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 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

For the year ended 31 December 2022, the Group recognised a net foreign currency exchange loss of €19.2 million. This mainly relates to a realised net loss on foreign currency derivatives.

For the year ended 31 December 2022, the Group recognised an unrealised net loss on commodity and foreign currency derivatives of €39.5 million. This arose primarily because the Group has entered into commodity derivative contracts fixing prices for polymers and aluminium at levels above the currently lower forward prices.

The indirect tax recoveries of €12.1 million in the year ended 31 December 2021 relate to a Supreme Court ruling on sales tax in Brazil that was 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 realised gain on settlement of the deal-contingent derivatives (relating to the acquisitions of Scholle IPN and Evergreen Asia), transaction- and acquisition-related costs, integration costs, the change in the fair value of the contingent consideration, the gain on the pre-existing interest in joint ventures and the loss on sale of a subsidiary. These items are excluded in the calculation of adjusted EBITDA and adjusted net income.