15. Inventories
Composition of inventories and other financial information
(In € million) |
|
As of |
|
As of |
|---|---|---|---|---|
Raw materials and consumables |
|
143.0 |
|
71.2 |
Work in progress |
|
96.7 |
|
22.6 |
Finished goods |
|
163.0 |
|
100.7 |
Total inventories |
|
402.7 |
|
194.5 |
The increase in inventories since 31 December 2021 is impacted by the acquisitions of Scholle IPN and Evergreen Asia in 2022 (see notes 9 and 27).
As of 31 December 2022, inventories include a provision of €24.2 million due to write-downs to net realisable value (€20.5 million as of 31 December 2021).
Raw materials and consumables recognised as an expense in cost of sales in the statement of profit or loss and other comprehensive income amount to €1,257.0 million in the year ended 31 December 2022 (€856.5 million in the year ended 31 December 2021).
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.