Note 3 • Segment reporting
The Group has five main reportable segments, which consists of CIS & Baltics, EMEA, Latin America, Asia plus Manufacturing, as this is the structure of financial information reviewed by the Executive Committee. The purpose of the Group is selling cosmetics within the above organisation. The Group sales consists mainly of sales of Colour Cosmetics, Skin Care, Personal & Hair Care, Fragrances and Accessories & Wellness products. The segment Manufacturing is producing products mainly for the Group. Smaller quantities are produced for third parties as well. “All other segments” includes mail order business and licensee sales. The performance of each market and region is measured by the operating profit. Sales presented in the segment reporting are only revenues from external customers.
Some costs and capital expenditure are not identified as part of any operating segment and are therefore not allocated. Examples of such items are cost for corporate staff, IT costs and general marketing costs. Net financing costs and total income tax expense are also not allocated.
The accounting policies of the reportable segments are the same as described in note 2.
Summarised financial information concerning the reportable segments is shown in the following tables: