GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Kawan Food Bhd (XKLS:7216) » Definitions » Operating Margin %

Kawan Food Bhd (XKLS:7216) Operating Margin % : 16.60% (As of Dec. 2023)


View and export this data going back to 2005. Start your Free Trial

What is Kawan Food Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kawan Food Bhd's Operating Income for the three months ended in Dec. 2023 was RM10.2 Mil. Kawan Food Bhd's Revenue for the three months ended in Dec. 2023 was RM61.4 Mil. Therefore, Kawan Food Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was 16.60%.

Warning Sign:

Kawan Food Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -1.1%.

The historical rank and industry rank for Kawan Food Bhd's Operating Margin % or its related term are showing as below:

XKLS:7216' s Operating Margin % Range Over the Past 10 Years
Min: 5.84   Med: 12.68   Max: 20
Current: 8.65


XKLS:7216's Operating Margin % is ranked better than
67.37% of 1857 companies
in the Consumer Packaged Goods industry
Industry Median: 4.93 vs XKLS:7216: 8.65

Kawan Food Bhd's 5-Year Average Operating Margin % Growth Rate was -1.10% per year.

Kawan Food Bhd's Operating Income for the three months ended in Dec. 2023 was RM10.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM24.9 Mil.


Kawan Food Bhd Operating Margin % Historical Data

The historical data trend for Kawan Food Bhd's Operating 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.

Kawan Food Bhd Operating Margin % Chart

Kawan Food Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.84 10.40 11.71 10.49 8.65

Kawan Food Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating 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 9.01 9.89 0.82 7.93 16.60

Competitive Comparison of Kawan Food Bhd's Operating Margin %

For the Packaged Foods subindustry, Kawan Food Bhd's Operating Margin %, along with its competitors' market caps and Operating 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.


Kawan Food Bhd's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kawan Food Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kawan Food Bhd's Operating Margin % falls into.



Kawan Food Bhd Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Kawan Food Bhd's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=24.854 / 287.215
=8.65 %

Kawan Food Bhd's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=10.2 / 61.442
=16.60 %

* 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.


Kawan Food Bhd  (XKLS:7216) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Kawan Food Bhd Operating Margin % Related Terms

Thank you for viewing the detailed overview of Kawan Food Bhd's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kawan Food Bhd (XKLS:7216) Business Description

Traded in Other Exchanges
N/A
Address
Lot 129351, Jalan Sungai Pinang 4/19, Selangor Halal Hub, Fasa 2C, Taman Perindustrian Pulau Indah, Pulau Indah, SGR, MYS, 42920
Kawan Food Bhd is an investment holding company principally engaged in the business of manufacturing and selling frozen food products. The product portfolio includes Bakery, Bun, Chapatti, Dessert, Finger Food, Frozen Vegetable, Paratha and Spring Roll Pastry and others. The company produce and sell food under the brands of Kawan, KG Pastry, Veat, PassionBake and Aman, of which Kawan remains its key brand. The group is also involved in the other businesses of investment property and rental of trucks; food truck operator and others. Its geographical segments include Malaysia, North America, Rest of Asia, Europe, Oceania, and Africa.

Kawan Food Bhd (XKLS:7216) Headlines

No Headlines