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DEO (Diageo) Gross Margin % : 58.85% (As of Jun. 2024)


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What is Diageo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Diageo's Gross Profit for the six months ended in Jun. 2024 was $5,477 Mil. Diageo's Revenue for the six months ended in Jun. 2024 was $9,307 Mil. Therefore, Diageo's Gross Margin % for the quarter that ended in Jun. 2024 was 58.85%.


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

DEO' s Gross Margin % Range Over the Past 10 Years
Min: 57.37   Med: 60.42   Max: 62.18
Current: 60.18


During the past 13 years, the highest Gross Margin % of Diageo was 62.18%. The lowest was 57.37%. And the median was 60.42%.

DEO's Gross Margin % is ranked better than
84.21% of 209 companies
in the Beverages - Alcoholic industry
Industry Median: 39.6 vs DEO: 60.18

Diageo had a gross margin of 58.85% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Diageo was -0.50% per year.


Diageo Gross Margin % Historical Data

The historical data trend for Diageo'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.

* Premium members only.

Diageo Gross Margin % Chart

Diageo Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60.40 60.43 61.38 59.67 60.18

Diageo Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Gross 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 59.75 61.52 57.50 61.31 58.85

Competitive Comparison of Diageo's Gross Margin %

For the Beverages - Wineries & Distilleries subindustry, Diageo'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.


Diageo's Gross Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Gross Margin % distribution charts can be found below:

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



Diageo Gross Margin % Calculation

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

Diageo's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=12198 / 20269
=(Revenue - Cost of Goods Sold) / Revenue
=(20269 - 8071) / 20269
=60.18 %

Diageo's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=5477 / 9307
=(Revenue - Cost of Goods Sold) / Revenue
=(9307 - 3830) / 9307
=58.85 %

* 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.

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.


Diageo  (NYSE:DEO) 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

Diageo had a gross margin of 58.85% for the quarter that ended in Jun. 2024 => 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.


Diageo Gross Margin % Related Terms

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


Diageo Business Description

Address
16 Great Marlborough Street, London, GBR, W1F 7HS
The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.