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15 Inventories

Composition of inventories and other financial information

(In € million)

 

As of
31 Dec. 2020

 

As of
31 Dec. 2019

Raw materials and consumables

 

50.0

 

56.8

Work in progress

 

21.0

 

17.2

Finished goods

 

99.7

 

93.2

Total inventories

 

170.7

 

167.2

As of 31 December 2020, inventories included a provision of €15.5 million due to write-downs to net realisable value (€17.2 million as of 31 December 2019).

Raw materials and consumables recognised as an expense in cost of sales in the statement of profit or loss and other comprehensive income amounted to €727.4 million in the year ended 31 December 2020 (€715.9 million in the year ended 31 December 2019).

Spare parts in the amount of €5.4 million related to production equipment of the Group’s paper mill in New Zealand were impaired and recognised as an expense in cost of sales in the statement of profit or loss and other comprehensive income in the year ended 31 December 2020 (nil in the year ended 31 December 2019). See further notes 4 and 12.

Accounting policy

Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the weighted average cost formula and includes costs incurred in acquiring the inventories and bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realisable value is the estimated selling price less the estimated costs of completion and estimated costs necessary to make the sale.