13. Right-of-use assets

The Group generally purchases its production-related buildings and equipment (see note 12). However, it also enters into lease contracts. Right-of-use assets relate to lease contracts that the Group has entered into as lessee. The contracts mainly cover leases of assets such as office buildings, production-related buildings and equipment, warehouses and cars.

Composition of right-of-use assets

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Composition of right-of-use assets
(In € million)	Land and buildings	Plant and equipment	Cars	Total
Cost	290.6	174.2	21.1	485.9
Accumulated depreciation and impairment losses	(76.6)	(73.4)	(13.9)	(163.9)
Carrying amount as of Dec. 31, 2024	214.0	100.8	7.2	322.0
Cost	288.5	212.9	25.0	526.4
Accumulated depreciation and impairment losses	(127.6)	(103.5)	(17.7)	(248.8)
Carrying amount as of Dec. 31, 2025	160.9	109.4	7.3	277.6
Carrying amount as of January 1, 2024	170.2	91.3	5.8	267.3
Additions	81.7	36.1	5.0	122.8
Depreciation	(19.8)	(24.6)	(3.3)	(47.7)
Impairment losses	(8.8)	(0.4)	–	(9.2)
Transfer to assets held for sale	(8.0)	–	–	(8.0)
Effect of movements in exchange rates	(1.3)	(1.6)	(0.3)	(3.2)
Carrying amount as of Dec. 31, 2024	214.0	100.8	7.2	322.0
Carrying amount as of January 1, 2025	214.0	100.8	7.2	322.0
Additions	18.1	39.6	3.9	61.6
Depreciation	(22.8)	(24.7)	(3.9)	(51.4)
Impairment losses	(34.1)	(5.9)	–	(40.0)
Effect of movements in exchange rates	(14.3)	(0.4)	0.1	(14.6)
Carrying amount as of Dec. 31, 2025	160.9	109.4	7.3	277.6

Notes 4, 7 and 9 include further information about the impairment losses. The impairment losses recognized for the year ended December 31, 2025 relating to the new leased chilled carton production plant in Suzhou, China and the leased aseptic carton production plant in India are included in the category “Land and buildings” in the table above.

See note 9 for information about a pre-paid land right-of-use in Shanghai that was classified as held for sale as of December 31, 2024, and subsequently sold as part of the sale of the chilled carton production plant in Shanghai in the year ended December 31, 2025.

The Group’s most significant leases relate to its production plants in China (two of its plants), Saudi Arabia, India (one of its plants) and Mexico as well as its technology center in China. These six leases, with a remaining lease term of between 10 and 25 years, make up the larger part of the carrying amount of leased land and buildings. A purchase option, exercisable by the Group after 15 years, has been considered when estimating the lease term and the lease liability for the production plant in Mexico.

The larger part of the plant and equipment category relates to leases of production equipment for closures with a lease term of four to five years. The lease term of other assets is most commonly in the range of three to five years.

Depreciation of right-of-use assets

Depreciation of right-of-use assets is recognized in the following components in the statement of profit or loss and other comprehensive income.

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Depreciation of right-of-use assets
(In € million)	Year ended Dec. 31, 2025	Year ended Dec. 31, 2024
Cost of sales	40.3	37.8
Selling, marketing and distribution expenses	6.3	6.0
General and administrative expenses	4.8	3.9
Total depreciation	51.4	47.7

Impairment of right-of-use assets

Impairment losses of right-of-use assets are recognized in the following components in the statement of profit or loss and other comprehensive income (see notes 4 and 9 for additional information).

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Impairment of right-of-use assets
(In € million)	Year ended Dec. 31, 2025	Year ended Dec. 31, 2024
Cost of sales	39.2	9.2
Selling, marketing and distribution expenses	0.8	–
Total impairment losses	40.0	9.2

Lease commitments

The Group has entered into lease contracts that have not yet commenced. The present value of estimated future lease payments under these lease contracts was approximately €19 million as of December 31, 2025 (€28 million as of December 31, 2024).

These contracts mainly relate to leases of production equipment for closures that are expected to commence within the next six to eighteen months.

Accounting policy, significant judgments and estimates

At the lease commencement date, the Group recognizes a lease liability and a related right-of-use asset. The accounting for lease liabilities is described in note 23.

The right-of-use asset represents the Group’s right to use the leased asset. A right-of-use asset is initially measured at cost, which in many cases will equal the amount recognized as a lease liability. However, adjustments are required for any lease payments made at or before the lease commencement date and any initial direct costs incurred. The cost also includes the estimated cost to dismantle and remove the leased asset, to restore it to the condition required under the lease contract or to restore the site on which it is located, to the extent such an amount is recognized as a provision.

Subsequent to initial recognition, a right-of-use asset is measured at cost less accumulated depreciation and impairment losses. A right-of-use asset is subsequently also adjusted for certain remeasurements of the related lease liability.

Right-of-use assets are depreciated on a straight-line basis from the lease commencement date over the shorter of the lease term and their useful lives, unless it is reasonably certain that the Group will obtain ownership by the end of the lease term.

Right-of-use assets are reviewed regularly and at least annually to identify whether there is an impairment indicator, or an indicator that a previously recognized impairment loss should be reversed. See note 5.5.3 for further details.

A change in the Group’s intended use of certain leased assets or changed market conditions may trigger a future impairment or a reversal of an impairment loss. Value in use calculations require management to estimate the future cash flows expected to arise from an individual asset or CGU and to determine a suitable discount rate to calculate present value. See note 5.4 for additional remarks.