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Kobe Bussan Co (TSE:3038) Gross Margin % : 11.77% (As of Jan. 2024)


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What is Kobe Bussan Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kobe Bussan Co's Gross Profit for the three months ended in Jan. 2024 was 円14,231 Mil. Kobe Bussan Co's Revenue for the three months ended in Jan. 2024 was 円120,904 Mil. Therefore, Kobe Bussan Co's Gross Margin % for the quarter that ended in Jan. 2024 was 11.77%.

Warning Sign:

Kobe Bussan Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.6%.


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

TSE:3038' s Gross Margin % Range Over the Past 10 Years
Min: 11.42   Med: 14.7   Max: 16.08
Current: 11.74


During the past 13 years, the highest Gross Margin % of Kobe Bussan Co was 16.08%. The lowest was 11.42%. And the median was 14.70%.

TSE:3038's Gross Margin % is ranked worse than
82.26% of 310 companies
in the Retail - Defensive industry
Industry Median: 22.685 vs TSE:3038: 11.74

Kobe Bussan Co had a gross margin of 11.77% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kobe Bussan Co was -6.60% per year.


Kobe Bussan Co Gross Margin % Historical Data

The historical data trend for Kobe Bussan Co'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.

Kobe Bussan Co Gross Margin % Chart

Kobe Bussan Co Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.73 13.26 11.91 11.45 11.42

Kobe Bussan Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 10.43 11.63 12.49 11.08 11.77

Competitive Comparison of Kobe Bussan Co's Gross Margin %

For the Grocery Stores subindustry, Kobe Bussan Co'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.


Kobe Bussan Co's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Kobe Bussan Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kobe Bussan Co's Gross Margin % falls into.



Kobe Bussan Co Gross Margin % Calculation

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

Kobe Bussan Co's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )=Gross Profit (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=52719 / 461546
=(Revenue - Cost of Goods Sold) / Revenue
=(461546 - 408827) / 461546
=11.42 %

Kobe Bussan Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=14231 / 120904
=(Revenue - Cost of Goods Sold) / Revenue
=(120904 - 106673) / 120904
=11.77 %

* 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.


Kobe Bussan Co  (TSE:3038) 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

Kobe Bussan Co had a gross margin of 11.77% for the quarter that ended in Jan. 2024 => 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.


Kobe Bussan Co Gross Margin % Related Terms

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


Kobe Bussan Co (TSE:3038) Business Description

Traded in Other Exchanges
Address
883 Nakaishiki Inami-cho, Hyogo-ken, Kako-gun, JPN, 675-1127
Kobe Bussan Co.,Ltd. is a Japan-based company that operates through four business divisions. The Gyomu Super business, accounting for the majority of the company's revenue, is primarily in engaged in franchising supermarkets that provide merchandise produced at the company's own factories or imported from overseas. The Kobe Cook business operates through several formats, including Kobe Cook World Buffet stores, which are buffet-style restaurants; Green's K stores, which are small supermarkets offering ready-made meals; and Green's K Teppan Buffet stores, which are restaurants featuring a blend of buffet and self-cooking. The Kobe Cook Innoventure business is operated to promote restaurant business and offer food materials. The company also operates the Eco Renewable Energy business.

Kobe Bussan Co (TSE:3038) Headlines

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