Operating costs (Tables)

12 Months Ended

Dec. 31, 2023

Analysis of income and expense [abstract]

Disclosure of Gross Profit and Operating Cost Explanatory


	€ million	€ million	€ million
	2023	2022	2021
Turnover	59,604	60,073	52,444
Cost of sales	(34,429)	(35,906)	(30,259)
of which:
Distribution costs	(3,549)	(3,787)	(3,313)
Production costs	(3,969)	(3,995)	(3,678)
Raw and packaging materials and goods purchased for resale	(25,084)	(26,360)	(21,799)
Other	(1,827)	(1,764)	(1,469)
Gross profit	25,175	24,167	22,185
Selling and administrative expenses	(15,244)	(14,484)	(12,549)
of which:
Brand and marketing investment	(8,546)	(7,821)	(6,873)
Overheads	(6,698)	(6,663)	(5,676)
of which: Research and development(a)	(949)	(908)	(847)


Gain on disposal of group companies(b)	489	2,335	36
Acquisition and disposal-related costs(c)	(242)	(50)	(332)
Restructuring costs(d)	(499)	(777)	(632)
Impairments(e)	(1)	(221)	(17)
Other(f)	80	(215)	11
Operating profit	9,758	10,755	8,702

(a)From 2022, research and development costs include patent costs. 2023 include patent costs of €29 million (2022: €28 million). 2021 has not been restated. Patent cost in 2021 were €27 million.

(b)2023 includes a gain of €497 million related to the disposal of Suave business in North America. 2022 includes a gain of €2,303 million related to the disposal of the global tea business.

(c)2023 includes a charge of €104 million for the revaluation of the minority interest liability of Nutrafol, €43 million relating to the disposal of Elida Beauty and €10 million (2022: €42 million) relating to the disposal of the global tea business.

(d)Restructuring costs are comprised of strategic organisational change programmes (including Compass), and transformational technology and supply chain projects.

(e)2022 includes an impairment charge of €192 million relating to Dollar Shave Club.

(f)2023 includes €28 million net release after utilisation to the provision (2022: €89 million charge) relating to a product recall and market withdrawal by The Laundress, €107 million release (2022: €82 million charge) relating to legal provisions for ongoing competition investigations and €54 million charge (2022: €42 million charge) relating to our businesses in Russia and Ukraine.