Note 6: Operating income

In 2022, was lower at €708 million (2021: €1,118 million), as a result of lower volumes and despite pricing initiatives more than compensating for raw material and freight cost inflation. Operating expenses increased as a result of higher manufacturing and supply chain costs. at 6.5% (2021: 11.7%).

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Costs by nature 2022

In € millions

Employee benefits

Amortization

Depreciation

Purchases and other costs

Total

Cost of sales

(550)

(1)

(152)

(6,220)

(6,923)

Selling and distribution expenses

(965)

(57)

(93)

(1,193)

(2,308)

General and administrative expenses

(263)

(24)

(24)

(338)

(649)

Research and development expenses

(182)

(5)

(12)

(59)

(258)

Other results

—

—

—

—

—

Total

(1,960)

(87)

(281)

(7,810)

(10,138)

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Costs by nature 2021

In € millions

Employee benefits

Amortization

Depreciation

Purchases and other costs

Total

Cost of sales*

(529)

—

(155)

(4,999)

(5,683)

Selling and distribution expenses*

(832)

(50)

(90)

(1,069)

(2,041)

General and administrative expenses

(267)

(16)

(23)

(276)

(582)

Research and development expenses

(168)

(4)

(13)

(45)

(230)

Other results

23

—

—

44

67

Total

(1,773)

(70)

(281)

(6,345)

(8,469)

*

Cost of sales and selling and distribution expenses for 2021 have been updated to reflect changes in the financial reporting structure related to recent changes in the organizational set-up and related governance structure, leading to a reclassification between cost of sales (decrease) and selling and distribution expenses (increase) of €49 million.
Operating income

Operating income is defined in accordance with IFRS and includes the relevant identified items. Adjusted operating income excludes identified items.

OPI margin

Operating income as a percentage of revenue.