The statement of comprehensive income is presented using the total cost method.

1 Sales revenues

Revenue is recognized in the regions where it is actually generated. It is therefore essential that regions are regarded as revenue-generating centers, as this will significantly influence the nature, amount, timing, uncertainties, and cash flows of revenue. For this reason, revenue is categorized by region.

For more detailed revenue breakdowns, please refer to the consolidated segment reporting. 
 

2 Other operating income

Other operating income includes, among other items, a reversal of liabilities amounting to EUR 735 thousand and a pass-through of costs for special vehicle equipment amounting to EUR 487 thousand.

3 Cost of materials

4 Personnel expenses/employees

The average number of employees in the Uzin Utz Group during the year was as follows:

The number of employees is calculated by taking part-time employees into account on a pro rata basis; therefore, it does not represent the actual number of employees but rather a percentage (full-time equivalent).

At present, there are no stock option plans or similar securities-based incentive programs for employees.

5 Other operating expenses

The following table shows the composition of other operating expenses.

Other taxes include property taxes, vehicle taxes, and miscellaneous taxes.

After offsetting the foreign exchange gains included in other operating income, this resulted in a foreign exchange loss of EUR 2,475 thousand (previous year: foreign exchange gain of EUR 1,316 thousand).

6 Result from investments accounted for using the equity method

Two associates and one joint venture are accounted for using the equity method.

Artiso solutions GmbH, in which the Company holds a 50.0 % (50.0) stake, is accounted for using the equity method due to the Company's significant influence. Artiso Solutions GmbH is an innovative IT company that develops custom software. The company's financial statements are prepared in accordance with IFRS.

P.T. Uzin Utz Indonesia, in which the Company holds a 49.0 % (49.0) stake, is accounted for as a joint venture using the equity method. P.T. Uzin Utz Indonesia is a leading manufacturer and distributor of construction chemicals under the UZIN brand. The company's financial statements are prepared in accordance with local law, and any differences from IFRS are immaterial.

FP Floor Protector GmbH, in which the Company holds a 25.1 % (25.1) stake, is accounted for using the equity method due to the Company's significant influence. FP Floor Protector GmbH is a leading developer of innovative solutions for hardwood flooring. The Company's financial statements are prepared in accordance with local law, and any differences from IFRS are immaterial.

The following table presents the statement of comprehensive income for the equity-method investment in artiso solutions GmbH:

The following table presents the statement of comprehensive income for the equity-accounted investment in P.T. Uzin Utz Indonesia:

The following table presents the statement of comprehensive income for the equity-method investment in FP Floor Protector GmbH:

7 Financial income

8 Financial expenses

During the reporting year, an expense of EUR 47 thousand (27) was recognized for long-term liabilities to banks. In the reporting year, interest of EUR 0 thousand was capitalized as part of the construction of property, plant and equipment (0).

Other financial expenses may include the impairment of other financial assets.

9 Taxes on income

The breakdown of tax expense is as follows:

Deferred taxes were generally recognized based on the tax rate applicable to or adopted by the respective company. For the calculation of deferred taxes on consolidation adjustments recognized in income, the combined tax rate of the parent company 28.4% was used for simplicity. To determine deferred taxes on loss carryforwards, the tax rate of the respective country where the company is headquartered was used. Accordingly, when recognizing deferred taxes on loss carryforwards for domestic companies, applicable tax rates for trade tax (depending on the respective trade tax rates) ranging from 12.6% to 15.4% and for corporate income tax, including the solidarity surcharge, of 15.8% were used.

Tax expense, calculated based on income before income taxes and the simplified combined tax rate of 28.4% applicable to the Uzin Utz Group's German companies (theoretical tax expense), is reconciled to actual tax expense as follows:

The effective tax rate is 28.6% (25.9).

The actual tax expense is EUR 528 thousand lower than the expected tax expense that would result from applying the parent company's tax rate.

The reduction in the corporate income tax rate scheduled to take effect in Germany in 2028 will require a revaluation of deferred taxes for domestic subsidiaries in 2025. This will have an immaterial effect.

The change in deferred taxes resulted in an impact on tax expense of EUR -116 thousand (177) for the fiscal year.

10 Non-controlling interests

The minority interest in earnings relates to the non-controlling interests in Uzin Utz Magyarország Kft. and Neopur GmbH. The minority interests in these companies are immaterial to Uzin Utz SE.