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Avon Protection (LSE:AVON) Gross Margin % : 37.23% (As of Sep. 2023)


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What is Avon Protection Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avon Protection's Gross Profit for the six months ended in Sep. 2023 was £38.4 Mil. Avon Protection's Revenue for the six months ended in Sep. 2023 was £103.1 Mil. Therefore, Avon Protection's Gross Margin % for the quarter that ended in Sep. 2023 was 37.23%.

Warning Sign:

Avon Protection PLC gross margin has been in long-term decline. The average rate of decline per year is -3.4%.


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

LSE:AVON' s Gross Margin % Range Over the Past 10 Years
Min: 31.74   Med: 36.06   Max: 39.64
Current: 35.21


During the past 13 years, the highest Gross Margin % of Avon Protection was 39.64%. The lowest was 31.74%. And the median was 36.06%.

LSE:AVON's Gross Margin % is ranked better than
67.23% of 296 companies
in the Aerospace & Defense industry
Industry Median: 26.025 vs LSE:AVON: 35.21

Avon Protection had a gross margin of 37.23% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Avon Protection was -3.40% per year.


Avon Protection Gross Margin % Historical Data

The historical data trend for Avon Protection'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.

Avon Protection Gross Margin % Chart

Avon Protection Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.79 39.09 31.74 33.74 35.23

Avon Protection Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 33.89 31.42 35.73 33.05 37.23

Competitive Comparison of Avon Protection's Gross Margin %

For the Aerospace & Defense subindustry, Avon Protection'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.


Avon Protection's Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Avon Protection's Gross Margin % distribution charts can be found below:

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



Avon Protection Gross Margin % Calculation

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

Avon Protection's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=69.4 / 196.99
=(Revenue - Cost of Goods Sold) / Revenue
=(196.99 - 127.583) / 196.99
=35.23 %

Avon Protection'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 )
=38.4 / 103.101
=(Revenue - Cost of Goods Sold) / Revenue
=(103.101 - 64.721) / 103.101
=37.23 %

* 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.


Avon Protection  (LSE:AVON) 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

Avon Protection had a gross margin of 37.23% 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.


Avon Protection Gross Margin % Related Terms

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Avon Protection (LSE:AVON) Business Description

Traded in Other Exchanges
Address
Semington Road, Hampton Park West, Melksham, Wiltshire, GBR, SN12 6NB
Avon Protection PLC is engaged in providing technology that designs and produces life-critical personal protection systems to maximize the performance and capabilities of its customers. The company's portfolio of life-critical protection solutions includes full-face respirators, ballistic helmets, escape hoods, SCBA systems, modular PAPR units, thermal imaging cameras, and underwater equipment for the world's militaries and first responders. The company has two operating and reportable segments, these being Respiratory Protection; which is the key revenue generating segment and the Head Protection. Geographically, the revenue is generated from United States which is the key revenue generating market and Europe.

Avon Protection (LSE:AVON) Headlines

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