Flour Mills Nigeria (NSA:FMNL) Gross Margin % : 11.50% (As of Mar. 2023)

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What is Flour Mills Nigeria Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Flour Mills Nigeria's Gross Profit for the six months ended in Mar. 2023 was ₦177,103 Mil. Flour Mills Nigeria's Revenue for the six months ended in Mar. 2023 was ₦1,539,655 Mil. Therefore, Flour Mills Nigeria's Gross Margin % for the quarter that ended in Mar. 2023 was 11.50%.

Warning Sign:

Flour Mills Nigeria PLC gross margin has been in long-term decline. The average rate of decline per year is -1.6%.

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

NSA:FMNL' s Gross Margin % Range Over the Past 10 Years
Min: 9.29 Med: 11.46 Max: 13.84
Current: 11.5

During the past 13 years, the highest Gross Margin % of Flour Mills Nigeria was 13.84%. The lowest was 9.29%. And the median was 11.46%.

NSA:FMNL's Gross Margin % is ranked worse than
80.42% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 25.085 vs NSA:FMNL: 11.50

Flour Mills Nigeria had a gross margin of 11.50% for the quarter that ended in Mar. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Flour Mills Nigeria was -1.60% per year.

Flour Mills Nigeria Gross Margin % Historical Data

The historical data trend for Flour Mills Nigeria'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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Flour Mills Nigeria Gross Margin % Chart

Flour Mills Nigeria Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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10.12

11.47

13.84

9.29

11.50

Flour Mills Nigeria Semi-Annual Data
	Mar11	Mar12	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23
Gross Margin %	Get a 7-Day Free Trial								10.12	11.47	13.84	9.29	11.50

Competitive Comparison of Flour Mills Nigeria's Gross Margin %

For the Packaged Foods subindustry, Flour Mills Nigeria'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.

Flour Mills Nigeria's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Flour Mills Nigeria's Gross Margin % falls into.

Flour Mills Nigeria Gross Margin % Calculation

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

Flour Mills Nigeria's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	177102.8	/	1539654.788
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1539654.788 - 1362551.941)	/	1539654.788
	=	11.50 %

Flour Mills Nigeria's Gross Margin for the quarter that ended in Mar. 2023 is calculated as

Gross Margin % (Q: Mar. 2023 )	=	Gross Profit (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	177102.8	/	1539654.788
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1539654.788 - 1362551.941)	/	1539654.788
	=	11.50 %

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.

Flour Mills Nigeria (NSA:FMNL) 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

Flour Mills Nigeria had a gross margin of 11.50% for the quarter that ended in Mar. 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.

Flour Mills Nigeria Gross Margin % Related Terms

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Flour Mills Nigeria (NSA:FMNL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Flour Mills Nigeria PLC (NSA:FMNL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Wharf Road, 1, Golden Penny Place, Apapa, Lagos, NGA

Website

https://www.fmnplc.com

Flour Mills Nigeria PLC is an investment holding company. The company's operating segment includes Food; Agro Allied; Sugar and Support Services. It generates maximum revenue from the Food segment which includes milling and sales of flour and production and sales of pasta, snacks, and noodles. Its Agro-Allied segment includes farming of maize, cassava, soya, sugar cane and oil palm and production and sales of fertilizer, edible oils and livestock feeds. The Sugar segment includes the cultivation and processing of sugarcane, refining and selling of sugar and sale of by-products from sugar refining.

Flour Mills Nigeria (NSA:FMNL) Headlines

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