Scentre Group (ASX:SCG) Gross Margin % : 69.40% (As of Dec. 2023)

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What is Scentre Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Scentre Group's Gross Profit for the six months ended in Dec. 2023 was A$875 Mil. Scentre Group's Revenue for the six months ended in Dec. 2023 was A$1,260 Mil. Therefore, Scentre Group's Gross Margin % for the quarter that ended in Dec. 2023 was 69.40%.

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

ASX:SCG' s Gross Margin % Range Over the Past 10 Years
Min: 59.26 Med: 68.98 Max: 73.01
Current: 69.94

During the past 13 years, the highest Gross Margin % of Scentre Group was 73.01%. The lowest was 59.26%. And the median was 68.98%.

ASX:SCG's Gross Margin % is ranked better than
52.46% of 629 companies
in the REITs industry
Industry Median: 68.8 vs ASX:SCG: 69.94

Scentre Group had a gross margin of 69.40% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Scentre Group was -0.20% per year.

Scentre Group Gross Margin % Historical Data

The historical data trend for Scentre Group'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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Scentre Group Gross Margin % Chart

Scentre Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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69.34

73.01

69.51

66.68

69.94

Scentre Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															65.92	69.28	64.29	70.48	69.40

Competitive Comparison of Scentre Group's Gross Margin %

For the REIT - Retail subindustry, Scentre Group'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.

Scentre Group's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Scentre Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Scentre Group's Gross Margin % falls into.

Scentre Group Gross Margin % Calculation

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

Scentre Group'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 )
	=	1755.7	/	2510.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2510.3 - 754.6)	/	2510.3
	=	69.94 %

Scentre Group'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 )
	=	874.5	/	1260
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1260 - 385.5)	/	1260
	=	69.40 %

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.

Scentre Group (ASX:SCG) 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

Scentre Group had a gross margin of 69.40% 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.

Scentre Group Gross Margin % Related Terms

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Scentre Group (ASX:SCG) Business Description

Industry

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STGPF:USA

Address

85 Castlereagh Street, Level 30, Sydney, NSW, AUS, 2000

Website

https://www.scentregroup.com

Scentre Group owns the largest portfolio of premium Australian and New Zealand shopping malls, owning most of the top 10 Australian and top five New Zealand malls. About half its rent comes from anchor tenants and half from specialty tenants. About a third of floor space is currently allocated to department stores, however we expect tenants to return a reasonable portion of that space over the next decade, or alternatively, department store rent to be renegotiated to lower levels. While almost every Scentre mall is anchored by at least one supermarket, these tenants accounts for less than 10% of gross lettable area, due to the large size of Scentre's assets.