2009 1st Half Report - Indesit

Half-year report at 30 June 2009
8. NOTES TO THE CONSOLIDATED INCOME STATEMENT, BALANCE SHEET AND
STATEMENT OF CASH FLOWS
8.1. Revenue
Revenue is analysed as follows:
(million Euro)
30 June 2009 30 June 2008
Revenue from sale of finished products 1.102,1 1.421,9
Revenue from provision of services 101,6 103,4
Total Revenue 1.203,7 1.525,3
Revenues from the provision of services relate to services provided to customers (transport)
and to end consumers (after-sales maintenance) and to the sale of extended warranties
beyond the legal minimum period.
8.2. Cost of sales
Cost of sales consists of all production-related costs and mainly comprises the cost of raw
materials and components, external processing, direct and indirect labour, the depreciation
of property, plant and equipment, internal handling and logistics, inventory write-downs,
provisions for product warranty and provisions for risks and charges, research and
development expenses that are not capitalised.
Cost of sales is analysed below by type of expenditure.
(million Euro )
30 June 2009 30 June 2008
Change in the inventories of finished products 1,6 133,9
Purchase of raw materials, components, materials and change in inventories (655,4) (974,1)
Services (66,2) (75,5)
Payroll costs (131,9) (171,6)
Depreciation and amortization (55,6) (52,3)
Other expenses (45,9) (23,6)
Other income 15,9 20,6
Total (937,6) (1.142,6)
The cost of sales fell by slightly less than the decrease in volume. This was due to the lower
absorption of industrial overheads, partially offset by the lower cost of raw materials, an
improvement in production efficiency and the positive effect of the depreciation of the Polish
zloty and Russian rouble on the production costs incurred in those currencies.
8.3. Selling and distribution expenses
Selling and distribution expenses comprise all the costs incurred to commercialise products,
including advertising and promotion, and provide after-sales services, as well as the costs of
distributing products to the Group's warehouses and to customers.
Selling and distribution expenses are analysed below by type.
(million Euro )
30 June 2009 30 June 2008
Change in the inventories of finished products (0,6) (0,4)
Purchase of raw materials, components, materials and change in inventories (3,6) (6,8)
Services (128,6) (173,5)
Payroll costs (47,5) (53,1)
Depreciation and amortization (4,8) (4,1)
Other expenses (17,3) (21,6)
Other income 4,2 7,6
Total (198,2) (251,9)
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