Nestle Nigeria PLC gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Nestle Nigeria's Gross Margin % or its related term are showing as below:
NSA:NSTL'
s Gross Margin % Range Over the Past 10 Years
Min: 34.86 Med: 41.47 Max: 45.12
Current: 35.61
During the past 13 years, the highestGross Margin % of Nestle Nigeria was 45.12%. The lowest was 34.86%. And the median was 41.47%.
NSA:NSTL's Gross Margin % is ranked better than 70.89% of 1807
companies
in the Consumer Packaged Goods industry
Industry Median: 25.19
vs NSA:NSTL: 35.61
Nestle Nigeria had a gross margin of 26.74% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nestle Nigeria was -3.50% per year.
Nestle Nigeria Gross Margin % Historical Data
The historical data trend for Nestle 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.
Competitive Comparison of Nestle Nigeria's Gross Margin %
For the Packaged Foods subindustry, Nestle 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.
Nestle Nigeria's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Nigeria's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nestle Nigeria's Gross Margin % falls into.
* 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.
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
Nestle Nigeria had a gross margin of 26.74% 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.
Nestle Nigeria Gross Margin % Related Terms
Thank you for viewing the detailed overview of Nestle Nigeria's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nestle Nigeria PLC is a food and beverage company. It is involved in the business of manufacturing, marketing, and distribution of food products. The firm has categorized its products into Baby foods, Coffee, Culinary, Dairy, Drinks, and Recipes. It develops and markets its products under brands such as Cerelac, Nescafe, Nido, Maggi, Milo, etc. The company has Food and Beverage reportable segments. The food segment engaged in the production and sale of Maggi, Cerelac, SMA, Nan, Lactogen, and Golden Morn. The beverages segment consists of the production and sale of Milo, Chocomilo, Nido, Nescafe, Milo ready-to-drink, and Nestle Pure Life. The food segment generates the majority of the revenue. The majority of the revenue is generated from Nigeria.
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