Once again this year, our aim was to improve our cost structure with the help of the Group-wide “ProImprove” program. Despite our efforts, however, in fiscal 2008/2009 the gross margin from net sales before profit charges arising from the carve-out (Glossary) fell 1.5 percentage points to 25.9% (2007/2008: 27.4%). This decline in our margin was due to the disproportionately high fall in prices triggered by lower global demand.
Research and Development costs over the reporting period were down €2 million to €103 million (2007/2008: €105 million), equivalent to a fall of 2% on the previous year. By contrast, the R&D ratio rose to 4.6% (2007/2008: 4.5%). This underlines the importance that we attach to the development of innovations as part of our business strategy.
Thanks to strict cost management, the ratio of selling, general and administration expenses to net sales fell 0.7 percentage points to 13.3% (2007/2008: 14.0%). Selling, general and administration expenses, including other operating income and expenses, amounted to €300 million (2007/2008: €325 million).
