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23 Finance income and expenses

The Group’s net finance expense is mainly related to finance expenses for the Group’s loans and borrowings and foreign exchange gains and losses relating to the loans and borrowings.

Composition of net finance expenses

(In € million)

 

Year ended
31 Dec. 2021

 

Year ended
31 Dec. 2020

Interest income

 

4.6

 

2.1

Net foreign currency exchange gain

 

11.4

 

Net change in fair value of financing-related derivatives

 

 

0.5

Finance income

 

16.0

 

2.6

Interest expense on:

 

 

 

 

– Senior unsecured notes

 

(20.1)

 

(10.7)

– Senior unsecured/secured credit facilities

 

(5.3)

 

(18.2)

– Lease liabilities

 

(9.1)

 

(2.9)

Amortisation of original issue discount

 

(0.3)

 

(1.3)

Amortisation of transaction costs

 

(3.6)

 

(3.1)

Net foreign currency exchange loss

 

 

(19.6)

Net interest expense on interest rate swaps

 

 

(0.6)

Net effect of early repayment of loans

 

(3.7)

 

(19.7)

Other

 

(5.3)

 

(7.5)

Finance expenses

 

(47.4)

 

(83.6)

Net finance expense

 

(31.4)

 

(81.0)

In the year ended 31 December 2021, the Group used available cash and proceeds from a new credit facility to repay external loans of one of the former joint ventures in the Middle East. The net expense effect of the early repayment of these loans was €3.7 million. In the year ended 31 December 2020, the Group used proceeds from its new term loan and issue of notes in June 2020 as well as available cash to repay its existing secured term loans. The net expense effect of the early repayment of the existing secured term loans was €19.7 million, of which €2.1 million related to cash settlement of interest rate swaps. See also note 22.

In the year ended 31 December 2021, the net foreign currency exchange gain primarily consists of positive translation effects on Euro-denominated debt held by a US Dollar functional currency entity resulting from the strengthening of the US Dollar against the Euro. In the year ended 31 December 2020, the net foreign currency exchange loss primarily consisted of negative translation effects on Euro-denominated debt held by a US Dollar functional currency entity and on intra-group loan payables, primarily resulting from the weakening of the Brazilian Real against the Euro.

For the year ended 31 December 2021, interest income include interest of €3.1 million on out-of-period indirect tax recoveries (see note 8).

Other finance expenses primarily consist of revolver commitment fees, securitisation and factoring expenses and interest expense on current tax liabilities.