4.3Inventories
CHF million | December 31, 2024 | December 31, 2025 |
|---|---|---|
Raw materials and consumables | 72.1 | 54.8 |
Finished and semi-finished goods, trading goods | 260.1 | 252.6 |
Work in progress | 6.3 | 6.9 |
Allowance for inventories | – 79.5 | – 74.3 |
Inventories | 259.0 | 240.0 |
The allowance for inventories developed as follows:
CHF million | 2024 | 2025 |
|---|---|---|
Allowance for inventories at January 1 | – 75.5 | – 79.5 |
Utilization | 2.0 | 2.3 |
Additions (-) / reversals (+), (net) | – 5.3 | 1.4 |
Currency translation differences | – 0.7 | 1.5 |
Allowance for inventories at December 31 | – 79.5 | – 74.3 |
Significant accounting estimates and judgments
When assessing the value of inventories, estimates of their recoverability are necessary. The recoverability of the respective items is based on the expected consumption. The allowance for inventories is calculated at item level using a range of coverage analysis. The assumptions used in this analysis are reviewed annually and modified if necessary. Changes in sales volumes, the production process, or other circumstances may result in carrying amounts having to be adjusted accordingly (see Note 1.2).
Material accounting policies
Raw materials, consumables, and trading goods are measured at the lower of average cost or net realizable value. Semi-finished and finished goods are stated at the lower of manufacturing cost or net realizable value. The net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Allowances on inventories are recognized for slow-moving items and excess stock.