Margin Analysis Overview
This dashboard provides a detailed analysis of ChoriZoro's margin performance in Q4 2024, addressing the key concerns raised in the Q3 board meeting regarding margin pressures from discounts and spoilage costs.
Q4 Margin Improvements
All key margin metrics show positive growth compared to Q3 2024, indicating successful implementation of margin improvement strategies:
- PRODUCT MARGIN increased by 8.4% to €177.7M
- CONTRIBUTION MARGIN grew by 9.1% to €142.2M
- GROSS MARGIN improved by 6.8% to €98.3M
The stronger growth in CONTRIBUTION MARGIN compared to NET SALES indicates improved operational efficiencies and successful implementation of cost control measures.
Margin Metrics Comparison
| Metric | Q4 2024 (€'000) | Q3 2024 (€'000) | Q4 2023 (€'000) | Q4 vs Q3 (%) | Q4 vs Q4 Prev (%) |
|---|---|---|---|---|---|
| NET SALES | 385,530 | 358,827 | 257,320 | +7.4% | +49.8% |
| PRODUCT MARGIN | 177,729 | 163,910 | 129,198 | +8.4% | +37.6% |
| CONTRIBUTION MARGIN | 142,200 | 130,300 | 103,500 | +9.1% | +37.4% |
| GROSS MARGIN | 98,300 | 92,000 | 72,500 | +6.8% | +35.6% |
Margin Percentages Comparison
Discount Impact Analysis
In the Q3 board meeting, Pedro (Lead Investor) highlighted that "margins consistently face pressure from product discounts and spoilage costs." This section analyzes the impact of discounts on margins in Q4 2024.
The data shows that while discount levels remain significant, the improved operational efficiencies and tighter controls on raw material procurement have helped offset some of these pressures, resulting in overall margin improvements in Q4.
Key actions implemented in Q4 to address discount-related margin pressures:
- Optimized promotional strategies to maximize impact while minimizing margin erosion
- Implemented more targeted discount programs based on customer segmentation
- Enhanced inventory management to reduce the need for clearance discounts
- Improved refrigeration systems to reduce spoilage, as mentioned by Carlos (CEO) in the Q3 meeting
Product Margin Comparison
The chart above shows the distribution of NET SALES across products in Q4 2024. For detailed margin analysis of specific products, please navigate to the Product Performance dashboard where you can drill down into individual product metrics.
Products requiring special attention based on margin performance:
- Chorizo Picante Selecto (CPS): Facing margin pressures due to aggressive competitor pricing and increased promotional expenses
- Longaniza Tradicional Catalana (LTC): Margin impact from structural adjustments and inventory clearance
- DIP: Continues to absorb substantial marketing investments affecting short-term margins