in EUR m | 2025 | 2024 | 2023 |
Trade receivables | 479.8 | 538.6 | 557.7 |
Trade receivables due from related parties | 7.9 | 8.7 | 7.7 |
487.7 | 547.3 | 565.4 | |
Allowance for expected credit losses (Note 4.6) | (58.8) | (80.0) | (152.0) |
Balance at December 31 | 428.9 | 467.3 | 413.4 |
The allowances mainly relate to customers experiencing difficult financial circumstances, with the majority of these amounts being overdue for more than two months, together with expected future credit losses. A portion of these receivables is expected to be recovered. The maximum expected credit risk to which the Group is exposed as at December 31, 2025, 2024 and 2023, is represented by the carrying amounts in the balance sheet. Information about the Group’s exposure to credit and market risks, and impairment losses for trade receivables is included in Note 4.6.
Trade receivables are recognized initially at the transaction price determined in accordance with IFRS 15 Revenue from Contracts with Customers and subsequently measured at amortized cost, less provision for impairment. The impairment provision is calculated applying the simplified approach of the Expected Credit Loss (“ECL”) model considering only the lifetime ECL. The provision includes an element based on historic credit loss experience, reflecting the average bad debt write-offs over the last three years and a forward-looking element, incorporating country specific credit default rates reflecting public information and expectation of changing conditions.