Karelia Tobacco Co (ATH:KARE) Gross Margin % : 9.43% (As of Sep. 2023)

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What is Karelia Tobacco Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Karelia Tobacco Co's Gross Profit for the three months ended in Sep. 2023 was €34 Mil. Karelia Tobacco Co's Revenue for the three months ended in Sep. 2023 was €364 Mil. Therefore, Karelia Tobacco Co's Gross Margin % for the quarter that ended in Sep. 2023 was 9.43%.

Warning Sign:

Karelia Tobacco Co Inc SA gross margin has been in long-term decline. The average rate of decline per year is -2.7%.

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

ATH:KARE' s Gross Margin % Range Over the Past 10 Years
Min: 9.78 Med: 11.48 Max: 14.01
Current: 9.78

During the past 13 years, the highest Gross Margin % of Karelia Tobacco Co was 14.01%. The lowest was 9.78%. And the median was 11.48%.

ATH:KARE's Gross Margin % is ranked worse than
80.39% of 51 companies
in the Tobacco Products industry
Industry Median: 27.96 vs ATH:KARE: 9.78

Karelia Tobacco Co had a gross margin of 9.43% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Karelia Tobacco Co was -2.70% per year.

Karelia Tobacco Co Gross Margin % Historical Data

The historical data trend for Karelia Tobacco Co'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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Karelia Tobacco Co Gross Margin % Chart

Karelia Tobacco Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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10.92

10.45

10.02

10.42

10.29

Karelia Tobacco Co Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															9.55	9.78	10.92	9.15	9.43

Competitive Comparison of Karelia Tobacco Co's Gross Margin %

For the Tobacco subindustry, Karelia Tobacco Co'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.

Karelia Tobacco Co's Gross Margin % Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Karelia Tobacco Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Karelia Tobacco Co's Gross Margin % falls into.

Karelia Tobacco Co Gross Margin % Calculation

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

Karelia Tobacco Co's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	130.3	/	1265.734
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1265.734 - 1135.432)	/	1265.734
	=	10.29 %

Karelia Tobacco Co's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	34.3	/	364.149
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(364.149 - 329.823)	/	364.149
	=	9.43 %

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.

Karelia Tobacco Co (ATH:KARE) 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

Karelia Tobacco Co had a gross margin of 9.43% for the quarter that ended in Sep. 2023 => No sustainable 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.

Karelia Tobacco Co Gross Margin % Related Terms

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Karelia Tobacco Co (ATH:KARE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Karelia Tobacco Co Inc SA (ATH:KARE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Athinon Street, Kalamata, GRC, 24100

Website

https://www.karelia.gr

Karelia Tobacco Co Inc SA is in the business of manufacture, export, and wholesale of tobacco products such as cigarettes, cigars, hand-rolling cigarettes and other duty-free tobacco products. The firm's flagship brands include George Karelias and Sons, Slims, Ome, Karelia blue and American Legend. Its geographical segment includes Greece and International. The company derives a majority of revenue from Greece segment.

Karelia Tobacco Co (ATH:KARE) Headlines

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