The market values by type of hedging are as follows:
| € millions | 2024 | 2023 | 2022 |
|---|---|---|---|
| Fair value hedges(1) | Fair value hedges (1)2024 0.1 |
Fair value hedges (1)2023 47.9 |
Fair value hedges (1)2022 (42.7) |
| Cash flow hedges | Cash flow hedges 2024 (82.2) |
Cash flow hedges 2023 2.7 |
Cash flow hedges 2022 133.4 |
| TOTAL | TOTAL 2024 (82.1) |
TOTAL 2023 50.6 |
TOTAL 2022 90.7 |
The fair value of the derivatives is their market value.
Accounting principles
Foreign exchange gains and losses resulting from the difference between the value of foreign currency operating income and expenses translated at the spot rate effective on the transaction date and at the exchange rate effective on the settlement date are recognised directly on the appropriate income and expense lines, after allowing for hedging derivatives.
Foreign exchange gains and losses break down as follows:
| € millions | 2024 | 2023 | 2022 |
|---|---|---|---|
| Time value | Time value 2024 (9.6) |
Time value 2023 (121.7) |
Time value 2022 (105.1) |
| Other foreign exchange gains and losses | Other foreign exchange gains and losses 2024 9.0 |
Other foreign exchange gains and losses 2023 41.1 |
Other foreign exchange gains and losses 2022 (309.6) |
| TOTAL | TOTAL 2024 (0.6) |
TOTAL 2023 (80.6) |
TOTAL 2022 (414.7) |
Foreign currency transactions are translated at the spot rate at the transaction date.
Assets and liabilities denominated in foreign currencies have been translated using the exchange rates effective at the closing date. Foreign exchange gains and losses also include the following items relating to derivative instruments:
These amounts are allocated to the appropriate operating expense items. They are broken down as follows:
| € millions | 2024 | 2023 | 2022 |
|---|---|---|---|
| Cost of sales | Cost of sales 2024 (0.4) |
Cost of sales 2023 (49.2) |
Cost of sales 2022 (324.2) |
| Research and innovation expenses | Research and innovation expenses 2024 (0.1) |
Research and innovation expenses 2023 (12.0) |
Research and innovation expenses 2022 29.6 |
| Advertising and promotion expenses | Advertising and promotion expenses 2024 (0.1) |
Advertising and promotion expenses 2023 (8.7) |
Advertising and promotion expenses 2022 (61.5) |
| Selling, general and administrative expenses | Selling, general and administrative expenses 2024 (0.1) |
Selling, general and administrative expenses 2023 (10.7) |
Selling, general and administrative expenses 2022 (58.7) |
| FOREIGN EXCHANGE GAINS AND LOSSES | FOREIGN EXCHANGE GAINS AND LOSSES 2024 (0.6) |
FOREIGN EXCHANGE GAINS AND LOSSES 2023 (80.6) |
FOREIGN EXCHANGE GAINS AND LOSSES 2022 (414.7) |
The Group did not have any interest rate hedging instruments at 31 December 2024, 2023 and 2022.
An increase of 100 basis points in interest rates would have had a direct positive impact of €39.7 million on the Group’s net finance costs at 31 December 2024, compared with a direct positive impact of €34.7 million at 31 December 2023 and a direct positive impact of €9.8 million at 31 December 2022. This calculation allows for cash, cash equivalents and derivatives, and assumes that total net debt/cash remains stable and that fixed-rate debt at maturity is replaced by floating-rate debt.
The impact of a 100 basis point rise in interest rates on the fair value of the Group’s fixed-rate financial assets and liabilities, after allowing for any interest rate derivatives, can be estimated at -€64.9 million at 31 December 2024 compared with -€60.2 million at 31 December 2023 and –€23.9 million at 31 December 2022.
