Composition of inventories and other financial information

(in € million)

 

As of
31 Dec. 2019

 

As of
31 Dec. 2018

Raw materials and consumables

 

56.8

 

59.6

Work in progress

 

17.2

 

17.6

Finished goods

 

93.2

 

67.2

Total inventories

 

167.2

 

144.4

As of 31 December 2019, inventories included a provision of €17.2 million due to write-downs to net realisable value (€13.4 million as of 31 December 2018).

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 €715.9 million in the year ended 31 December 2019 (€676.0 million in the year ended 31 December 2018).

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.