Trade receivables

12 Months Ended

Dec. 31, 2023

Trade and other receivables [abstract]

15 Trade receivables

Trade receivables are due primarily from distributors and retailers who sell directly to end customers.

Trade receivables disaggregated by nature of the relationship with the customers are as follows:


	31/12/23			31/12/22
Third parties		29,601			37,203
Related parties		7,966			7,457
Gross trade receivables		37,567			44,660
Allowance for doubtful accounts		(4,263	)		(5,604	)
Total trade receivables		33,304			39,056

Transactions with related parties are conducted at arm’s length (see note 43).

Trade receivables by geographic region are analysed as follows:


	31/12/23			31/12/22
Italian customers		8,349			10,124
Other European customers		6,553			10,761
North American customers		9,182			8,233
Chinese customers		4,347			5,589
South American customers		5,447			5,047
Other foreign customers		3,689			4,906
Gross trade receivables		37,567			44,660
Provision for doubtful accounts		(4,263	)		(5,604	)
Total trade receivables		33,304			39,056

The following tables provide the movements in the provision for doubtful accounts for the years ended December 31, 2023 and 2022.


	31/12/23			31/12/22
Balance at beginning of year		5,604			5,325
Charges – bad debt expense		33			330
Reductions – write off of uncollectible amounts		(1,409	)		(95	)
Foreign exchange effect		35			44
Balance at end of year		4,263			5,604

The Parent sold trade receivables to a financial institution for cash advances (for further details, see note 31(C)(iii)). These trade receivables have not been derecognized from the statement of financial position, because the Parent retains substantially all of the risks and rewards – primarily credit risk. The amount received on their transfer has been recognised as a secured bank borrowing (see note 26). The arrangement with the financial institution is such that the customers remit cash directly to the Parent and the Parent transfers the collected amounts to the financial institution. The receivables are considered to be held within a held‑to‑collect business model consistent with the Group’s continuing recognition of the receivables.

The following information shows the reporting-date carrying amount of trade receivables that have been transferred but have not been derecognised and the associated liabilities.


	31/12/23			31/12/22
Carrying amount of trade receivables transferred		11,412			18,670
Carrying amount of associated liabilities		(10,752	)		(17,307	)
Total, net		660			1,363

Information about the Group’s exposure to credit risk and impairment losses for trade receivables is included in note 31(C)(ii-a).