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 €97.9 million to €4,929.8 million in 2025 (2024: €5,027.7 million), mainly due to the slight reduction in revenue.

The total personnel expenses recognized under functional costs rose by €199.0 million to €3,513.4 million (2024: €3,314.4 million). This rise primarily related to expenses in connection with the efficiency program that was initiated at the start of February 2025 in order to strengthen long-term competitiveness and capacity to carry out capital investment. The program involved adapting organizational structures and capacity in the EMEA region (‘efficiency program’). Increases in salaries and collectively agreed pay and higher variable remuneration components also contributed to the rise in personnel expenses.

Personnel expenses included wages and salaries of €2,791.8 million (2024: €2,642.0 million), social security contributions of €647.0 million (2024: €595.5 million), and post-employment benefit costs and other benefits of €74.7 million (2024: €77.0 million). Post-employment benefit costs comprised a service cost from defined benefit pension plans of €23.6 million (2024: €31.2 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 €1,158.9 million in the reporting year (2024: €1,110.8 million) and are recognized under functional costs.

The average number of employees (part-time staff included on a pro rata basis; including trainees and apprentices) by region was as follows:

The KION Group employed an average of 787 trainees and apprentices in 2025 (2024: 748).