Free cash flow amounted to EUR 96 million in fiscal year 2023 compared to EUR 166 million in the prior-year period. The year-over-year decline particularly reflects our significant step-up in investments, which was only partially offset by improvements in EBIT. Free cash flow is calculated as the sum of cash flow from operating activities and cash flow from investing activities.
Change in cash and cash equivalents
(in EUR million)
At EUR 394 million, cash flow from operating activities was 10% above the prior-year level (2022: EUR 357 million), largely reflecting improvements in EBIT. Trade net working capital, on the other hand, had no material impact on cash flow development in 2023. The significant increase in cash flow from investing activities to a level of EUR 298 million (2022: EUR 192 million) mainly reflects the step-up in capital expenditure in fiscal year 2023, aimed at supporting the successful execution of “CLAIM 5” through increased investments in our global store network, the further digitalization of our business model, as well as the expansion of our global logistics capacities. Financial Position, Capital Expenditure
At EUR 122 million, cash flow from financing activities decreased compared to the prior year (2022: EUR 307 million), mainly reflecting the higher cash inflow in connection with the issue of the Company’s first Schuldschein loan in 2023. Financial Position, Capital Structure and Financing