[8] Cost of sales and other functional costs

The total cost of materials recognized under functional costs in the consolidated income statement went down by €153.8 million to €5,027.7 million in 2024 (2023: €5,181.5 million), mainly due to a slight reduction in prices for materials.

The total personnel expenses recognized under functional costs rose by €144.8 million to €3,314.4 million (2023: €3,169.6 million). This rise can be explained by the growth in the average number of employees for the year and general salary increases.

Personnel expenses included wages and salaries of €2,642.0 million (2023: €2,534.1 million), social security contributions of €595.5 million (2023: €565.0 million), and post-employment benefit costs and other benefits of €77.0 million (2023: €70.5 million). Post-employment benefit costs and other benefits comprised a current service cost from defined benefit pension plans of €31.2 million (2023: €26.5 million). The interest cost from the unwinding of the discount on estimated pension obligations is not recognized under personnel expenses and is instead reported under financial expenses as a component of Interest expense.

Depreciation expenses on property, plant and equipment together with amortization expenses on intangible assets totaled €1,110.8 million in the reporting year (2023: €1,046.6 million) and are recognized under functional costs.