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8 Other income and expenses

Other income and expenses relate to activities and transactions that are outside the Group’s principal revenue generating activities. Foreign currency exchange gains and losses as well as fair value changes on commodity and foreign currency exchange derivatives entered into as part of the operating business are also presented as other income and expenses. Activities and transactions of a significant or unusual nature are generally adjusted for in the performance measures adjusted EBITDA and adjusted net income used by management (see note 9).

Composition of other income and expenses

(In € million)

 

Year ended
31 Dec. 2021

 

Year ended
31 Dec. 2020

Net change in fair value of operating derivatives

 

7.8

 

21.5

Income from miscellaneous services

 

2.8

 

3.7

Rental income

 

0.7

 

0.7

Gain on pre-existing interest in former joint ventures

 

48.8

 

Indirect tax recoveries

 

12.1

 

Other

 

6.4

 

3.4

Total other income

 

78.6

 

29.3

Net foreign currency exchange loss

 

(2.1)

 

(8.1)

Transaction- and acquisition-related costs

 

(16.5)

 

(3.1)

Loss on sale of subsidiary

 

(12.1)

 

Other

 

(2.5)

 

(1.2)

Total other expenses

 

(33.2)

 

(12.4)

For the year ended 31 December 2021, the Group recognised an unrealised net gain on commodity and foreign currency derivatives of €7.8 million (€21.5 million in the year ended 31 December 2020). This arose primarily because the Group has entered into commodity derivative contracts fixing prices, mainly for polymers but also for aluminium, at levels below the currently higher forward prices.

For the year ended 31 December 2021, the Group recognised a net foreign currency exchange loss of €2.1 million. For the year ended 31 December 2020, the Group recognised a net foreign currency exchange loss of €8.1 million. Foreign currency exchange losses in the year ended 31 December 2020 mainly arose due to the depreciation of the Thai Baht against the Euro and the US Dollar, and the depreciation of the Brazilian Real against the Euro. The Brazilian Real foreign currency exchange losses were mitigated by Brazilian Real hedging gains.

The indirect tax recoveries of €12.1 million in the year ended 31 December 2021 relate to a recent Supreme Court ruling on sales tax in Brazil that is beneficial to the Group. Out-of-period indirect tax recoveries of €10.3 million are excluded in the calculation of adjusted EBITDA and adjusted net income (see note 9).

See note 9 for information about the gain on the pre-existing interest in the former joint ventures, transaction- and acquisition-related costs and the loss on the sale of a subsidiary. These items are excluded in the calculation of adjusted EBITDA and adjusted net income.