24. Finance income and expenses
The Group’s finance income and expenses are mainly related to finance expenses for its loans and borrowings, fair value changes on associated derivative instruments and foreign currency exchange gains and losses relating to the loans and borrowings.
Composition of net finance expense
(In € million) |
|
Year ended |
|
Year ended |
|---|---|---|---|---|
Interest income |
|
4.6 |
|
3.8 |
Net foreign currency exchange gain |
|
– |
|
5.5 |
Net interest income on interest rate swap |
|
6.5 |
|
5.2 |
Finance income |
|
11.1 |
|
14.5 |
Interest expense on: |
|
|
|
|
– Loan and borrowings (excluding lease liabilities) |
|
(104.7) |
|
(99.9) |
– Lease liabilities |
|
(18.9) |
|
(15.1) |
Amortization of original issue discount |
|
(0.1) |
|
(0.3) |
Amortization of transaction costs |
|
(2.8) |
|
(4.8) |
Net foreign currency exchange loss |
|
(3.8) |
|
– |
Net change in fair value of financing-related derivatives |
|
(3.6) |
|
(2.0) |
Net effect of early repayment of loan |
|
(1.6) |
|
– |
Securitization expense |
|
(12.0) |
|
(9.2) |
Other |
|
(6.7) |
|
(8.3) |
Finance expenses |
|
(154.2) |
|
(139.6) |
Net finance expense |
|
(143.1) |
|
(125.1) |
See notes 26 and 32 for details about the net change in fair value of financing-related derivatives (an interest rate swap and forward interest rate agreements) and the net interest income on the interest rate swap.
The increase of the securitization expense for the year ended December 31, 2024 is due to higher interest rates and the expansion of the Group’s securitization program in 2023 to include trade receivables in the bag-in-box and spouted pouch businesses.
Other finance expenses primarily consist of revolver commitment fees, factoring expenses and interest expense on current tax liabilities.