IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements 5. Working Capital 5.1. Inventories Accounting policies Inventories are stated at the lower of cost and net sell value. The cost is calculated us- ing the weighted average cost and is equivalent to the acquisition cost less the value of quantity discounts. The costs of feeding staff in stores are reflected in staff costs, as a contra entry to stock regularization. The net realizable value corresponds to the estimated selling price in the normal course of business, less the selling costs. As at 31 December 2024 and 2023, the detail of the group’s inventories was as follows: dec/ 2024 dec/ 2023 Raw, subsidiary and consumable materials 14 690 268 12 683 617 Goods 799 968 576 653 15 490 236 13 260 270 Decreases -74 981 -74 981 Net Inventories 15 415 255 13 185 289 5.1.1. Cost of sales In 2024 the cost of inventories recognized as an expense and included in “cost of sales” totaled 112,773,859 euros (in 2023: 100,190,238 euros), as shown below: 2024 2023 M+MP Initial Inventory 13 260 270 13 159 117 Currency translation -40 359 -937 786 Purchases 119 025 364 105 667 770 Inventory adjustment -3 981 180 -4 438 593 Closing inventories M+MP 15 490 236 13 260 270 Cost of goods sold and materials consumed 112 773 859 100 190 238 The value of inventory adjustments refers, fundamentally, to employee meals at the workplace (as per note 4.3.2.) and other adjustments. 388