15 Inventories

Materials and supplies as well as merchandise are measured at costs of purchase, which are generally determined using the average cost method. Work in progress and finished goods are measured at costs of conversion. In addition to direct materials as well as direct labor, costs of conversion include an appropriate portion of materials and production overheads as well as production-related depreciation and production-related administrative expenses. In addition, the costs of company retirement benefits, the Company’s social establishments and the Company’s voluntary social benefits are also included to the extent that these can be allocated to the production area.

Write-downs are recorded on inventories when the costs of purchase or conversion exceed the estimated net realizable value. The net realizable value is the estimated price that could be obtained in the ordinary course of business, less the estimated costs of completion, selling costs and other necessary costs (e.g. warehousing). If the reasons for a write-down no longer apply, it is reversed to the lower of cost or estimated net realizable value.

Inventories comprise the following:

The carrying amount of the inventories recognized at net realizable value amounted to €254,483k as of 30 September 2025 (prior year: €229,674k). Impairment losses of €33,349k (prior year: €24,222k) were recognized through profit or loss in the cost of sales. Reversals of impairment losses in the amount of €3,054k (prior year: €6,313k) were recognized through profit or loss. The cost of materials amounted to €680,577k and €658,680k, respectively, for fiscal years 2024/25 and 2023/24 These expenses are calculated according to the total cost method and include the costs of raw materials and supplies and purchased goods and services, plus any valuation allowances.