Gross margin is, as in the previous year, at 26.9% of net sales. After adjusting for profit charges arising from the carve-out (Glossary)  (see Note 29), the gross margin is 27.4% (2006/2007: 27.5%).

The currency gains and losses of €11,602k (2006/2007: –€1,872k) shown in the Group income statement are essentially comprised within the cost of sales.