5. Revenue and Cost of Materials

Revenue recognized for the reporting period is as follows:

At EUR 638,977 thousand, net sales revenue in the first six months of 2023 was 2.7% higher than in the first six months of 2022 (EUR 622,289 thousand). In organic terms, sales revenue rose by 3.1% or EUR 19,086 thousand compared to the same period of the previous year, mainly as a result of price increase initiatives in all regions. 

Other revenue mainly includes proceeds from the sale of production residues from metal production that are no longer used.

Revenue for the first six months of 2023 includes income from the reversal of refund liabilities recognized in the prior period in the amount of EUR 841 thousand (H1 2022: EUR 552 thousand). The reversals represent the difference between the expected volume discounts and annual bonuses for customers recognized as of December 31, 2022, and the actual payment in the fiscal year as well as the differences from recognized deferred revenue from price negotiations with NORMA Group customers that were not concluded in the previous year.

At 43.8% (H1 2022: 47.6%), the ratio of cost of materials to sales, excluding changes in inventories, was significantly below the level of the prior-year period. As a percentage of total operating performance, cost of materials was 44.9% (H1 2022: 47.3%), which was below the level of the prior-year period. This is attributable to a targeted reduction in inventories in the first six months of fiscal year 2023, as a result of which cost of materials developed at a lower rate than revenue.