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Engro Fertilizers (KAR:EFERT) Gross Margin % : 30.52% (As of Mar. 2024)


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What is Engro Fertilizers Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Engro Fertilizers's Gross Profit for the three months ended in Mar. 2024 was ₨22,518 Mil. Engro Fertilizers's Revenue for the three months ended in Mar. 2024 was ₨73,783 Mil. Therefore, Engro Fertilizers's Gross Margin % for the quarter that ended in Mar. 2024 was 30.52%.

Warning Sign:

Engro Fertilizers Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.


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

KAR:EFERT' s Gross Margin % Range Over the Past 10 Years
Min: 25.08   Med: 32.35   Max: 36.8
Current: 33.15


During the past 11 years, the highest Gross Margin % of Engro Fertilizers was 36.80%. The lowest was 25.08%. And the median was 32.35%.

KAR:EFERT's Gross Margin % is ranked better than
69.23% of 234 companies
in the Agriculture industry
Industry Median: 23.585 vs KAR:EFERT: 33.15

Engro Fertilizers had a gross margin of 30.52% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Engro Fertilizers was -1.40% per year.


Engro Fertilizers Gross Margin % Historical Data

The historical data trend for Engro Fertilizers'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.

Engro Fertilizers Gross Margin % Chart

Engro Fertilizers Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.58 32.36 33.30 27.29 32.32

Engro Fertilizers Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 24.49 29.77 31.72 38.72 30.52

Competitive Comparison of Engro Fertilizers's Gross Margin %

For the Agricultural Inputs subindustry, Engro Fertilizers'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.


Engro Fertilizers's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Engro Fertilizers's Gross Margin % distribution charts can be found below:

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



Engro Fertilizers Gross Margin % Calculation

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

Engro Fertilizers's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=72297.2 / 223704.592
=(Revenue - Cost of Goods Sold) / Revenue
=(223704.592 - 151407.364) / 223704.592
=32.32 %

Engro Fertilizers's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=22517.7 / 73783.443
=(Revenue - Cost of Goods Sold) / Revenue
=(73783.443 - 51265.789) / 73783.443
=30.52 %

* 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.


Engro Fertilizers  (KAR:EFERT) 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

Engro Fertilizers had a gross margin of 30.52% for the quarter that ended in Mar. 2024 => 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.


Engro Fertilizers Gross Margin % Related Terms

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Engro Fertilizers (KAR:EFERT) Business Description

Traded in Other Exchanges
N/A
Address
Plot No HC No-3, Marine Drive, Block 4, 7th & 8th Floor, The Harbor Front Building, Scheme Number 5, Clifton, Karachi, SD, PAK, 75600
Engro Fertilizers Ltd is a Pakistan-based company mainly involved in the manufacturing, purchasing, and marketing of fertilizers, seeds, and pesticides and providing logistics services. It operates in five segments: Urea, Phosphates, Specialty Fertilizers Business, Crop Sciences division, and E-logistics. The company offers different ranges of products under brand names such as Engro Urea, Engro DAP, Engro NP, Engro Envy, Engro Zarkhez, Engro MOP, and Zingro.

Engro Fertilizers (KAR:EFERT) Headlines

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