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.
|
|
2024 |
|
2023 |
|---|---|---|---|---|
Cost of goods sold and materials consumed |
|
(26,150) |
|
(23,953) |
Changes in inventories of finished goods and work in progress |
|
17 |
|
25 |
Electronic payment commissions |
|
(89) |
|
(77) |
Other supplementary costs |
|
(347) |
|
(315) |
Supplies and services |
|
(1,206) |
|
(1,139) |
Advertising costs |
|
(191) |
|
(139) |
Rents |
|
(17) |
|
(25) |
Staff costs |
|
(2,948) |
|
(2,531) |
Transportation costs |
|
(357) |
|
(325) |
Depreciation and amortisation of tangibles and intangibles assets |
|
(587) |
|
(511) |
Depreciation of right-of-use assets |
|
(456) |
|
(391) |
Profit/loss with tangible and intangible assets |
|
(17) |
|
(17) |
Profit/loss with right-of-use assets |
|
1 |
|
1 |
Other natures of profit/loss |
|
(48) |
|
(27) |
Total |
|
(32,395) |
|
(29,422) |
The Other nature of profits and losses item includes, among others, the contribution of €20 million in donations to the Biedronka Foundation (2023: €21 million), as well as the initial endowment of the Jerónimo Martins Foundation, in the amount of €40 million (see note 4.1).
More information about the Jerónimo Martins Foundation is described in “Affected communities”.
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:
|
|
2024 |
|
2023 |
|---|---|---|---|---|
Donation to Jerónimo Martins Foundation |
|
(40) |
|
– |
Donations to other entities |
|
(3) |
|
(6) |
Increase of provisions for legal contingencies |
|
(13) |
|
(14) |
Costs with organizational restructuring programmes |
|
(20) |
|
(20) |
Assets write-offs and gains/losses in sale of tangible assets |
|
(11) |
|
(11) |
Changes to benefit plans and actuarial assumptions |
|
1 |
|
(3) |
Employees exceptional awards |
|
(27) |
|
(24) |
Fair value of energy price fixing derivative instruments |
|
(7) |
|
0 |
Other |
|
(1) |
|
(1) |
Total |
|
(119) |
|
(80) |
As announced on 19 March 2024, was created with an initial allocation of €40 million, the Jerónimo Martins Foundation, which aims to expand the scale and increase the reach of the Group’s social and solidarity initiatives.