Accounting policy
Inventories are stated at the lower of cost and net realizable value. The cost of intermediates, work-in-progress, and finished goods includes directly attributable costs and related production overhead expenses.
Net realizable value is determined as the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
Value adjustments for slow-moving and obsolete inventories are made. Cost is generally determined using the weighted average cost formula, unless the nature of the inventories warrants the use of the first in, first out (FIFO) method of valuation.
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Raw materials and consumables |
|
624 |
|
926 |
Intermediates and finished goods |
|
1,593 |
|
2,481 |
|
|
2,217 |
|
3,407 |
|
|
|
|
|
Adjustments to lower net realizable value |
|
(96) |
|
(117) |
Total |
|
2,121 |
|
3,290 |
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Balance at January 1 |
|
(117) |
|
(107) |
|
|
|
|
|
Additions |
|
(122) |
|
(82) |
Utilization/reversals |
|
113 |
|
75 |
Exchange differences |
|
7 |
|
(5) |
Disposals |
|
6 |
|
2 |
Transfer |
|
– |
|
– |
Reclassification to held for sale |
|
17 |
|
– |
Balance at December 31 |
|
(96) |
|
(117) |
Inventories decreased by €1,169 million, mainly due to the reclassification to held for sale of the inventories relating to the ANH business in the amount of €1,042 million at the end of 2025.