Saputo (TSX:SAP) Gross Margin % : 30.63% (As of Dec. 2023)

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What is Saputo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Saputo's Gross Profit for the three months ended in Dec. 2023 was C$1,307 Mil. Saputo's Revenue for the three months ended in Dec. 2023 was C$4,267 Mil. Therefore, Saputo's Gross Margin % for the quarter that ended in Dec. 2023 was 30.63%.

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

TSX:SAP' s Gross Margin % Range Over the Past 10 Years
Min: 27.87 Med: 31.08 Max: 33.01
Current: 31.3

During the past 13 years, the highest Gross Margin % of Saputo was 33.01%. The lowest was 27.87%. And the median was 31.08%.

TSX:SAP's Gross Margin % is ranked better than
64.58% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.07 vs TSX:SAP: 31.30

Saputo had a gross margin of 30.63% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Saputo was -0.40% per year.

Saputo Gross Margin % Historical Data

The historical data trend for Saputo'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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Saputo Gross Margin % Chart

Saputo Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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32.02

31.87

33.01

31.13

30.40

Saputo Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															31.35	31.02	31.38	32.15	30.63

Competitive Comparison of Saputo's Gross Margin %

For the Packaged Foods subindustry, Saputo'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.

Saputo's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

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

Saputo Gross Margin % Calculation

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

Saputo'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 )
	=	5425	/	17843
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(17843 - 12418)	/	17843
	=	30.40 %

Saputo's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1307	/	4267
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4267 - 2960)	/	4267
	=	30.63 %

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.

Saputo (TSX:SAP) 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

Saputo had a gross margin of 30.63% for the quarter that ended in Dec. 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.

Saputo Gross Margin % Related Terms

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Saputo (TSX:SAP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Saputo Inc (TSX:SAP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SAPIF:USA SB7:Germany

Address

6869 Metropolitain Boulevard East, St-Leonard, Montreal, QC, CAN, H1P 1X8

Website

https://www.saputo.com

Saputo is a global dairy processor domiciled in Canada (26% of fiscal 2023 sales) with operations in the United States (47%), the U.K. (6%), and other international markets (21%). It sells cheese, cream, fluid milk, and other dairy products. In the retail segment (48% of revenue), its mix of brands includes Saputo, Armstrong, Cheer, Cathedral City, and Frylight. Saputo also competes in foodservice (33% of revenue) and industrials (19% of revenue), which houses its ingredients business.