Minerals beat champagne in the margin

Posted September 28, 2015

Champagne Coal

From our friends at Suncorp.

This morning’s update shows how well resources houses are doing, even compared to luxury goods. This is in spite of low commodity prices.

“…margins enjoyed by Australian-based miners are the envy of luxury goods producers such as Christian Dior and Hermes. Rio’s earnings before tax, interest, amortisation and depreciation (EBITDA), were 41.5% in 1H2015, which is more that Christian Dior with a 24% EBITDA margin in the same period, and a 23% margin for LVMH Moet Hennessy Louis Vuitton, which produces Moet & Chandon Champagne. Hermes, the maker of the famous Birkin bag, had a 36% margin.

 

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