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Inventories are stated at the lower of cost or net realisable value. Costs incurred in bringing each product to its present location and conditions are accounted for as follows:
- Raw materials: Purchase cost on a first-in first-out basis
- Finished goods and work-in-progress: Cost of direct material and labour and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs
Consumables are written down with regard to their age, condition and utility. Net realisable value is the estimated selling price in the ordinary course of business, less estimated completion and selling costs.
Obsolete, redundant and slow-moving items are identified on a regular basis and are written down to their estimated net realisable values. The amount of the write-down is recognised in cost of sales in the year in which it occurs. |
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GROUP |
|
COMPANY |
| (R'million) |
2024 |
2023 |
|
2024 |
2023 |
| Raw materials |
3 639,1 |
2 992,2 |
|
|
|
| Partially processed goods (WIP) |
81,3 |
73,6 |
|
|
|
| Finished goods and merchandise |
3 299,7 |
4 252,1 |
|
|
|
| Consumable stores and minor spares |
387,3 |
166,6 |
|
|
|
| Other |
15,5 |
19,1 |
|
|
|
| Inventory value, net of provisions |
7 422,9 |
7 503,6 |
|
|
|
| Inventories carried at net realisable value included in total inventories |
274,1 |
17,4 |
|
|
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| Inventories written down and recognised in cost of sales as an expense |
314,1 |
216,3 |
|
|
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| Inventory provision deducted in arriving at total inventories net of provisions |
625,0 |
276,9 |
|
|
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| Inventory provision deducted in arriving at total inventories net of provisions as a result of the product recall |
5,0 |
363,4 |
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| Inventories written down and recognised in cost of sales as an expense as a result of the product recall |
– |
4,7 |
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