Accounting policies
Operating costs by nature
Operating costs by nature include:
- costs of goods sold less vendor allowances based on volume purchased and promotional allowances obtained for commercial activity and in store advertisement. Includes also materials consumed in the production of goods by the companies;
- distribution costs, related with retail main activity in store, logistics and warehousing;
- administrative costs, corresponding to supporting central offices activities;
- other operating losses and gains.
Other operating profits/losses
Other operating profits/losses, that due to their nature or materiality might distort the financial performance of the Group, as well as their comparability, are presented in a separate line of the consolidated income statement by function. These losses and gains are excluded from the operational performance indicators adopted by Management.
|
|
2023 |
|
2022 |
|---|---|---|---|---|
Cost of goods sold and materials consumed |
|
(24,018) |
|
(19,776) |
Changes in inventories of finished goods and work in progress |
|
25 |
|
16 |
Net cash discount and interest paid to suppliers |
|
65 |
|
55 |
Electronic payment commissions |
|
(77) |
|
(62) |
Other supplementary costs |
|
(315) |
|
(254) |
Supplies and services |
|
(1,139) |
|
(1,015) |
Advertising costs |
|
(139) |
|
(118) |
Rents |
|
(25) |
|
(19) |
Staff costs |
|
(2,531) |
|
(2,103) |
Transportation costs |
|
(325) |
|
(306) |
Depreciation and amortisation of tangibles and intangibles assets |
|
(511) |
|
(447) |
Depreciation of right-of-use assets |
|
(391) |
|
(336) |
Profit/loss with tangible and intangible assets |
|
(17) |
|
(6) |
Profit/loss with right-of-use assets |
|
1 |
|
2 |
Other natures of profit/loss |
|
(27) |
|
(40) |
Total |
|
(29,422) |
|
(24,409) |
4.1. Other operating profits/losses
Operating costs by nature include the following other operating losses and gains considered material, which are excluded from the Group’s performance indicators, to assure a better comparability between financial periods:
|
|
2023 |
|
2022 |
|---|---|---|---|---|
Solidarity measures with Ukraine and other donations |
|
(0) |
|
(9) |
Increase of provisions for legal contingencies |
|
(14) |
|
(26) |
Costs with organizational restructuring programmes |
|
(20) |
|
(12) |
Assets write-offs and gains/losses in sale of tangible assets |
|
(11) |
|
(1) |
Changes to benefit plans and actuarial assumptions |
|
(3) |
|
1 |
World Youth Day |
|
(5) |
|
(3) |
Employees exceptional awards |
|
(24) |
|
(45) |
Fair value of energy price fixing derivative instruments |
|
0 |
|
(5) |
Other |
|
(1) |
|
4 |
Total |
|
(80) |
|
(95) |
In recognition of the effort, dedication and commitment shown by our teams, who, working in demanding and unpredictable operating environments, and the fast increase in the cost of living, were exceptionally awarded in 2023 c.€24 million in bonuses.