27. Net finance result
|
(in millions of euros) |
2025 |
2024 |
|
Interest income from financial assets |
11 |
12 |
|
Exchange rate differences |
1 |
6 |
|
Other financial income |
20 |
42 |
|
Financing income |
32 |
60 |
|
Interest expense from financial liabilities measured at amortised cost |
-50 |
-12 |
|
Interest expense from lease obligations |
-2 |
-2 |
|
Exchange rate differences |
- |
-8 |
|
Interest expense resulting from accrual of provisions/other employee benefits |
-3 |
-3 |
|
Other financial expenses |
-5 |
-5 |
|
Finance expense |
-60 |
-30 |
|
Net finance result included in the income statement |
-28 |
30 |
With effect from 2024, the Group has started to allocate construction interest to works and equipment under construction. The interest expenses from financial liabilities measured at amortised cost can be broken down as follows:
|
(in millions of euros) |
2025 |
2024 |
|
Gross interest expense from financial liabilities measured at amortised cost |
-71 |
-59 |
|
Capitalised construction interest |
21 |
47 |
|
Interest expense from financial liabilities measured at amortised cost |
-50 |
-12 |
In 2024, an amount of €14 million was recognised under other financial income as a result of the release of provisions and guarantees in relation to the insolvency proceedings in Germany (see note 30).
Accounting policy
Finance income comprises interest income on invested funds, lease income, gains on the sale of available-for-sale financial assets and gains on hedging instruments recognised in the income statement. Interest income is recognised in the income statement as it accrues, using the effective interest method. Dividend income is recognised in the income statement when the right to payment is established.
Finance costs comprise interest expenses on borrowings, lease contracts, the accrual of provisions and losses on hedging instruments that are recognised in the income statement. All financing costs that are not directly attributable to the acquisition, construction, or production of a qualifying asset are recognised in the income statement using the effective interest method.
Foreign exchange gains and losses are included in financial income or expenses.