Oliver's Real Food (ASX:OLI) Gross Margin % : 63.77% (As of Dec. 2023)

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What is Oliver's Real Food Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Oliver's Real Food's Gross Profit for the six months ended in Dec. 2023 was A$8.19 Mil. Oliver's Real Food's Revenue for the six months ended in Dec. 2023 was A$12.85 Mil. Therefore, Oliver's Real Food's Gross Margin % for the quarter that ended in Dec. 2023 was 63.77%.

Warning Sign:

Oliver's Real Food Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.1%.

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

ASX:OLI' s Gross Margin % Range Over the Past 10 Years
Min: 53.24 Med: 67.2 Max: 76.39
Current: 63.42

During the past 7 years, the highest Gross Margin % of Oliver's Real Food was 76.39%. The lowest was 53.24%. And the median was 67.20%.

ASX:OLI's Gross Margin % is ranked better than
73.68% of 342 companies
in the Restaurants industry
Industry Median: 47.32 vs ASX:OLI: 63.42

Oliver's Real Food had a gross margin of 63.77% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Oliver's Real Food was -6.10% per year.

Oliver's Real Food Gross Margin % Historical Data

The historical data trend for Oliver's Real Food'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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Oliver's Real Food Gross Margin % Chart

Oliver's Real Food Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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73.46

70.14

56.24

53.24

62.22

Oliver's Real Food Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial									48.60	55.96	61.43	63.05	63.77

Competitive Comparison of Oliver's Real Food's Gross Margin %

For the Restaurants subindustry, Oliver's Real Food'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.

Oliver's Real Food's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Oliver's Real Food's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Oliver's Real Food's Gross Margin % falls into.

Oliver's Real Food Gross Margin % Calculation

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

Oliver's Real Food's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	15.2	/	24.476
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(24.476 - 9.246)	/	24.476
	=	62.22 %

Oliver's Real Food'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 )
	=	8.2	/	12.846
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12.846 - 4.654)	/	12.846
	=	63.77 %

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.

Oliver's Real Food (ASX:OLI) 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

Oliver's Real Food had a gross margin of 63.77% 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.

Oliver's Real Food Gross Margin % Related Terms

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Oliver's Real Food (ASX:OLI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Oliver's Real Food Ltd (ASX:OLI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

36S:Germany

Address

5 Lenton Place, Level 1, North Rocks, NSW, AUS, 2151

Website

https://www.oliversrealfood.com.au

Oliver's Real Food Ltd engages in fast-food services specializing in delicious, nutrient-dense meals, designed with the customers' wellbeing in mind. Its food is prepared daily from fresh, natural, and organic produce - nothing artificial and no additives. Some of its product includes Coffee, Breakfast, and Snack items.

Oliver's Real Food (ASX:OLI) Headlines

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