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Westrock Coffee Co (Westrock Coffee Co) Gross Margin % : 16.20% (As of Dec. 2023)


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What is Westrock Coffee Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Westrock Coffee Co's Gross Profit for the three months ended in Dec. 2023 was $34.8 Mil. Westrock Coffee Co's Revenue for the three months ended in Dec. 2023 was $215.0 Mil. Therefore, Westrock Coffee Co's Gross Margin % for the quarter that ended in Dec. 2023 was 16.20%.


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

WEST' s Gross Margin % Range Over the Past 10 Years
Min: 16.17   Med: 18.53   Max: 20.83
Current: 16.17


During the past 4 years, the highest Gross Margin % of Westrock Coffee Co was 20.83%. The lowest was 16.17%. And the median was 18.53%.

WEST's Gross Margin % is ranked worse than
69.82% of 1809 companies
in the Consumer Packaged Goods industry
Industry Median: 25.08 vs WEST: 16.17

Westrock Coffee Co had a gross margin of 16.20% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Westrock Coffee Co was 0.00% per year.


Westrock Coffee Co Gross Margin % Historical Data

The historical data trend for Westrock Coffee 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.

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Westrock Coffee Co Gross Margin % Chart

Westrock Coffee Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Gross Margin %
19.46 20.83 17.60 16.17

Westrock Coffee Co Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.06 16.69 15.88 15.97 16.20

Competitive Comparison of Westrock Coffee Co's Gross Margin %

For the Packaged Foods subindustry, Westrock Coffee 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.


Westrock Coffee Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

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



Westrock Coffee Co Gross Margin % Calculation

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

Westrock Coffee Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=139.9 / 864.714
=(Revenue - Cost of Goods Sold) / Revenue
=(864.714 - 724.856) / 864.714
=16.17 %

Westrock Coffee Co'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 )
=34.8 / 214.966
=(Revenue - Cost of Goods Sold) / Revenue
=(214.966 - 180.149) / 214.966
=16.20 %

* 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.


Westrock Coffee Co  (NAS:WEST) 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

Westrock Coffee Co had a gross margin of 16.20% for the quarter that ended in Dec. 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.


Westrock Coffee Co Gross Margin % Related Terms

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


Westrock Coffee Co (Westrock Coffee Co) Business Description

Traded in Other Exchanges
Address
4009 N. Rodney Parham Road, 3rd Floor, Little Rock, AR, USA, 72212
Westrock Coffee Co is an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the U.S, providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to retail, foodservice and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world. The company's segment includes Beverage Solutions and Sustainable Sourcing and Traceability. It generates maximum revenue from the Beverage Solutions segment.
Executives
Joe T Ford director C/O ENPRO INDUSTRIES INC, 5605 CARNEGIE BLVD, CHARLOTTE NC 28209-4674
Thomas Christopher Pledger officer: CHIEF FINANCIAL OFFICER 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
William A Ford officer: GROUP PRESIDENT, OPERATIONS 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
Oluwatoyin Umesiri director 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
Josie C Natori director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Hugh Iii Mccoll director 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
Rbm Acquisition, Llc other: Prior 10% Owner 55 EAST MAIN STREET, SUITE 102, CHATTANOOGA TN 37408
Rbm Investments, Llc other: Prior 10% Owner 55 EAST MAIN STREET, SUITE 102, CHATTANOOGA TN 37408
Riverview Sponsor Partners, Llc other: Prior 10% Owner 55 E. MAIN STREET, SUITE 102, CHATTANOOGA TN 37408
R Brad Martin director
Brown Brothers Harriman & Co 10 percent owner 140 BROADWAY, NEW YORK NY 10005-1101
Hf Direct Investments Pool, Llc 10 percent owner 502 UNION AVENUE, KNOXVILLE TN 37919
Stephens Group, Llc 10 percent owner 100 RIVER BLUFF DRIVE, SUITE 500, LITTLE ROCK AR 72202
Scott T Ford director, 10 percent owner, officer: CHIEF EXECUTIVE OFFICER (1) 4009 N. RODNEY PARHAM RD., 3RD FLOOR, LITTLE ROCK AR 72212
Blake Schuhmacher officer: CHIEF ACCOUNTING OFFICER 10802 EXECUTIVE CENTER DRIVE, BENTON BUILDING, SUITE 300, LITTLE ROCK AR 72211