20. INVENTORIES
 
Company   Group
2023
Rm
2022
Rm
  2023
Rm
2022
Rm
      Raw materials and packaging 291 180
Semi-finished goods 6 9
Finished goods and merchandise 1 018 1 097
  1 315 1 286

Inventory at year-end is net of an obsolescence provision of R130 million (2022: R114 million), which is determined on an annual basis. The net movement of R16 million has been included in the cost of sales line item on the face of the statement of comprehensive income.

The provision takes into account expected future sales ability of inventory items based on historical experience, analysis of market and fashion trends and a review of the ageing of the inventory items.

Inventory losses recognised as an expense totalled R15 million (2022: R14 million).