DDC Enterprise (DDC Enterprise) Gross Margin % : 26.69% (As of Sep. 2023)

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What is DDC Enterprise Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. DDC Enterprise's Gross Profit for the three months ended in Sep. 2023 was $2.84 Mil. DDC Enterprise's Revenue for the three months ended in Sep. 2023 was $10.65 Mil. Therefore, DDC Enterprise's Gross Margin % for the quarter that ended in Sep. 2023 was 26.69%.

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

DDC' s Gross Margin % Range Over the Past 10 Years
Min: 16.46 Med: 17.77 Max: 27.32
Current: 27.32

During the past 3 years, the highest Gross Margin % of DDC Enterprise was 27.32%. The lowest was 16.46%. And the median was 17.77%.

DDC's Gross Margin % is ranked better than
55.56% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.04 vs DDC: 27.32

DDC Enterprise had a gross margin of 26.69% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for DDC Enterprise was 0.00% per year.

DDC Enterprise Gross Margin % Historical Data

The historical data trend for DDC Enterprise'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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DDC Enterprise Gross Margin % Chart

DDC Enterprise Annual Data

Trend

Dec20

Dec21

Dec22

Gross Margin %

16.46

17.77

24.46

DDC Enterprise Quarterly Data
	Dec20	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial				24.48	30.58	25.27	26.99	26.69

Competitive Comparison of DDC Enterprise's Gross Margin %

For the Packaged Foods subindustry, DDC Enterprise'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.

DDC Enterprise's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, DDC Enterprise's Gross Margin % distribution charts can be found below:

* The bar in red indicates where DDC Enterprise's Gross Margin % falls into.

DDC Enterprise Gross Margin % Calculation

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

DDC Enterprise'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 )
	=	6.3	/	25.759
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(25.759 - 19.458)	/	25.759
	=	24.46 %

DDC Enterprise'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 )
	=	2.8	/	10.645
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10.645 - 7.804)	/	10.645
	=	26.69 %

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.

DDC Enterprise (AMEX:DDC) 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

DDC Enterprise had a gross margin of 26.69% for the quarter that ended in Sep. 2023 => Competition eroding margins

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.

DDC Enterprise Gross Margin % Related Terms

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DDC Enterprise (DDC Enterprise) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » DDC Enterprise Ltd (AMEX:DDC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

233 Hollywood Road, Room 1601-1602, 16th Floor, Hollywood Centre, Sheung Wan, HKG

Website

https://www.daydaycook.com.cn

DDC Enterprise Ltd is a content driven consumer brand offering easy, convenient ready-to-heat , ready-to-cook and plant-based meal products i.e. meal products consisting largely or solely of vegetables, fruits, grains and other foods derived from plant-based protein, rather than animal protein) while promoting healthier lifestyle choices to Millennial and Generation Z customer-base. It is also engaged in the provision of advertising services and the operation of experience stores to offer cooking classes.