitive Comparison of Allegro.EU's Gross Margin %

For the Internet Retail subindustry, Allegro.EU'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.


Allegro.EU's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Allegro.EU's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Allegro.EU's Gross Margin % falls into.



Allegro.EU Gross Margin % Calculation

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

Allegro.EU'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 )
=7863.2 / 10185.317
=(Revenue - Cost of Goods Sold) / Revenue
=(10185.317 - 2322.133) / 10185.317
=77.20 %

Allegro.EU's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=2298.3 / 3034.817
=(Revenue - Cost of Goods Sold) / Revenue
=(3034.817 - 736.533) / 3034.817
=75.73 %

* 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.


Allegro.EU  (WAR:ALE) 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

Allegro.EU had a gross margin of 75.73% for the quarter that ended in Dec. 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.


Allegro.EU Gross Margin % Related Terms

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


Allegro.EU (WAR:ALE) Business Description

Traded in Other Exchanges
Address
1, Rue Hildegard von Bingen, Luxembourg, LUX, L-1282
Allegro is a large Polish holding company with a suite of complementary online retail properties including Ceneo (price comparisons), EBilet (live events tickets), WeDo (courier services), and the Mall Group (online and offline retail in adjacent central European markets). The firm is best known for its eponymous e-commerce marketplace, which generates predominantly third-party product sales across the home and garden, electronics, health and beauty, automotive, and supermarket categories. The operator boasts nearly 50% share of the Polish e-commerce market by GMV, per our calculations and PWC data, and has built out a suite of ecosystem functionality that includes financial services, logistics, and advertising products.