Retail Food Group (ASX:RFG) Gross Margin % : 73.72% (As of Dec. 2023)

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What is Retail Food Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Retail Food Group's Gross Profit for the six months ended in Dec. 2023 was A$42.7 Mil. Retail Food Group's Revenue for the six months ended in Dec. 2023 was A$58.0 Mil. Therefore, Retail Food Group's Gross Margin % for the quarter that ended in Dec. 2023 was 73.72%.

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

ASX:RFG' s Gross Margin % Range Over the Past 10 Years
Min: 41.21 Med: 69.28 Max: 82.52
Current: 72.76

During the past 13 years, the highest Gross Margin % of Retail Food Group was 82.52%. The lowest was 41.21%. And the median was 69.28%.

ASX:RFG's Gross Margin % is ranked better than
93.27% of 342 companies
in the Restaurants industry
Industry Median: 47.32 vs ASX:RFG: 72.76

Retail Food Group had a gross margin of 73.72% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Retail Food Group was 10.40% per year.

Retail Food Group Gross Margin % Historical Data

The historical data trend for Retail Food 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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Retail Food Group Gross Margin % Chart

Retail Food Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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69.07

44.77

71.24

73.16

72.51

Retail Food 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															74.07	72.30	73.24	71.73	73.72

Competitive Comparison of Retail Food Group's Gross Margin %

For the Restaurants subindustry, Retail Food 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.

Retail Food Group's Gross Margin % Distribution in the Restaurants Industry

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

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

Retail Food Group Gross Margin % Calculation

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

Retail Food Group'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 )
	=	80.8	/	111.374
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(111.374 - 30.62)	/	111.374
	=	72.51 %

Retail Food 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 )
	=	42.7	/	57.966
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(57.966 - 15.233)	/	57.966
	=	73.72 %

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.

Retail Food Group (ASX:RFG) 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

Retail Food Group had a gross margin of 73.72% 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.

Retail Food Group Gross Margin % Related Terms

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Retail Food Group (ASX:RFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Retail Food Group Ltd (ASX:RFG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

RFGPF:USA

Address

35 Robina Town Centre Drive, Level 4, Robina, QLD, AUS, 4226

Website

https://www.rfg.com.au

Retail Food Group Ltd owns, operates, and franchises restaurants primarily located in Australia. Retail Food Group's brands include Donut King, Michel's Patisserie, Brumby's Bakery, Esquires Coffee Houses, Gloria Jean's Coffees, Pizza Capers Gourmet Kitchen, and Crust Gourmet Pizza. The company generates roughly half its revenue from restaurants that it directly operates. Its major source of revenue is from franchise agreements. The Group's primary revenue streams include revenue from the sales of goods, revenue from the sale of franchise agreements, revenue from the sale of distribution rights, operating lease income, and other sources. Its segment is Bakery/Café Division, QSR Division, Coffee Retail Division and Di Bella Coffee. It generates maximum revenue from Coffee Retail Division.