Gross margin is 26.9% (2005/2006: 26.5%) of net sales. After adjusting for profit charges arising from the carve-out (Glossary)  (see Note 29), the gross margin is 27.5% (2005/2006: 27.5%).

The currency gains and losses of –€1,872k (previous year –€6,999k) shown in the Group income statement are essentially comprised within the cost of sales.