Depreciation, financial result and taxes

Depreciation/amortisation/impairment

Depreciation and amortisation are slightly up on the previous year, mainly because of rent increases in the leased store portfolio. Impairment losses included in the depreciation/amortisation/impairment item are significantly down on the prior-year figure, amounting to €53 million; they relate primarily to property, plant and equipment and goodwill. They are offset by reversals of impairment losses in an amount of €14 million.

Net financial result

Compared to the prior-year period – in which significant non-cash positive measurement effects resulted from intragroup rouble positions – changes in the exchange rate of the rouble did not have any comparable impact in the reporting period. The other investment result relates primarily to fair-value measurements. While impairment losses had to be recognised on WM Holding (HK) Limited in the previous year, the net effects recorded in the year under review were slightly positive.

Taxes

The current tax expense of financial year 2023/24 is mainly attributable to the profitable national subsidiaries and to withholding tax on licences. This was offset by high deferred tax income resulting from a change in local legislation in Turkey, which now also takes hyperinflationary effects into account. The previous year’s pre-tax result had been influenced by tax-free currency effects of the Russian rouble, the largely tax-free sale of parts of the METRO Campus and the business in India, and this had resulted in lower tax in relation to earnings.