2025 | 2024 | 2023 | |
Sterling | |||
Income statement and cash flows(1) | 0.77 | 0.80 | 0.83 |
Assets and liabilities(2) | 0.73 | 0.79 | 0.79 |
Euro | |||
Income statement and cash flows(1) | 0.92 | 0.93 | 0.96 |
Assets and liabilities(2) | 0.85 | 0.93 | 0.93 |
Accounting policies | ||
Sales comprise revenue from contracts with customers from the sale of goods, royalties and rents receivable. Revenue from the sale of goods includes excise and other duties which the group pays as principal but excludes duties and taxes collected on behalf of third parties, such as value added tax. Sales are recognised as or when performance obligations are satisfied by transferring control of a good or service to the customer, which is determined by considering, among other factors, the delivery terms agreed with customers. For the sale of goods, the transfer of control occurs when the significant risks and rewards of ownership are passed to the customer. Based on the shipping terms agreed with customers, the transfer of control of goods occurs at the time of dispatch for the majority of sales. Where the transfer of control is subsequent to the dispatch of goods, the time between dispatch and receipt by the customer is generally less than five days. The group includes in sales the net consideration to which it expects to be entitled. Sales are recognised to the extent that it is highly probable that a significant reversal will not occur. Therefore, sales are stated net of expected price discounts, allowances for customer loyalty and certain promotional activities and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing. | ||
Net sales are sales less excise duties. Diageo incurs excise duties throughout the world. In the majority of countries, excise duties are effectively a production tax which becomes payable when the product is removed from bonded premises and is not directly related to the value of sales. It is generally not included as a separate item on external invoices; increases in excise duty are not always passed on to the customer and where a customer fails to pay for products received the group cannot reclaim the excise duty. The group therefore recognises excise duty, unless it regards itself as an agent of the regulatory authorities, as a cost to the group. | ||
Advertising costs, point of sale materials and sponsorship payments are charged to marketing in operating profit when the company has a right of access to the goods or services acquired. | ||
Exceptional items are those that in management\u2019s judgement need to be disclosed separately. Such items are included in the income statement caption to which they relate, and form part of the segmental reporting. Management believes that separate disclosure of exceptional items and the classification between operating and non-operating further helps investors to understand the performance of the group. Changes in estimates and reversals in relation to items previously recognised as exceptional are presented consistently as exceptional in the current year. | ||
Accounting policies | ||
Exceptional items are those that in management\u2019s judgement need to be disclosed separately. Such items are included in the income statement caption to which they relate, and form part of the segmental reporting included in note 2. Management believes that separate disclosure of exceptional items and the classification between operating and non-operating further helps investors to understand the performance of the group. Changes in estimates and reversals in relation to items previously recognised as exceptional are presented consistently as exceptional in the current year. | ||
Operating items | ||
Exceptional operating items are those that are unusual or non- recurring in nature, considered to be of a size that could distort the performance and are part of the operating activities of the group, such as one-off global restructuring programmes which can be multi-year, impairment of intangible assets and fixed assets, indirect tax settlements, property disposals and changes in post-employment plans. | ||
Non-operating items | ||
Gains and losses on the sale or directly attributable to a prospective sale of businesses, brands or distribution rights, step up gains and losses that arise when an investment becomes an associate or an associate becomes a subsidiary and unusual non-recurring items, that are considered to be of a size that could distort performance and not in respect of the production, marketing and distribution of premium drinks, are disclosed as exceptional non-operating items below operating profit in the income statement. | ||
Exceptional finance income/charge | ||
Exceptional finance incomes/charges are those that are unusual or non-recurring in nature, considered to be of a size that could distort the performance and are part of the financing activity of the group. | ||
Taxation items | ||
Exceptional current and deferred tax items comprise unusual or non-recurring items, that are considered to be of a size that could distort performance. Examples include direct tax provisions and settlements in respect of prior years and the remeasurement of deferred tax assets and liabilities following tax rate changes.\u00a0 | ||
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Accounting policies | ||
Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences between accounting and tax treatments, and due to items that are never taxable or tax deductible. Tax treatments are not recognised unless it is probable that a tax authority will accept the treatment. Once considered to be probable, tax treatments are reviewed each year to assess whether a provision should be taken against full recognition of the treatment on the basis of potential settlement through negotiation and/or litigation with the relevant tax authorities. Tax provisions are included in current liabilities. Penalties and interest on tax liabilities are included in operating profit and finance charges, respectively. Full provision for deferred tax is made for temporary differences between the carrying value of assets and liabilities for financial reporting purposes and their value for tax purposes, except for deferred tax provision arising on goodwill from business combinations. The amount of deferred tax reflects the expected recoverable amount and is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using the basis of taxation enacted or substantively enacted by the balance sheet date. Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in the future. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where the group is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable future, or where no liability would arise on the remittance. | ||
Critical accounting estimates and judgements | ||
The group is required to estimate the corporate tax in each of the jurisdictions in which it operates. Management is required to estimate the amount that should be recognised as a tax liability or tax asset in many countries which are subject to tax audits which by their nature are often complex and can take several years to resolve; current tax balances are based on such estimations. Tax provisions are based on management\u2019s judgement and interpretation of country specific tax law and the likelihood of settlement. However, the actual tax liabilities could differ from the provision and in such event the group would be required to make an adjustment in a subsequent period which could have a material impact on the group\u2019s profit for the year. The evaluation of deferred tax asset recoverability requires estimates to be made regarding the availability of future taxable income. For brands with an indefinite life, management\u2019s intention is to recover the book value through a potential sale in the future, and therefore the deferred tax on the brand value is generally recognised using the appropriate country capital gains tax rate. To the extent brands with an indefinite life have been impaired, management considers this to be an indication of recovery through use and in such a case deferred tax on the brand value is recognised using the appropriate country corporate income tax rate. | ||
Accounting policies | ||
The consolidated financial statements include the results of the company and its subsidiaries together with the group\u2019s attributable share of the results of associates and joint ventures. The results of subsidiaries acquired or sold are included in the income statement from, or up to, the date that control passes. Business combinations are accounted for using the acquisition method. Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. The consideration payable is measured at fair value and includes the fair value of any contingent consideration. Among other factors, the group considers the nature of, and compensation for the selling shareholders' continuing employment to determine if any contingent payments are for post-combination employee services, which are excluded from consideration. On the acquisition of a business, or of an interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are attributed to the net assets, including identifiable intangible assets and contingent liabilities acquired. Directly attributable acquisition costs in respect of subsidiary companies acquired are recognised in other external charges as incurred. The non-controlling interests on the date of acquisition can be measured either at the fair value or at the non-controlling shareholder\u2019s proportion of the net fair value of the identifiable assets assumed. This choice is made separately for each acquisition. Where the group has issued a put option over shares held by a non-controlling interest, the group derecognises the non-controlling interests and instead recognises a contingent deferred consideration liability for the estimated amount likely to be paid to the non-controlling interest on the exercise of those options. Movements in the estimated liability in respect of put options are recognised in retained earnings. Transactions with non-controlling interests are recorded directly in retained earnings. For all entities in which the company directly or indirectly owns equity,\u00a0a judgement is made to determine whether it controls and therefore should fully consolidate the investee. An assessment is carried out to determine\u00a0whether the group has the exposure or rights to the variable returns of the investee and has the ability to affect those returns through its power over the investee. To establish control, an analysis is carried out of\u00a0the substantive and protective rights that the group and the other investors hold. This assessment\u00a0is dependent on the activities and purpose of the investee and the rights of the other shareholders, such as which party controls the board, executive committee and material policies of the investee. Determining whether the rights that the group holds are substantive, requires management\u00a0judgement. Where less than 50% of the equity of an investee is held, and the group holds significantly more voting rights than any other vote holder or organised group of vote holders, this may be an indicator of de facto control. An assessment is needed to determine all the factors relevant to the relationship with the investee to ascertain whether control has been established and whether the investee should be consolidated as a subsidiary. Where voting power and returns from an investment are split equally between two entities then the arrangement is accounted for as a joint venture. On an acquisition, fair values are attributed to the assets and liabilities acquired. This may involve material judgement to determine these values. | ||
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Accounting policies | ||
Land and buildings are stated at cost less accumulated depreciation. Freehold land is not depreciated. Leaseholds are generally depreciated over the unexpired period of the lease. Other property, plant and equipment are depreciated on a straight-line basis to estimated residual values over their expected useful lives, and these values and lives are reviewed each year. Subject to these reviews, the estimated useful lives fall within the following ranges: buildings \u2013 10 to 50 years; casks and containers within plant and equipment \u2013 15 to 50 years; other plant and equipment \u2013 5 to 40 years; fixtures and fittings \u2013 5 to 10 years; and returnable bottles, kegs and crates \u2013 5 to 30 years. Reviews are carried out if there is an indication that assets may be impaired, to ensure that property, plant and equipment are not carried at above their recoverable amounts. |
Government grants | ||
Government grants are not recognised until there is reasonable assurance that the group will comply with the conditions pursuant to which they have been granted and that the grants will be received. Government grants in respect of property, plant and equipment are deducted from the asset that they relate to, reducing the depreciation expense charged to the income statement. | ||
Accounting policies | ||
Biological assets held by the group consist of agave (Agave Azul Tequilana Weber) plants. The harvested plants are used during the production of tequila. The maturity cycle of agave ranges between six and eight years; based on this, biological assets are classified as mature and immature. Mature biological assets are measured at fair value less costs to sell on initial recognition and at the end of each reporting period based on the present value of future cash flows discounted at an appropriate rate for Mexico (income approach as per IFRS 13). Immature biological assets are plants that have not reached the point of maturity because their sugar content yield and weight is not enough to be harvested and there is no active market for such plants; consequently the company accounts for these assets by applying fair valuation using the cost approach (replacement cost). | ||
Accounting policies | ||
Where the group is the lessee, all leases are recognised on the balance sheet as right-of-use assets as part of property, plant and equipment, and depreciated on a straight-line basis with the charge recognised in cost of sales or in other operating items depending on the nature of the costs. The liability, recognised as part of net borrowings, is measured at a discounted value and any interest is charged to finance charges. The group recognises services associated with a lease as other operating expenses. Payments associated with leases where the value of the asset when it is new is lower than $5,000 (leases of low value assets) and leases with a lease term of 12 months or less (short-term leases) are recognised as other operating expenses. A judgement in calculating the lease liability at initial recognition includes determining the lease term where extension or termination options exist. In such instances, any economic incentive to retain or end a lease are considered and extension periods are only included when it is considered reasonably certain that an option to extend a lease will be exercised. | ||
Accounting policies | ||
Other investments are equity investments that are not classified as investments in associates or joint arrangements nor investments in subsidiaries. They are included in non-current assets. Subsequent to initial measurement, other investments are stated at fair value. Gains and losses arising from the changes in fair value are recognised in the income statement or in other comprehensive income. Accumulated gains and losses included in other comprehensive income are not recycled to the income statement. Dividends from other investments are recognised in the consolidated income statement. Loans receivable are non-derivative financial assets that are not classified as equity investments. They are subsequently measured either at amortised cost using the effective interest method less allowance for impairment or at fair value with gains and losses arising from changes in fair value recognised in the income statement or in other comprehensive income that are recycled to the income statement on the de-recognition of the asset. Allowances for expected credit losses are made based on the risk of non-payment taking into account ageing, previous experience, economic conditions and forward-looking data. Such allowances are measured as either 12-months expected credit losses or lifetime expected credit losses depending on changes in the credit quality of the counterparty. | ||
Accounting policies | ||
The group\u2019s principal post-employment funds are defined benefit plans. In addition, the group has defined contribution plans, unfunded post-employment medical benefit liabilities and other unfunded defined benefit post-employment liabilities. For post- employment plans other than defined contribution plans, the amount charged to operating profit is the cost of accruing pension benefits promised to employees over the year, plus any changes arising on benefits granted to members by the group during the year. Net finance charges comprise the net deficit/ surplus on the plans at the beginning of the year, adjusted for cash flows in the year, multiplied by the discount rate for plan liabilities. The differences between the fair value of the plans\u2019 assets and the present value of the plans\u2019 liabilities are disclosed as an asset or liability on the consolidated balance sheet. Any differences due to changes in assumptions or experience are recognised in other comprehensive income. The amount of any pension fund asset recognised on the balance sheet is limited to any future refunds from the plan or the present value of reductions in future contributions to the plan. Contributions payable by the group in respect of defined contribution plans are charged to operating profit as incurred. | ||
Critical accounting estimates and judgements | ||
Application of IAS 19 requires the exercise of estimates and judgement in relation to various assumptions. Diageo determines the assumptions on a country-by-country basis in conjunction with its actuaries. Estimates are required in respect of uncertain future events, including the life expectancy of members of the plans, salary and pension increases, future inflation rates, discount rates and employee and pensioner demographics. The application of different assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive income and the balance sheet. There may be interdependencies between the assumptions. Where there is an accounting surplus on a defined benefit plan, management judgement is necessary to determine whether the group can obtain economic benefits through a refund of the surplus or by reducing future contributions to the plan. | ||
Accounting policies | ||
Inventories are stated at the lower of cost and net realisable value. Cost includes raw materials, direct labour and expenses, an appropriate proportion of production and other overheads, but not borrowing costs. All maturing inventories and raw materials are classified as current assets, as they are expected to be realised in the normal operating cycle which can be a period of several years. | ||
Trade and other receivables are initially recognised at fair value less transaction costs and subsequently carried at amortised cost\u00a0less any allowance for discounts and doubtful debts. Trade\u00a0receivables arise from contracts with customers, and are recognised when performance obligations are satisfied, and the consideration due is unconditional as only the passage of time is required before the payment is received. Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk. | ||
Trade and other payables are initially recognised at fair value including transaction costs and subsequently carried at amortised costs. Contingent considerations recognised in business combinations are subsequently measured at fair value through income statement. The group evaluates supplier arrangements against a number of indicators to assess if the liability has the characteristics of a trade payable or should be classified as borrowings. This assessment considers the commercial purpose of the facility, whether payment terms are similar to customary payment terms, whether the group is legally discharged from its obligation towards suppliers before the end of the original payment term, and the group\u2019s involvement in agreeing terms between banks and suppliers. | ||
Provisions are liabilities of uncertain timing or amount. A\u00a0provision is recognised if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are calculated on a discounted basis. The carrying amounts of provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. | ||
Accounting policies | ||
Financial assets and liabilities are initially recorded at fair value including, where permitted by IFRS 9, any directly attributable transaction costs. For those financial assets that are not subsequently held at fair value, the group assesses whether there is evidence of impairment at each balance sheet date. The group classifies its financial assets and liabilities into the following categories: financial assets and liabilities at amortised cost, financial assets and liabilities at fair value through income statement and financial assets at fair value through other comprehensive income. The accounting policies for other investments and loans are described in note 13, for trade and other receivables and payables in note 15 and for cash and cash equivalents in note 17. Financial assets and liabilities at fair value through income statement include derivative assets and liabilities. Where financial assets or liabilities are eligible to be carried at either amortised cost or fair value through other comprehensive income, the group does not apply the fair value option. Derivative financial instruments are carried at fair value using a discounted cash flow model based on market data applied consistently for similar types of instruments. Gains and losses on derivatives that do not qualify for hedge accounting treatment are taken to the income statement as they arise. Other financial liabilities are carried at amortised cost unless they are part of a fair value hedge relationship when the amortised cost of the financial liabilities is adjusted with the fair value change attributable to the risk being hedged from the inception of the hedge relationship. The difference between the initial carrying amount of the financial liabilities and their redemption value is recognised in the income statement over the contractual terms using the effective interest rate method. Financial liabilities in respect of the Zacapa acquisition are recognised at fair value. | ||
Hedge accounting | ||
The group designates and documents certain derivatives as hedging instruments against changes in fair value of recognised assets and liabilities (fair value hedges), commodity price risk of highly probable forecast transactions, as well as the cash flow risk from changes in exchange or interest rates (cash flow hedges) and hedges of net investments in foreign operations (net investment hedges). Derivative instruments designated in hedge relationship are included in other financial assets and liabilities on the consolidated balance sheet. The effectiveness of such hedges is assessed at inception and at least on a quarterly basis, using prospective testing. Methods used for testing effectiveness include critical terms, regression analysis and hypothetical derivative models. Fair value hedges are used to manage the currency and/or interest rate risks to which the fair value of certain assets and liabilities are exposed. Changes in the fair value of the derivatives are recognised in the income statement, along with any changes in the relevant fair value of the underlying hedged asset or liability. If such a hedge relationship no longer meets hedge accounting criteria, fair value movements on the derivative continue to be taken to the income statement while any fair value adjustments made to the underlying hedged item to that date are amortised through the income statement over its remaining life using the effective interest rate method. Cash flow hedges are used to hedge the foreign currency risk of highly probable future foreign currency cash flows, the commodity price risk of highly probable future transactions, as well as the cash flow risk from changes in exchange or interest rates. The effective portion of the gain or loss on the hedges is recognised in other comprehensive income, while any ineffective part is recognised in the income statement. Amounts recorded in other comprehensive income are recycled to the income statement in the same period in which the underlying foreign currency, commodity or interest exposure affects the income statement. When a hedge relationship no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity is either transferred to the income statement or amortised over its remaining life using the effective interest rate method. Net investment hedges utilise either foreign currency borrowings or derivatives as hedging instruments. Foreign exchange differences arising on translation of net investments are recorded in other comprehensive income and included in the exchange reserve. Liabilities used as hedging instruments are revalued at closing exchange rates and the resulting gains or losses are also recognised in other comprehensive income to the extent that they are effective, with any ineffectiveness taken to the income statement. Foreign currency derivative contracts hedging net investments are carried at fair value. Effective fair value movements are recognised in other comprehensive income, with any ineffectiveness taken to the income statement. Cost of hedging model is applied in case of cross-currency interest rate swaps in net investment hedges. The fair value changes attributable to the spot component of the hedging instruments are designated to offset foreign exchange differences of net investments and therefore taken to net investment hedge reserve. The fair value changes attributable to the forward component of the hedging instruments (including currency basis) are taken to the cost of hedging reserve and amortised to the consolidated income statement. | ||
Accounting policies | ||
Borrowings are initially recognised at fair value net of transaction costs and are subsequently reported at amortised cost. Certain bonds are designated in fair value hedge relationship. In these cases, the amortised cost is adjusted for the fair value of the risk being hedged, with changes in value recognised in the income statement. The fair value adjustment is calculated using a discounted cash flow technique based on unadjusted market data.\u00a0 Bank overdrafts form an integral part of the group\u2019s cash management and are included as a component of net cash and cash equivalents in the consolidated statement of cash flows. Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and have an original maturity of three months or less, including money market deposits, commercial paper and investments. Net borrowings are defined as gross borrowings (short-term borrowings and long-term borrowings plus lease liabilities plus interest rate hedging instruments, cross currency interest rate swaps and foreign currency forwards and swaps used to manage borrowings) less cash and cash equivalents. | ||
Accounting policies | ||
Own shares represent shares and share options of Diageo plc that are held in treasury or by employee share trusts for the purpose of fulfilling obligations in respect of various employee share plans or were acquired as part of a share buyback programme. Own shares are treated as a deduction from equity until the shares are cancelled, reissued or disposed of and when vest are transferred from own shares to retained earnings at their weighted average cost. | ||
Share-based payments include share awards and options granted to directors and employees. The fair value of equity settled share options and share grants is initially measured at grant date based on Monte Carlo and Black Scholes models and is charged to the income statement over the vesting period. For equity settled shares, the credit is included in retained earnings. | ||
Dividends are recognised in the financial statements in the year in which they are approved. | ||
Accounting policies | ||
Provision is made for the anticipated settlement costs of legal or other disputes against the group where it is considered to be probable that a liability exists and a reliable estimate can be made of the likely outcome. Where it is possible that a settlement may be reached or it is not possible to make a reliable estimate of the estimated financial effect, appropriate disclosure is made but no provision created. | ||
Critical accounting judgements and estimates | ||
Judgement is necessary in assessing the likelihood that a claim will succeed, or a liability will arise, and an estimate to quantify the possible range of any settlement. Due to the inherent uncertainty in this evaluation process, actual losses may be different from the liability originally estimated. The group may be involved in legal proceedings in respect of which it is not possible to make a reliable estimate of any expected settlement. In such cases, appropriate disclosure is provided but no provision is made and no contingent liability is quantified. | ||
2025 | 2024 | 2023 | |
Sterling | |||
Income statement and cash flows(1) | 0.77 | 0.80 | 0.83 |
Assets and liabilities(2) | 0.73 | 0.79 | 0.79 |
Euro | |||
Income statement and cash flows(1) | 0.92 | 0.93 | 0.96 |
Assets and liabilities(2) | 0.85 | 0.93 | 0.93 |
Accounting policies | ||
Sales comprise revenue from contracts with customers from the sale of goods, royalties and rents receivable. Revenue from the sale of goods includes excise and other duties which the group pays as principal but excludes duties and taxes collected on behalf of third parties, such as value added tax. Sales are recognised as or when performance obligations are satisfied by transferring control of a good or service to the customer, which is determined by considering, among other factors, the delivery terms agreed with customers. For the sale of goods, the transfer of control occurs when the significant risks and rewards of ownership are passed to the customer. Based on the shipping terms agreed with customers, the transfer of control of goods occurs at the time of dispatch for the majority of sales. Where the transfer of control is subsequent to the dispatch of goods, the time between dispatch and receipt by the customer is generally less than five days. The group includes in sales the net consideration to which it expects to be entitled. Sales are recognised to the extent that it is highly probable that a significant reversal will not occur. Therefore, sales are stated net of expected price discounts, allowances for customer loyalty and certain promotional activities and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing. | ||
Net sales are sales less excise duties. Diageo incurs excise duties throughout the world. In the majority of countries, excise duties are effectively a production tax which becomes payable when the product is removed from bonded premises and is not directly related to the value of sales. It is generally not included as a separate item on external invoices; increases in excise duty are not always passed on to the customer and where a customer fails to pay for products received the group cannot reclaim the excise duty. The group therefore recognises excise duty, unless it regards itself as an agent of the regulatory authorities, as a cost to the group. | ||
Advertising costs, point of sale materials and sponsorship payments are charged to marketing in operating profit when the company has a right of access to the goods or services acquired. | ||
Exceptional items are those that in management\u2019s judgement need to be disclosed separately. Such items are included in the income statement caption to which they relate, and form part of the segmental reporting. Management believes that separate disclosure of exceptional items and the classification between operating and non-operating further helps investors to understand the performance of the group. Changes in estimates and reversals in relation to items previously recognised as exceptional are presented consistently as exceptional in the current year. | ||
North America | Europe | Asia Pacific | Latin America and Caribbean | Africa | Corporate and other | Total | |
2025 | $ million | $ million | $ million | $ million | $ million | $ million | $ million |
Sales | 8,636 | 8,037 | 6,082 | 2,390 | 2,684 | 135 | 27,964 |
Net sales | 7,973 | 4,821 | 3,635 | 1,847 | 1,834 | 135 | 20,245 |
Cost of sales | (2,734) | (1,866) | (1,581) | (704) | (1,077) | (35) | (7,997) |
Gross profit | 5,239 | 2,955 | 2,054 | 1,143 | 757 | 100 | 12,248 |
Marketing | (1,616) | (898) | (630) | (304) | (192) | (22) | (3,662) |
Other operating items | (570) | (755) | (494) | (311) | (282) | (470) | (2,882) |
Operating profit/(loss) before exceptional items | 3,053 | 1,302 | 930 | 528 | 283 | (392) | 5,704 |
Exceptional operating items(1) | (1,369) | ||||||
Operating profit/(loss) | 4,335 | ||||||
Non-operating items | (220) | ||||||
Net finance charges | (771) | ||||||
Share of after tax results of associates and joint ventures | 193 | ||||||
Profit before taxation | 3,537 |
North America | Europe | Asia Pacific | Latin America and Caribbean | Africa | Corporate and other | Total | |
2024 | $ million | $ million | $ million | $ million | $ million | $ million | $ million |
Sales | 8,514 | 8,024 | 6,320 | 2,432 | 2,478 | 123 | 27,891 |
Net sales | 7,908 | 4,804 | 3,817 | 1,839 | 1,778 | 123 | 20,269 |
Cost of sales | (2,559) | (1,890) | (1,606) | (728) | (1,195) | (36) | (8,014) |
Gross profit | 5,349 | 2,914 | 2,211 | 1,111 | 583 | 87 | 12,255 |
Marketing | (1,627) | (873) | (651) | (306) | (205) | (29) | (3,691) |
Other operating items | (486) | (662) | (497) | (303) | (247) | (424) | (2,619) |
Operating profit/(loss) before exceptional items | 3,236 | 1,379 | 1,063 | 502 | 131 | (366) | 5,945 |
Exceptional operating items(1) | 56 | ||||||
Operating profit/(loss) | 6,001 | ||||||
Non-operating items | (70) | ||||||
Net finance charges | (885) | ||||||
Share of after tax results of associates and joint ventures | 414 | ||||||
Profit before taxation | 5,460 |
North America | Europe | Asia Pacific | Latin America and Caribbean | Africa | Corporate and other | Total | |
2023 | $ million | $ million | $ million | $ million | $ million | $ million | $ million |
Sales | 8,859 | 7,245 | 6,484 | 2,714 | 2,864 | 104 | 28,270 |
Net sales | 8,109 | 4,303 | 3,841 | 2,159 | 2,039 | 104 | 20,555 |
Cost of sales | (2,810) | (1,652) | (1,588) | (800) | (1,320) | (39) | (8,209) |
Gross profit | 5,299 | 2,651 | 2,253 | 1,359 | 719 | 65 | 12,346 |
Marketing | (1,631) | (765) | (655) | (355) | (235) | (22) | (3,663) |
Other operating items | (446) | (574) | (494) | (221) | (195) | (440) | (2,370) |
Operating profit/(loss) before exceptional items | 3,222 | 1,312 | 1,104 | 783 | 289 | (397) | 6,313 |
Exceptional operating items(1) | (766) | ||||||
Operating profit/(loss) | 5,547 | ||||||
Non-operating items | 364 | ||||||
Net finance charges | (712) | ||||||
Share of after tax results of associates and joint ventures | 443 | ||||||
Profit before taxation | 5,642 |
North America $ million | Europe $ million | Asia Pacific $ million | Latin America and Caribbean $ million | Africa $ million | Corporate and other(1) $ million | Total operating segments $ million | |
2025 | |||||||
Purchase of property, plant and equipment and computer software | 435 | 423 | 79 | 5 | 88 | 582 | 1,612 |
Depreciation and intangible asset amortisation | (186) | (272) | (135) | (38) | (101) | (16) | (748) |
Exceptional accelerated depreciation and impairment of tangible assets | (66) | (96) | (9) | (3) | \u2014 | \u2014 | (174) |
Exceptional impairment of intangible assets | (365) | (51) | \u2014 | \u2014 | \u2014 | \u2014 | (416) |
Exceptional impairment of associates and joint ventures | (215) | (142) | (23) | \u2014 | \u2014 | \u2014 | (380) |
2024 | |||||||
Purchase of property, plant and equipment and computer software | 305 | 338 | 154 | 6 | 83 | 624 | 1,510 |
Depreciation and intangible asset amortisation | (161) | (265) | (111) | (33) | (94) | (13) | (677) |
Underlying impairment | \u2014 | \u2014 | \u2014 | (1) | \u2014 | \u2014 | (1) |
Exceptional accelerated depreciation and impairment of tangible assets | (33) | (5) | (8) | \u2014 | \u2014 | \u2014 | (46) |
Exceptional impairment of intangible assets | (54) | (96) | 379 | \u2014 | \u2014 | \u2014 | 229 |
2023 | |||||||
Purchase of property, plant and equipment and computer software | 236 | 252 | 198 | 146 | 152 | 433 | 1,417 |
Depreciation and intangible asset amortisation | (141) | (204) | (93) | (45) | (102) | (12) | (597) |
Exceptional accelerated depreciation and impairment of tangible assets | (63) | 3 | (27) | \u2014 | \u2014 | \u2014 | (87) |
Exceptional impairment of intangible assets | (36) | (31) | (546) | \u2014 | \u2014 | \u2014 | (613) |
Category analysis | Geographic analysis | |||||||||
Spirits $\u00a0million | Beer $\u00a0million | Ready-to-drink $ million | Other $ million | Total $ million | United States $ million | India $ million | Great Britain $ million | Rest of World $ million | Total $ million | |
2025 | ||||||||||
Sales(1) | 22,166 | 4,493 | 989 | 316 | 27,964 | 8,138 | 3,233 | 2,989 | 13,604 | 27,964 |
Non-current assets(2), (3) | 7,467 | 2,173 | 4,505 | 15,758 | 29,903 | |||||
2024 | ||||||||||
Sales(1) | 22,406 | 4,107 | 949 | 429 | 27,891 | 8,041 | 3,247 | 2,849 | 13,754 | 27,891 |
Non-current assets(2), (3) | 7,642 | 2,207 | 3,969 | 14,868 | 28,686 | |||||
2023 | ||||||||||
Sales(1) | 22,855 | 4,026 | 1,079 | 310 | 28,270 | 8,366 | 3,301 | 2,565 | 14,038 | 28,270 |
Non-current assets(2), (3) | 7,328 | 2,265 | 3,665 | 14,118 | 27,376 |
Accounting policies | ||
Sales comprise revenue from contracts with customers from the sale of goods, royalties and rents receivable. Revenue from the sale of goods includes excise and other duties which the group pays as principal but excludes duties and taxes collected on behalf of third parties, such as value added tax. Sales are recognised as or when performance obligations are satisfied by transferring control of a good or service to the customer, which is determined by considering, among other factors, the delivery terms agreed with customers. For the sale of goods, the transfer of control occurs when the significant risks and rewards of ownership are passed to the customer. Based on the shipping terms agreed with customers, the transfer of control of goods occurs at the time of dispatch for the majority of sales. Where the transfer of control is subsequent to the dispatch of goods, the time between dispatch and receipt by the customer is generally less than five days. The group includes in sales the net consideration to which it expects to be entitled. Sales are recognised to the extent that it is highly probable that a significant reversal will not occur. Therefore, sales are stated net of expected price discounts, allowances for customer loyalty and certain promotional activities and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing. | ||
Net sales are sales less excise duties. Diageo incurs excise duties throughout the world. In the majority of countries, excise duties are effectively a production tax which becomes payable when the product is removed from bonded premises and is not directly related to the value of sales. It is generally not included as a separate item on external invoices; increases in excise duty are not always passed on to the customer and where a customer fails to pay for products received the group cannot reclaim the excise duty. The group therefore recognises excise duty, unless it regards itself as an agent of the regulatory authorities, as a cost to the group. | ||
Advertising costs, point of sale materials and sponsorship payments are charged to marketing in operating profit when the company has a right of access to the goods or services acquired. | ||
Exceptional items are those that in management\u2019s judgement need to be disclosed separately. Such items are included in the income statement caption to which they relate, and form part of the segmental reporting. Management believes that separate disclosure of exceptional items and the classification between operating and non-operating further helps investors to understand the performance of the group. Changes in estimates and reversals in relation to items previously recognised as exceptional are presented consistently as exceptional in the current year. | ||
Accounting policies | ||
Exceptional items are those that in management\u2019s judgement need to be disclosed separately. Such items are included in the income statement caption to which they relate, and form part of the segmental reporting included in note 2. Management believes that separate disclosure of exceptional items and the classification between operating and non-operating further helps investors to understand the performance of the group. Changes in estimates and reversals in relation to items previously recognised as exceptional are presented consistently as exceptional in the current year. | ||
Operating items | ||
Exceptional operating items are those that are unusual or non- recurring in nature, considered to be of a size that could distort the performance and are part of the operating activities of the group, such as one-off global restructuring programmes which can be multi-year, impairment of intangible assets and fixed assets, indirect tax settlements, property disposals and changes in post-employment plans. | ||
Non-operating items | ||
Gains and losses on the sale or directly attributable to a prospective sale of businesses, brands or distribution rights, step up gains and losses that arise when an investment becomes an associate or an associate becomes a subsidiary and unusual non-recurring items, that are considered to be of a size that could distort performance and not in respect of the production, marketing and distribution of premium drinks, are disclosed as exceptional non-operating items below operating profit in the income statement. | ||
Exceptional finance income/charge | ||
Exceptional finance incomes/charges are those that are unusual or non-recurring in nature, considered to be of a size that could distort the performance and are part of the financing activity of the group. | ||
Taxation items | ||
Exceptional current and deferred tax items comprise unusual or non-recurring items, that are considered to be of a size that could distort performance. Examples include direct tax provisions and settlements in respect of prior years and the remeasurement of deferred tax assets and liabilities following tax rate changes.\u00a0 | ||
North America | Europe | Asia Pacific | Latin America and Caribbean | Africa | Corporate and other | Total | |
2025 | $ million | $ million | $ million | $ million | $ million | $ million | $ million |
Sales | 8,636 | 8,037 | 6,082 | 2,390 | 2,684 | 135 | 27,964 |
Net sales | 7,973 | 4,821 | 3,635 | 1,847 | 1,834 | 135 | 20,245 |
Cost of sales | (2,734) | (1,866) | (1,581) | (704) | (1,077) | (35) | (7,997) |
Gross profit | 5,239 | 2,955 | 2,054 | 1,143 | 757 | 100 | 12,248 |
Marketing | (1,616) | (898) | (630) | (304) | (192) | (22) | (3,662) |
Other operating items | (570) | (755) | (494) | (311) | (282) | (470) | (2,882) |
Operating profit/(loss) before exceptional items | 3,053 | 1,302 | 930 | 528 | 283 | (392) | 5,704 |
Exceptional operating items(1) | (1,369) | ||||||
Operating profit/(loss) | 4,335 | ||||||
Non-operating items | (220) | ||||||
Net finance charges | (771) | ||||||
Share of after tax results of associates and joint ventures | 193 | ||||||
Profit before taxation | 3,537 |
North America | Europe | Asia Pacific | Latin America and Caribbean | Africa | Corporate and other | Total | |
2024 | $ million | $ million | $ million | $ million | $ million | $ million | $ million |
Sales | 8,514 | 8,024 | 6,320 | 2,432 | 2,478 | 123 | 27,891 |
Net sales | 7,908 | 4,804 | 3,817 | 1,839 | 1,778 | 123 | 20,269 |
Cost of sales | (2,559) | (1,890) | (1,606) | (728) | (1,195) | (36) | (8,014) |
Gross profit | 5,349 | 2,914 | 2,211 | 1,111 | 583 | 87 | 12,255 |
Marketing | (1,627) | (873) | (651) | (306) | (205) | (29) | (3,691) |
Other operating items | (486) | (662) | (497) | (303) | (247) | (424) | (2,619) |
Operating profit/(loss) before exceptional items | 3,236 | 1,379 | 1,063 | 502 | 131 | (366) | 5,945 |
Exceptional operating items(1) | 56 | ||||||
Operating profit/(loss) | 6,001 | ||||||
Non-operating items | (70) | ||||||
Net finance charges | (885) | ||||||
Share of after tax results of associates and joint ventures | 414 | ||||||
Profit before taxation | 5,460 |
North America | Europe | Asia Pacific | Latin America and Caribbean | Africa | Corporate and other | Total | |
2023 | $ million | $ million | $ million | $ million | $ million | $ million | $ million |
Sales | 8,859 | 7,245 | 6,484 | 2,714 | 2,864 | 104 | 28,270 |
Net sales | 8,109 | 4,303 | 3,841 | 2,159 | 2,039 | 104 | 20,555 |
Cost of sales | (2,810) | (1,652) | (1,588) | (800) | (1,320) | (39) | (8,209) |
Gross profit | 5,299 | 2,651 | 2,253 | 1,359 | 719 | 65 | 12,346 |
Marketing | (1,631) | (765) | (655) | (355) | (235) | (22) | (3,663) |
Other operating items | (446) | (574) | (494) | (221) | (195) | (440) | (2,370) |
Operating profit/(loss) before exceptional items | 3,222 | 1,312 | 1,104 | 783 | 289 | (397) | 6,313 |
Exceptional operating items(1) | (766) | ||||||
Operating profit/(loss) | 5,547 | ||||||
Non-operating items | 364 | ||||||
Net finance charges | (712) | ||||||
Share of after tax results of associates and joint ventures | 443 | ||||||
Profit before taxation | 5,642 |
Category analysis | Geographic analysis | |||||||||
Spirits $\u00a0million | Beer $\u00a0million | Ready-to-drink $ million | Other $ million | Total $ million | United States $ million | India $ million | Great Britain $ million | Rest of World $ million | Total $ million | |
2025 | ||||||||||
Sales(1) | 22,166 | 4,493 | 989 | 316 | 27,964 | 8,138 | 3,233 | 2,989 | 13,604 | 27,964 |
Non-current assets(2), (3) | 7,467 | 2,173 | 4,505 | 15,758 | 29,903 | |||||
2024 | ||||||||||
Sales(1) | 22,406 | 4,107 | 949 | 429 | 27,891 | 8,041 | 3,247 | 2,849 | 13,754 | 27,891 |
Non-current assets(2), (3) | 7,642 | 2,207 | 3,969 | 14,868 | 28,686 | |||||
2023 | ||||||||||
Sales(1) | 22,855 | 4,026 | 1,079 | 310 | 28,270 | 8,366 | 3,301 | 2,565 | 14,038 | 28,270 |
Non-current assets(2), (3) | 7,328 | 2,265 | 3,665 | 14,118 | 27,376 |
2025 $ million | 2024 $ million | 2023 $ million | |
Excise duties | 7,719 | 7,622 | 7,715 |
Cost of sales | 8,072 | 8,071 | 8,289 |
Marketing | 3,662 | 3,691 | 3,663 |
Other operating items | 4,176 | 2,506 | 3,056 |
23,629 | 21,890 | 22,723 | |
Comprising: | |||
Excise duties | |||
India | 1,797 | 1,845 | 1,950 |
Great Britain | 1,513 | 1,463 | 1,314 |
United States | 798 | 738 | 825 |
Other | 3,611 | 3,576 | 3,626 |
Increase in inventories | (470) | (112) | (615) |
Raw materials and consumables | 5,119 | 4,892 | 5,197 |
Marketing | 3,662 | 3,691 | 3,663 |
Other external charges(1) | 3,428 | 3,002 | 3,301 |
Staff costs | 2,488 | 2,314 | 2,197 |
Depreciation, amortisation and impairment | 1,718 | 493 | 1,297 |
Gains on disposal of properties | (37) | 1 | (4) |
Net foreign exchange losses | 21 | 8 | 12 |
Other operating income | (19) | (21) | (40) |
23,629 | 21,890 | 22,723 |
2025 $ million | 2024 $ million | 2023 $ million | |
Audit of these financial statements(1) | 9.7 | 7.7 | 9.1 |
Audit of financial statements of subsidiaries | 7.0 | 8.2 | 6.8 |
Total audit fees | 16.7 | 15.9 | 15.9 |
Audit related assurance services(2) | 0.9 | 0.4 | 0.4 |
Other assurance services(3) | 1.2 | 1.7 | 1.4 |
18.8 | 18.0 | 17.7 |
2025 $ million | 2024 $ million | 2023 $ million | |
Aggregate remuneration | |||
Wages and salaries | 2,108 | 1,984 | 1,858 |
Share-based incentive plans | 59 | 43 | 58 |
Employer\u2019s social security | 165 | 146 | 138 |
Employer\u2019s pension | |||
Defined benefit plans | 79 | 72 | 80 |
Defined contribution plans | 70 | 62 | 53 |
Other post-employment plans | 7 | 7 | 10 |
2,488 | 2,314 | 2,197 |
2025 | 2024 | 2023 | |
North America | 2,986 | 2,869 | 2,884 |
Europe | 3,024 | 2,932 | 2,789 |
Asia Pacific | 6,224 | 6,588 | 6,856 |
Latin America and Caribbean | 1,597 | 1,650 | 1,495 |
Africa | 2,848 | 3,290 | 3,526 |
SC&P | 7,134 | 6,977 | 6,934 |
Corporate and other | 6,047 | 6,061 | 5,753 |
29,860 | 30,367 | 30,237 |
2025 $ million | 2024 $ million | 2023 $ million | |
Depreciation, amortisation and impairment | |||
Brand, goodwill, investments in associates and other investments impairment charges/(income) | 796 | (231) | 613 |
Tangible asset impairment and accelerated depreciation | 174 | 46 | 87 |
Staff costs | 84 | 2 | 11 |
Other external charges | 342 | 127 | 75 |
Other operating income | (27) | \u2014 | (20) |
Total exceptional operating items (note 3) | 1,369 | (56) | 766 |
Cost of sales | 75 | 57 | 80 |
Other operating expenses/(income) | 1,294 | (113) | 686 |
2025 $ million | 2024 $ million | 2023 $ million | |
Excise duties | 7,719 | 7,622 | 7,715 |
Cost of sales | 8,072 | 8,071 | 8,289 |
Marketing | 3,662 | 3,691 | 3,663 |
Other operating items | 4,176 | 2,506 | 3,056 |
23,629 | 21,890 | 22,723 | |
Comprising: | |||
Excise duties | |||
India | 1,797 | 1,845 | 1,950 |
Great Britain | 1,513 | 1,463 | 1,314 |
United States | 798 | 738 | 825 |
Other | 3,611 | 3,576 | 3,626 |
Increase in inventories | (470) | (112) | (615) |
Raw materials and consumables | 5,119 | 4,892 | 5,197 |
Marketing | 3,662 | 3,691 | 3,663 |
Other external charges(1) | 3,428 | 3,002 | 3,301 |
Staff costs | 2,488 | 2,314 | 2,197 |
Depreciation, amortisation and impairment | 1,718 | 493 | 1,297 |
Gains on disposal of properties | (37) | 1 | (4) |
Net foreign exchange losses | 21 | 8 | 12 |
Other operating income | (19) | (21) | (40) |
23,629 | 21,890 | 22,723 |
2025 $ million | 2024 $ million | 2023 $ million | |
Audit of these financial statements(1) | 9.7 | 7.7 | 9.1 |
Audit of financial statements of subsidiaries | 7.0 | 8.2 | 6.8 |
Total audit fees | 16.7 | 15.9 | 15.9 |
Audit related assurance services(2) | 0.9 | 0.4 | 0.4 |
Other assurance services(3) | 1.2 | 1.7 | 1.4 |
18.8 | 18.0 | 17.7 |
2025 $ million | 2024 $ million | 2023 $ million | |
Aggregate remuneration | |||
Wages and salaries | 2,108 | 1,984 | 1,858 |
Share-based incentive plans | 59 | 43 | 58 |
Employer\u2019s social security | 165 | 146 | 138 |
Employer\u2019s pension | |||
Defined benefit plans | 79 | 72 | 80 |
Defined contribution plans | 70 | 62 | 53 |
Other post-employment plans | 7 | 7 | 10 |
2,488 | 2,314 | 2,197 |
2025 | 2024 | 2023 | |
North America | 2,986 | 2,869 | 2,884 |
Europe | 3,024 | 2,932 | 2,789 |
Asia Pacific | 6,224 | 6,588 | 6,856 |
Latin America and Caribbean | 1,597 | 1,650 | 1,495 |
Africa | 2,848 | 3,290 | 3,526 |
SC&P | 7,134 | 6,977 | 6,934 |
Corporate and other | 6,047 | 6,061 | 5,753 |
29,860 | 30,367 | 30,237 |
2025 $ million | 2024 $ million | 2023 $ million | |
Depreciation, amortisation and impairment | |||
Brand, goodwill, investments in associates and other investments impairment charges/(income) | 796 | (231) | 613 |
Tangible asset impairment and accelerated depreciation | 174 | 46 | 87 |
Staff costs | 84 | 2 | 11 |
Other external charges | 342 | 127 | 75 |
Other operating income | (27) | \u2014 | (20) |
Total exceptional operating items (note 3) | 1,369 | (56) | 766 |
Cost of sales | 75 | 57 | 80 |
Other operating expenses/(income) | 1,294 | (113) | 686 |
2025 $ million | 2024 $ million | 2023 $ million | |
Audit of these financial statements(1) | 9.7 | 7.7 | 9.1 |
Audit of financial statements of subsidiaries | 7.0 | 8.2 | 6.8 |
Total audit fees | 16.7 | 15.9 | 15.9 |
Audit related assurance services(2) | 0.9 | 0.4 | 0.4 |
Other assurance services(3) | 1.2 | 1.7 | 1.4 |
18.8 | 18.0 | 17.7 |
2025 $ million | 2024 $ million | 2023 $ million | |
Aggregate remuneration | |||
Wages and salaries | 2,108 | 1,984 | 1,858 |
Share-based incentive plans | 59 | 43 | 58 |
Employer\u2019s social security | 165 | 146 | 138 |
Employer\u2019s pension | |||
Defined benefit plans | 79 | 72 | 80 |
Defined contribution plans | 70 | 62 | 53 |
Other post-employment plans | 7 | 7 | 10 |
2,488 | 2,314 | 2,197 |
2025 | 2024 | 2023 | |
North America | 2,986 | 2,869 | 2,884 |
Europe | 3,024 | 2,932 | 2,789 |
Asia Pacific | 6,224 | 6,588 | 6,856 |
Latin America and Caribbean | 1,597 | 1,650 | 1,495 |
Africa | 2,848 | 3,290 | 3,526 |
SC&P | 7,134 | 6,977 | 6,934 |
Corporate and other | 6,047 | 6,061 | 5,753 |
29,860 | 30,367 | 30,237 |
Accounting policies | ||
The group\u2019s principal post-employment funds are defined benefit plans. In addition, the group has defined contribution plans, unfunded post-employment medical benefit liabilities and other unfunded defined benefit post-employment liabilities. For post- employment plans other than defined contribution plans, the amount charged to operating profit is the cost of accruing pension benefits promised to employees over the year, plus any changes arising on benefits granted to members by the group during the year. Net finance charges comprise the net deficit/ surplus on the plans at the beginning of the year, adjusted for cash flows in the year, multiplied by the discount rate for plan liabilities. The differences between the fair value of the plans\u2019 assets and the present value of the plans\u2019 liabilities are disclosed as an asset or liability on the consolidated balance sheet. Any differences due to changes in assumptions or experience are recognised in other comprehensive income. The amount of any pension fund asset recognised on the balance sheet is limited to any future refunds from the plan or the present value of reductions in future contributions to the plan. Contributions payable by the group in respect of defined contribution plans are charged to operating profit as incurred. | ||
Critical accounting estimates and judgements | ||
Application of IAS 19 requires the exercise of estimates and judgement in relation to various assumptions. Diageo determines the assumptions on a country-by-country basis in conjunction with its actuaries. Estimates are required in respect of uncertain future events, including the life expectancy of members of the plans, salary and pension increases, future inflation rates, discount rates and employee and pensioner demographics. The application of different assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive income and the balance sheet. There may be interdependencies between the assumptions. Where there is an accounting surplus on a defined benefit plan, management judgement is necessary to determine whether the group can obtain economic benefits through a refund of the surplus or by reducing future contributions to the plan. | ||
Principal plans | Date of valuation |
United Kingdom(1) | 1 April 2024 |
Ireland(2) | 31 December 2021 |
United States | 1 January 2024 |
2025 $ million | 2024 $ million | 2023 $ million | |
Current service cost and administrative expenses | (88) | (82) | (91) |
Past service gains/(losses) \u2013 ordinary activities | 2 | 3 | (1) |
Gains on curtailments and settlements | \u2014 | \u2014 | 2 |
Charge to operating profit | (86) | (79) | (90) |
Net finance income in respect of post- employment plans | 35 | 37 | 53 |
Charge before taxation(1) | (51) | (42) | (37) |
Actual returns less amounts included in finance income | (460) | (168) | (1,722) |
Experience (losses)/gains | (139) | 24 | (273) |
Changes in financial assumptions | 495 | 20 | 1,150 |
Changes in demographic assumptions | 92 | 43 | 65 |
Other comprehensive loss | (12) | (81) | (780) |
Changes in the surplus restriction | (1) | 5 | 9 |
Total other comprehensive loss | (13) | (76) | (771) |
2025 $ million | 2024 $ million | 2023 $ million | |
United Kingdom | 2 | 5 | 19 |
Ireland | 1 | 3 | 1 |
United States | (41) | (35) | (38) |
Other | (13) | (15) | (19) |
(51) | (42) | (37) |
Plan assets $ million | Plan liabilities $ million | Net surplus $ million | |
At 30 June 2023 | 8,624 | (7,876) | 748 |
Exchange differences | (5) | 4 | (1) |
Income/(charge) before taxation | 383 | (425) | (42) |
Other comprehensive (loss)/income(1) | (168) | 87 | (81) |
Contributions by the group | 97 | \u2014 | 97 |
Settlements | (43) | 43 | \u2014 |
Employee contributions | 2 | (2) | \u2014 |
Benefits paid | (473) | 473 | \u2014 |
At 30 June 2024 | 8,417 | (7,696) | 721 |
Exchange differences | 633 | (608) | 25 |
Disposal of businesses | \u2014 | 3 | 3 |
Reclassification to liabilities held for sale | \u2014 | 7 | 7 |
Income/(charge) before taxation | 381 | (432) | (51) |
Other comprehensive loss(1) | (460) | 448 | (12) |
Contributions by the group | 64 | \u2014 | 64 |
Employee contributions | 2 | (2) | \u2014 |
Benefits paid | (504) | 504 | \u2014 |
At 30 June 2025 | 8,533 | (7,776) | 757 |
2025 | 2024 | |||
Plan assets $ million | Plan liabilities $ million | Plan assets $ million | Plan liabilities $ million | |
Pensions | ||||
United Kingdom | 5,640 | (5,083) | 5,654 | (5,028) |
Ireland | 2,057 | (1,599) | 1,954 | (1,595) |
United States | 595 | (562) | 569 | (534) |
Other | 215 | (230) | 216 | (241) |
Post-employment medical | 3 | (266) | 3 | (266) |
Other post-employment | 23 | (36) | 21 | (32) |
8,533 | (7,776) | 8,417 | (7,696) |
2025 | 2024 | |||
Non- current assets (1) $ million | Non- current liabilities $ million | Non- current assets (1) $ million | Non- current liabilities $ million | |
Funded plans | 1,161 | (146) | 1,146 | (152) |
Unfunded plans | \u2014 | (263) | \u2014 | (277) |
1,161 | (409) | 1,146 | (429) |
United Kingdom | Ireland | United States(1) | |||||||
2025 % | 2024 % | 2023 % | 2025 % | 2024 % | 2023 % | 2025 % | 2024 % | 2023 % | |
Rate of general increase in salaries(2) | 3.3 | 3.6 | 3.7 | 3.4 | 3.7 | 3.9 | \u2014 | \u2014 | \u2014 |
Rate of increase to pensions in payment | 2.5 | 2.8 | 2.9 | 2.0 | 2.2 | 2.3 | \u2014 | \u2014 | \u2014 |
Rate of increase to deferred pensions | 2.3 | 2.6 | 2.7 | 2.0 | 2.2 | 2.4 | \u2014 | \u2014 | \u2014 |
Discount rate for plan liabilities | 5.6 | 5.1 | 5.2 | 3.8 | 3.6 | 3.6 | 5.2 | 5.3 | 4.9 |
Inflation \u2013 CPI | 2.3 | 2.6 | 2.7 | 2.0 | 2.3 | 2.5 | 2.3 | 2.3 | 2.2 |
Inflation \u2013 RPI | 2.8 | 3.1 | 3.2 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
United Kingdom(1) | Ireland(2) | United States | |||||||
2025 Age | 2024 Age | 2023 Age | 2025 Age | 2024 Age | 2023 Age | 2025 Age | 2024 Age | 2023 Age | |
Retiring currently at age 65 | |||||||||
Male | 86.7 | 86.8 | 86.8 | 86.9 | 87.2 | 87.2 | 85.8 | 85.7 | 85.6 |
Female | 88.3 | 88.4 | 88.4 | 89.6 | 89.7 | 89.6 | 87.5 | 87.4 | 87.2 |
Currently aged 45, retiring at age 65 | |||||||||
Male | 87.5 | 88.1 | 88.1 | 88.2 | 88.8 | 88.8 | 87.3 | 87.2 | 87.1 |
Female | 90.0 | 90.5 | 90.4 | 91.0 | 91.4 | 91.3 | 88.9 | 88.9 | 88.7 |
United Kingdom | Ireland | United States | |||||||
Benefit/(cost) | Operating profit $ million | Profit after taxation $ million | Plan liabilities(1) $ million | Operating profit $ million | Profit after taxation $ million | Plan liabilities(1) $ million | Operating profit $ million | Profit after taxation $ million | Plan liabilities(1) $ million |
Effect of 0.5% increase in discount rate | 2 | 15 | 256 | \u2014 | 6 | 95 | 2 | 2 | 28 |
Effect of 0.5% decrease in discount rate | (2) | (13) | (282) | (1) | (5) | (105) | (2) | (2) | (31) |
Effect of 0.5% increase in inflation | (2) | (7) | (154) | \u2014 | (2) | (61) | (1) | (1) | (10) |
Effect of 0.5% decrease in inflation | 2 | 9 | 181 | \u2014 | 3 | 66 | 1 | 1 | 9 |
Effect of one year increase in life expectancy | \u2014 | (7) | (186) | \u2014 | (2) | (66) | \u2014 | (1) | (17) |
2025 | |||||||||
United Kingdom $ million | Ireland $ million | United States and other $ million | Total $ million | ||||||
Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Total | |
Equities(1) | \u2014 | 961 | \u2014 | 366 | 89 | 137 | 89 | 1,464 | 1,553 |
Bonds | |||||||||
\u00a0 \u00a0 Fixed-interest government | 224 | 22 | \u2014 | 80 | 56 | 8 | 280 | 110 | 390 |
\u00a0 \u00a0 Inflation-linked government | 1,447 | 618 | \u2014 | 117 | \u2014 | 1 | 1,447 | 736 | 2,183 |
\u00a0 \u00a0 Investment grade corporate | \u2014 | 846 | \u2014 | 667 | 19 | 427 | 19 | 1,940 | 1,959 |
\u00a0 \u00a0 Non-investment grade | 5 | 640 | 2 | 375 | \u2014 | 49 | 7 | 1,064 | 1,071 |
\u00a0 \u00a0 Loan securities | 18 | 315 | \u2014 | 116 | \u2014 | \u2014 | 18 | 431 | 449 |
\u00a0 \u00a0 Liability Driven Investment (LDI) | \u2014 | \u2014 | \u2014 | 130 | \u2014 | \u2014 | \u2014 | 130 | 130 |
Property - unquoted | \u2014 | 595 | \u2014 | 58 | \u2014 | \u2014 | \u2014 | 653 | 653 |
Hedge funds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10 | \u2014 | 10 | 10 |
Interest rate and inflation swaps | 1 | (264) | 11 | 20 | \u2014 | \u2014 | 12 | (244) | (232) |
Cash and other | 49 | 163 | 18 | 97 | \u2014 | 40 | 67 | 300 | 367 |
Total bid value of assets | 1,744 | 3,896 | 31 | 2,026 | 164 | 672 | 1,939 | 6,594 | 8,533 |
2024 | |||||||||
United Kingdom $ million | Ireland $ million | United States and other $ million | Total $ million | ||||||
Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Total | |
Equities(1) | 1 | 1,121 | \u2014 | 330 | 80 | 129 | 81 | 1,580 | 1,661 |
Bonds | |||||||||
\u00a0 \u00a0 Fixed-interest government | 943 | 25 | \u2014 | 60 | 62 | 10 | 1,005 | 95 | 1,100 |
\u00a0 \u00a0 Inflation-linked government | 2,112 | 495 | \u2014 | 111 | \u2014 | 2 | 2,112 | 608 | 2,720 |
\u00a0 \u00a0 Investment grade corporate | \u2014 | 503 | \u2014 | 623 | 21 | 311 | 21 | 1,437 | 1,458 |
\u00a0 \u00a0 Non-investment grade | 4 | 448 | 5 | 346 | \u2014 | 146 | 9 | 940 | 949 |
\u00a0 \u00a0 Loan securities | \u2014 | 421 | \u2014 | 107 | \u2014 | \u2014 | \u2014 | 528 | 528 |
\u00a0 \u00a0 Liability Driven Investment (LDI) | \u2014 | \u2014 | \u2014 | 124 | \u2014 | \u2014 | \u2014 | 124 | 124 |
Property - unquoted | \u2014 | 551 | \u2014 | 54 | \u2014 | 1 | \u2014 | 606 | 606 |
Hedge funds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 6 | \u2014 | 6 | 6 |
Interest rate and inflation swaps | \u2014 | (1,126) | 36 | 65 | \u2014 | \u2014 | 36 | (1,061) | (1,025) |
Cash and other | 20 | 136 | 28 | 65 | \u2014 | 41 | 48 | 242 | 290 |
Total bid value of assets | 3,080 | 2,574 | 69 | 1,885 | 163 | 646 | 3,312 | 5,105 | 8,417 |
Valuation date | ||||||
31 December 2024 | 31 December 2027 | 31 December 2030 | ||||
\u20ac million | $ million | \u20ac million | $ million | \u20ac million | $ million | |
Maximum conditional contribution | 35 | 41 | 39 | 46 | 39 | 46 |
United Kingdom | Ireland | United States | ||||
2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | |
Maturity analysis of benefits expected to be paid | ||||||
Within one year | 375 | 311 | 100 | 88 | 68 | 64 |
Between 1 to 5 years | 1,430 | 1,225 | 478 | 441 | 215 | 216 |
Between 6 to 15 years | 3,472 | 3,123 | 912 | 870 | 476 | 456 |
Between 16 to 25 years | 2,986 | 2,948 | 745 | 748 | 315 | 297 |
Beyond 25 years | 2,694 | 3,378 | 743 | 816 | 245 | 230 |
Total | 10,957 | 10,985 | 2,978 | 2,963 | 1,319 | 1,263 |
years | years | years | years | years | years | |
Average duration of the defined benefit obligation | 12 | 14 | 13 | 14 | 9 | 9 |
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
2025 $ million | 2024 $ million | 2023 $ million | |
Interest income | 203 | 179 | 193 |
Fair value gain on financial instruments | 170 | 100 | 124 |
Total interest income(1) | 373 | 279 | 317 |
Interest charge on bonds, commercial paper, bank loans and overdrafts | (775) | (665) | (563) |
Interest charge on finance leases | (32) | (23) | (19) |
Borrowing costs capitalised | 46 | \u2014 | \u2014 |
Borrowing costs capitalised - exceptional item(2) | 58 | \u2014 | \u2014 |
Other interest charges | (270) | (396) | (325) |
Fair value loss on financial instruments | (172) | (101) | (123) |
Total interest charges(1) | (1,145) | (1,185) | (1,030) |
Net interest charges | (772) | (906) | (713) |
Net finance income in respect of post- employment plans in surplus (note 14) | 54 | 57 | 71 |
Monetary gain on hyperinflation in various economies (note 1(f)) | 39 | 49 | 13 |
Interest income in respect of direct and indirect tax | 7 | 15 | 8 |
Change in financial liability \u2014 Zacapa (Level 3) | 7 | \u2014 | \u2014 |
Total other finance income | 107 | 121 | 92 |
Net finance charge in respect of post- employment plans in deficit (note 14) | (19) | (20) | (18) |
Monetary loss on hyperinflation in various economies (note 1(f)) | \u2014 | (8) | (3) |
Interest charge in respect of direct and indirect tax | (51) | (27) | (29) |
Unwinding of discounts | (22) | (23) | (15) |
Change in financial liability \u2014 Zacapa (Level 3) | \u2014 | \u2014 | (10) |
Other finance charges | (14) | (22) | (16) |
Total other finance charges | (106) | (100) | (91) |
Net other finance charges | 1 | 21 | 1 |
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
2025 $ million | 2024 $ million | 2023 $ million | |
Interest income | 203 | 179 | 193 |
Fair value gain on financial instruments | 170 | 100 | 124 |
Total interest income(1) | 373 | 279 | 317 |
Interest charge on bonds, commercial paper, bank loans and overdrafts | (775) | (665) | (563) |
Interest charge on finance leases | (32) | (23) | (19) |
Borrowing costs capitalised | 46 | \u2014 | \u2014 |
Borrowing costs capitalised - exceptional item(2) | 58 | \u2014 | \u2014 |
Other interest charges | (270) | (396) | (325) |
Fair value loss on financial instruments | (172) | (101) | (123) |
Total interest charges(1) | (1,145) | (1,185) | (1,030) |
Net interest charges | (772) | (906) | (713) |
Net finance income in respect of post- employment plans in surplus (note 14) | 54 | 57 | 71 |
Monetary gain on hyperinflation in various economies (note 1(f)) | 39 | 49 | 13 |
Interest income in respect of direct and indirect tax | 7 | 15 | 8 |
Change in financial liability \u2014 Zacapa (Level 3) | 7 | \u2014 | \u2014 |
Total other finance income | 107 | 121 | 92 |
Net finance charge in respect of post- employment plans in deficit (note 14) | (19) | (20) | (18) |
Monetary loss on hyperinflation in various economies (note 1(f)) | \u2014 | (8) | (3) |
Interest charge in respect of direct and indirect tax | (51) | (27) | (29) |
Unwinding of discounts | (22) | (23) | (15) |
Change in financial liability \u2014 Zacapa (Level 3) | \u2014 | \u2014 | (10) |
Other finance charges | (14) | (22) | (16) |
Total other finance charges | (106) | (100) | (91) |
Net other finance charges | 1 | 21 | 1 |
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
2025 $ million | 2024 $ million | 2023 $ million | |
Interest income | 203 | 179 | 193 |
Fair value gain on financial instruments | 170 | 100 | 124 |
Total interest income(1) | 373 | 279 | 317 |
Interest charge on bonds, commercial paper, bank loans and overdrafts | (775) | (665) | (563) |
Interest charge on finance leases | (32) | (23) | (19) |
Borrowing costs capitalised | 46 | \u2014 | \u2014 |
Borrowing costs capitalised - exceptional item(2) | 58 | \u2014 | \u2014 |
Other interest charges | (270) | (396) | (325) |
Fair value loss on financial instruments | (172) | (101) | (123) |
Total interest charges(1) | (1,145) | (1,185) | (1,030) |
Net interest charges | (772) | (906) | (713) |
Net finance income in respect of post- employment plans in surplus (note 14) | 54 | 57 | 71 |
Monetary gain on hyperinflation in various economies (note 1(f)) | 39 | 49 | 13 |
Interest income in respect of direct and indirect tax | 7 | 15 | 8 |
Change in financial liability \u2014 Zacapa (Level 3) | 7 | \u2014 | \u2014 |
Total other finance income | 107 | 121 | 92 |
Net finance charge in respect of post- employment plans in deficit (note 14) | (19) | (20) | (18) |
Monetary loss on hyperinflation in various economies (note 1(f)) | \u2014 | (8) | (3) |
Interest charge in respect of direct and indirect tax | (51) | (27) | (29) |
Unwinding of discounts | (22) | (23) | (15) |
Change in financial liability \u2014 Zacapa (Level 3) | \u2014 | \u2014 | (10) |
Other finance charges | (14) | (22) | (16) |
Total other finance charges | (106) | (100) | (91) |
Net other finance charges | 1 | 21 | 1 |
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
2025 $ million | 2024 $ million | 2023 $ million | |
Interest income | 203 | 179 | 193 |
Fair value gain on financial instruments | 170 | 100 | 124 |
Total interest income(1) | 373 | 279 | 317 |
Interest charge on bonds, commercial paper, bank loans and overdrafts | (775) | (665) | (563) |
Interest charge on finance leases | (32) | (23) | (19) |
Borrowing costs capitalised | 46 | \u2014 | \u2014 |
Borrowing costs capitalised - exceptional item(2) | 58 | \u2014 | \u2014 |
Other interest charges | (270) | (396) | (325) |
Fair value loss on financial instruments | (172) | (101) | (123) |
Total interest charges(1) | (1,145) | (1,185) | (1,030) |
Net interest charges | (772) | (906) | (713) |
Net finance income in respect of post- employment plans in surplus (note 14) | 54 | 57 | 71 |
Monetary gain on hyperinflation in various economies (note 1(f)) | 39 | 49 | 13 |
Interest income in respect of direct and indirect tax | 7 | 15 | 8 |
Change in financial liability \u2014 Zacapa (Level 3) | 7 | \u2014 | \u2014 |
Total other finance income | 107 | 121 | 92 |
Net finance charge in respect of post- employment plans in deficit (note 14) | (19) | (20) | (18) |
Monetary loss on hyperinflation in various economies (note 1(f)) | \u2014 | (8) | (3) |
Interest charge in respect of direct and indirect tax | (51) | (27) | (29) |
Unwinding of discounts | (22) | (23) | (15) |
Change in financial liability \u2014 Zacapa (Level 3) | \u2014 | \u2014 | (10) |
Other finance charges | (14) | (22) | (16) |
Total other finance charges | (106) | (100) | (91) |
Net other finance charges | 1 | 21 | 1 |
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
2025 $ million | 2024 $ million | 2023 $ million | |
Interest income | 203 | 179 | 193 |
Fair value gain on financial instruments | 170 | 100 | 124 |
Total interest income(1) | 373 | 279 | 317 |
Interest charge on bonds, commercial paper, bank loans and overdrafts | (775) | (665) | (563) |
Interest charge on finance leases | (32) | (23) | (19) |
Borrowing costs capitalised | 46 | \u2014 | \u2014 |
Borrowing costs capitalised - exceptional item(2) | 58 | \u2014 | \u2014 |
Other interest charges | (270) | (396) | (325) |
Fair value loss on financial instruments | (172) | (101) | (123) |
Total interest charges(1) | (1,145) | (1,185) | (1,030) |
Net interest charges | (772) | (906) | (713) |
Net finance income in respect of post- employment plans in surplus (note 14) | 54 | 57 | 71 |
Monetary gain on hyperinflation in various economies (note 1(f)) | 39 | 49 | 13 |
Interest income in respect of direct and indirect tax | 7 | 15 | 8 |
Change in financial liability \u2014 Zacapa (Level 3) | 7 | \u2014 | \u2014 |
Total other finance income | 107 | 121 | 92 |
Net finance charge in respect of post- employment plans in deficit (note 14) | (19) | (20) | (18) |
Monetary loss on hyperinflation in various economies (note 1(f)) | \u2014 | (8) | (3) |
Interest charge in respect of direct and indirect tax | (51) | (27) | (29) |
Unwinding of discounts | (22) | (23) | (15) |
Change in financial liability \u2014 Zacapa (Level 3) | \u2014 | \u2014 | (10) |
Other finance charges | (14) | (22) | (16) |
Total other finance charges | (106) | (100) | (91) |
Net other finance charges | 1 | 21 | 1 |
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
2025 $ million | 2024 $ million | 2023 $ million | |
Interest income | 203 | 179 | 193 |
Fair value gain on financial instruments | 170 | 100 | 124 |
Total interest income(1) | 373 | 279 | 317 |
Interest charge on bonds, commercial paper, bank loans and overdrafts | (775) | (665) | (563) |
Interest charge on finance leases | (32) | (23) | (19) |
Borrowing costs capitalised | 46 | \u2014 | \u2014 |
Borrowing costs capitalised - exceptional item(2) | 58 | \u2014 | \u2014 |
Other interest charges | (270) | (396) | (325) |
Fair value loss on financial instruments | (172) | (101) | (123) |
Total interest charges(1) | (1,145) | (1,185) | (1,030) |
Net interest charges | (772) | (906) | (713) |
Net finance income in respect of post- employment plans in surplus (note 14) | 54 | 57 | 71 |
Monetary gain on hyperinflation in various economies (note 1(f)) | 39 | 49 | 13 |
Interest income in respect of direct and indirect tax | 7 | 15 | 8 |
Change in financial liability \u2014 Zacapa (Level 3) | 7 | \u2014 | \u2014 |
Total other finance income | 107 | 121 | 92 |
Net finance charge in respect of post- employment plans in deficit (note 14) | (19) | (20) | (18) |
Monetary loss on hyperinflation in various economies (note 1(f)) | \u2014 | (8) | (3) |
Interest charge in respect of direct and indirect tax | (51) | (27) | (29) |
Unwinding of discounts | (22) | (23) | (15) |
Change in financial liability \u2014 Zacapa (Level 3) | \u2014 | \u2014 | (10) |
Other finance charges | (14) | (22) | (16) |
Total other finance charges | (106) | (100) | (91) |
Net other finance charges | 1 | 21 | 1 |
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
Accounting policies | ||
Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk.\u00a0 Finance charges directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are added to the cost of that asset. Borrowing costs which are not capitalised are recognised in the income statement using the effective interest method. All other finance charges are recognised primarily in the income statement in the year in which they are incurred.\u00a0 Net other finance charges include items in respect of post- employment plans, the discount unwind of long-term obligations and hyperinflation charges. The results of operations in hyperinflationary economies are adjusted to reflect the changes in the purchasing power of the local currency of the entity before being translated to US dollar.\u00a0 The impact of derivatives, excluding cash flow hedges that are\u00a0in respect of commodity price risk management or those that are used to hedge the currency risk of highly probable future currency cash flows, is included in interest income or interest charge.\u00a0 | ||
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Mo\u00ebt Hennessy $ million | Others $ million | Total $ million | |
Cost less provisions | |||
At 30 June 2023 | 4,484 | 341 | 4,825 |
Exchange differences | (59) | (5) | (64) |
Additions | \u2014 | 134 | 134 |
Share of profit/(loss) after tax | 441 | (27) | 414 |
Dividends | (261) | (8) | (269) |
Share of movements in other comprehensive income and equity | 3 | \u2014 | 3 |
Impairment charged during the year | \u2014 | (11) | (11) |
At 30 June 2024 | 4,608 | 424 | 5,032 |
Exchange differences | 470 | 19 | 489 |
Additions | \u2014 | 109 | 109 |
Share of profit/(loss) after tax | 219 | (26) | 193 |
Step acquisition | \u2014 | (30) | (30) |
Dividends | (169) | (6) | (175) |
Share of movements in other comprehensive income and equity | 21 | \u2014 | 21 |
Impairment charged during the year | \u2014 | (308) | (308) |
Transfer from other investments | \u2014 | 3 | 3 |
At 30 June 2025 | 5,149 | 185 | 5,334 |
2025 $ million | 2024 $ million | 2023 $ million | |
Sales | 6,100 | 6,691 | 7,204 |
Profit for the year | 644 | 1,299 | 1,339 |
Total comprehensive income | 716 | 1,219 | 1,393 |
2025 $ million | 2024 $ million | |
Non-current assets | 9,673 | 8,772 |
Current assets | 13,496 | 12,025 |
Total assets | 23,169 | 20,797 |
Non-current liabilities | (2,931) | (2,732) |
Current liabilities | (4,881) | (4,285) |
Total liabilities | (7,812) | (7,017) |
Net assets | 15,357 | 13,780 |
Country of incorporation | Country of operation | Percentage of equity owned (1) | Business description | |
Subsidiaries | ||||
Diageo Ireland Unlimited Company | Ireland | Worldwide | 100% | Production, marketing and distribution of premium drinks |
Diageo Great Britain Limited | England | Great Britain | 100% | Marketing and distribution of premium drinks |
Diageo Scotland Limited | Scotland | Worldwide | 100% | Production, marketing and distribution of premium drinks |
Diageo Brands B.V. | Netherlands | Worldwide | 100% | Marketing and distribution of premium drinks |
Diageo North America, Inc. | United States | Worldwide | 100% | Production, importing, marketing and distribution of premium drinks |
United Spirits Limited(2) | India | India | 55.88% | Production, importing, marketing and distribution of premium drinks |
Diageo Capital plc(3) | Scotland | United Kingdom | 100% | Financing company for the group |
Diageo Capital B.V.(3) | Netherlands | Netherlands | 100% | Financing company for the group |
Diageo Finance plc(3) | England | United Kingdom | 100% | Financing company for the group |
Diageo Investment Corporation | United States | United States | 100% | Financing company for the US group |
Mey \u0130\u00e7ki Sanayi ve Ticaret A.\u015e. | T\u00fcrkiye | T\u00fcrkiye | 100% | Production, marketing and distribution of premium drinks |
Associates | ||||
Mo\u00ebt Hennessy(4) | France | Worldwide | 34% | Production, marketing and distribution of premium drinks |
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Mo\u00ebt Hennessy $ million | Others $ million | Total $ million | |
Cost less provisions | |||
At 30 June 2023 | 4,484 | 341 | 4,825 |
Exchange differences | (59) | (5) | (64) |
Additions | \u2014 | 134 | 134 |
Share of profit/(loss) after tax | 441 | (27) | 414 |
Dividends | (261) | (8) | (269) |
Share of movements in other comprehensive income and equity | 3 | \u2014 | 3 |
Impairment charged during the year | \u2014 | (11) | (11) |
At 30 June 2024 | 4,608 | 424 | 5,032 |
Exchange differences | 470 | 19 | 489 |
Additions | \u2014 | 109 | 109 |
Share of profit/(loss) after tax | 219 | (26) | 193 |
Step acquisition | \u2014 | (30) | (30) |
Dividends | (169) | (6) | (175) |
Share of movements in other comprehensive income and equity | 21 | \u2014 | 21 |
Impairment charged during the year | \u2014 | (308) | (308) |
Transfer from other investments | \u2014 | 3 | 3 |
At 30 June 2025 | 5,149 | 185 | 5,334 |
2025 $ million | 2024 $ million | 2023 $ million | |
Sales | 6,100 | 6,691 | 7,204 |
Profit for the year | 644 | 1,299 | 1,339 |
Total comprehensive income | 716 | 1,219 | 1,393 |
2025 $ million | 2024 $ million | |
Non-current assets | 9,673 | 8,772 |
Current assets | 13,496 | 12,025 |
Total assets | 23,169 | 20,797 |
Non-current liabilities | (2,931) | (2,732) |
Current liabilities | (4,881) | (4,285) |
Total liabilities | (7,812) | (7,017) |
Net assets | 15,357 | 13,780 |
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Mo\u00ebt Hennessy $ million | Others $ million | Total $ million | |
Cost less provisions | |||
At 30 June 2023 | 4,484 | 341 | 4,825 |
Exchange differences | (59) | (5) | (64) |
Additions | \u2014 | 134 | 134 |
Share of profit/(loss) after tax | 441 | (27) | 414 |
Dividends | (261) | (8) | (269) |
Share of movements in other comprehensive income and equity | 3 | \u2014 | 3 |
Impairment charged during the year | \u2014 | (11) | (11) |
At 30 June 2024 | 4,608 | 424 | 5,032 |
Exchange differences | 470 | 19 | 489 |
Additions | \u2014 | 109 | 109 |
Share of profit/(loss) after tax | 219 | (26) | 193 |
Step acquisition | \u2014 | (30) | (30) |
Dividends | (169) | (6) | (175) |
Share of movements in other comprehensive income and equity | 21 | \u2014 | 21 |
Impairment charged during the year | \u2014 | (308) | (308) |
Transfer from other investments | \u2014 | 3 | 3 |
At 30 June 2025 | 5,149 | 185 | 5,334 |
2025 $ million | 2024 $ million | 2023 $ million | |
Sales | 6,100 | 6,691 | 7,204 |
Profit for the year | 644 | 1,299 | 1,339 |
Total comprehensive income | 716 | 1,219 | 1,393 |
2025 $ million | 2024 $ million | |
Non-current assets | 9,673 | 8,772 |
Current assets | 13,496 | 12,025 |
Total assets | 23,169 | 20,797 |
Non-current liabilities | (2,931) | (2,732) |
Current liabilities | (4,881) | (4,285) |
Total liabilities | (7,812) | (7,017) |
Net assets | 15,357 | 13,780 |
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Mo\u00ebt Hennessy $ million | Others $ million | Total $ million | |
Cost less provisions | |||
At 30 June 2023 | 4,484 | 341 | 4,825 |
Exchange differences | (59) | (5) | (64) |
Additions | \u2014 | 134 | 134 |
Share of profit/(loss) after tax | 441 | (27) | 414 |
Dividends | (261) | (8) | (269) |
Share of movements in other comprehensive income and equity | 3 | \u2014 | 3 |
Impairment charged during the year | \u2014 | (11) | (11) |
At 30 June 2024 | 4,608 | 424 | 5,032 |
Exchange differences | 470 | 19 | 489 |
Additions | \u2014 | 109 | 109 |
Share of profit/(loss) after tax | 219 | (26) | 193 |
Step acquisition | \u2014 | (30) | (30) |
Dividends | (169) | (6) | (175) |
Share of movements in other comprehensive income and equity | 21 | \u2014 | 21 |
Impairment charged during the year | \u2014 | (308) | (308) |
Transfer from other investments | \u2014 | 3 | 3 |
At 30 June 2025 | 5,149 | 185 | 5,334 |
2025 $ million | 2024 $ million | 2023 $ million | |
Sales | 6,100 | 6,691 | 7,204 |
Profit for the year | 644 | 1,299 | 1,339 |
Total comprehensive income | 716 | 1,219 | 1,393 |
2025 $ million | 2024 $ million | |
Non-current assets | 9,673 | 8,772 |
Current assets | 13,496 | 12,025 |
Total assets | 23,169 | 20,797 |
Non-current liabilities | (2,931) | (2,732) |
Current liabilities | (4,881) | (4,285) |
Total liabilities | (7,812) | (7,017) |
Net assets | 15,357 | 13,780 |
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Accounting policies | ||
An associate is an undertaking in which the group has a long-term equity interest and over which it has the power to exercise significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The group\u2019s interest in the net assets of associates and joint ventures is reported in investments in the consolidated balance sheet and its interest in their results (net of tax) is included in the consolidated income statement below the group\u2019s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs, and the group's share of post acquisition changes in the investee's reserves are recognised under the equity method. Investments in associates and joint ventures acquired prior to 1 July 1998 comprise the cost of shares less goodwill written off to reserves that has not been reinstated, plus the group\u2019s share of post acquisition reserves. Investments in associates and joint ventures are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. The impairment review compares the net carrying value with the recoverable amount, where the recoverable amount is the higher of the value in use calculated as the present value of the group\u2019s share of the associate\u2019s future cash flows and its fair value less costs of disposal. | ||
Accounting policies | ||
Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences between accounting and tax treatments, and due to items that are never taxable or tax deductible. Tax treatments are not recognised unless it is probable that a tax authority will accept the treatment. Once considered to be probable, tax treatments are reviewed each year to assess whether a provision should be taken against full recognition of the treatment on the basis of potential settlement through negotiation and/or litigation with the relevant tax authorities. Tax provisions are included in current liabilities. Penalties and interest on tax liabilities are included in operating profit and finance charges, respectively. Full provision for deferred tax is made for temporary differences between the carrying value of assets and liabilities for financial reporting purposes and their value for tax purposes, except for deferred tax provision arising on goodwill from business combinations. The amount of deferred tax reflects the expected recoverable amount and is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using the basis of taxation enacted or substantively enacted by the balance sheet date. Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in the future. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where the group is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable future, or where no liability would arise on the remittance. | ||
Critical accounting estimates and judgements | ||
The group is required to estimate the corporate tax in each of the jurisdictions in which it operates. Management is required to estimate the amount that should be recognised as a tax liability or tax asset in many countries which are subject to tax audits which by their nature are often complex and can take several years to resolve; current tax balances are based on such estimations. Tax provisions are based on management\u2019s judgement and interpretation of country specific tax law and the likelihood of settlement. However, the actual tax liabilities could differ from the provision and in such event the group would be required to make an adjustment in a subsequent period which could have a material impact on the group\u2019s profit for the year. The evaluation of deferred tax asset recoverability requires estimates to be made regarding the availability of future taxable income. For brands with an indefinite life, management\u2019s intention is to recover the book value through a potential sale in the future, and therefore the deferred tax on the brand value is generally recognised using the appropriate country capital gains tax rate. To the extent brands with an indefinite life have been impaired, management considers this to be an indication of recovery through use and in such a case deferred tax on the brand value is recognised using the appropriate country corporate income tax rate. | ||
United Kingdom | Rest of world | Total | |||||||
2025 $ million | 2024 $ million | 2023 $ million | 2025 $ million | 2024 $ million | 2023 $ million | 2025 $ million | 2024 $ million | 2023 $ million | |
Current tax | |||||||||
Current year | 157 | 134 | 192 | 987 | 983 | 1,056 | 1,144 | 1,117 | 1,248 |
Adjustments in respect of prior years | (22) | (7) | 41 | (19) | (4) | (46) | (41) | (11) | (5) |
135 | 127 | 233 | 968 | 979 | 1,010 | 1,103 | 1,106 | 1,243 | |
Deferred tax | |||||||||
Origination and reversal of temporary differences | 41 | 39 | 36 | (164) | 113 | (93) | (123) | 152 | (57) |
Changes in tax rates | \u2014 | \u2014 | \u2014 | 4 | (18) | 13 | 4 | (18) | 13 |
Adjustments in respect of prior years | 8 | 16 | 7 | 7 | 38 | (43) | 15 | 54 | (36) |
49 | 55 | 43 | (153) | 133 | (123) | (104) | 188 | (80) | |
Taxation on profit | 184 | 182 | 276 | 815 | 1,112 | 887 | 999 | 1,294 | 1,163 |
2025 $ million | 2024 $ million | 2023 $ million | |
Brand, goodwill and other assets impairment(1) | (138) | 63 | (154) |
Restructuring programme(2) | (46) | (15) | (27) |
Distribution model change in France(3) | (36) | \u2014 | \u2014 |
Various dispute and litigation matters(4) | (12) | (23) | \u2014 |
Disposal of businesses and brands(5) | 3 | (1) | 37 |
Borrowing costs capitalised(6) | 15 | \u2014 | \u2014 |
US guarantee fee claim(7) | \u2014 | \u2014 | (68) |
Distribution termination fee | \u2014 | \u2014 | (14) |
(214) | 24 | (226) |
2025 $ million | 2025 % | 2024 $ million | 2024 % | 2023 $ million | 2023 % | |
Profit before taxation | 3,537 | 5,460 | 5,642 | |||
Share of after tax results of associates and joint ventures | 193 | 414 | 443 | |||
Profit before taxation excluding share of after tax results of associates and joint ventures | 3,344 | 5,046 | 5,199 | |||
Notional charge at UK corporation tax rate | 836 | 25.0 | 1,262 | 25.0 | 1,066 | 20.5 |
Differences in overseas tax rates | (45) | (1.3) | (86) | (1.7) | 116 | 2.3 |
Non-taxable gain on disposals of businesses | (28) | (0.7) | \u2014 | \u2014 | \u2014 | \u2014 |
Disposal of businesses and brands | 54 | 1.6 | 17 | 0.3 | (42) | (0.8) |
Other items not chargeable | (69) | (2.1) | (72) | (1.4) | (76) | (1.5) |
Impairment | 105 | 3.1 | 6 | 0.1 | (8) | (0.2) |
Other items not deductible | 105 | 3.1 | 70 | 1.4 | 85 | 1.6 |
Irrecoverable withholding taxes | 60 | 1.8 | 55 | 1.1 | 46 | 0.9 |
Movement in provision in respect of uncertain tax positions(1) | 18 | 0.5 | 6 | 0.1 | 34 | 0.7 |
Changes in tax rates | 4 | 0.1 | (18) | (0.4) | 13 | 0.3 |
Adjustments in respect of prior years(2) | (41) | (1.2) | 54 | 1.1 | (71) | (1.4) |
Taxation on profit / Reported tax rate(3) | 999 | 29.9 | 1,294 | 25.6 | 1,163 | 22.4 |
Tax rate before exceptional items(3) | \u2014 | 24.9 | \u2014 | 25.1 | \u2014 | 24.8 |
Property, plant and equipment $ million | Intangible assets $ million | Post-employment plans $ million | Tax losses $ million | Other temporary differences (1) $ million | Total $ million | |
At 30 June 2023 | (585) | (2,313) | (141) | 62 | 404 | (2,573) |
Exchange differences | 9 | 35 | \u2014 | (10) | (13) | 21 |
Recognised in income statement | (79) | (132) | (6) | 28 | (17) | (206) |
Recognised in other comprehensive income and equity | (34) | (73) | 6 | \u2014 | (8) | (109) |
Tax rate change \u2013 recognised in income statement | 3 | 13 | (1) | \u2014 | 3 | 18 |
Tax rate change \u2013 recognised in other comprehensive income and equity | (4) | (20) | \u2014 | \u2014 | (3) | (27) |
Acquisition(2) | \u2014 | 53 | \u2014 | \u2014 | \u2014 | 53 |
Transfer from assets held for sale | 2 | 4 | \u2014 | (16) | (8) | (18) |
Sale of businesses | \u2014 | 38 | \u2014 | \u2014 | (1) | 37 |
At 30 June 2024 | (688) | (2,395) | (142) | 64 | 357 | (2,804) |
Exchange differences | (31) | 23 | (1) | 3 | (5) | (11) |
Recognised in income statement | (92) | 78 | 1 | (10) | 131 | 108 |
Recognised in other comprehensive income and equity | (20) | (67) | 3 | \u2014 | (38) | (122) |
Tax rate change \u2013 recognised in income statement | (2) | (2) | \u2014 | \u2014 | \u2014 | (4) |
Transfer to assets held for sale | 40 | 1 | (1) | \u2014 | (1) | 39 |
At 30 June 2025 | (793) | (2,362) | (140) | 57 | 444 | (2,794) |
2025 $ million | 2024 $ million | |
Deferred tax assets | 150 | 143 |
Deferred tax liabilities | (2,944) | (2,947) |
(2,794) | (2,804) |
2025 $ million | 2024 $ million | |
Capital losses \u2013 indefinite | 125 | 123 |
Trading losses \u2013 indefinite | 42 | 31 |
Trading and capital losses \u2013 expiry dates up to 2035 | 26 | 33 |
193 | 187 |
Accounting policies | ||
Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences between accounting and tax treatments, and due to items that are never taxable or tax deductible. Tax treatments are not recognised unless it is probable that a tax authority will accept the treatment. Once considered to be probable, tax treatments are reviewed each year to assess whether a provision should be taken against full recognition of the treatment on the basis of potential settlement through negotiation and/or litigation with the relevant tax authorities. Tax provisions are included in current liabilities. Penalties and interest on tax liabilities are included in operating profit and finance charges, respectively. Full provision for deferred tax is made for temporary differences between the carrying value of assets and liabilities for financial reporting purposes and their value for tax purposes, except for deferred tax provision arising on goodwill from business combinations. The amount of deferred tax reflects the expected recoverable amount and is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using the basis of taxation enacted or substantively enacted by the balance sheet date. Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in the future. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where the group is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable future, or where no liability would arise on the remittance. | ||
Critical accounting estimates and judgements | ||
The group is required to estimate the corporate tax in each of the jurisdictions in which it operates. Management is required to estimate the amount that should be recognised as a tax liability or tax asset in many countries which are subject to tax audits which by their nature are often complex and can take several years to resolve; current tax balances are based on such estimations. Tax provisions are based on management\u2019s judgement and interpretation of country specific tax law and the likelihood of settlement. However, the actual tax liabilities could differ from the provision and in such event the group would be required to make an adjustment in a subsequent period which could have a material impact on the group\u2019s profit for the year. The evaluation of deferred tax asset recoverability requires estimates to be made regarding the availability of future taxable income. For brands with an indefinite life, management\u2019s intention is to recover the book value through a potential sale in the future, and therefore the deferred tax on the brand value is generally recognised using the appropriate country capital gains tax rate. To the extent brands with an indefinite life have been impaired, management considers this to be an indication of recovery through use and in such a case deferred tax on the brand value is recognised using the appropriate country corporate income tax rate. | ||
Accounting policies | ||
Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences between accounting and tax treatments, and due to items that are never taxable or tax deductible. Tax treatments are not recognised unless it is probable that a tax authority will accept the treatment. Once considered to be probable, tax treatments are reviewed each year to assess whether a provision should be taken against full recognition of the treatment on the basis of potential settlement through negotiation and/or litigation with the relevant tax authorities. Tax provisions are included in current liabilities. Penalties and interest on tax liabilities are included in operating profit and finance charges, respectively. Full provision for deferred tax is made for temporary differences between the carrying value of assets and liabilities for financial reporting purposes and their value for tax purposes, except for deferred tax provision arising on goodwill from business combinations. The amount of deferred tax reflects the expected recoverable amount and is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using the basis of taxation enacted or substantively enacted by the balance sheet date. Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in the future. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where the group is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable future, or where no liability would arise on the remittance. | ||
Critical accounting estimates and judgements | ||
The group is required to estimate the corporate tax in each of the jurisdictions in which it operates. Management is required to estimate the amount that should be recognised as a tax liability or tax asset in many countries which are subject to tax audits which by their nature are often complex and can take several years to resolve; current tax balances are based on such estimations. Tax provisions are based on management\u2019s judgement and interpretation of country specific tax law and the likelihood of settlement. However, the actual tax liabilities could differ from the provision and in such event the group would be required to make an adjustment in a subsequent period which could have a material impact on the group\u2019s profit for the year. The evaluation of deferred tax asset recoverability requires estimates to be made regarding the availability of future taxable income. For brands with an indefinite life, management\u2019s intention is to recover the book value through a potential sale in the future, and therefore the deferred tax on the brand value is generally recognised using the appropriate country capital gains tax rate. To the extent brands with an indefinite life have been impaired, management considers this to be an indication of recovery through use and in such a case deferred tax on the brand value is recognised using the appropriate country corporate income tax rate. | ||
Property, plant and equipment $ million | Intangible assets $ million | Post-employment plans $ million | Tax losses $ million | Other temporary differences (1) $ million | Total $ million | |
At 30 June 2023 | (585) | (2,313) | (141) | 62 | 404 | (2,573) |
Exchange differences | 9 | 35 | \u2014 | (10) | (13) | 21 |
Recognised in income statement | (79) | (132) | (6) | 28 | (17) | (206) |
Recognised in other comprehensive income and equity | (34) | (73) | 6 | \u2014 | (8) | (109) |
Tax rate change \u2013 recognised in income statement | 3 | 13 | (1) | \u2014 | 3 | 18 |
Tax rate change \u2013 recognised in other comprehensive income and equity | (4) | (20) | \u2014 | \u2014 | (3) | (27) |
Acquisition(2) | \u2014 | 53 | \u2014 | \u2014 | \u2014 | 53 |
Transfer from assets held for sale | 2 | 4 | \u2014 | (16) | (8) | (18) |
Sale of businesses | \u2014 | 38 | \u2014 | \u2014 | (1) | 37 |
At 30 June 2024 | (688) | (2,395) | (142) | 64 | 357 | (2,804) |
Exchange differences | (31) | 23 | (1) | 3 | (5) | (11) |
Recognised in income statement | (92) | 78 | 1 | (10) | 131 | 108 |
Recognised in other comprehensive income and equity | (20) | (67) | 3 | \u2014 | (38) | (122) |
Tax rate change \u2013 recognised in income statement | (2) | (2) | \u2014 | \u2014 | \u2014 | (4) |
Transfer to assets held for sale | 40 | 1 | (1) | \u2014 | (1) | 39 |
At 30 June 2025 | (793) | (2,362) | (140) | 57 | 444 | (2,794) |
2025 $ million | 2024 $ million | |
Deferred tax assets | 150 | 143 |
Deferred tax liabilities | (2,944) | (2,947) |
(2,794) | (2,804) |
2025 $ million | 2024 $ million | |
Capital losses \u2013 indefinite | 125 | 123 |
Trading losses \u2013 indefinite | 42 | 31 |
Trading and capital losses \u2013 expiry dates up to 2035 | 26 | 33 |
193 | 187 |
Accounting policies | ||
The consolidated financial statements include the results of the company and its subsidiaries together with the group\u2019s attributable share of the results of associates and joint ventures. The results of subsidiaries acquired or sold are included in the income statement from, or up to, the date that control passes. Business combinations are accounted for using the acquisition method. Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. The consideration payable is measured at fair value and includes the fair value of any contingent consideration. Among other factors, the group considers the nature of, and compensation for the selling shareholders' continuing employment to determine if any contingent payments are for post-combination employee services, which are excluded from consideration. On the acquisition of a business, or of an interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are attributed to the net assets, including identifiable intangible assets and contingent liabilities acquired. Directly attributable acquisition costs in respect of subsidiary companies acquired are recognised in other external charges as incurred. The non-controlling interests on the date of acquisition can be measured either at the fair value or at the non-controlling shareholder\u2019s proportion of the net fair value of the identifiable assets assumed. This choice is made separately for each acquisition. Where the group has issued a put option over shares held by a non-controlling interest, the group derecognises the non-controlling interests and instead recognises a contingent deferred consideration liability for the estimated amount likely to be paid to the non-controlling interest on the exercise of those options. Movements in the estimated liability in respect of put options are recognised in retained earnings. Transactions with non-controlling interests are recorded directly in retained earnings. For all entities in which the company directly or indirectly owns equity,\u00a0a judgement is made to determine whether it controls and therefore should fully consolidate the investee. An assessment is carried out to determine\u00a0whether the group has the exposure or rights to the variable returns of the investee and has the ability to affect those returns through its power over the investee. To establish control, an analysis is carried out of\u00a0the substantive and protective rights that the group and the other investors hold. This assessment\u00a0is dependent on the activities and purpose of the investee and the rights of the other shareholders, such as which party controls the board, executive committee and material policies of the investee. Determining whether the rights that the group holds are substantive, requires management\u00a0judgement. Where less than 50% of the equity of an investee is held, and the group holds significantly more voting rights than any other vote holder or organised group of vote holders, this may be an indicator of de facto control. An assessment is needed to determine all the factors relevant to the relationship with the investee to ascertain whether control has been established and whether the investee should be consolidated as a subsidiary. Where voting power and returns from an investment are split equally between two entities then the arrangement is accounted for as a joint venture. On an acquisition, fair values are attributed to the assets and liabilities acquired. This may involve material judgement to determine these values. | ||
Net assets acquired and consideration | |||
2025 $ million | 2024 $ million | 2023 $ million | |
Brands and other intangibles | 66 | \u2014 | 402 |
Property, plant and equipment | 1 | \u2014 | 28 |
Inventories | 4 | \u2014 | 31 |
Other working capital | 1 | \u2014 | (2) |
Deferred tax | \u2014 | \u2014 | (85) |
Borrowings | (3) | \u2014 | \u2014 |
Cash | 2 | \u2014 | \u2014 |
Fair value of assets and liabilities | 71 | \u2014 | 374 |
Goodwill arising on acquisition | 46 | \u2014 | 109 |
Step acquisitions | (54) | \u2014 | (13) |
Consideration payable | 63 | \u2014 | 470 |
Satisfied by: | |||
Cash consideration paid | (29) | \u2014 | (373) |
Contingent consideration payable | (12) | \u2014 | (92) |
Deferred consideration payable | (22) | \u2014 | (5) |
(63) | \u2014 | (470) |
Consideration | |||
2025 $ million | 2024 $ million | 2023 $ million | |
Acquisitions in the year - subsidiaries | |||
Cash consideration paid | (29) | \u2014 | (373) |
Cash acquired | 2 | \u2014 | \u2014 |
Prior year acquisitions - subsidiaries | |||
Other consideration | (8) | (6) | (31) |
Investments in associates | |||
Cash consideration paid - increase in ownership interest | (2) | (5) | (20) |
Capital injection(1) | (82) | (128) | (92) |
Net cash outflow on acquisition of businesses | (119) | (139) | (516) |
Purchase of shares of non-controlling interests | (9) | (223) | (178) |
Total net cash outflow | (128) | (362) | (694) |
Guinness Nigeria PLC $ million | Other $ million | 2025 $ million | 2024 $ million | 2023 $ million | |
Sale consideration | |||||
Cash received | 64 | 121 | 185 | 116 | 604 |
Cash disposed of | \u2014 | (11) | (11) | (20) | (16) |
Transaction and other directly attributable costs paid | (11) | (20) | (31) | (9) | (29) |
Net cash received | 53 | 90 | 143 | 87 | 559 |
Deferred consideration receivable | \u2014 | 4 | 4 | 32 | \u2014 |
Investment in associates received | \u2014 | 25 | 25 | \u2014 | \u2014 |
Transaction costs payable and other directly attributable items | (14) | (40) | (54) | (24) | (7) |
39 | 79 | 118 | 95 | 552 | |
Net (assets)/liabilities disposed of | |||||
Brands | \u2014 | (83) | (83) | (167) | \u2014 |
Other non-current assets | \u2014 | \u2014 | \u2014 | (3) | (132) |
Assets and liabilities held for sale | 20 | \u2014 | 20 | \u2014 | (87) |
Inventories | \u2014 | (13) | (13) | (11) | (35) |
Other working capital | \u2014 | (1) | (1) | 3 | 85 |
Other borrowings | \u2014 | \u2014 | \u2014 | \u2014 | 2 |
Corporate tax | \u2014 | \u2014 | \u2014 | 2 | (4) |
Deferred tax | \u2014 | \u2014 | \u2014 | 37 | 6 |
Post-employment benefit liabilities | \u2014 | \u2014 | \u2014 | \u2014 | 5 |
20 | (97) | (77) | (139) | (160) | |
Less non-controlling interest | (9) | \u2014 | (9) | \u2014 | \u2014 |
Impairment charge recognised for prospective sale of Guinness Ghana | \u2014 | (97) | (97) | \u2014 | (3) |
Exchange recycled from other comprehensive income | (175) | (4) | (179) | (26) | (15) |
(Loss)/gain on disposal before taxation | (125) | (119) | (244) | (70) | 374 |
Taxation | (1) | (2) | (3) | 1 | (37) |
(Loss)/gain on disposal after taxation | (126) | (121) | (247) | (69) | 337 |
2025 $ million | 2024 $ million | |
Intangible assets | 1 | \u2014 |
Property, plant and equipment | 146 | 52 |
Deferred tax assets | \u2014 | 18 |
Inventories | 50 | 20 |
Trade and other receivables | 40 | 10 |
Corporate tax receivables | 2 | \u2014 |
Cash | 18 | 30 |
Assets held for sale | 257 | 130 |
Trade and other payables | (137) | (44) |
Corporate tax payables | \u2014 | (1) |
Provisions | \u2014 | (3) |
Deferred tax liabilities | (40) | \u2014 |
Bank overdrafts | (4) | \u2014 |
Loans and leases | (5) | \u2014 |
Post-employment benefit liabilities | (7) | \u2014 |
Liabilities held for sale | (193) | (48) |
Total | 64 | 82 |
Accounting policies | ||
The consolidated financial statements include the results of the company and its subsidiaries together with the group\u2019s attributable share of the results of associates and joint ventures. The results of subsidiaries acquired or sold are included in the income statement from, or up to, the date that control passes. Business combinations are accounted for using the acquisition method. Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. The consideration payable is measured at fair value and includes the fair value of any contingent consideration. Among other factors, the group considers the nature of, and compensation for the selling shareholders' continuing employment to determine if any contingent payments are for post-combination employee services, which are excluded from consideration. On the acquisition of a business, or of an interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are attributed to the net assets, including identifiable intangible assets and contingent liabilities acquired. Directly attributable acquisition costs in respect of subsidiary companies acquired are recognised in other external charges as incurred. The non-controlling interests on the date of acquisition can be measured either at the fair value or at the non-controlling shareholder\u2019s proportion of the net fair value of the identifiable assets assumed. This choice is made separately for each acquisition. Where the group has issued a put option over shares held by a non-controlling interest, the group derecognises the non-controlling interests and instead recognises a contingent deferred consideration liability for the estimated amount likely to be paid to the non-controlling interest on the exercise of those options. Movements in the estimated liability in respect of put options are recognised in retained earnings. Transactions with non-controlling interests are recorded directly in retained earnings. For all entities in which the company directly or indirectly owns equity,\u00a0a judgement is made to determine whether it controls and therefore should fully consolidate the investee. An assessment is carried out to determine\u00a0whether the group has the exposure or rights to the variable returns of the investee and has the ability to affect those returns through its power over the investee. To establish control, an analysis is carried out of\u00a0the substantive and protective rights that the group and the other investors hold. This assessment\u00a0is dependent on the activities and purpose of the investee and the rights of the other shareholders, such as which party controls the board, executive committee and material policies of the investee. Determining whether the rights that the group holds are substantive, requires management\u00a0judgement. Where less than 50% of the equity of an investee is held, and the group holds significantly more voting rights than any other vote holder or organised group of vote holders, this may be an indicator of de facto control. An assessment is needed to determine all the factors relevant to the relationship with the investee to ascertain whether control has been established and whether the investee should be consolidated as a subsidiary. Where voting power and returns from an investment are split equally between two entities then the arrangement is accounted for as a joint venture. On an acquisition, fair values are attributed to the assets and liabilities acquired. This may involve material judgement to determine these values. | ||
Accounting policies | ||
The consolidated financial statements include the results of the company and its subsidiaries together with the group\u2019s attributable share of the results of associates and joint ventures. The results of subsidiaries acquired or sold are included in the income statement from, or up to, the date that control passes. Business combinations are accounted for using the acquisition method. Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. The consideration payable is measured at fair value and includes the fair value of any contingent consideration. Among other factors, the group considers the nature of, and compensation for the selling shareholders' continuing employment to determine if any contingent payments are for post-combination employee services, which are excluded from consideration. On the acquisition of a business, or of an interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are attributed to the net assets, including identifiable intangible assets and contingent liabilities acquired. Directly attributable acquisition costs in respect of subsidiary companies acquired are recognised in other external charges as incurred. The non-controlling interests on the date of acquisition can be measured either at the fair value or at the non-controlling shareholder\u2019s proportion of the net fair value of the identifiable assets assumed. This choice is made separately for each acquisition. Where the group has issued a put option over shares held by a non-controlling interest, the group derecognises the non-controlling interests and instead recognises a contingent deferred consideration liability for the estimated amount likely to be paid to the non-controlling interest on the exercise of those options. Movements in the estimated liability in respect of put options are recognised in retained earnings. Transactions with non-controlling interests are recorded directly in retained earnings. For all entities in which the company directly or indirectly owns equity,\u00a0a judgement is made to determine whether it controls and therefore should fully consolidate the investee. An assessment is carried out to determine\u00a0whether the group has the exposure or rights to the variable returns of the investee and has the ability to affect those returns through its power over the investee. To establish control, an analysis is carried out of\u00a0the substantive and protective rights that the group and the other investors hold. This assessment\u00a0is dependent on the activities and purpose of the investee and the rights of the other shareholders, such as which party controls the board, executive committee and material policies of the investee. Determining whether the rights that the group holds are substantive, requires management\u00a0judgement. Where less than 50% of the equity of an investee is held, and the group holds significantly more voting rights than any other vote holder or organised group of vote holders, this may be an indicator of de facto control. An assessment is needed to determine all the factors relevant to the relationship with the investee to ascertain whether control has been established and whether the investee should be consolidated as a subsidiary. Where voting power and returns from an investment are split equally between two entities then the arrangement is accounted for as a joint venture. On an acquisition, fair values are attributed to the assets and liabilities acquired. This may involve material judgement to determine these values. | ||
Accounting policies | ||
The consolidated financial statements include the results of the company and its subsidiaries together with the group\u2019s attributable share of the results of associates and joint ventures. The results of subsidiaries acquired or sold are included in the income statement from, or up to, the date that control passes. Business combinations are accounted for using the acquisition method. Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. The consideration payable is measured at fair value and includes the fair value of any contingent consideration. Among other factors, the group considers the nature of, and compensation for the selling shareholders' continuing employment to determine if any contingent payments are for post-combination employee services, which are excluded from consideration. On the acquisition of a business, or of an interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are attributed to the net assets, including identifiable intangible assets and contingent liabilities acquired. Directly attributable acquisition costs in respect of subsidiary companies acquired are recognised in other external charges as incurred. The non-controlling interests on the date of acquisition can be measured either at the fair value or at the non-controlling shareholder\u2019s proportion of the net fair value of the identifiable assets assumed. This choice is made separately for each acquisition. Where the group has issued a put option over shares held by a non-controlling interest, the group derecognises the non-controlling interests and instead recognises a contingent deferred consideration liability for the estimated amount likely to be paid to the non-controlling interest on the exercise of those options. Movements in the estimated liability in respect of put options are recognised in retained earnings. Transactions with non-controlling interests are recorded directly in retained earnings. For all entities in which the company directly or indirectly owns equity,\u00a0a judgement is made to determine whether it controls and therefore should fully consolidate the investee. An assessment is carried out to determine\u00a0whether the group has the exposure or rights to the variable returns of the investee and has the ability to affect those returns through its power over the investee. To establish control, an analysis is carried out of\u00a0the substantive and protective rights that the group and the other investors hold. This assessment\u00a0is dependent on the activities and purpose of the investee and the rights of the other shareholders, such as which party controls the board, executive committee and material policies of the investee. Determining whether the rights that the group holds are substantive, requires management\u00a0judgement. Where less than 50% of the equity of an investee is held, and the group holds significantly more voting rights than any other vote holder or organised group of vote holders, this may be an indicator of de facto control. An assessment is needed to determine all the factors relevant to the relationship with the investee to ascertain whether control has been established and whether the investee should be consolidated as a subsidiary. Where voting power and returns from an investment are split equally between two entities then the arrangement is accounted for as a joint venture. On an acquisition, fair values are attributed to the assets and liabilities acquired. This may involve material judgement to determine these values. | ||
Guinness Nigeria PLC $ million | Other $ million | 2025 $ million | 2024 $ million | 2023 $ million | |
Sale consideration | |||||
Cash received | 64 | 121 | 185 | 116 | 604 |
Cash disposed of | \u2014 | (11) | (11) | (20) | (16) |
Transaction and other directly attributable costs paid | (11) | (20) | (31) | (9) | (29) |
Net cash received | 53 | 90 | 143 | 87 | 559 |
Deferred consideration receivable | \u2014 | 4 | 4 | 32 | \u2014 |
Investment in associates received | \u2014 | 25 | 25 | \u2014 | \u2014 |
Transaction costs payable and other directly attributable items | (14) | (40) | (54) | (24) | (7) |
39 | 79 | 118 | 95 | 552 | |
Net (assets)/liabilities disposed of | |||||
Brands | \u2014 | (83) | (83) | (167) | \u2014 |
Other non-current assets | \u2014 | \u2014 | \u2014 | (3) | (132) |
Assets and liabilities held for sale | 20 | \u2014 | 20 | \u2014 | (87) |
Inventories | \u2014 | (13) | (13) | (11) | (35) |
Other working capital | \u2014 | (1) | (1) | 3 | 85 |
Other borrowings | \u2014 | \u2014 | \u2014 | \u2014 | 2 |
Corporate tax | \u2014 | \u2014 | \u2014 | 2 | (4) |
Deferred tax | \u2014 | \u2014 | \u2014 | 37 | 6 |
Post-employment benefit liabilities | \u2014 | \u2014 | \u2014 | \u2014 | 5 |
20 | (97) | (77) | (139) | (160) | |
Less non-controlling interest | (9) | \u2014 | (9) | \u2014 | \u2014 |
Impairment charge recognised for prospective sale of Guinness Ghana | \u2014 | (97) | (97) | \u2014 | (3) |
Exchange recycled from other comprehensive income | (175) | (4) | (179) | (26) | (15) |
(Loss)/gain on disposal before taxation | (125) | (119) | (244) | (70) | 374 |
Taxation | (1) | (2) | (3) | 1 | (37) |
(Loss)/gain on disposal after taxation | (126) | (121) | (247) | (69) | 337 |
2025 $ million | 2024 $ million | |
Intangible assets | 1 | \u2014 |
Property, plant and equipment | 146 | 52 |
Deferred tax assets | \u2014 | 18 |
Inventories | 50 | 20 |
Trade and other receivables | 40 | 10 |
Corporate tax receivables | 2 | \u2014 |
Cash | 18 | 30 |
Assets held for sale | 257 | 130 |
Trade and other payables | (137) | (44) |
Corporate tax payables | \u2014 | (1) |
Provisions | \u2014 | (3) |
Deferred tax liabilities | (40) | \u2014 |
Bank overdrafts | (4) | \u2014 |
Loans and leases | (5) | \u2014 |
Post-employment benefit liabilities | (7) | \u2014 |
Liabilities held for sale | (193) | (48) |
Total | 64 | 82 |
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Brands $ million | Goodwill $ million | Other intangibles $ million | Computer software $ million | Total $ million | |
Cost | |||||
At 30 June 2023 | 11,692 | 3,621 | 2,040 | 1,072 | 18,425 |
Hyperinflation adjustment | 207 | 157 | \u2014 | 1 | 365 |
Exchange differences | (146) | (96) | (30) | 22 | (250) |
Additions | \u2014 | \u2014 | 17 | 150 | 167 |
Disposals | (647) | \u2014 | (16) | (20) | (683) |
At 30 June 2024 | 11,106 | 3,682 | 2,011 | 1,225 | 18,024 |
Hyperinflation adjustment | 144 | 107 | \u2014 | \u2014 | 251 |
Exchange differences | 33 | (73) | 8 | 75 | 43 |
Additions | 66 | 46 | \u2014 | 191 | 303 |
Disposals | (220) | \u2014 | (33) | (350) | (603) |
Reclassification to assets held for sale | \u2014 | (5) | \u2014 | (1) | (6) |
At 30 June 2025 | 11,129 | 3,757 | 1,986 | 1,140 | 18,012 |
Amortisation and impairment | |||||
At 30 June 2023 | 2,217 | 814 | 128 | 760 | 3,919 |
Exchange differences | (22) | (13) | (29) | 24 | (40) |
Amortisation for the year | \u2014 | \u2014 | 19 | 58 | 77 |
Impairment | 128 | 21 | \u2014 | \u2014 | 149 |
Reversal of impairment | (379) | \u2014 | \u2014 | \u2014 | (379) |
Disposals | (480) | \u2014 | (16) | (20) | (516) |
At 30 June 2024 | 1,464 | 822 | 102 | 822 | 3,210 |
Exchange differences | 5 | (14) | 6 | 38 | 35 |
Amortisation for the year | \u2014 | \u2014 | 20 | 74 | 94 |
Impairment | 416 | \u2014 | \u2014 | \u2014 | 416 |
Disposals | (137) | \u2014 | (33) | (349) | (519) |
At 30 June 2025 | 1,748 | 808 | 95 | 585 | 3,236 |
Carrying amount | |||||
At 30 June 2025 | 9,381 | 2,949 | 1,891 | 555 | 14,776 |
At 30 June 2024 | 9,642 | 2,860 | 1,909 | 403 | 14,814 |
At 30 June 2023 | 9,475 | 2,807 | 1,912 | 312 | 14,506 |
Principal markets | 2025 $ million | 2024 $ million | |
Crown Royal whisky | United States | 1,464 | 1,464 |
Captain Morgan rum | Global | 1,201 | 1,201 |
Johnnie Walker whisky | Global | 856 | 790 |
Smirnoff vodka | Global | 824 | 824 |
Shui Jing Fang Chinese white spirit | Greater China | 698 | 689 |
Casamigos tequila | United States | 604 | 604 |
Yen\u00ec raki | T\u00fcrkiye | 477 | 426 |
Don Papa rum | Europe | 388 | 353 |
McDowell's No.1 whisky, rum and brandy | India | 371 | 382 |
Don Julio tequila | United States | 270 | 277 |
Seagram's 7 Crown whiskey | United States | 223 | 223 |
Signature whisky | India | 213 | 219 |
Zacapa rum | Global | 191 | 191 |
Black Dog whisky | India | 180 | 186 |
Antiquity whisky | India | 176 | 182 |
Gordon's gin | Europe | 163 | 150 |
Other brands | 1,082 | 1,481 | |
9,381 | 9,642 |
2025 $ million | 2024 $ million | |
North America | 1,002 | 968 |
Europe | ||
T\u00fcrkiye | 414 | 370 |
Asia Pacific | ||
Greater China | 160 | 158 |
India | 827 | 838 |
Latin America and Caribbean | ||
Mexico | 185 | 189 |
Other cash-generating units | 361 | 337 |
2,949 | 2,860 |
2025 | 2024 | |||
Pre-tax discount rate % | Terminal growth rate % | Pre-tax discount rate % | Terminal growth rate % | |
North America | ||||
United States | 10 | 2 | 9 | 2 |
Europe | ||||
United Kingdom | 11 | 3 | 9 | 2 |
T\u00fcrkiye | 27 | 14 | 27 | 14 |
Asia Pacific | ||||
India | 13 | 4 | 12 | 3 |
Greater China | 9 | 2 | 10 | 2 |
Latin America and Caribbean | ||||
Mexico | 13 | 3 | 13 | 3 |
Increase in discount rate | Decrease in terminal growth rate | Decrease in cash flows | ||||||
Carrying value of CGU $ million | Headroom $ million | Reasonably possible change | Potential impairment charge $ million | Reasonably possible change | Potential impairment charge $ million | Reasonably possible change | Potential impairment charge $ million | |
Aviation American Gin | 51 | \u2014 | 1ppt | (37) | 1ppt | (36) | 10% | (41) |
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Accounting policies | ||
Land and buildings are stated at cost less accumulated depreciation. Freehold land is not depreciated. Leaseholds are generally depreciated over the unexpired period of the lease. Other property, plant and equipment are depreciated on a straight-line basis to estimated residual values over their expected useful lives, and these values and lives are reviewed each year. Subject to these reviews, the estimated useful lives fall within the following ranges: buildings \u2013 10 to 50 years; casks and containers within plant and equipment \u2013 15 to 50 years; other plant and equipment \u2013 5 to 40 years; fixtures and fittings \u2013 5 to 10 years; and returnable bottles, kegs and crates \u2013 5 to 30 years. Reviews are carried out if there is an indication that assets may be impaired, to ensure that property, plant and equipment are not carried at above their recoverable amounts. |
Government grants | ||
Government grants are not recognised until there is reasonable assurance that the group will comply with the conditions pursuant to which they have been granted and that the grants will be received. Government grants in respect of property, plant and equipment are deducted from the asset that they relate to, reducing the depreciation expense charged to the income statement. | ||
Accounting policies | ||
Where the group is the lessee, all leases are recognised on the balance sheet as right-of-use assets as part of property, plant and equipment, and depreciated on a straight-line basis with the charge recognised in cost of sales or in other operating items depending on the nature of the costs. The liability, recognised as part of net borrowings, is measured at a discounted value and any interest is charged to finance charges. The group recognises services associated with a lease as other operating expenses. Payments associated with leases where the value of the asset when it is new is lower than $5,000 (leases of low value assets) and leases with a lease term of 12 months or less (short-term leases) are recognised as other operating expenses. A judgement in calculating the lease liability at initial recognition includes determining the lease term where extension or termination options exist. In such instances, any economic incentive to retain or end a lease are considered and extension periods are only included when it is considered reasonably certain that an option to extend a lease will be exercised. | ||
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Accounting policies | ||
Land and buildings are stated at cost less accumulated depreciation. Freehold land is not depreciated. Leaseholds are generally depreciated over the unexpired period of the lease. Other property, plant and equipment are depreciated on a straight-line basis to estimated residual values over their expected useful lives, and these values and lives are reviewed each year. Subject to these reviews, the estimated useful lives fall within the following ranges: buildings \u2013 10 to 50 years; casks and containers within plant and equipment \u2013 15 to 50 years; other plant and equipment \u2013 5 to 40 years; fixtures and fittings \u2013 5 to 10 years; and returnable bottles, kegs and crates \u2013 5 to 30 years. Reviews are carried out if there is an indication that assets may be impaired, to ensure that property, plant and equipment are not carried at above their recoverable amounts. |
Government grants | ||
Government grants are not recognised until there is reasonable assurance that the group will comply with the conditions pursuant to which they have been granted and that the grants will be received. Government grants in respect of property, plant and equipment are deducted from the asset that they relate to, reducing the depreciation expense charged to the income statement. | ||
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Accounting policies | ||
Land and buildings are stated at cost less accumulated depreciation. Freehold land is not depreciated. Leaseholds are generally depreciated over the unexpired period of the lease. Other property, plant and equipment are depreciated on a straight-line basis to estimated residual values over their expected useful lives, and these values and lives are reviewed each year. Subject to these reviews, the estimated useful lives fall within the following ranges: buildings \u2013 10 to 50 years; casks and containers within plant and equipment \u2013 15 to 50 years; other plant and equipment \u2013 5 to 40 years; fixtures and fittings \u2013 5 to 10 years; and returnable bottles, kegs and crates \u2013 5 to 30 years. Reviews are carried out if there is an indication that assets may be impaired, to ensure that property, plant and equipment are not carried at above their recoverable amounts. |
Government grants | ||
Government grants are not recognised until there is reasonable assurance that the group will comply with the conditions pursuant to which they have been granted and that the grants will be received. Government grants in respect of property, plant and equipment are deducted from the asset that they relate to, reducing the depreciation expense charged to the income statement. | ||
Accounting policies | ||
Acquired intangible assets are held on the consolidated balance sheet at cost less accumulated amortisation and impairment losses. Acquired brands and other intangible assets are initially recognised at fair value if they are controlled through contractual or other legal rights, or are separable from the rest of the business, and the fair value can be reliably measured. Where these assets are regarded as having indefinite useful economic lives, they are not amortised. Goodwill represents the excess of the aggregate of the consideration transferred, the value of any non-controlling interests and the fair value of any previously held equity interest in the subsidiary acquired over the fair value of the identifiable net assets. Goodwill arising on acquisitions prior to 1 July 1998 was eliminated against reserves, and this goodwill has not been reinstated. Goodwill arising subsequent to 1 July 1998 has been capitalised. A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. That is the base of the impairment review. Amortisation and impairment of intangible assets is based on their useful economic lives and they are amortised on a straight-line basis and reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Goodwill and intangible assets that are regarded as having indefinite useful economic lives are not amortised and are reviewed for impairment at least annually or when there is an indication that the assets may be impaired. Impairment reviews compare the net carrying value with the recoverable amount (where recoverable amount is the higher of fair value less costs of disposal and value in use) and in case the net carrying value exceeds the recoverable amount, an impairment charge is recognised. Amortisation and any impairment write downs are charged to other operating expenses in the income statement. It is reviewed at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill either no longer exists or has decreased. Reversal of impairment loss is considered if the recoverable amount of the assets is constantly and significantly above the carrying value over an extended period. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation) had no impairment loss been recognised for the asset in prior years. Any reversal of impairment loss is charged against the same income statement line on which the initial impairment was recorded. Computer software is amortised on a straight-line basis to estimated residual value over its expected useful life. Residual values and useful lives are reviewed each year. Subject to these reviews, the estimated useful lives are up to eight years .\u00a0 | ||
Critical accounting estimates and judgements | ||
Assessment of the recoverable amount of an intangible asset and the useful economic life of an asset are based on management's estimates. Impairment reviews are carried out to ensure that intangible assets, including brands, are not carried at above their recoverable amounts. Value in use and fair value less costs of disposal are both considered for these reviews and any impairment charge is based on these. The tests are dependent on management\u2019s estimates in respect of the forecasting of future cash flows, the discount rates applicable to the future cash flows and what expected growth rates are reasonable. Judgement is required in determining the cash-generating units. Such estimates and judgements are subject to change as a result of changing economic conditions and actual cash flows may differ from forecasts. | ||
Consideration of climate risk impact | ||
The impact of climate risk on the future cash flows has also been considered for scenarios analysed in line with the climate change risk assessment. The climate change scenario analyses performed in 2025 \u2013 conducted in line with TCFD recommendations (\u2018Transition Scenario\u2019 (RCP 2.6), a \u2018Moderate Warming\u2019 Scenario (RCP 4.5) and a \u2018Severe Warming Scenario (RCP 8.5)) \u2013 identified no material financial impact to the current year impairment assessments. | ||
Brands $ million | Goodwill $ million | Other intangibles $ million | Computer software $ million | Total $ million | |
Cost | |||||
At 30 June 2023 | 11,692 | 3,621 | 2,040 | 1,072 | 18,425 |
Hyperinflation adjustment | 207 | 157 | \u2014 | 1 | 365 |
Exchange differences | (146) | (96) | (30) | 22 | (250) |
Additions | \u2014 | \u2014 | 17 | 150 | 167 |
Disposals | (647) | \u2014 | (16) | (20) | (683) |
At 30 June 2024 | 11,106 | 3,682 | 2,011 | 1,225 | 18,024 |
Hyperinflation adjustment | 144 | 107 | \u2014 | \u2014 | 251 |
Exchange differences | 33 | (73) | 8 | 75 | 43 |
Additions | 66 | 46 | \u2014 | 191 | 303 |
Disposals | (220) | \u2014 | (33) | (350) | (603) |
Reclassification to assets held for sale | \u2014 | (5) | \u2014 | (1) | (6) |
At 30 June 2025 | 11,129 | 3,757 | 1,986 | 1,140 | 18,012 |
Amortisation and impairment | |||||
At 30 June 2023 | 2,217 | 814 | 128 | 760 | 3,919 |
Exchange differences | (22) | (13) | (29) | 24 | (40) |
Amortisation for the year | \u2014 | \u2014 | 19 | 58 | 77 |
Impairment | 128 | 21 | \u2014 | \u2014 | 149 |
Reversal of impairment | (379) | \u2014 | \u2014 | \u2014 | (379) |
Disposals | (480) | \u2014 | (16) | (20) | (516) |
At 30 June 2024 | 1,464 | 822 | 102 | 822 | 3,210 |
Exchange differences | 5 | (14) | 6 | 38 | 35 |
Amortisation for the year | \u2014 | \u2014 | 20 | 74 | 94 |
Impairment | 416 | \u2014 | \u2014 | \u2014 | 416 |
Disposals | (137) | \u2014 | (33) | (349) | (519) |
At 30 June 2025 | 1,748 | 808 | 95 | 585 | 3,236 |
Carrying amount | |||||
At 30 June 2025 | 9,381 | 2,949 | 1,891 | 555 | 14,776 |
At 30 June 2024 | 9,642 | 2,860 | 1,909 | 403 | 14,814 |
At 30 June 2023 | 9,475 | 2,807 | 1,912 | 312 | 14,506 |
Land and buildings $ million | Plant and equipment $ million | Fixtures and fittings $ million | Returnable bottles, kegs and crates $ million | Under construction $ million | Total $ million | |
Cost | ||||||
At 30 June 2023 | 3,350 | 6,449 | 164 | 521 | 1,571 | 12,055 |
Hyperinflation adjustment | 48 | 70 | 2 | 12 | 16 | 148 |
Exchange differences | (74) | (123) | (3) | (24) | (50) | (274) |
Sale of businesses | (1) | (14) | (3) | \u2014 | \u2014 | (18) |
Additions | 207 | 383 | 15 | 30 | 911 | 1,546 |
Disposals | (57) | (189) | (9) | (19) | (9) | (283) |
Transfers | 169 | 679 | 11 | 13 | (872) | \u2014 |
Reclassification to assets held for sale | (25) | (97) | \u2014 | (19) | (4) | (145) |
At 30 June 2024 | 3,617 | 7,158 | 177 | 514 | 1,563 | 13,029 |
Hyperinflation adjustment | 33 | 38 | 1 | 6 | 4 | 82 |
Exchange differences | 162 | 354 | 30 | 42 | 40 | 628 |
Acquisitions | \u2014 | \u2014 | \u2014 | \u2014 | 1 | 1 |
Additions | 160 | 388 | 19 | 38 | 977 | 1,582 |
Borrowing costs capitalised | 16 | 22 | \u2014 | \u2014 | 56 | 94 |
Disposals | (93) | (222) | (16) | (43) | (36) | (410) |
Transfers | 367 | 415 | 11 | (7) | (786) | \u2014 |
Reclassification to assets held for sale | (40) | (211) | (1) | (76) | (8) | (336) |
At 30 June 2025 | 4,222 | 7,942 | 221 | 474 | 1,811 | 14,670 |
Accumulated depreciation | ||||||
At 30 June 2023 | 986 | 2,946 | 96 | 289 | \u2014 | 4,317 |
Exchange differences | (20) | (69) | (3) | (15) | \u2014 | (107) |
Depreciation charge for the year | 175 | 365 | 23 | 37 | \u2014 | 600 |
Exceptional accelerated depreciation and impairment | 9 | 36 | 1 | \u2014 | \u2014 | 46 |
Sale of businesses | (1) | (13) | (3) | \u2014 | \u2014 | (17) |
Disposals | (43) | (156) | (9) | (20) | \u2014 | (228) |
Reclassification to assets held for sale | (8) | (72) | \u2014 | (11) | \u2014 | (91) |
At 30 June 2024 | 1,098 | 3,037 | 105 | 280 | \u2014 | 4,520 |
Exchange differences | 90 | 119 | 19 | 23 | \u2014 | 251 |
Depreciation charge for the year | 180 | 408 | 24 | 42 | \u2014 | 654 |
Exceptional accelerated depreciation and impairment | 34 | 115 | 3 | \u2014 | \u2014 | 152 |
Disposals | (73) | (212) | (15) | (40) | \u2014 | (340) |
Reclassification to assets held for sale | (8) | (59) | (1) | (27) | \u2014 | (95) |
At 30 June 2025 | 1,321 | 3,408 | 135 | 278 | \u2014 | 5,142 |
Carrying amount | ||||||
At 30 June 2025 | 2,901 | 4,534 | 86 | 196 | 1,811 | 9,528 |
At 30 June 2024 | 2,519 | 4,121 | 72 | 234 | 1,563 | 8,509 |
At 30 June 2023 | 2,364 | 3,503 | 68 | 232 | 1,571 | 7,738 |
Land and buildings $ million | Plant and equipment $ million | Total $ million | |
At 30 June 2023 | 426 | 237 | 663 |
Exchange differences | (6) | (3) | (9) |
Additions | 106 | 60 | 166 |
Disposals | (11) | (2) | (13) |
Depreciation | (71) | (50) | (121) |
At 30 June 2024 | 444 | 242 | 686 |
Exchange differences | 12 | 11 | 23 |
Additions | 73 | 83 | 156 |
Reclassification within property, plant and equipment | \u2014 | (79) | (79) |
Reclassification to assets held for sale | (1) | (4) | (5) |
Depreciation | (74) | (52) | (126) |
At 30 June 2025 | 454 | 201 | 655 |
2025 $ million | 2024 $ million | |
North America | 1,002 | 968 |
Europe | ||
T\u00fcrkiye | 414 | 370 |
Asia Pacific | ||
Greater China | 160 | 158 |
India | 827 | 838 |
Latin America and Caribbean | ||
Mexico | 185 | 189 |
Other cash-generating units | 361 | 337 |
2,949 | 2,860 |
2025 | 2024 | |||
Pre-tax discount rate % | Terminal growth rate % | Pre-tax discount rate % | Terminal growth rate % | |
North America | ||||
United States | 10 | 2 | 9 | 2 |
Europe | ||||
United Kingdom | 11 | 3 | 9 | 2 |
T\u00fcrkiye | 27 | 14 | 27 | 14 |
Asia Pacific | ||||
India | 13 | 4 | 12 | 3 |
Greater China | 9 | 2 | 10 | 2 |
Latin America and Caribbean | ||||
Mexico | 13 | 3 | 13 | 3 |
Accounting policies | ||
Land and buildings are stated at cost less accumulated depreciation. Freehold land is not depreciated. Leaseholds are generally depreciated over the unexpired period of the lease. Other property, plant and equipment are depreciated on a straight-line basis to estimated residual values over their expected useful lives, and these values and lives are reviewed each year. Subject to these reviews, the estimated useful lives fall within the following ranges: buildings \u2013 10 to 50 years; casks and containers within plant and equipment \u2013 15 to 50 years; other plant and equipment \u2013 5 to 40 years; fixtures and fittings \u2013 5 to 10 years; and returnable bottles, kegs and crates \u2013 5 to 30 years. Reviews are carried out if there is an indication that assets may be impaired, to ensure that property, plant and equipment are not carried at above their recoverable amounts. |
Government grants | ||
Government grants are not recognised until there is reasonable assurance that the group will comply with the conditions pursuant to which they have been granted and that the grants will be received. Government grants in respect of property, plant and equipment are deducted from the asset that they relate to, reducing the depreciation expense charged to the income statement. | ||
Land and buildings $ million | Plant and equipment $ million | Fixtures and fittings $ million | Returnable bottles, kegs and crates $ million | Under construction $ million | Total $ million | |
Cost | ||||||
At 30 June 2023 | 3,350 | 6,449 | 164 | 521 | 1,571 | 12,055 |
Hyperinflation adjustment | 48 | 70 | 2 | 12 | 16 | 148 |
Exchange differences | (74) | (123) | (3) | (24) | (50) | (274) |
Sale of businesses | (1) | (14) | (3) | \u2014 | \u2014 | (18) |
Additions | 207 | 383 | 15 | 30 | 911 | 1,546 |
Disposals | (57) | (189) | (9) | (19) | (9) | (283) |
Transfers | 169 | 679 | 11 | 13 | (872) | \u2014 |
Reclassification to assets held for sale | (25) | (97) | \u2014 | (19) | (4) | (145) |
At 30 June 2024 | 3,617 | 7,158 | 177 | 514 | 1,563 | 13,029 |
Hyperinflation adjustment | 33 | 38 | 1 | 6 | 4 | 82 |
Exchange differences | 162 | 354 | 30 | 42 | 40 | 628 |
Acquisitions | \u2014 | \u2014 | \u2014 | \u2014 | 1 | 1 |
Additions | 160 | 388 | 19 | 38 | 977 | 1,582 |
Borrowing costs capitalised | 16 | 22 | \u2014 | \u2014 | 56 | 94 |
Disposals | (93) | (222) | (16) | (43) | (36) | (410) |
Transfers | 367 | 415 | 11 | (7) | (786) | \u2014 |
Reclassification to assets held for sale | (40) | (211) | (1) | (76) | (8) | (336) |
At 30 June 2025 | 4,222 | 7,942 | 221 | 474 | 1,811 | 14,670 |
Accumulated depreciation | ||||||
At 30 June 2023 | 986 | 2,946 | 96 | 289 | \u2014 | 4,317 |
Exchange differences | (20) | (69) | (3) | (15) | \u2014 | (107) |
Depreciation charge for the year | 175 | 365 | 23 | 37 | \u2014 | 600 |
Exceptional accelerated depreciation and impairment | 9 | 36 | 1 | \u2014 | \u2014 | 46 |
Sale of businesses | (1) | (13) | (3) | \u2014 | \u2014 | (17) |
Disposals | (43) | (156) | (9) | (20) | \u2014 | (228) |
Reclassification to assets held for sale | (8) | (72) | \u2014 | (11) | \u2014 | (91) |
At 30 June 2024 | 1,098 | 3,037 | 105 | 280 | \u2014 | 4,520 |
Exchange differences | 90 | 119 | 19 | 23 | \u2014 | 251 |
Depreciation charge for the year | 180 | 408 | 24 | 42 | \u2014 | 654 |
Exceptional accelerated depreciation and impairment | 34 | 115 | 3 | \u2014 | \u2014 | 152 |
Disposals | (73) | (212) | (15) | (40) | \u2014 | (340) |
Reclassification to assets held for sale | (8) | (59) | (1) | (27) | \u2014 | (95) |
At 30 June 2025 | 1,321 | 3,408 | 135 | 278 | \u2014 | 5,142 |
Carrying amount | ||||||
At 30 June 2025 | 2,901 | 4,534 | 86 | 196 | 1,811 | 9,528 |
At 30 June 2024 | 2,519 | 4,121 | 72 | 234 | 1,563 | 8,509 |
At 30 June 2023 | 2,364 | 3,503 | 68 | 232 | 1,571 | 7,738 |
Accounting policies | ||
Land and buildings are stated at cost less accumulated depreciation. Freehold land is not depreciated. Leaseholds are generally depreciated over the unexpired period of the lease. Other property, plant and equipment are depreciated on a straight-line basis to estimated residual values over their expected useful lives, and these values and lives are reviewed each year. Subject to these reviews, the estimated useful lives fall within the following ranges: buildings \u2013 10 to 50 years; casks and containers within plant and equipment \u2013 15 to 50 years; other plant and equipment \u2013 5 to 40 years; fixtures and fittings \u2013 5 to 10 years; and returnable bottles, kegs and crates \u2013 5 to 30 years. Reviews are carried out if there is an indication that assets may be impaired, to ensure that property, plant and equipment are not carried at above their recoverable amounts. |
Government grants | ||
Government grants are not recognised until there is reasonable assurance that the group will comply with the conditions pursuant to which they have been granted and that the grants will be received. Government grants in respect of property, plant and equipment are deducted from the asset that they relate to, reducing the depreciation expense charged to the income statement. | ||
Government grants | ||
Government grants are not recognised until there is reasonable assurance that the group will comply with the conditions pursuant to which they have been granted and that the grants will be received. Government grants in respect of property, plant and equipment are deducted from the asset that they relate to, reducing the depreciation expense charged to the income statement. | ||
Accounting policies | ||
Biological assets held by the group consist of agave (Agave Azul Tequilana Weber) plants. The harvested plants are used during the production of tequila. The maturity cycle of agave ranges between six and eight years; based on this, biological assets are classified as mature and immature. Mature biological assets are measured at fair value less costs to sell on initial recognition and at the end of each reporting period based on the present value of future cash flows discounted at an appropriate rate for Mexico (income approach as per IFRS 13). Immature biological assets are plants that have not reached the point of maturity because their sugar content yield and weight is not enough to be harvested and there is no active market for such plants; consequently the company accounts for these assets by applying fair valuation using the cost approach (replacement cost). | ||
Biological assets $ million | |
Fair value | |
At 30 June 2023 | 197 |
Exchange differences | (13) |
Transferred to inventories | (23) |
Fair value change | (17) |
Farming cost capitalised | 55 |
At 30 June 2024 | 199 |
Exchange differences | (7) |
Transferred to inventories | (69) |
Fair value change | 11 |
Farming cost capitalised | 42 |
At 30 June 2025 | 176 |
Accounting policies | ||
Biological assets held by the group consist of agave (Agave Azul Tequilana Weber) plants. The harvested plants are used during the production of tequila. The maturity cycle of agave ranges between six and eight years; based on this, biological assets are classified as mature and immature. Mature biological assets are measured at fair value less costs to sell on initial recognition and at the end of each reporting period based on the present value of future cash flows discounted at an appropriate rate for Mexico (income approach as per IFRS 13). Immature biological assets are plants that have not reached the point of maturity because their sugar content yield and weight is not enough to be harvested and there is no active market for such plants; consequently the company accounts for these assets by applying fair valuation using the cost approach (replacement cost). | ||
Accounting policies | ||
Where the group is the lessee, all leases are recognised on the balance sheet as right-of-use assets as part of property, plant and equipment, and depreciated on a straight-line basis with the charge recognised in cost of sales or in other operating items depending on the nature of the costs. The liability, recognised as part of net borrowings, is measured at a discounted value and any interest is charged to finance charges. The group recognises services associated with a lease as other operating expenses. Payments associated with leases where the value of the asset when it is new is lower than $5,000 (leases of low value assets) and leases with a lease term of 12 months or less (short-term leases) are recognised as other operating expenses. A judgement in calculating the lease liability at initial recognition includes determining the lease term where extension or termination options exist. In such instances, any economic incentive to retain or end a lease are considered and extension periods are only included when it is considered reasonably certain that an option to extend a lease will be exercised. | ||
Land and buildings $ million | Plant and equipment $ million | Total $ million | |
At 30 June 2023 | 426 | 237 | 663 |
Exchange differences | (6) | (3) | (9) |
Additions | 106 | 60 | 166 |
Disposals | (11) | (2) | (13) |
Depreciation | (71) | (50) | (121) |
At 30 June 2024 | 444 | 242 | 686 |
Exchange differences | 12 | 11 | 23 |
Additions | 73 | 83 | 156 |
Reclassification within property, plant and equipment | \u2014 | (79) | (79) |
Reclassification to assets held for sale | (1) | (4) | (5) |
Depreciation | (74) | (52) | (126) |
At 30 June 2025 | 454 | 201 | 655 |
2025 $ million | 2024 $ million | |
Current lease liabilities | (112) | (95) |
Non-current lease liabilities | (541) | (509) |
(653) | (604) |
Accounting policies | ||
Where the group is the lessee, all leases are recognised on the balance sheet as right-of-use assets as part of property, plant and equipment, and depreciated on a straight-line basis with the charge recognised in cost of sales or in other operating items depending on the nature of the costs. The liability, recognised as part of net borrowings, is measured at a discounted value and any interest is charged to finance charges. The group recognises services associated with a lease as other operating expenses. Payments associated with leases where the value of the asset when it is new is lower than $5,000 (leases of low value assets) and leases with a lease term of 12 months or less (short-term leases) are recognised as other operating expenses. A judgement in calculating the lease liability at initial recognition includes determining the lease term where extension or termination options exist. In such instances, any economic incentive to retain or end a lease are considered and extension periods are only included when it is considered reasonably certain that an option to extend a lease will be exercised. | ||
Accounting policies | ||
Other investments are equity investments that are not classified as investments in associates or joint arrangements nor investments in subsidiaries. They are included in non-current assets. Subsequent to initial measurement, other investments are stated at fair value. Gains and losses arising from the changes in fair value are recognised in the income statement or in other comprehensive income. Accumulated gains and losses included in other comprehensive income are not recycled to the income statement. Dividends from other investments are recognised in the consolidated income statement. Loans receivable are non-derivative financial assets that are not classified as equity investments. They are subsequently measured either at amortised cost using the effective interest method less allowance for impairment or at fair value with gains and losses arising from changes in fair value recognised in the income statement or in other comprehensive income that are recycled to the income statement on the de-recognition of the asset. Allowances for expected credit losses are made based on the risk of non-payment taking into account ageing, previous experience, economic conditions and forward-looking data. Such allowances are measured as either 12-months expected credit losses or lifetime expected credit losses depending on changes in the credit quality of the counterparty. | ||
Loans $ million | Other investments $ million | Total $ million | |
Cost less allowances or fair value | |||
At 30 June 2023 | 43 | 28 | 71 |
Additions | 18 | 9 | 27 |
Repayments and disposals | (17) | \u2014 | (17) |
Fair value adjustment | \u2014 | (3) | (3) |
Capitalised interest | 5 | \u2014 | 5 |
Impairment reversed/(charged) during the year | 14 | (3) | 11 |
At 30 June 2024 | 63 | 31 | 94 |
Exchange differences | 1 | 2 | 3 |
Additions | 11 | 6 | 17 |
Repayments and disposals | (6) | \u2014 | (6) |
Capitalised interest | 5 | \u2014 | 5 |
Impairment charged during the year | (63) | (9) | (72) |
Provision movement | 1 | \u2014 | 1 |
Transfer to associates/fair value adjustment | (1) | (2) | (3) |
At 30 June 2025 | 11 | 28 | 39 |
Accounting policies | ||
Other investments are equity investments that are not classified as investments in associates or joint arrangements nor investments in subsidiaries. They are included in non-current assets. Subsequent to initial measurement, other investments are stated at fair value. Gains and losses arising from the changes in fair value are recognised in the income statement or in other comprehensive income. Accumulated gains and losses included in other comprehensive income are not recycled to the income statement. Dividends from other investments are recognised in the consolidated income statement. Loans receivable are non-derivative financial assets that are not classified as equity investments. They are subsequently measured either at amortised cost using the effective interest method less allowance for impairment or at fair value with gains and losses arising from changes in fair value recognised in the income statement or in other comprehensive income that are recycled to the income statement on the de-recognition of the asset. Allowances for expected credit losses are made based on the risk of non-payment taking into account ageing, previous experience, economic conditions and forward-looking data. Such allowances are measured as either 12-months expected credit losses or lifetime expected credit losses depending on changes in the credit quality of the counterparty. | ||
Accounting policies | ||
The group\u2019s principal post-employment funds are defined benefit plans. In addition, the group has defined contribution plans, unfunded post-employment medical benefit liabilities and other unfunded defined benefit post-employment liabilities. For post- employment plans other than defined contribution plans, the amount charged to operating profit is the cost of accruing pension benefits promised to employees over the year, plus any changes arising on benefits granted to members by the group during the year. Net finance charges comprise the net deficit/ surplus on the plans at the beginning of the year, adjusted for cash flows in the year, multiplied by the discount rate for plan liabilities. The differences between the fair value of the plans\u2019 assets and the present value of the plans\u2019 liabilities are disclosed as an asset or liability on the consolidated balance sheet. Any differences due to changes in assumptions or experience are recognised in other comprehensive income. The amount of any pension fund asset recognised on the balance sheet is limited to any future refunds from the plan or the present value of reductions in future contributions to the plan. Contributions payable by the group in respect of defined contribution plans are charged to operating profit as incurred. | ||
Critical accounting estimates and judgements | ||
Application of IAS 19 requires the exercise of estimates and judgement in relation to various assumptions. Diageo determines the assumptions on a country-by-country basis in conjunction with its actuaries. Estimates are required in respect of uncertain future events, including the life expectancy of members of the plans, salary and pension increases, future inflation rates, discount rates and employee and pensioner demographics. The application of different assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive income and the balance sheet. There may be interdependencies between the assumptions. Where there is an accounting surplus on a defined benefit plan, management judgement is necessary to determine whether the group can obtain economic benefits through a refund of the surplus or by reducing future contributions to the plan. | ||
Principal plans | Date of valuation |
United Kingdom(1) | 1 April 2024 |
Ireland(2) | 31 December 2021 |
United States | 1 January 2024 |
2025 $ million | 2024 $ million | 2023 $ million | |
Current service cost and administrative expenses | (88) | (82) | (91) |
Past service gains/(losses) \u2013 ordinary activities | 2 | 3 | (1) |
Gains on curtailments and settlements | \u2014 | \u2014 | 2 |
Charge to operating profit | (86) | (79) | (90) |
Net finance income in respect of post- employment plans | 35 | 37 | 53 |
Charge before taxation(1) | (51) | (42) | (37) |
Actual returns less amounts included in finance income | (460) | (168) | (1,722) |
Experience (losses)/gains | (139) | 24 | (273) |
Changes in financial assumptions | 495 | 20 | 1,150 |
Changes in demographic assumptions | 92 | 43 | 65 |
Other comprehensive loss | (12) | (81) | (780) |
Changes in the surplus restriction | (1) | 5 | 9 |
Total other comprehensive loss | (13) | (76) | (771) |
2025 $ million | 2024 $ million | 2023 $ million | |
United Kingdom | 2 | 5 | 19 |
Ireland | 1 | 3 | 1 |
United States | (41) | (35) | (38) |
Other | (13) | (15) | (19) |
(51) | (42) | (37) |
Plan assets $ million | Plan liabilities $ million | Net surplus $ million | |
At 30 June 2023 | 8,624 | (7,876) | 748 |
Exchange differences | (5) | 4 | (1) |
Income/(charge) before taxation | 383 | (425) | (42) |
Other comprehensive (loss)/income(1) | (168) | 87 | (81) |
Contributions by the group | 97 | \u2014 | 97 |
Settlements | (43) | 43 | \u2014 |
Employee contributions | 2 | (2) | \u2014 |
Benefits paid | (473) | 473 | \u2014 |
At 30 June 2024 | 8,417 | (7,696) | 721 |
Exchange differences | 633 | (608) | 25 |
Disposal of businesses | \u2014 | 3 | 3 |
Reclassification to liabilities held for sale | \u2014 | 7 | 7 |
Income/(charge) before taxation | 381 | (432) | (51) |
Other comprehensive loss(1) | (460) | 448 | (12) |
Contributions by the group | 64 | \u2014 | 64 |
Employee contributions | 2 | (2) | \u2014 |
Benefits paid | (504) | 504 | \u2014 |
At 30 June 2025 | 8,533 | (7,776) | 757 |
2025 | 2024 | |||
Plan assets $ million | Plan liabilities $ million | Plan assets $ million | Plan liabilities $ million | |
Pensions | ||||
United Kingdom | 5,640 | (5,083) | 5,654 | (5,028) |
Ireland | 2,057 | (1,599) | 1,954 | (1,595) |
United States | 595 | (562) | 569 | (534) |
Other | 215 | (230) | 216 | (241) |
Post-employment medical | 3 | (266) | 3 | (266) |
Other post-employment | 23 | (36) | 21 | (32) |
8,533 | (7,776) | 8,417 | (7,696) |
2025 | 2024 | |||
Non- current assets (1) $ million | Non- current liabilities $ million | Non- current assets (1) $ million | Non- current liabilities $ million | |
Funded plans | 1,161 | (146) | 1,146 | (152) |
Unfunded plans | \u2014 | (263) | \u2014 | (277) |
1,161 | (409) | 1,146 | (429) |
United Kingdom | Ireland | United States(1) | |||||||
2025 % | 2024 % | 2023 % | 2025 % | 2024 % | 2023 % | 2025 % | 2024 % | 2023 % | |
Rate of general increase in salaries(2) | 3.3 | 3.6 | 3.7 | 3.4 | 3.7 | 3.9 | \u2014 | \u2014 | \u2014 |
Rate of increase to pensions in payment | 2.5 | 2.8 | 2.9 | 2.0 | 2.2 | 2.3 | \u2014 | \u2014 | \u2014 |
Rate of increase to deferred pensions | 2.3 | 2.6 | 2.7 | 2.0 | 2.2 | 2.4 | \u2014 | \u2014 | \u2014 |
Discount rate for plan liabilities | 5.6 | 5.1 | 5.2 | 3.8 | 3.6 | 3.6 | 5.2 | 5.3 | 4.9 |
Inflation \u2013 CPI | 2.3 | 2.6 | 2.7 | 2.0 | 2.3 | 2.5 | 2.3 | 2.3 | 2.2 |
Inflation \u2013 RPI | 2.8 | 3.1 | 3.2 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
United Kingdom(1) | Ireland(2) | United States | |||||||
2025 Age | 2024 Age | 2023 Age | 2025 Age | 2024 Age | 2023 Age | 2025 Age | 2024 Age | 2023 Age | |
Retiring currently at age 65 | |||||||||
Male | 86.7 | 86.8 | 86.8 | 86.9 | 87.2 | 87.2 | 85.8 | 85.7 | 85.6 |
Female | 88.3 | 88.4 | 88.4 | 89.6 | 89.7 | 89.6 | 87.5 | 87.4 | 87.2 |
Currently aged 45, retiring at age 65 | |||||||||
Male | 87.5 | 88.1 | 88.1 | 88.2 | 88.8 | 88.8 | 87.3 | 87.2 | 87.1 |
Female | 90.0 | 90.5 | 90.4 | 91.0 | 91.4 | 91.3 | 88.9 | 88.9 | 88.7 |
United Kingdom | Ireland | United States | |||||||
Benefit/(cost) | Operating profit $ million | Profit after taxation $ million | Plan liabilities(1) $ million | Operating profit $ million | Profit after taxation $ million | Plan liabilities(1) $ million | Operating profit $ million | Profit after taxation $ million | Plan liabilities(1) $ million |
Effect of 0.5% increase in discount rate | 2 | 15 | 256 | \u2014 | 6 | 95 | 2 | 2 | 28 |
Effect of 0.5% decrease in discount rate | (2) | (13) | (282) | (1) | (5) | (105) | (2) | (2) | (31) |
Effect of 0.5% increase in inflation | (2) | (7) | (154) | \u2014 | (2) | (61) | (1) | (1) | (10) |
Effect of 0.5% decrease in inflation | 2 | 9 | 181 | \u2014 | 3 | 66 | 1 | 1 | 9 |
Effect of one year increase in life expectancy | \u2014 | (7) | (186) | \u2014 | (2) | (66) | \u2014 | (1) | (17) |
2025 | |||||||||
United Kingdom $ million | Ireland $ million | United States and other $ million | Total $ million | ||||||
Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Total | |
Equities(1) | \u2014 | 961 | \u2014 | 366 | 89 | 137 | 89 | 1,464 | 1,553 |
Bonds | |||||||||
\u00a0 \u00a0 Fixed-interest government | 224 | 22 | \u2014 | 80 | 56 | 8 | 280 | 110 | 390 |
\u00a0 \u00a0 Inflation-linked government | 1,447 | 618 | \u2014 | 117 | \u2014 | 1 | 1,447 | 736 | 2,183 |
\u00a0 \u00a0 Investment grade corporate | \u2014 | 846 | \u2014 | 667 | 19 | 427 | 19 | 1,940 | 1,959 |
\u00a0 \u00a0 Non-investment grade | 5 | 640 | 2 | 375 | \u2014 | 49 | 7 | 1,064 | 1,071 |
\u00a0 \u00a0 Loan securities | 18 | 315 | \u2014 | 116 | \u2014 | \u2014 | 18 | 431 | 449 |
\u00a0 \u00a0 Liability Driven Investment (LDI) | \u2014 | \u2014 | \u2014 | 130 | \u2014 | \u2014 | \u2014 | 130 | 130 |
Property - unquoted | \u2014 | 595 | \u2014 | 58 | \u2014 | \u2014 | \u2014 | 653 | 653 |
Hedge funds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10 | \u2014 | 10 | 10 |
Interest rate and inflation swaps | 1 | (264) | 11 | 20 | \u2014 | \u2014 | 12 | (244) | (232) |
Cash and other | 49 | 163 | 18 | 97 | \u2014 | 40 | 67 | 300 | 367 |
Total bid value of assets | 1,744 | 3,896 | 31 | 2,026 | 164 | 672 | 1,939 | 6,594 | 8,533 |
2024 | |||||||||
United Kingdom $ million | Ireland $ million | United States and other $ million | Total $ million | ||||||
Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Quoted | Unquoted | Total | |
Equities(1) | 1 | 1,121 | \u2014 | 330 | 80 | 129 | 81 | 1,580 | 1,661 |
Bonds | |||||||||
\u00a0 \u00a0 Fixed-interest government | 943 | 25 | \u2014 | 60 | 62 | 10 | 1,005 | 95 | 1,100 |
\u00a0 \u00a0 Inflation-linked government | 2,112 | 495 | \u2014 | 111 | \u2014 | 2 | 2,112 | 608 | 2,720 |
\u00a0 \u00a0 Investment grade corporate | \u2014 | 503 | \u2014 | 623 | 21 | 311 | 21 | 1,437 | 1,458 |
\u00a0 \u00a0 Non-investment grade | 4 | 448 | 5 | 346 | \u2014 | 146 | 9 | 940 | 949 |
\u00a0 \u00a0 Loan securities | \u2014 | 421 | \u2014 | 107 | \u2014 | \u2014 | \u2014 | 528 | 528 |
\u00a0 \u00a0 Liability Driven Investment (LDI) | \u2014 | \u2014 | \u2014 | 124 | \u2014 | \u2014 | \u2014 | 124 | 124 |
Property - unquoted | \u2014 | 551 | \u2014 | 54 | \u2014 | 1 | \u2014 | 606 | 606 |
Hedge funds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 6 | \u2014 | 6 | 6 |
Interest rate and inflation swaps | \u2014 | (1,126) | 36 | 65 | \u2014 | \u2014 | 36 | (1,061) | (1,025) |
Cash and other | 20 | 136 | 28 | 65 | \u2014 | 41 | 48 | 242 | 290 |
Total bid value of assets | 3,080 | 2,574 | 69 | 1,885 | 163 | 646 | 3,312 | 5,105 | 8,417 |
Valuation date | ||||||
31 December 2024 | 31 December 2027 | 31 December 2030 | ||||
\u20ac million | $ million | \u20ac million | $ million | \u20ac million | $ million | |
Maximum conditional contribution | 35 | 41 | 39 | 46 | 39 | 46 |
United Kingdom | Ireland | United States | ||||
2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | |
Maturity analysis of benefits expected to be paid | ||||||
Within one year | 375 | 311 | 100 | 88 | 68 | 64 |
Between 1 to 5 years | 1,430 | 1,225 | 478 | 441 | 215 | 216 |
Between 6 to 15 years | 3,472 | 3,123 | 912 | 870 | 476 | 456 |
Between 16 to 25 years | 2,986 | 2,948 | 745 | 748 | 315 | 297 |
Beyond 25 years | 2,694 | 3,378 | 743 | 816 | 245 | 230 |
Total | 10,957 | 10,985 | 2,978 | 2,963 | 1,319 | 1,263 |
years | years | years | years | years | years | |
Average duration of the defined benefit obligation | 12 | 14 | 13 | 14 | 9 | 9 |
Accounting policies | ||
The group\u2019s principal post-employment funds are defined benefit plans. In addition, the group has defined contribution plans, unfunded post-employment medical benefit liabilities and other unfunded defined benefit post-employment liabilities. For post- employment plans other than defined contribution plans, the amount charged to operating profit is the cost of accruing pension benefits promised to employees over the year, plus any changes arising on benefits granted to members by the group during the year. Net finance charges comprise the net deficit/ surplus on the plans at the beginning of the year, adjusted for cash flows in the year, multiplied by the discount rate for plan liabilities. The differences between the fair value of the plans\u2019 assets and the present value of the plans\u2019 liabilities are disclosed as an asset or liability on the consolidated balance sheet. Any differences due to changes in assumptions or experience are recognised in other comprehensive income. The amount of any pension fund asset recognised on the balance sheet is limited to any future refunds from the plan or the present value of reductions in future contributions to the plan. Contributions payable by the group in respect of defined contribution plans are charged to operating profit as incurred. | ||
Critical accounting estimates and judgements | ||
Application of IAS 19 requires the exercise of estimates and judgement in relation to various assumptions. Diageo determines the assumptions on a country-by-country basis in conjunction with its actuaries. Estimates are required in respect of uncertain future events, including the life expectancy of members of the plans, salary and pension increases, future inflation rates, discount rates and employee and pensioner demographics. The application of different assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive income and the balance sheet. There may be interdependencies between the assumptions. Where there is an accounting surplus on a defined benefit plan, management judgement is necessary to determine whether the group can obtain economic benefits through a refund of the surplus or by reducing future contributions to the plan. | ||
2025 $ million | 2024 $ million | |
Raw materials and consumables | 604 | 639 |
Work in progress | 131 | 118 |
Maturing inventories | 8,677 | 7,832 |
Finished goods and goods for resale | 1,246 | 1,131 |
10,658 | 9,720 |
2025 $ million | 2024 $ million | |
Raw materials and consumables | 50 | 19 |
Maturing inventories | 6,942 | 5,885 |
6,992 | 5,904 |
2025 $ million | 2024 $ million | 2023 $ million | |
Balance at beginning of the year | 124 | 128 | 113 |
Exchange differences | (6) | (3) | (27) |
Income statement charge | 89 | 51 | 66 |
Utilised | (27) | (47) | (23) |
Sale of businesses | \u2014 | (5) | (1) |
Balance at the end of the year | 180 | 124 | 128 |
2025 | 2024 | |||
Current assets $ million | Non-current assets $ million | Current assets $ million | Non-current assets $ million | |
Trade receivables | 2,789 | \u2014 | 2,674 | \u2014 |
Interest receivable | 19 | \u2014 | 31 | \u2014 |
VAT recoverable and other prepaid taxes | 242 | 17 | 227 | 17 |
Other receivables | 283 | 18 | 240 | 14 |
Prepayments | 133 | 3 | 274 | 7 |
Accrued income | 38 | \u2014 | 41 | \u2014 |
3,504 | 38 | 3,487 | 38 |
2025 $ million | 2024 $ million | |
Not overdue | 2,633 | 2,490 |
Overdue 1 \u2013 30 days | 41 | 43 |
Overdue 31 \u2013 60 days | 10 | 31 |
Overdue 61 \u2013 90 days | 10 | 27 |
Overdue 91 \u2013 180 days | 7 | 71 |
Overdue more than 180 days | 88 | 12 |
2,789 | 2,674 |
2025 $ million | 2024 $ million | 2023 $ million | |
Balance at beginning of the year | 95 | 112 | 143 |
Exchange differences | 1 | (3) | (10) |
Income statement charge/(release) | 27 | 8 | (4) |
Utilised | (24) | (22) | (17) |
Balance at the end of the year | 99 | 95 | 112 |
2025 | 2024 | |||
Current liabilities $ million | Non-current liabilities $ million | Current liabilities $ million | Non-current liabilities $ million | |
Trade payables | 3,123 | \u2014 | 3,071 | \u2014 |
Interest payable | 415 | \u2014 | 358 | \u2014 |
Tax and social security excluding income tax | 690 | \u2014 | 724 | \u2014 |
Other payables | 705 | 192 | 499 | 304 |
Accruals | 1,852 | \u2014 | 1,564 | \u2014 |
Deferred income | 82 | \u2014 | 84 | \u2014 |
Dividend payable | 61 | \u2014 | 31 | \u2014 |
Dividend payable to non-controlling interests | 24 | \u2014 | 23 | \u2014 |
6,952 | 192 | 6,354 | 304 |
2025 | 2024 | |
Current liabilities $ million | Current liabilities $ million | |
Carrying amount that has been subject to SCF and presented in trade and other payables | 1,006 | 894 |
\u2014 of which suppliers have received payment from finance provider(1) | 644 | \u2014 |
2025 | ||
Minimum Days after invoice date(1) | Maximum Days after invoice date(1) | |
Trade and other payables subject to SCF arrangements | 0 | 150 |
Comparable trade and other payables that are not part of the arrangements(2) | 0 | 150 |
Thalidomide $ million | Other $ million | Total $ million | |
At 30 June 2023 | 212 | 244 | 456 |
Exchange differences | \u2014 | (3) | (3) |
Income statement charge | \u2014 | 61 | 61 |
Utilised | (17) | (103) | (120) |
Transfers from other payables | \u2014 | (5) | (5) |
Unwinding of discounts | 6 | 2 | 8 |
At 30 June 2024 | 201 | 196 | 397 |
Exchange differences | 2 | (1) | 1 |
Income statement charge | 15 | 169 | 184 |
Utilised | (19) | (36) | (55) |
Transfers from other payables | \u2014 | 1 | 1 |
Unwinding of discounts | 6 | 5 | 11 |
At 30 June 2025 | 205 | 334 | 539 |
Current liabilities | 19 | 204 | 223 |
Non-current liabilities | 186 | 130 | 316 |
205 | 334 | 539 |
Accounting policies | ||
Financial assets and liabilities are initially recorded at fair value including, where permitted by IFRS 9, any directly attributable transaction costs. For those financial assets that are not subsequently held at fair value, the group assesses whether there is evidence of impairment at each balance sheet date. The group classifies its financial assets and liabilities into the following categories: financial assets and liabilities at amortised cost, financial assets and liabilities at fair value through income statement and financial assets at fair value through other comprehensive income. The accounting policies for other investments and loans are described in note 13, for trade and other receivables and payables in note 15 and for cash and cash equivalents in note 17. Financial assets and liabilities at fair value through income statement include derivative assets and liabilities. Where financial assets or liabilities are eligible to be carried at either amortised cost or fair value through other comprehensive income, the group does not apply the fair value option. Derivative financial instruments are carried at fair value using a discounted cash flow model based on market data applied consistently for similar types of instruments. Gains and losses on derivatives that do not qualify for hedge accounting treatment are taken to the income statement as they arise. Other financial liabilities are carried at amortised cost unless they are part of a fair value hedge relationship when the amortised cost of the financial liabilities is adjusted with the fair value change attributable to the risk being hedged from the inception of the hedge relationship. The difference between the initial carrying amount of the financial liabilities and their redemption value is recognised in the income statement over the contractual terms using the effective interest rate method. Financial liabilities in respect of the Zacapa acquisition are recognised at fair value. | ||
Hedge accounting | ||
The group designates and documents certain derivatives as hedging instruments against changes in fair value of recognised assets and liabilities (fair value hedges), commodity price risk of highly probable forecast transactions, as well as the cash flow risk from changes in exchange or interest rates (cash flow hedges) and hedges of net investments in foreign operations (net investment hedges). Derivative instruments designated in hedge relationship are included in other financial assets and liabilities on the consolidated balance sheet. The effectiveness of such hedges is assessed at inception and at least on a quarterly basis, using prospective testing. Methods used for testing effectiveness include critical terms, regression analysis and hypothetical derivative models. Fair value hedges are used to manage the currency and/or interest rate risks to which the fair value of certain assets and liabilities are exposed. Changes in the fair value of the derivatives are recognised in the income statement, along with any changes in the relevant fair value of the underlying hedged asset or liability. If such a hedge relationship no longer meets hedge accounting criteria, fair value movements on the derivative continue to be taken to the income statement while any fair value adjustments made to the underlying hedged item to that date are amortised through the income statement over its remaining life using the effective interest rate method. Cash flow hedges are used to hedge the foreign currency risk of highly probable future foreign currency cash flows, the commodity price risk of highly probable future transactions, as well as the cash flow risk from changes in exchange or interest rates. The effective portion of the gain or loss on the hedges is recognised in other comprehensive income, while any ineffective part is recognised in the income statement. Amounts recorded in other comprehensive income are recycled to the income statement in the same period in which the underlying foreign currency, commodity or interest exposure affects the income statement. When a hedge relationship no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity is either transferred to the income statement or amortised over its remaining life using the effective interest rate method. Net investment hedges utilise either foreign currency borrowings or derivatives as hedging instruments. Foreign exchange differences arising on translation of net investments are recorded in other comprehensive income and included in the exchange reserve. Liabilities used as hedging instruments are revalued at closing exchange rates and the resulting gains or losses are also recognised in other comprehensive income to the extent that they are effective, with any ineffectiveness taken to the income statement. Foreign currency derivative contracts hedging net investments are carried at fair value. Effective fair value movements are recognised in other comprehensive income, with any ineffectiveness taken to the income statement. Cost of hedging model is applied in case of cross-currency interest rate swaps in net investment hedges. The fair value changes attributable to the spot component of the hedging instruments are designated to offset foreign exchange differences of net investments and therefore taken to net investment hedge reserve. The fair value changes attributable to the forward component of the hedging instruments (including currency basis) are taken to the cost of hedging reserve and amortised to the consolidated income statement. | ||
2025 | 2024 | |||
$ million | % | $ million | % | |
Fixed rate | 19,051 | 87 | 16,174 | 77 |
Floating rate(1) | 2,289 | 11 | 4,384 | 21 |
Impact of financial derivatives and fair value adjustments | (139) | (1) | (145) | (1) |
Lease liabilities | 653 | 3 | 604 | 3 |
Net borrowings | 21,854 | 100 | 21,017 | 100 |
Average monthly net borrowings | Effective interest rate | ||||
2025 $ million | 2024 $ million | 2023 $ million | 2025 % | 2024 % | 2023 % |
21,540 | 21,034 | 18,362 | 4.1 | 4.3 | 3.9 |
Impact on income statement gain/(loss) | Impact on consolidated comprehensive income gain/(loss) (1) (2) | |||
2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | |
0.5% decrease in interest rates | 30 | 22 | 38 | 43 |
0.5% increase in interest rates | (29) | (22) | (37) | (42) |
10% weakening of US dollar | (46) | (39) | (1,049) | (974) |
10% strengthening of US dollar | 37 | 33 | 867 | 813 |
Gross amount $ million | Right of asset offset $ million | Right of liability offset $ million | Net amount $ million | |
2025 | ||||
Derivative financial assets | 733 | (147) | (72) | 514 |
Derivative financial liabilities | (275) | 147 | 72 | (56) |
2024 | ||||
Derivative financial assets | 483 | (184) | (139) | 160 |
Derivative financial liabilities | (486) | 184 | 139 | (163) |
Due within 1 year $ million | Due between 1 and 3 years $ million | Due between 3 and 5 years $ million | Due after 5 years $ million | Total $ million | Carrying amount at balance sheet date $ million | |
2025 | ||||||
Borrowings(1) | (2,938) | (4,709) | (4,331) | (12,078) | (24,056) | (23,748) |
Interest on borrowings(1)(2) | (935) | (1,261) | (1,061) | (2,320) | (5,577) | (352) |
Lease capital repayments | (112) | (163) | (112) | (266) | (653) | (653) |
Lease future interest payments | (25) | (35) | (24) | (40) | (124) | \u2014 |
Trade and other financial liabilities(3) | (5,912) | (165) | (16) | (23) | (6,116) | (6,039) |
Non-derivative financial liabilities | (9,922) | (6,333) | (5,544) | (14,727) | (36,526) | (30,792) |
Cross currency swaps (gross) | ||||||
Receivable | 171 | 909 | 1,097 | 4,960 | 7,137 | |
Payable | (164) | (918) | (1,063) | (4,446) | (6,591) | |
FX forwards (gross) | ||||||
Receivable | 7,537 | 763 | \u2014 | \u2014 | 8,300 | |
Payable | (7,441) | (693) | \u2014 | \u2014 | (8,134) | |
Other derivative instruments (net) | (90) | (84) | (65) | (11) | (250) | |
Derivative instruments(2) | 13 | (23) | (31) | 503 | 462 | 438 |
2024 | ||||||
Borrowings(1) | (2,902) | (4,991) | (4,259) | (9,812) | (21,964) | (21,501) |
Interest on borrowings(1)(2) | (791) | (1,043) | (789) | (1,866) | (4,489) | (291) |
Lease capital repayments | (95) | (148) | (95) | (266) | (604) | (604) |
Lease future interest payments | (19) | (30) | (22) | (44) | (115) | \u2014 |
Trade and other financial liabilities(3) | (5,316) | (280) | (217) | (5) | (5,818) | (5,619) |
Non-derivative financial liabilities | (9,123) | (6,492) | (5,382) | (11,993) | (32,990) | (28,015) |
Cross currency swaps (gross) | ||||||
Receivable | 128 | 549 | 1,249 | 3,666 | 5,592 | |
Payable | (126) | (549) | (1,303) | (3,341) | (5,319) | |
FX forwards (gross) | ||||||
Receivable | 7,164 | 1,141 | \u2014 | \u2014 | 8,305 | |
Payable | (7,042) | (1,135) | \u2014 | \u2014 | (8,177) | |
Other derivative instruments (net) | (161) | (145) | (76) | (33) | (415) | |
Derivative instruments(2) | (37) | (139) | (130) | 292 | (14) | (23) |
2025 $ million | 2024 $ million | |
Expiring within one year | 1,040 | 625 |
Expiring between one and two years | \u2014 | 1,040 |
Expiring after two years | 2,460 | 1,585 |
3,500 | 3,250 |
2025 $ million | 2024 $ million | |
Derivative assets | 733 | 497 |
Derivative liabilities | (275) | (486) |
Valuation techniques based on observable market input (Level 2) | 458 | 11 |
Financial assets - other | 75 | 333 |
Financial liabilities - other | (226) | (443) |
Valuation techniques based on unobservable market input (Level 3) | (151) | (110) |
Zacapa financial liability | Contingent consideration recognised on acquisition of businesses | Zacapa financial liability | Contingent consideration recognised on acquisition of businesses | |
2025 $ million | 2025 $ million | 2024 $ million | 2024 $ million | |
At the beginning of the year | (198) | (245) | (274) | (391) |
Net gains included in the income statement | 7 | 133 | \u2014 | 145 |
Net losses included in exchange in other comprehensive income | \u2014 | (8) | \u2014 | \u2014 |
Net gains included in retained earnings | 89 | \u2014 | 73 | \u2014 |
Acquisitions | \u2014 | (12) | \u2014 | \u2014 |
Settlement of liabilities | 1 | 7 | 3 | 1 |
At the end of the year | (101) | (125) | (198) | (245) |
Notional amounts $ million | Maturity | Range of hedged rates | |
2025 | |||
Net investment hedges | |||
Derivatives in net investment hedges of foreign operations | 2,255 | August 2025 - October 2027 | euro 0.84 - 0.85 Canadian dollar 1.29 - 1.48 Chinese yuan 6.93 - 7.29 |
Foreign currency borrowings in net investment hedges | 9,561 | May 2026 - August 2044 | sterling 0.75 - 0.82 \u00a0 euro 0.86 - 0.94 |
Cash flow hedges | |||
Derivatives in cash flow hedge (foreign currency debt) | 2,873 | September 2028 - June 2034 | euro 0.89 - 0.90 |
Derivatives in cash flow hedge (foreign currency risk)(1) | 1,586 | September 2025 - January 2028 | sterling 0.74 - 0.81 Mexican peso 17.73 - 23.69 |
Derivatives in cash flow hedge (commodity price risk)(1) | 275 | July 2025 - June 2027 | Aluminium: 2,426.00 - 2,693.50 USD/ Mt Natural Gas: 0.74 - 1.38 GBP/therm |
Fair value hedges | |||
Derivatives in fair value hedge (interest rate risk)(2) | 4,229 | September 2025 - April 2035 | EURIBOR 1.93 - 1.94% SOFR 0.27 - 1.61% |
2024 | |||
Net investment hedges | |||
Derivatives in net investment hedges of foreign operations | 3,198 | September 2024 - April 2043 | sterling 0.53 - 0.78 euro 0.91 - 0.93 Chinese yuan 6.93 - 7.29 |
Foreign currency borrowings in net investment hedges | 8,109 | September 2024 - June 2038 | sterling 0.76 - 0.82\u00a0 euro 0.89 - 0.94 |
Cash flow hedges | |||
Derivatives in cash flow hedge (foreign currency debt) | 2,747 | September 2028 - June 2034 | euro 0.89 - 0.90 |
Derivatives in cash flow hedge (foreign currency risk)(1) | 1,855 | September 2024 - December 2025 | sterling 0.78 - 0.94 euro 0.87 - 0.93 Mexican peso 17.73 - 20.57 |
Derivatives in cash flow hedge (commodity price risk)(1) | 207 | July 2024 - September 2025 | Feed Wheat: 177.50 - 206.00 USD/Bu Natural Gas: 0.86 - 1.40 USD/therm |
Fair value hedges | |||
Derivatives in fair value hedge (interest rate risk)(2) | 4,044 | April 2025 - April 2030 | EURIBOR 1.93 - 1.94%\u00a0 SOFR 0.27 - 1.61% |
At the beginning of the year $ million | Consolidated income statement $ million | Consolidated statement of comprehensive income $ million | Other(2) $ million | At the end of the year $ million | |
2025 | |||||
Net investment hedges(1) | |||||
Derivatives in net investment hedges of foreign operations | 367 | 44 | (2) | (426) | (17) |
Foreign currency borrowings in net investment hedges | (8,109) | \u2014 | (768) | (684) | (9,561) |
Cash flow hedges(1) | |||||
Derivatives in cash flow hedge (foreign currency debt) | (32) | 230 | (69) | 56 | 185 |
Derivatives in cash flow hedge (foreign currency risk) | 27 | 54 | 76 | (54) | 103 |
Derivatives in cash flow hedge (commodity price risk) | (9) | (19) | (1) | 21 | (8) |
Fair value hedges(1) | |||||
Derivatives in fair value hedge (interest rate risk) | (376) | 166 | \u2014 | \u2014 | (210) |
Fair value hedge hedged item | 368 | (163) | \u2014 | \u2014 | 205 |
Instruments in fair value hedge relationship | (8) | 3 | \u2014 | \u2014 | (5) |
2024 | |||||
Net investment hedges(1) | |||||
Derivatives in net investment hedges of foreign operations | \u2014 | 22 | (66) | 411 | 367 |
Foreign currency borrowings in net investment hedges | (12,584) | \u2014 | (82) | 4,557 | (8,109) |
Cash flow hedges(1) | |||||
Derivatives in cash flow hedge (foreign currency debt) | 438 | (152) | 94 | (412) | (32) |
Derivatives in cash flow hedge (foreign currency risk) | 232 | 203 | (205) | (203) | 27 |
Derivatives in cash flow hedge (commodity price risk) | (32) | (9) | 22 | 10 | (9) |
Fair value hedges(1) | |||||
Derivatives in fair value hedge (interest rate risk) | (476) | 100 | \u2014 | \u2014 | (376) |
Fair value hedge hedged item | 469 | (101) | \u2014 | \u2014 | 368 |
Instruments in fair value hedge relationship | (7) | (1) | \u2014 | \u2014 | (8) |
Fair value through income statement $ million | Assets and liabilities at amortised cost $ million | Not categorised as a financial instrument $ million | Total $ million | Current $ million | Non-current $ million | |
2025 | ||||||
Other investments and loans(1) | 75 | 1 | \u2014 | 76 | \u2014 | 76 |
Trade and other receivables | \u2014 | 3,120 | 422 | 3,542 | 3,504 | 38 |
Cash and cash equivalents | \u2014 | 2,200 | \u2014 | 2,200 | 2,200 | \u2014 |
Derivatives in cash flow hedge (foreign currency debt) | 185 | \u2014 | \u2014 | 185 | \u2014 | 185 |
Derivatives in cash flow hedge (foreign currency risk) | 110 | \u2014 | \u2014 | 110 | 71 | 39 |
Derivatives in cash flow hedge (commodity price risk) | 3 | \u2014 | \u2014 | 3 | 1 | 2 |
Derivatives in net investment hedge | 5 | \u2014 | \u2014 | 5 | 5 | \u2014 |
Trading derivatives (cross currency swaps) | 388 | \u2014 | \u2014 | 388 | \u2014 | 388 |
Other instruments | 455 | \u2014 | \u2014 | 455 | 447 | 8 |
Leases | \u2014 | 1 | \u2014 | 1 | \u2014 | 1 |
Total other financial assets | 1,146 | 1 | \u2014 | 1,147 | 524 | 623 |
Total financial assets | 1,221 | 5,322 | 422 | 6,965 | 6,228 | 737 |
Borrowings(2) | \u2014 | (23,748) | \u2014 | (23,748) | (2,928) | (20,820) |
Trade and other payables | (125) | (5,979) | (1,040) | (7,144) | (6,952) | (192) |
Derivatives in fair value hedge (interest rate risk) | (210) | \u2014 | \u2014 | (210) | (8) | (202) |
Derivatives in cash flow hedge (foreign currency risk) | (7) | \u2014 | \u2014 | (7) | (7) | \u2014 |
Derivatives in cash flow hedge (commodity price risk) | (11) | \u2014 | \u2014 | (11) | (11) | \u2014 |
Derivatives in net investment hedge | (22) | \u2014 | \u2014 | (22) | (14) | (8) |
Other instruments | (126) | \u2014 | \u2014 | (126) | (126) | \u2014 |
Leases | \u2014 | (653) | \u2014 | (653) | (112) | (541) |
Total other financial liabilities | (376) | (653) | \u2014 | (1,029) | (278) | (751) |
Total financial liabilities | (501) | (30,380) | (1,040) | (31,921) | (10,158) | (21,763) |
Total net financial assets/(liabilities) | 720 | (25,058) | (618) | (24,956) | (3,930) | (21,026) |
2024 | ||||||
Other investments and loans(1) | 333 | 59 | \u2014 | 392 | \u2014 | 392 |
Trade and other receivables | \u2014 | 2,971 | 554 | 3,525 | 3,487 | 38 |
Cash and cash equivalents | \u2014 | 1,130 | \u2014 | 1,130 | 1,130 | \u2014 |
Derivatives in cash flow hedge (foreign currency risk) | 62 | \u2014 | \u2014 | 62 | 58 | 4 |
Derivatives in cash flow hedge (commodity price risk) | 5 | \u2014 | \u2014 | 5 | 5 | \u2014 |
Derivatives in net investment hedge | 386 | \u2014 | \u2014 | 386 | 17 | 369 |
Other instruments | 275 | \u2014 | \u2014 | 275 | 275 | \u2014 |
Total other financial assets | 728 | \u2014 | \u2014 | 728 | 355 | 373 |
Total financial assets | 1,061 | 4,160 | 554 | 5,775 | 4,972 | 803 |
Borrowings(2) | \u2014 | (21,501) | \u2014 | (21,501) | (2,885) | (18,616) |
Trade and other payables | (245) | (5,373) | (1,040) | (6,658) | (6,354) | (304) |
Derivatives in fair value hedge (interest rate risk) | (376) | \u2014 | \u2014 | (376) | (16) | (360) |
Derivatives in cash flow hedge (foreign currency debt) | (32) | \u2014 | \u2014 | (32) | \u2014 | (32) |
Derivatives in cash flow hedge (foreign currency risk) | (35) | \u2014 | \u2014 | (35) | (14) | (21) |
Derivatives in cash flow hedge (commodity price risk) | (14) | \u2014 | \u2014 | (14) | (14) | \u2014 |
Derivatives in net investment hedge | (19) | \u2014 | \u2014 | (19) | (1) | (18) |
Other instruments | (208) | \u2014 | \u2014 | (208) | (208) | \u2014 |
Leases | \u2014 | (604) | \u2014 | (604) | (95) | (509) |
Total other financial liabilities | (684) | (604) | \u2014 | (1,288) | (348) | (940) |
Total financial liabilities | (929) | (27,478) | (1,040) | (29,447) | (9,587) | (19,860) |
Total net financial assets/(liabilities) | 132 | (23,318) | (486) | (23,672) | (4,615) | (19,057) |
Accounting policies | ||
Financial assets and liabilities are initially recorded at fair value including, where permitted by IFRS 9, any directly attributable transaction costs. For those financial assets that are not subsequently held at fair value, the group assesses whether there is evidence of impairment at each balance sheet date. The group classifies its financial assets and liabilities into the following categories: financial assets and liabilities at amortised cost, financial assets and liabilities at fair value through income statement and financial assets at fair value through other comprehensive income. The accounting policies for other investments and loans are described in note 13, for trade and other receivables and payables in note 15 and for cash and cash equivalents in note 17. Financial assets and liabilities at fair value through income statement include derivative assets and liabilities. Where financial assets or liabilities are eligible to be carried at either amortised cost or fair value through other comprehensive income, the group does not apply the fair value option. Derivative financial instruments are carried at fair value using a discounted cash flow model based on market data applied consistently for similar types of instruments. Gains and losses on derivatives that do not qualify for hedge accounting treatment are taken to the income statement as they arise. Other financial liabilities are carried at amortised cost unless they are part of a fair value hedge relationship when the amortised cost of the financial liabilities is adjusted with the fair value change attributable to the risk being hedged from the inception of the hedge relationship. The difference between the initial carrying amount of the financial liabilities and their redemption value is recognised in the income statement over the contractual terms using the effective interest rate method. Financial liabilities in respect of the Zacapa acquisition are recognised at fair value. | ||
Hedge accounting | ||
The group designates and documents certain derivatives as hedging instruments against changes in fair value of recognised assets and liabilities (fair value hedges), commodity price risk of highly probable forecast transactions, as well as the cash flow risk from changes in exchange or interest rates (cash flow hedges) and hedges of net investments in foreign operations (net investment hedges). Derivative instruments designated in hedge relationship are included in other financial assets and liabilities on the consolidated balance sheet. The effectiveness of such hedges is assessed at inception and at least on a quarterly basis, using prospective testing. Methods used for testing effectiveness include critical terms, regression analysis and hypothetical derivative models. Fair value hedges are used to manage the currency and/or interest rate risks to which the fair value of certain assets and liabilities are exposed. Changes in the fair value of the derivatives are recognised in the income statement, along with any changes in the relevant fair value of the underlying hedged asset or liability. If such a hedge relationship no longer meets hedge accounting criteria, fair value movements on the derivative continue to be taken to the income statement while any fair value adjustments made to the underlying hedged item to that date are amortised through the income statement over its remaining life using the effective interest rate method. Cash flow hedges are used to hedge the foreign currency risk of highly probable future foreign currency cash flows, the commodity price risk of highly probable future transactions, as well as the cash flow risk from changes in exchange or interest rates. The effective portion of the gain or loss on the hedges is recognised in other comprehensive income, while any ineffective part is recognised in the income statement. Amounts recorded in other comprehensive income are recycled to the income statement in the same period in which the underlying foreign currency, commodity or interest exposure affects the income statement. When a hedge relationship no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity is either transferred to the income statement or amortised over its remaining life using the effective interest rate method. Net investment hedges utilise either foreign currency borrowings or derivatives as hedging instruments. Foreign exchange differences arising on translation of net investments are recorded in other comprehensive income and included in the exchange reserve. Liabilities used as hedging instruments are revalued at closing exchange rates and the resulting gains or losses are also recognised in other comprehensive income to the extent that they are effective, with any ineffectiveness taken to the income statement. Foreign currency derivative contracts hedging net investments are carried at fair value. Effective fair value movements are recognised in other comprehensive income, with any ineffectiveness taken to the income statement. Cost of hedging model is applied in case of cross-currency interest rate swaps in net investment hedges. The fair value changes attributable to the spot component of the hedging instruments are designated to offset foreign exchange differences of net investments and therefore taken to net investment hedge reserve. The fair value changes attributable to the forward component of the hedging instruments (including currency basis) are taken to the cost of hedging reserve and amortised to the consolidated income statement. | ||
2025 | 2024 | |||
$ million | % | $ million | % | |
Fixed rate | 19,051 | 87 | 16,174 | 77 |
Floating rate(1) | 2,289 | 11 | 4,384 | 21 |
Impact of financial derivatives and fair value adjustments | (139) | (1) | (145) | (1) |
Lease liabilities | 653 | 3 | 604 | 3 |
Net borrowings | 21,854 | 100 | 21,017 | 100 |
Average monthly net borrowings | Effective interest rate | ||||
2025 $ million | 2024 $ million | 2023 $ million | 2025 % | 2024 % | 2023 % |
21,540 | 21,034 | 18,362 | 4.1 | 4.3 | 3.9 |
Impact on income statement gain/(loss) | Impact on consolidated comprehensive income gain/(loss) (1) (2) | |||
2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | |
0.5% decrease in interest rates | 30 | 22 | 38 | 43 |
0.5% increase in interest rates | (29) | (22) | (37) | (42) |
10% weakening of US dollar | (46) | (39) | (1,049) | (974) |
10% strengthening of US dollar | 37 | 33 | 867 | 813 |
Gross amount $ million | Right of asset offset $ million | Right of liability offset $ million | Net amount $ million | |
2025 | ||||
Derivative financial assets | 733 | (147) | (72) | 514 |
Derivative financial liabilities | (275) | 147 | 72 | (56) |
2024 | ||||
Derivative financial assets | 483 | (184) | (139) | 160 |
Derivative financial liabilities | (486) | 184 | 139 | (163) |
Due within 1 year $ million | Due between 1 and 3 years $ million | Due between 3 and 5 years $ million | Due after 5 years $ million | Total $ million | Carrying amount at balance sheet date $ million | |
2025 | ||||||
Borrowings(1) | (2,938) | (4,709) | (4,331) | (12,078) | (24,056) | (23,748) |
Interest on borrowings(1)(2) | (935) | (1,261) | (1,061) | (2,320) | (5,577) | (352) |
Lease capital repayments | (112) | (163) | (112) | (266) | (653) | (653) |
Lease future interest payments | (25) | (35) | (24) | (40) | (124) | \u2014 |
Trade and other financial liabilities(3) | (5,912) | (165) | (16) | (23) | (6,116) | (6,039) |
Non-derivative financial liabilities | (9,922) | (6,333) | (5,544) | (14,727) | (36,526) | (30,792) |
Cross currency swaps (gross) | ||||||
Receivable | 171 | 909 | 1,097 | 4,960 | 7,137 | |
Payable | (164) | (918) | (1,063) | (4,446) | (6,591) | |
FX forwards (gross) | ||||||
Receivable | 7,537 | 763 | \u2014 | \u2014 | 8,300 | |
Payable | (7,441) | (693) | \u2014 | \u2014 | (8,134) | |
Other derivative instruments (net) | (90) | (84) | (65) | (11) | (250) | |
Derivative instruments(2) | 13 | (23) | (31) | 503 | 462 | 438 |
2024 | ||||||
Borrowings(1) | (2,902) | (4,991) | (4,259) | (9,812) | (21,964) | (21,501) |
Interest on borrowings(1)(2) | (791) | (1,043) | (789) | (1,866) | (4,489) | (291) |
Lease capital repayments | (95) | (148) | (95) | (266) | (604) | (604) |
Lease future interest payments | (19) | (30) | (22) | (44) | (115) | \u2014 |
Trade and other financial liabilities(3) | (5,316) | (280) | (217) | (5) | (5,818) | (5,619) |
Non-derivative financial liabilities | (9,123) | (6,492) | (5,382) | (11,993) | (32,990) | (28,015) |
Cross currency swaps (gross) | ||||||
Receivable | 128 | 549 | 1,249 | 3,666 | 5,592 | |
Payable | (126) | (549) | (1,303) | (3,341) | (5,319) | |
FX forwards (gross) | ||||||
Receivable | 7,164 | 1,141 | \u2014 | \u2014 | 8,305 | |
Payable | (7,042) | (1,135) | \u2014 | \u2014 | (8,177) | |
Other derivative instruments (net) | (161) | (145) | (76) | (33) | (415) | |
Derivative instruments(2) | (37) | (139) | (130) | 292 | (14) | (23) |
2025 $ million | 2024 $ million | |
Expiring within one year | 1,040 | 625 |
Expiring between one and two years | \u2014 | 1,040 |
Expiring after two years | 2,460 | 1,585 |
3,500 | 3,250 |
Accounting policies | ||
Financial assets and liabilities are initially recorded at fair value including, where permitted by IFRS 9, any directly attributable transaction costs. For those financial assets that are not subsequently held at fair value, the group assesses whether there is evidence of impairment at each balance sheet date. The group classifies its financial assets and liabilities into the following categories: financial assets and liabilities at amortised cost, financial assets and liabilities at fair value through income statement and financial assets at fair value through other comprehensive income. The accounting policies for other investments and loans are described in note 13, for trade and other receivables and payables in note 15 and for cash and cash equivalents in note 17. Financial assets and liabilities at fair value through income statement include derivative assets and liabilities. Where financial assets or liabilities are eligible to be carried at either amortised cost or fair value through other comprehensive income, the group does not apply the fair value option. Derivative financial instruments are carried at fair value using a discounted cash flow model based on market data applied consistently for similar types of instruments. Gains and losses on derivatives that do not qualify for hedge accounting treatment are taken to the income statement as they arise. Other financial liabilities are carried at amortised cost unless they are part of a fair value hedge relationship when the amortised cost of the financial liabilities is adjusted with the fair value change attributable to the risk being hedged from the inception of the hedge relationship. The difference between the initial carrying amount of the financial liabilities and their redemption value is recognised in the income statement over the contractual terms using the effective interest rate method. Financial liabilities in respect of the Zacapa acquisition are recognised at fair value. | ||
Hedge accounting | ||
The group designates and documents certain derivatives as hedging instruments against changes in fair value of recognised assets and liabilities (fair value hedges), commodity price risk of highly probable forecast transactions, as well as the cash flow risk from changes in exchange or interest rates (cash flow hedges) and hedges of net investments in foreign operations (net investment hedges). Derivative instruments designated in hedge relationship are included in other financial assets and liabilities on the consolidated balance sheet. The effectiveness of such hedges is assessed at inception and at least on a quarterly basis, using prospective testing. Methods used for testing effectiveness include critical terms, regression analysis and hypothetical derivative models. Fair value hedges are used to manage the currency and/or interest rate risks to which the fair value of certain assets and liabilities are exposed. Changes in the fair value of the derivatives are recognised in the income statement, along with any changes in the relevant fair value of the underlying hedged asset or liability. If such a hedge relationship no longer meets hedge accounting criteria, fair value movements on the derivative continue to be taken to the income statement while any fair value adjustments made to the underlying hedged item to that date are amortised through the income statement over its remaining life using the effective interest rate method. Cash flow hedges are used to hedge the foreign currency risk of highly probable future foreign currency cash flows, the commodity price risk of highly probable future transactions, as well as the cash flow risk from changes in exchange or interest rates. The effective portion of the gain or loss on the hedges is recognised in other comprehensive income, while any ineffective part is recognised in the income statement. Amounts recorded in other comprehensive income are recycled to the income statement in the same period in which the underlying foreign currency, commodity or interest exposure affects the income statement. When a hedge relationship no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity is either transferred to the income statement or amortised over its remaining life using the effective interest rate method. Net investment hedges utilise either foreign currency borrowings or derivatives as hedging instruments. Foreign exchange differences arising on translation of net investments are recorded in other comprehensive income and included in the exchange reserve. Liabilities used as hedging instruments are revalued at closing exchange rates and the resulting gains or losses are also recognised in other comprehensive income to the extent that they are effective, with any ineffectiveness taken to the income statement. Foreign currency derivative contracts hedging net investments are carried at fair value. Effective fair value movements are recognised in other comprehensive income, with any ineffectiveness taken to the income statement. Cost of hedging model is applied in case of cross-currency interest rate swaps in net investment hedges. The fair value changes attributable to the spot component of the hedging instruments are designated to offset foreign exchange differences of net investments and therefore taken to net investment hedge reserve. The fair value changes attributable to the forward component of the hedging instruments (including currency basis) are taken to the cost of hedging reserve and amortised to the consolidated income statement. | ||
Accounting policies | ||
Financial assets and liabilities are initially recorded at fair value including, where permitted by IFRS 9, any directly attributable transaction costs. For those financial assets that are not subsequently held at fair value, the group assesses whether there is evidence of impairment at each balance sheet date. The group classifies its financial assets and liabilities into the following categories: financial assets and liabilities at amortised cost, financial assets and liabilities at fair value through income statement and financial assets at fair value through other comprehensive income. The accounting policies for other investments and loans are described in note 13, for trade and other receivables and payables in note 15 and for cash and cash equivalents in note 17. Financial assets and liabilities at fair value through income statement include derivative assets and liabilities. Where financial assets or liabilities are eligible to be carried at either amortised cost or fair value through other comprehensive income, the group does not apply the fair value option. Derivative financial instruments are carried at fair value using a discounted cash flow model based on market data applied consistently for similar types of instruments. Gains and losses on derivatives that do not qualify for hedge accounting treatment are taken to the income statement as they arise. Other financial liabilities are carried at amortised cost unless they are part of a fair value hedge relationship when the amortised cost of the financial liabilities is adjusted with the fair value change attributable to the risk being hedged from the inception of the hedge relationship. The difference between the initial carrying amount of the financial liabilities and their redemption value is recognised in the income statement over the contractual terms using the effective interest rate method. Financial liabilities in respect of the Zacapa acquisition are recognised at fair value. | ||
Hedge accounting | ||
The group designates and documents certain derivatives as hedging instruments against changes in fair value of recognised assets and liabilities (fair value hedges), commodity price risk of highly probable forecast transactions, as well as the cash flow risk from changes in exchange or interest rates (cash flow hedges) and hedges of net investments in foreign operations (net investment hedges). Derivative instruments designated in hedge relationship are included in other financial assets and liabilities on the consolidated balance sheet. The effectiveness of such hedges is assessed at inception and at least on a quarterly basis, using prospective testing. Methods used for testing effectiveness include critical terms, regression analysis and hypothetical derivative models. Fair value hedges are used to manage the currency and/or interest rate risks to which the fair value of certain assets and liabilities are exposed. Changes in the fair value of the derivatives are recognised in the income statement, along with any changes in the relevant fair value of the underlying hedged asset or liability. If such a hedge relationship no longer meets hedge accounting criteria, fair value movements on the derivative continue to be taken to the income statement while any fair value adjustments made to the underlying hedged item to that date are amortised through the income statement over its remaining life using the effective interest rate method. Cash flow hedges are used to hedge the foreign currency risk of highly probable future foreign currency cash flows, the commodity price risk of highly probable future transactions, as well as the cash flow risk from changes in exchange or interest rates. The effective portion of the gain or loss on the hedges is recognised in other comprehensive income, while any ineffective part is recognised in the income statement. Amounts recorded in other comprehensive income are recycled to the income statement in the same period in which the underlying foreign currency, commodity or interest exposure affects the income statement. When a hedge relationship no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity is either transferred to the income statement or amortised over its remaining life using the effective interest rate method. Net investment hedges utilise either foreign currency borrowings or derivatives as hedging instruments. Foreign exchange differences arising on translation of net investments are recorded in other comprehensive income and included in the exchange reserve. Liabilities used as hedging instruments are revalued at closing exchange rates and the resulting gains or losses are also recognised in other comprehensive income to the extent that they are effective, with any ineffectiveness taken to the income statement. Foreign currency derivative contracts hedging net investments are carried at fair value. Effective fair value movements are recognised in other comprehensive income, with any ineffectiveness taken to the income statement. Cost of hedging model is applied in case of cross-currency interest rate swaps in net investment hedges. The fair value changes attributable to the spot component of the hedging instruments are designated to offset foreign exchange differences of net investments and therefore taken to net investment hedge reserve. The fair value changes attributable to the forward component of the hedging instruments (including currency basis) are taken to the cost of hedging reserve and amortised to the consolidated income statement. | ||
2025 | 2024 | |||
$ million | % | $ million | % | |
Fixed rate | 19,051 | 87 | 16,174 | 77 |
Floating rate(1) | 2,289 | 11 | 4,384 | 21 |
Impact of financial derivatives and fair value adjustments | (139) | (1) | (145) | (1) |
Lease liabilities | 653 | 3 | 604 | 3 |
Net borrowings | 21,854 | 100 | 21,017 | 100 |
Average monthly net borrowings | Effective interest rate | ||||
2025 $ million | 2024 $ million | 2023 $ million | 2025 % | 2024 % | 2023 % |
21,540 | 21,034 | 18,362 | 4.1 | 4.3 | 3.9 |
Impact on income statement gain/(loss) | Impact on consolidated comprehensive income gain/(loss) (1) (2) | |||
2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | |
0.5% decrease in interest rates | 30 | 22 | 38 | 43 |
0.5% increase in interest rates | (29) | (22) | (37) | (42) |
10% weakening of US dollar | (46) | (39) | (1,049) | (974) |
10% strengthening of US dollar | 37 | 33 | 867 | 813 |
Gross amount $ million | Right of asset offset $ million | Right of liability offset $ million | Net amount $ million | |
2025 | ||||
Derivative financial assets | 733 | (147) | (72) | 514 |
Derivative financial liabilities | (275) | 147 | 72 | (56) |
2024 | ||||
Derivative financial assets | 483 | (184) | (139) | 160 |
Derivative financial liabilities | (486) | 184 | 139 | (163) |
Due within 1 year $ million | Due between 1 and 3 years $ million | Due between 3 and 5 years $ million | Due after 5 years $ million | Total $ million | Carrying amount at balance sheet date $ million | |
2025 | ||||||
Borrowings(1) | (2,938) | (4,709) | (4,331) | (12,078) | (24,056) | (23,748) |
Interest on borrowings(1)(2) | (935) | (1,261) | (1,061) | (2,320) | (5,577) | (352) |
Lease capital repayments | (112) | (163) | (112) | (266) | (653) | (653) |
Lease future interest payments | (25) | (35) | (24) | (40) | (124) | \u2014 |
Trade and other financial liabilities(3) | (5,912) | (165) | (16) | (23) | (6,116) | (6,039) |
Non-derivative financial liabilities | (9,922) | (6,333) | (5,544) | (14,727) | (36,526) | (30,792) |
Cross currency swaps (gross) | ||||||
Receivable | 171 | 909 | 1,097 | 4,960 | 7,137 | |
Payable | (164) | (918) | (1,063) | (4,446) | (6,591) | |
FX forwards (gross) | ||||||
Receivable | 7,537 | 763 | \u2014 | \u2014 | 8,300 | |
Payable | (7,441) | (693) | \u2014 | \u2014 | (8,134) | |
Other derivative instruments (net) | (90) | (84) | (65) | (11) | (250) | |
Derivative instruments(2) | 13 | (23) | (31) | 503 | 462 | 438 |
2024 | ||||||
Borrowings(1) | (2,902) | (4,991) | (4,259) | (9,812) | (21,964) | (21,501) |
Interest on borrowings(1)(2) | (791) | (1,043) | (789) | (1,866) | (4,489) | (291) |
Lease capital repayments | (95) | (148) | (95) | (266) | (604) | (604) |
Lease future interest payments | (19) | (30) | (22) | (44) | (115) | \u2014 |
Trade and other financial liabilities(3) | (5,316) | (280) | (217) | (5) | (5,818) | (5,619) |
Non-derivative financial liabilities | (9,123) | (6,492) | (5,382) | (11,993) | (32,990) | (28,015) |
Cross currency swaps (gross) | ||||||
Receivable | 128 | 549 | 1,249 | 3,666 | 5,592 | |
Payable | (126) | (549) | (1,303) | (3,341) | (5,319) | |
FX forwards (gross) | ||||||
Receivable | 7,164 | 1,141 | \u2014 | \u2014 | 8,305 | |
Payable | (7,042) | (1,135) | \u2014 | \u2014 | (8,177) | |
Other derivative instruments (net) | (161) | (145) | (76) | (33) | (415) | |
Derivative instruments(2) | (37) | (139) | (130) | 292 | (14) | (23) |
2025 $ million | 2024 $ million | |
Expiring within one year | 1,040 | 625 |
Expiring between one and two years | \u2014 | 1,040 |
Expiring after two years | 2,460 | 1,585 |
3,500 | 3,250 |
Notional amounts $ million | Maturity | Range of hedged rates | |
2025 | |||
Net investment hedges | |||
Derivatives in net investment hedges of foreign operations | 2,255 | August 2025 - October 2027 | euro 0.84 - 0.85 Canadian dollar 1.29 - 1.48 Chinese yuan 6.93 - 7.29 |
Foreign currency borrowings in net investment hedges | 9,561 | May 2026 - August 2044 | sterling 0.75 - 0.82 \u00a0 euro 0.86 - 0.94 |
Cash flow hedges | |||
Derivatives in cash flow hedge (foreign currency debt) | 2,873 | September 2028 - June 2034 | euro 0.89 - 0.90 |
Derivatives in cash flow hedge (foreign currency risk)(1) | 1,586 | September 2025 - January 2028 | sterling 0.74 - 0.81 Mexican peso 17.73 - 23.69 |
Derivatives in cash flow hedge (commodity price risk)(1) | 275 | July 2025 - June 2027 | Aluminium: 2,426.00 - 2,693.50 USD/ Mt Natural Gas: 0.74 - 1.38 GBP/therm |
Fair value hedges | |||
Derivatives in fair value hedge (interest rate risk)(2) | 4,229 | September 2025 - April 2035 | EURIBOR 1.93 - 1.94% SOFR 0.27 - 1.61% |
2024 | |||
Net investment hedges | |||
Derivatives in net investment hedges of foreign operations | 3,198 | September 2024 - April 2043 | sterling 0.53 - 0.78 euro 0.91 - 0.93 Chinese yuan 6.93 - 7.29 |
Foreign currency borrowings in net investment hedges | 8,109 | September 2024 - June 2038 | sterling 0.76 - 0.82\u00a0 euro 0.89 - 0.94 |
Cash flow hedges | |||
Derivatives in cash flow hedge (foreign currency debt) | 2,747 | September 2028 - June 2034 | euro 0.89 - 0.90 |
Derivatives in cash flow hedge (foreign currency risk)(1) | 1,855 | September 2024 - December 2025 | sterling 0.78 - 0.94 euro 0.87 - 0.93 Mexican peso 17.73 - 20.57 |
Derivatives in cash flow hedge (commodity price risk)(1) | 207 | July 2024 - September 2025 | Feed Wheat: 177.50 - 206.00 USD/Bu Natural Gas: 0.86 - 1.40 USD/therm |
Fair value hedges | |||
Derivatives in fair value hedge (interest rate risk)(2) | 4,044 | April 2025 - April 2030 | EURIBOR 1.93 - 1.94%\u00a0 SOFR 0.27 - 1.61% |
At the beginning of the year $ million | Consolidated income statement $ million | Consolidated statement of comprehensive income $ million | Other(2) $ million | At the end of the year $ million | |
2025 | |||||
Net investment hedges(1) | |||||
Derivatives in net investment hedges of foreign operations | 367 | 44 | (2) | (426) | (17) |
Foreign currency borrowings in net investment hedges | (8,109) | \u2014 | (768) | (684) | (9,561) |
Cash flow hedges(1) | |||||
Derivatives in cash flow hedge (foreign currency debt) | (32) | 230 | (69) | 56 | 185 |
Derivatives in cash flow hedge (foreign currency risk) | 27 | 54 | 76 | (54) | 103 |
Derivatives in cash flow hedge (commodity price risk) | (9) | (19) | (1) | 21 | (8) |
Fair value hedges(1) | |||||
Derivatives in fair value hedge (interest rate risk) | (376) | 166 | \u2014 | \u2014 | (210) |
Fair value hedge hedged item | 368 | (163) | \u2014 | \u2014 | 205 |
Instruments in fair value hedge relationship | (8) | 3 | \u2014 | \u2014 | (5) |
2024 | |||||
Net investment hedges(1) | |||||
Derivatives in net investment hedges of foreign operations | \u2014 | 22 | (66) | 411 | 367 |
Foreign currency borrowings in net investment hedges | (12,584) | \u2014 | (82) | 4,557 | (8,109) |
Cash flow hedges(1) | |||||
Derivatives in cash flow hedge (foreign currency debt) | 438 | (152) | 94 | (412) | (32) |
Derivatives in cash flow hedge (foreign currency risk) | 232 | 203 | (205) | (203) | 27 |
Derivatives in cash flow hedge (commodity price risk) | (32) | (9) | 22 | 10 | (9) |
Fair value hedges(1) | |||||
Derivatives in fair value hedge (interest rate risk) | (476) | 100 | \u2014 | \u2014 | (376) |
Fair value hedge hedged item | 469 | (101) | \u2014 | \u2014 | 368 |
Instruments in fair value hedge relationship | (7) | (1) | \u2014 | \u2014 | (8) |
Fair value through income statement $ million | Assets and liabilities at amortised cost $ million | Not categorised as a financial instrument $ million | Total $ million | Current $ million | Non-current $ million | |
2025 | ||||||
Other investments and loans(1) | 75 | 1 | \u2014 | 76 | \u2014 | 76 |
Trade and other receivables | \u2014 | 3,120 | 422 | 3,542 | 3,504 | 38 |
Cash and cash equivalents | \u2014 | 2,200 | \u2014 | 2,200 | 2,200 | \u2014 |
Derivatives in cash flow hedge (foreign currency debt) | 185 | \u2014 | \u2014 | 185 | \u2014 | 185 |
Derivatives in cash flow hedge (foreign currency risk) | 110 | \u2014 | \u2014 | 110 | 71 | 39 |
Derivatives in cash flow hedge (commodity price risk) | 3 | \u2014 | \u2014 | 3 | 1 | 2 |
Derivatives in net investment hedge | 5 | \u2014 | \u2014 | 5 | 5 | \u2014 |
Trading derivatives (cross currency swaps) | 388 | \u2014 | \u2014 | 388 | \u2014 | 388 |
Other instruments | 455 | \u2014 | \u2014 | 455 | 447 | 8 |
Leases | \u2014 | 1 | \u2014 | 1 | \u2014 | 1 |
Total other financial assets | 1,146 | 1 | \u2014 | 1,147 | 524 | 623 |
Total financial assets | 1,221 | 5,322 | 422 | 6,965 | 6,228 | 737 |
Borrowings(2) | \u2014 | (23,748) | \u2014 | (23,748) | (2,928) | (20,820) |
Trade and other payables | (125) | (5,979) | (1,040) | (7,144) | (6,952) | (192) |
Derivatives in fair value hedge (interest rate risk) | (210) | \u2014 | \u2014 | (210) | (8) | (202) |
Derivatives in cash flow hedge (foreign currency risk) | (7) | \u2014 | \u2014 | (7) | (7) | \u2014 |
Derivatives in cash flow hedge (commodity price risk) | (11) | \u2014 | \u2014 | (11) | (11) | \u2014 |
Derivatives in net investment hedge | (22) | \u2014 | \u2014 | (22) | (14) | (8) |
Other instruments | (126) | \u2014 | \u2014 | (126) | (126) | \u2014 |
Leases | \u2014 | (653) | \u2014 | (653) | (112) | (541) |
Total other financial liabilities | (376) | (653) | \u2014 | (1,029) | (278) | (751) |
Total financial liabilities | (501) | (30,380) | (1,040) | (31,921) | (10,158) | (21,763) |
Total net financial assets/(liabilities) | 720 | (25,058) | (618) | (24,956) | (3,930) | (21,026) |
2024 | ||||||
Other investments and loans(1) | 333 | 59 | \u2014 | 392 | \u2014 | 392 |
Trade and other receivables | \u2014 | 2,971 | 554 | 3,525 | 3,487 | 38 |
Cash and cash equivalents | \u2014 | 1,130 | \u2014 | 1,130 | 1,130 | \u2014 |
Derivatives in cash flow hedge (foreign currency risk) | 62 | \u2014 | \u2014 | 62 | 58 | 4 |
Derivatives in cash flow hedge (commodity price risk) | 5 | \u2014 | \u2014 | 5 | 5 | \u2014 |
Derivatives in net investment hedge | 386 | \u2014 | \u2014 | 386 | 17 | 369 |
Other instruments | 275 | \u2014 | \u2014 | 275 | 275 | \u2014 |
Total other financial assets | 728 | \u2014 | \u2014 | 728 | 355 | 373 |
Total financial assets | 1,061 | 4,160 | 554 | 5,775 | 4,972 | 803 |
Borrowings(2) | \u2014 | (21,501) | \u2014 | (21,501) | (2,885) | (18,616) |
Trade and other payables | (245) | (5,373) | (1,040) | (6,658) | (6,354) | (304) |
Derivatives in fair value hedge (interest rate risk) | (376) | \u2014 | \u2014 | (376) | (16) | (360) |
Derivatives in cash flow hedge (foreign currency debt) | (32) | \u2014 | \u2014 | (32) | \u2014 | (32) |
Derivatives in cash flow hedge (foreign currency risk) | (35) | \u2014 | \u2014 | (35) | (14) | (21) |
Derivatives in cash flow hedge (commodity price risk) | (14) | \u2014 | \u2014 | (14) | (14) | \u2014 |
Derivatives in net investment hedge | (19) | \u2014 | \u2014 | (19) | (1) | (18) |
Other instruments | (208) | \u2014 | \u2014 | (208) | (208) | \u2014 |
Leases | \u2014 | (604) | \u2014 | (604) | (95) | (509) |
Total other financial liabilities | (684) | (604) | \u2014 | (1,288) | (348) | (940) |
Total financial liabilities | (929) | (27,478) | (1,040) | (29,447) | (9,587) | (19,860) |
Total net financial assets/(liabilities) | 132 | (23,318) | (486) | (23,672) | (4,615) | (19,057) |
2025 | 2024 | |||
$ million | % | $ million | % | |
Fixed rate | 19,051 | 87 | 16,174 | 77 |
Floating rate(1) | 2,289 | 11 | 4,384 | 21 |
Impact of financial derivatives and fair value adjustments | (139) | (1) | (145) | (1) |
Lease liabilities | 653 | 3 | 604 | 3 |
Net borrowings | 21,854 | 100 | 21,017 | 100 |
Average monthly net borrowings | Effective interest rate | ||||
2025 $ million | 2024 $ million | 2023 $ million | 2025 % | 2024 % | 2023 % |
21,540 | 21,034 | 18,362 | 4.1 | 4.3 | 3.9 |
Impact on income statement gain/(loss) | Impact on consolidated comprehensive income gain/(loss) (1) (2) | |||
2025 $ million | 2024 $ million | 2025 $ million | 2024 $ million | |
0.5% decrease in interest rates | 30 | 22 | 38 | 43 |
0.5% increase in interest rates | (29) | (22) | (37) | (42) |
10% weakening of US dollar | (46) | (39) | (1,049) | (974) |
10% strengthening of US dollar | 37 | 33 | 867 | 813 |
Gross amount $ million | Right of asset offset $ million | Right of liability offset $ million | Net amount $ million | |
2025 | ||||
Derivative financial assets | 733 | (147) | (72) | 514 |
Derivative financial liabilities | (275) | 147 | 72 | (56) |
2024 | ||||
Derivative financial assets | 483 | (184) | (139) | 160 |
Derivative financial liabilities | (486) | 184 | 139 | (163) |
Due within 1 year $ million | Due between 1 and 3 years $ million | Due between 3 and 5 years $ million | Due after 5 years $ million | Total $ million | Carrying amount at balance sheet date $ million | |
2025 | ||||||
Borrowings(1) | (2,938) | (4,709) | (4,331) | (12,078) | (24,056) | (23,748) |
Interest on borrowings(1)(2) | (935) | (1,261) | (1,061) | (2,320) | (5,577) | (352) |
Lease capital repayments | (112) | (163) | (112) | (266) | (653) | (653) |
Lease future interest payments | (25) | (35) | (24) | (40) | (124) | \u2014 |
Trade and other financial liabilities(3) | (5,912) | (165) | (16) | (23) | (6,116) | (6,039) |
Non-derivative financial liabilities | (9,922) | (6,333) | (5,544) | (14,727) | (36,526) | (30,792) |
Cross currency swaps (gross) | ||||||
Receivable | 171 | 909 | 1,097 | 4,960 | 7,137 | |
Payable | (164) | (918) | (1,063) | (4,446) | (6,591) | |
FX forwards (gross) | ||||||
Receivable | 7,537 | 763 | \u2014 | \u2014 | 8,300 | |
Payable | (7,441) | (693) | \u2014 | \u2014 | (8,134) | |
Other derivative instruments (net) | (90) | (84) | (65) | (11) | (250) | |
Derivative instruments(2) | 13 | (23) | (31) | 503 | 462 | 438 |
2024 | ||||||
Borrowings(1) | (2,902) | (4,991) | (4,259) | (9,812) | (21,964) | (21,501) |
Interest on borrowings(1)(2) | (791) | (1,043) | (789) | (1,866) | (4,489) | (291) |
Lease capital repayments | (95) | (148) | (95) | (266) | (604) | (604) |
Lease future interest payments | (19) | (30) | (22) | (44) | (115) | \u2014 |
Trade and other financial liabilities(3) | (5,316) | (280) | (217) | (5) | (5,818) | (5,619) |
Non-derivative financial liabilities | (9,123) | (6,492) | (5,382) | (11,993) | (32,990) | (28,015) |
Cross currency swaps (gross) | ||||||
Receivable | 128 | 549 | 1,249 | 3,666 | 5,592 | |
Payable | (126) | (549) | (1,303) | (3,341) | (5,319) | |
FX forwards (gross) | ||||||
Receivable | 7,164 | 1,141 | \u2014 | \u2014 | 8,305 | |
Payable | (7,042) | (1,135) | \u2014 | \u2014 | (8,177) | |
Other derivative instruments (net) | (161) | (145) | (76) | (33) | (415) | |
Derivative instruments(2) | (37) | (139) | (130) | 292 | (14) | (23) |
2025 $ million | 2024 $ million | |
Expiring within one year | 1,040 | 625 |
Expiring between one and two years | \u2014 | 1,040 |
Expiring after two years | 2,460 | 1,585 |
3,500 | 3,250 |
2025 $ million | 2024 $ million | |
Derivative assets | 733 | 497 |
Derivative liabilities | (275) | (486) |
Valuation techniques based on observable market input (Level 2) | 458 | 11 |
Financial assets - other | 75 | 333 |
Financial liabilities - other | (226) | (443) |
Valuation techniques based on unobservable market input (Level 3) | (151) | (110) |
Zacapa financial liability | Contingent consideration recognised on acquisition of businesses | Zacapa financial liability | Contingent consideration recognised on acquisition of businesses | |
2025 $ million | 2025 $ million | 2024 $ million | 2024 $ million | |
At the beginning of the year | (198) | (245) | (274) | (391) |
Net gains included in the income statement | 7 | 133 | \u2014 | 145 |
Net losses included in exchange in other comprehensive income | \u2014 | (8) | \u2014 | \u2014 |
Net gains included in retained earnings | 89 | \u2014 | 73 | \u2014 |
Acquisitions | \u2014 | (12) | \u2014 | \u2014 |
Settlement of liabilities | 1 | 7 | 3 | 1 |
At the end of the year | (101) | (125) | (198) | (245) |
2025 $ million | 2024 $ million | |
Derivative assets | 733 | 497 |
Derivative liabilities | (275) | (486) |
Valuation techniques based on observable market input (Level 2) | 458 | 11 |
Financial assets - other | 75 | 333 |
Financial liabilities - other | (226) | (443) |
Valuation techniques based on unobservable market input (Level 3) | (151) | (110) |
Zacapa financial liability | Contingent consideration recognised on acquisition of businesses | Zacapa financial liability | Contingent consideration recognised on acquisition of businesses | |
2025 $ million | 2025 $ million | 2024 $ million | 2024 $ million | |
At the beginning of the year | (198) | (245) | (274) | (391) |
Net gains included in the income statement | 7 | 133 | \u2014 | 145 |
Net losses included in exchange in other comprehensive income | \u2014 | (8) | \u2014 | \u2014 |
Net gains included in retained earnings | 89 | \u2014 | 73 | \u2014 |
Acquisitions | \u2014 | (12) | \u2014 | \u2014 |
Settlement of liabilities | 1 | 7 | 3 | 1 |
At the end of the year | (101) | (125) | (198) | (245) |
Fair value through income statement $ million | Assets and liabilities at amortised cost $ million | Not categorised as a financial instrument $ million | Total $ million | Current $ million | Non-current $ million | |
2025 | ||||||
Other investments and loans(1) | 75 | 1 | \u2014 | 76 | \u2014 | 76 |
Trade and other receivables | \u2014 | 3,120 | 422 | 3,542 | 3,504 | 38 |
Cash and cash equivalents | \u2014 | 2,200 | \u2014 | 2,200 | 2,200 | \u2014 |
Derivatives in cash flow hedge (foreign currency debt) | 185 | \u2014 | \u2014 | 185 | \u2014 | 185 |
Derivatives in cash flow hedge (foreign currency risk) | 110 | \u2014 | \u2014 | 110 | 71 | 39 |
Derivatives in cash flow hedge (commodity price risk) | 3 | \u2014 | \u2014 | 3 | 1 | 2 |
Derivatives in net investment hedge | 5 | \u2014 | \u2014 | 5 | 5 | \u2014 |
Trading derivatives (cross currency swaps) | 388 | \u2014 | \u2014 | 388 | \u2014 | 388 |
Other instruments | 455 | \u2014 | \u2014 | 455 | 447 | 8 |
Leases | \u2014 | 1 | \u2014 | 1 | \u2014 | 1 |
Total other financial assets | 1,146 | 1 | \u2014 | 1,147 | 524 | 623 |
Total financial assets | 1,221 | 5,322 | 422 | 6,965 | 6,228 | 737 |
Borrowings(2) | \u2014 | (23,748) | \u2014 | (23,748) | (2,928) | (20,820) |
Trade and other payables | (125) | (5,979) | (1,040) | (7,144) | (6,952) | (192) |
Derivatives in fair value hedge (interest rate risk) | (210) | \u2014 | \u2014 | (210) | (8) | (202) |
Derivatives in cash flow hedge (foreign currency risk) | (7) | \u2014 | \u2014 | (7) | (7) | \u2014 |
Derivatives in cash flow hedge (commodity price risk) | (11) | \u2014 | \u2014 | (11) | (11) | \u2014 |
Derivatives in net investment hedge | (22) | \u2014 | \u2014 | (22) | (14) | (8) |
Other instruments | (126) | \u2014 | \u2014 | (126) | (126) | \u2014 |
Leases | \u2014 | (653) | \u2014 | (653) | (112) | (541) |
Total other financial liabilities | (376) | (653) | \u2014 | (1,029) | (278) | (751) |
Total financial liabilities | (501) | (30,380) | (1,040) | (31,921) | (10,158) | (21,763) |
Total net financial assets/(liabilities) | 720 | (25,058) | (618) | (24,956) | (3,930) | (21,026) |
2024 | ||||||
Other investments and loans(1) | 333 | 59 | \u2014 | 392 | \u2014 | 392 |
Trade and other receivables | \u2014 | 2,971 | 554 | 3,525 | 3,487 | 38 |
Cash and cash equivalents | \u2014 | 1,130 | \u2014 | 1,130 | 1,130 | \u2014 |
Derivatives in cash flow hedge (foreign currency risk) | 62 | \u2014 | \u2014 | 62 | 58 | 4 |
Derivatives in cash flow hedge (commodity price risk) | 5 | \u2014 | \u2014 | 5 | 5 | \u2014 |
Derivatives in net investment hedge | 386 | \u2014 | \u2014 | 386 | 17 | 369 |
Other instruments | 275 | \u2014 | \u2014 | 275 | 275 | \u2014 |
Total other financial assets | 728 | \u2014 | \u2014 | 728 | 355 | 373 |
Total financial assets | 1,061 | 4,160 | 554 | 5,775 | 4,972 | 803 |
Borrowings(2) | \u2014 | (21,501) | \u2014 | (21,501) | (2,885) | (18,616) |
Trade and other payables | (245) | (5,373) | (1,040) | (6,658) | (6,354) | (304) |
Derivatives in fair value hedge (interest rate risk) | (376) | \u2014 | \u2014 | (376) | (16) | (360) |
Derivatives in cash flow hedge (foreign currency debt) | (32) | \u2014 | \u2014 | (32) | \u2014 | (32) |
Derivatives in cash flow hedge (foreign currency risk) | (35) | \u2014 | \u2014 | (35) | (14) | (21) |
Derivatives in cash flow hedge (commodity price risk) | (14) | \u2014 | \u2014 | (14) | (14) | \u2014 |
Derivatives in net investment hedge | (19) | \u2014 | \u2014 | (19) | (1) | (18) |
Other instruments | (208) | \u2014 | \u2014 | (208) | (208) | \u2014 |
Leases | \u2014 | (604) | \u2014 | (604) | (95) | (509) |
Total other financial liabilities | (684) | (604) | \u2014 | (1,288) | (348) | (940) |
Total financial liabilities | (929) | (27,478) | (1,040) | (29,447) | (9,587) | (19,860) |
Total net financial assets/(liabilities) | 132 | (23,318) | (486) | (23,672) | (4,615) | (19,057) |
Accounting policies | ||
Borrowings are initially recognised at fair value net of transaction costs and are subsequently reported at amortised cost. Certain bonds are designated in fair value hedge relationship. In these cases, the amortised cost is adjusted for the fair value of the risk being hedged, with changes in value recognised in the income statement. The fair value adjustment is calculated using a discounted cash flow technique based on unadjusted market data.\u00a0 Bank overdrafts form an integral part of the group\u2019s cash management and are included as a component of net cash and cash equivalents in the consolidated statement of cash flows. Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and have an original maturity of three months or less, including money market deposits, commercial paper and investments. Net borrowings are defined as gross borrowings (short-term borrowings and long-term borrowings plus lease liabilities plus interest rate hedging instruments, cross currency interest rate swaps and foreign currency forwards and swaps used to manage borrowings) less cash and cash equivalents. | ||
2025 $ million | 2024 $ million | |
Bank overdrafts | 22 | 21 |
Commercial paper | \u2014 | 479 |
Bank and other loans | 83 | 76 |
Credit support obligations | \u2014 | 14 |
$600\u00a0million 2.125% bonds due 2024 (2) | \u2014 | 600 |
\u20ac500\u00a0million 1.750% bonds due 2024 | \u2014 | 535 |
\u20ac600\u00a0million 1.000% bonds due 2025 | \u2014 | 641 |
\u20ac500\u00a0million 3.500% bonds due 2025 | \u2014 | 534 |
$500 million 5.200% bonds due 2025 (2) | 500 | \u2014 |
$750 million 1.375% bonds due 2025 (2) | 750 | \u2014 |
\u20ac850 million 2.375% bonds due 2026 | 995 | \u2014 |
\u20ac500 million floating bonds due 2026 | 586 | \u2014 |
Fair value adjustment to borrowings | (8) | (15) |
Borrowings due within one year | 2,928 | 2,885 |
$500 million 5.200% bonds due 2025 (2) | \u2014 | 499 |
$750 million 1.375% bonds due 2025 (2) | \u2014 | 749 |
\u20ac850 million 2.375% bonds due 2026 | \u2014 | 908 |
\u20ac500 million floating bonds due 2026 | \u2014 | 535 |
\u00a3500 million 1.750% bonds due 2026 | 683 | 630 |
$800 million 5.375% bonds due 2026 (2) | 799 | 797 |
\u20ac750 million 1.875% bonds due 2027 | 878 | 800 |
\u20ac500 million 1.500% bonds due 2027 | 586 | 534 |
$750 million 5.300% bonds due 2027 (2) | 749 | 748 |
$500 million 3.875% bonds due 2028(2) | 499 | 498 |
\u00a3300 million 2.375% bonds due 2028 | 409 | 377 |
\u20ac700 million 0.125% bonds due 2028 | 818 | 746 |
\u00a3300 million 2.875% bonds due 2029 | 410 | 377 |
\u20ac750 million 1.500% bonds due 2029 | 878 | 801 |
$1,000 million 2.375% bonds due 2029(2) | 994 | 993 |
$1,000 million 2.000% bonds due 2030 (2) | 996 | 995 |
$750 million 5.125% bonds due 2030 (1) | 748 | \u2014 |
\u20ac700 million 3.125% bonds due 2031 | 821 | \u2014 |
\u20ac300 million 3.125% bonds due 2031 | 353 | \u2014 |
2025 $ million | 2024 $ million | |
\u20ac1,000 million 2.500% bonds due 2032 | 1,168 | 1,066 |
$750 million 2.125% bonds due 2032 (2) | 745 | 744 |
\u00a3400 million 1.250% bonds due 2033 | 543 | 500 |
$750 million 5.500% bonds due 2033 (2) | 745 | 744 |
$900 million 5.625% bonds due 2033 (2) | 895 | 894 |
\u20ac900 million 1.875% bonds due 2034 | 1,049 | 957 |
$400 million 7.450% bonds due 2035 (1) | 400 | 400 |
\u20ac700\u00a0million 3.375% bonds due 2035 | 814 | \u2014 |
$750 million 5.625% bonds due 2035(1) | 743 | \u2014 |
$600 million 5.875% bonds due 2036(2) | 595 | 594 |
\u00a3600\u00a0million 2.750% bonds due 2038 | 816 | 752 |
$500\u00a0million 4.250% bonds due 2042 (1) | 495 | 495 |
$500\u00a0million 3.875% bonds due 2043(2) | 492 | 492 |
\u20ac500\u00a0million 3.750% bonds due 2044 | 578 | \u2014 |
Bank and other loans | 318 | 344 |
Fair value adjustment to borrowings | (197) | (353) |
Borrowings due after one year | 20,820 | 18,616 |
Total borrowings before leases and derivative financial instruments | 23,748 | 21,501 |
Fair value of cross currency interest rate swaps | (559) | (323) |
Fair value of foreign currency swaps and forwards | 2 | (11) |
Fair value of interest rate hedging instruments | 210 | 376 |
Lease liabilities | 653 | 604 |
Gross borrowings | 24,054 | 22,147 |
Less: Cash and cash equivalents | (2,200) | (1,130) |
Net borrowings | 21,854 | 21,017 |
2025 $ million | 2024 $ million | |
Within one year | 2,928 | 2,885 |
Between one and three years | 4,662 | 4,873 |
Between three and five years | 4,159 | 4,222 |
Beyond five years | 11,999 | 9,521 |
23,748 | 21,501 |
2025 $ million | 2024 $ million | 2023 $ million | |
Issued | |||
\u20ac denominated | 2,452 | 535 | 548 |
$ denominated | 1,491 | 1,690 | 1,989 |
Repaid | |||
\u20ac denominated | (1,816) | (1,167) | \u2014 |
$ denominated | (600) | (500) | (1,650) |
1,527 | 558 | 887 |
2025 $ million | 2024 $ million | |
At beginning of the year | 21,017 | 19,582 |
Net (increase)/decrease in cash and cash equivalents before exchange | (1,083) | 596 |
Net increase in bonds and other borrowings | 898 | 453 |
Net (decrease)/increase in net borrowings from cash flows | (185) | 1,049 |
Exchange differences on net borrowings | 921 | 199 |
Other non-cash items(1) | 101 | 187 |
Net borrowings at the end of the year | 21,854 | 21,017 |
2025 | 2024 | |||
Cash and cash equivalents $ million | Gross borrowings (1) $ million | Cash and cash equivalents $ million | Gross borrowings(1) $ million | |
US dollar | 1,430 | (11,395) | 130 | (9,590) |
Euro(2) | 23 | (6,164) | 59 | (5,820) |
Sterling | 39 | (4,408) | 29 | (4,767) |
Canadian dollar(3) | 19 | (1,049) | 33 | (81) |
Kenyan shilling | 58 | (233) | 55 | (295) |
Indian rupee | 179 | (71) | 170 | (57) |
Mexican peso | 2 | 415 | 34 | (261) |
Chinese yuan | 145 | (924) | 258 | (964) |
Other | 305 | (225) | 362 | (312) |
Total | 2,200 | (24,054) | 1,130 | (22,147) |
Accounting policies | ||
Borrowings are initially recognised at fair value net of transaction costs and are subsequently reported at amortised cost. Certain bonds are designated in fair value hedge relationship. In these cases, the amortised cost is adjusted for the fair value of the risk being hedged, with changes in value recognised in the income statement. The fair value adjustment is calculated using a discounted cash flow technique based on unadjusted market data.\u00a0 Bank overdrafts form an integral part of the group\u2019s cash management and are included as a component of net cash and cash equivalents in the consolidated statement of cash flows. Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and have an original maturity of three months or less, including money market deposits, commercial paper and investments. Net borrowings are defined as gross borrowings (short-term borrowings and long-term borrowings plus lease liabilities plus interest rate hedging instruments, cross currency interest rate swaps and foreign currency forwards and swaps used to manage borrowings) less cash and cash equivalents. | ||
2025 $ million | 2024 $ million | |
Bank overdrafts | 22 | 21 |
Commercial paper | \u2014 | 479 |
Bank and other loans | 83 | 76 |
Credit support obligations | \u2014 | 14 |
$600\u00a0million 2.125% bonds due 2024 (2) | \u2014 | 600 |
\u20ac500\u00a0million 1.750% bonds due 2024 | \u2014 | 535 |
\u20ac600\u00a0million 1.000% bonds due 2025 | \u2014 | 641 |
\u20ac500\u00a0million 3.500% bonds due 2025 | \u2014 | 534 |
$500 million 5.200% bonds due 2025 (2) | 500 | \u2014 |
$750 million 1.375% bonds due 2025 (2) | 750 | \u2014 |
\u20ac850 million 2.375% bonds due 2026 | 995 | \u2014 |
\u20ac500 million floating bonds due 2026 | 586 | \u2014 |
Fair value adjustment to borrowings | (8) | (15) |
Borrowings due within one year | 2,928 | 2,885 |
$500 million 5.200% bonds due 2025 (2) | \u2014 | 499 |
$750 million 1.375% bonds due 2025 (2) | \u2014 | 749 |
\u20ac850 million 2.375% bonds due 2026 | \u2014 | 908 |
\u20ac500 million floating bonds due 2026 | \u2014 | 535 |
\u00a3500 million 1.750% bonds due 2026 | 683 | 630 |
$800 million 5.375% bonds due 2026 (2) | 799 | 797 |
\u20ac750 million 1.875% bonds due 2027 | 878 | 800 |
\u20ac500 million 1.500% bonds due 2027 | 586 | 534 |
$750 million 5.300% bonds due 2027 (2) | 749 | 748 |
$500 million 3.875% bonds due 2028(2) | 499 | 498 |
\u00a3300 million 2.375% bonds due 2028 | 409 | 377 |
\u20ac700 million 0.125% bonds due 2028 | 818 | 746 |
\u00a3300 million 2.875% bonds due 2029 | 410 | 377 |
\u20ac750 million 1.500% bonds due 2029 | 878 | 801 |
$1,000 million 2.375% bonds due 2029(2) | 994 | 993 |
$1,000 million 2.000% bonds due 2030 (2) | 996 | 995 |
$750 million 5.125% bonds due 2030 (1) | 748 | \u2014 |
\u20ac700 million 3.125% bonds due 2031 | 821 | \u2014 |
\u20ac300 million 3.125% bonds due 2031 | 353 | \u2014 |
2025 $ million | 2024 $ million | |
\u20ac1,000 million 2.500% bonds due 2032 | 1,168 | 1,066 |
$750 million 2.125% bonds due 2032 (2) | 745 | 744 |
\u00a3400 million 1.250% bonds due 2033 | 543 | 500 |
$750 million 5.500% bonds due 2033 (2) | 745 | 744 |
$900 million 5.625% bonds due 2033 (2) | 895 | 894 |
\u20ac900 million 1.875% bonds due 2034 | 1,049 | 957 |
$400 million 7.450% bonds due 2035 (1) | 400 | 400 |
\u20ac700\u00a0million 3.375% bonds due 2035 | 814 | \u2014 |
$750 million 5.625% bonds due 2035(1) | 743 | \u2014 |
$600 million 5.875% bonds due 2036(2) | 595 | 594 |
\u00a3600\u00a0million 2.750% bonds due 2038 | 816 | 752 |
$500\u00a0million 4.250% bonds due 2042 (1) | 495 | 495 |
$500\u00a0million 3.875% bonds due 2043(2) | 492 | 492 |
\u20ac500\u00a0million 3.750% bonds due 2044 | 578 | \u2014 |
Bank and other loans | 318 | 344 |
Fair value adjustment to borrowings | (197) | (353) |
Borrowings due after one year | 20,820 | 18,616 |
Total borrowings before leases and derivative financial instruments | 23,748 | 21,501 |
Fair value of cross currency interest rate swaps | (559) | (323) |
Fair value of foreign currency swaps and forwards | 2 | (11) |
Fair value of interest rate hedging instruments | 210 | 376 |
Lease liabilities | 653 | 604 |
Gross borrowings | 24,054 | 22,147 |
Less: Cash and cash equivalents | (2,200) | (1,130) |
Net borrowings | 21,854 | 21,017 |
2025 $ million | 2024 $ million | |
Within one year | 2,928 | 2,885 |
Between one and three years | 4,662 | 4,873 |
Between three and five years | 4,159 | 4,222 |
Beyond five years | 11,999 | 9,521 |
23,748 | 21,501 |
2025 $ million | 2024 $ million | 2023 $ million | |
Issued | |||
\u20ac denominated | 2,452 | 535 | 548 |
$ denominated | 1,491 | 1,690 | 1,989 |
Repaid | |||
\u20ac denominated | (1,816) | (1,167) | \u2014 |
$ denominated | (600) | (500) | (1,650) |
1,527 | 558 | 887 |
2025 $ million | 2024 $ million | |
At beginning of the year | 21,017 | 19,582 |
Net (increase)/decrease in cash and cash equivalents before exchange | (1,083) | 596 |
Net increase in bonds and other borrowings | 898 | 453 |
Net (decrease)/increase in net borrowings from cash flows | (185) | 1,049 |
Exchange differences on net borrowings | 921 | 199 |
Other non-cash items(1) | 101 | 187 |
Net borrowings at the end of the year | 21,854 | 21,017 |
2025 | 2024 | |||
Cash and cash equivalents $ million | Gross borrowings (1) $ million | Cash and cash equivalents $ million | Gross borrowings(1) $ million | |
US dollar | 1,430 | (11,395) | 130 | (9,590) |
Euro(2) | 23 | (6,164) | 59 | (5,820) |
Sterling | 39 | (4,408) | 29 | (4,767) |
Canadian dollar(3) | 19 | (1,049) | 33 | (81) |
Kenyan shilling | 58 | (233) | 55 | (295) |
Indian rupee | 179 | (71) | 170 | (57) |
Mexican peso | 2 | 415 | 34 | (261) |
Chinese yuan | 145 | (924) | 258 | (964) |
Other | 305 | (225) | 362 | (312) |
Total | 2,200 | (24,054) | 1,130 | (22,147) |
Accounting policies | ||
Borrowings are initially recognised at fair value net of transaction costs and are subsequently reported at amortised cost. Certain bonds are designated in fair value hedge relationship. In these cases, the amortised cost is adjusted for the fair value of the risk being hedged, with changes in value recognised in the income statement. The fair value adjustment is calculated using a discounted cash flow technique based on unadjusted market data.\u00a0 Bank overdrafts form an integral part of the group\u2019s cash management and are included as a component of net cash and cash equivalents in the consolidated statement of cash flows. Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and have an original maturity of three months or less, including money market deposits, commercial paper and investments. Net borrowings are defined as gross borrowings (short-term borrowings and long-term borrowings plus lease liabilities plus interest rate hedging instruments, cross currency interest rate swaps and foreign currency forwards and swaps used to manage borrowings) less cash and cash equivalents. | ||
Accounting policies | ||
Borrowings are initially recognised at fair value net of transaction costs and are subsequently reported at amortised cost. Certain bonds are designated in fair value hedge relationship. In these cases, the amortised cost is adjusted for the fair value of the risk being hedged, with changes in value recognised in the income statement. The fair value adjustment is calculated using a discounted cash flow technique based on unadjusted market data.\u00a0 Bank overdrafts form an integral part of the group\u2019s cash management and are included as a component of net cash and cash equivalents in the consolidated statement of cash flows. Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and have an original maturity of three months or less, including money market deposits, commercial paper and investments. Net borrowings are defined as gross borrowings (short-term borrowings and long-term borrowings plus lease liabilities plus interest rate hedging instruments, cross currency interest rate swaps and foreign currency forwards and swaps used to manage borrowings) less cash and cash equivalents. | ||
Accounting policies | ||
Own shares represent shares and share options of Diageo plc that are held in treasury or by employee share trusts for the purpose of fulfilling obligations in respect of various employee share plans or were acquired as part of a share buyback programme. Own shares are treated as a deduction from equity until the shares are cancelled, reissued or disposed of and when vest are transferred from own shares to retained earnings at their weighted average cost. | ||
Share-based payments include share awards and options granted to directors and employees. The fair value of equity settled share options and share grants is initially measured at grant date based on Monte Carlo and Black Scholes models and is charged to the income statement over the vesting period. For equity settled shares, the credit is included in retained earnings. | ||
Dividends are recognised in the financial statements in the year in which they are approved. | ||
Number of shares million | Nominal value $ million | |
At 30 June 2023 | 2,460 | 898 |
Shares cancelled | (28) | (11) |
At 30 June 2024 | 2,432 | 887 |
Shares cancelled | \u2014 | \u2014 |
At 30 June 2025 | 2,432 | 887 |
Hedging reserve $ million | Exchange reserve $ million | Total $ million | |
At 30 June 2022 | 32 | (3,270) | (3,238) |
Retranslation impact of opening balances (1) | \u2014 | (173) | (173) |
Other comprehensive income/(loss) | 261 | (256) | 5 |
At 30 June 2023 | 293 | (3,699) | (3,406) |
Other comprehensive loss | (154) | (613) | (767) |
At 30 June 2024 | 139 | (4,312) | (4,173) |
Other comprehensive income | 79 | 466 | 545 |
At 30 June 2025 | 218 | (3,846) | (3,628) |
Number of shares million | Purchase consideration $ million | |
At 30 June 2022 | 219 | 2,223 |
Retranslation impact of opening balances(1) | \u2014 | 93 |
Share trust arrangements | (1) | (15) |
Shares used to satisfy options | (2) | (15) |
Shares purchased \u2013 share buyback programme | 38 | 1,673 |
Shares cancelled | (38) | (1,673) |
At 30 June 2023 | 216 | 2,286 |
Share trust arrangements | (2) | (19) |
Shares used to satisfy options | (2) | (17) |
Shares purchased \u2013 share buyback programme | 28 | 987 |
Shares cancelled | (28) | (987) |
At 30 June 2024 | 212 | 2,250 |
Share trust arrangements | (1) | (14) |
Shares used to satisfy options | (1) | (8) |
At 30 June 2025 | 210 | 2,228 |
2025 $ million | 2024 $ million | 2023 $ million | |
Amounts recognised as distributions to equity shareholders in the year | |||
Final dividend for the year ended 30 June 2024 62.98 cents per share (2023 \u2013 59.98 cents; 2022 \u2013 52.71 cents) | 1,399 | 1,349 | 1,200 |
Interim dividend for the year ended 30 June 2025 40.50 cents per share (2024 \u2013 40.50 cents; 2023 \u2013 38.57 cents) | 899 | 894 | 871 |
2,298 | 2,243 | 2,071 |
2025 | 2024 | 2023 | |||
USL $ million | Other $ million | Total $ million | Total $ million | Total $ million | |
Income statement | |||||
Sales | 3,201 | 3,238 | 6,439 | 6,224 | 6,409 |
Net sales | 1,405 | 2,463 | 3,868 | 3,718 | 3,767 |
Profit for the year(1) | 181 | 347 | 528 | 777 | 80 |
Other comprehensive loss(2) | (50) | (241) | (291) | (16) | (172) |
Total comprehensive income/(loss) | 131 | 106 | 237 | 761 | (92) |
Attributable to non-controlling interests | 56 | 127 | 183 | 277 | (66) |
Balance sheet | |||||
Non-current assets(3) | 1,300 | 4,229 | 5,529 | 5,741 | 5,354 |
Current assets | 1,304 | 1,437 | 2,741 | 2,545 | 2,316 |
Non-current liabilities | (199) | (1,450) | (1,649) | (1,774) | (1,656) |
Current liabilities | (565) | (1,038) | (1,603) | (1,738) | (1,788) |
Net assets | 1,840 | 3,178 | 5,018 | 4,774 | 4,226 |
Attributable to non-controlling interests | 791 | 1,297 | 2,088 | 2,038 | 1,853 |
Cash flow | |||||
Net cash inflow from operating activities | 278 | 330 | 608 | 693 | 604 |
Net cash outflow from investing activities | (185) | (120) | (305) | (211) | (236) |
Net cash outflow from financing activities | (77) | (317) | (394) | (456) | (170) |
Net increase/(decrease) in cash and cash equivalents | 16 | (107) | (91) | 26 | 198 |
Exchange differences | (4) | 14 | 10 | (33) | (111) |
Dividends payable to non-controlling interests | (32) | (108) | (140) | (121) | (117) |
2025 $ million | 2024 $ million | 2023 $ million | |
Executive share award plans | 48 | 34 | 49 |
Executive share option plans | 9 | 7 | 4 |
Savings plans | 2 | 2 | 5 |
59 | 43 | 58 |
2025 | 2024 | 2023 | |
Risk free interest rate | 3.9% | 4.7% | 3.1% |
Expected life of the awards | 33 months | 33 months | 35 months |
Dividend yield | 3.4% | 2.6% | 2.0% |
Weighted average share price | 2426 p | 3118 p | 3758 p |
Weighted average fair value of awards granted in the year(1) | 1814 c | 1757 c | 2318 c |
Number of awards granted in the year | 3.4 million | 2.1 million | 1.7 million |
Fair value of all awards granted in the year | $61 million | $36 million | $40 million |
2025 million | 2024 million | 2023 million | |
Number of awards outstanding at 1 July | 4.8 | 4.9 | 5.2 |
Granted | 3.4 | 2.1 | 1.7 |
Awarded | (1.3) | (1.8) | (1.1) |
Forfeited | (0.9) | (0.4) | (0.9) |
Number of awards outstanding at 30 June | 6.0 | 4.8 | 4.9 |
Number of shares million | Nominal value $ million | |
At 30 June 2023 | 2,460 | 898 |
Shares cancelled | (28) | (11) |
At 30 June 2024 | 2,432 | 887 |
Shares cancelled | \u2014 | \u2014 |
At 30 June 2025 | 2,432 | 887 |
Number of shares million | Purchase consideration $ million | |
At 30 June 2022 | 219 | 2,223 |
Retranslation impact of opening balances(1) | \u2014 | 93 |
Share trust arrangements | (1) | (15) |
Shares used to satisfy options | (2) | (15) |
Shares purchased \u2013 share buyback programme | 38 | 1,673 |
Shares cancelled | (38) | (1,673) |
At 30 June 2023 | 216 | 2,286 |
Share trust arrangements | (2) | (19) |
Shares used to satisfy options | (2) | (17) |
Shares purchased \u2013 share buyback programme | 28 | 987 |
Shares cancelled | (28) | (987) |
At 30 June 2024 | 212 | 2,250 |
Share trust arrangements | (1) | (14) |
Shares used to satisfy options | (1) | (8) |
At 30 June 2025 | 210 | 2,228 |
2025 $ million | 2024 $ million | 2023 $ million | |
Amounts recognised as distributions to equity shareholders in the year | |||
Final dividend for the year ended 30 June 2024 62.98 cents per share (2023 \u2013 59.98 cents; 2022 \u2013 52.71 cents) | 1,399 | 1,349 | 1,200 |
Interim dividend for the year ended 30 June 2025 40.50 cents per share (2024 \u2013 40.50 cents; 2023 \u2013 38.57 cents) | 899 | 894 | 871 |
2,298 | 2,243 | 2,071 |
2025 | 2024 | 2023 | |||
USL $ million | Other $ million | Total $ million | Total $ million | Total $ million | |
Income statement | |||||
Sales | 3,201 | 3,238 | 6,439 | 6,224 | 6,409 |
Net sales | 1,405 | 2,463 | 3,868 | 3,718 | 3,767 |
Profit for the year(1) | 181 | 347 | 528 | 777 | 80 |
Other comprehensive loss(2) | (50) | (241) | (291) | (16) | (172) |
Total comprehensive income/(loss) | 131 | 106 | 237 | 761 | (92) |
Attributable to non-controlling interests | 56 | 127 | 183 | 277 | (66) |
Balance sheet | |||||
Non-current assets(3) | 1,300 | 4,229 | 5,529 | 5,741 | 5,354 |
Current assets | 1,304 | 1,437 | 2,741 | 2,545 | 2,316 |
Non-current liabilities | (199) | (1,450) | (1,649) | (1,774) | (1,656) |
Current liabilities | (565) | (1,038) | (1,603) | (1,738) | (1,788) |
Net assets | 1,840 | 3,178 | 5,018 | 4,774 | 4,226 |
Attributable to non-controlling interests | 791 | 1,297 | 2,088 | 2,038 | 1,853 |
Cash flow | |||||
Net cash inflow from operating activities | 278 | 330 | 608 | 693 | 604 |
Net cash outflow from investing activities | (185) | (120) | (305) | (211) | (236) |
Net cash outflow from financing activities | (77) | (317) | (394) | (456) | (170) |
Net increase/(decrease) in cash and cash equivalents | 16 | (107) | (91) | 26 | 198 |
Exchange differences | (4) | 14 | 10 | (33) | (111) |
Dividends payable to non-controlling interests | (32) | (108) | (140) | (121) | (117) |
2025 $ million | 2024 $ million | 2023 $ million | |
Executive share award plans | 48 | 34 | 49 |
Executive share option plans | 9 | 7 | 4 |
Savings plans | 2 | 2 | 5 |
59 | 43 | 58 |
2025 | 2024 | 2023 | |
Risk free interest rate | 3.9% | 4.7% | 3.1% |
Expected life of the awards | 33 months | 33 months | 35 months |
Dividend yield | 3.4% | 2.6% | 2.0% |
Weighted average share price | 2426 p | 3118 p | 3758 p |
Weighted average fair value of awards granted in the year(1) | 1814 c | 1757 c | 2318 c |
Number of awards granted in the year | 3.4 million | 2.1 million | 1.7 million |
Fair value of all awards granted in the year | $61 million | $36 million | $40 million |
2025 million | 2024 million | 2023 million | |
Number of awards outstanding at 1 July | 4.8 | 4.9 | 5.2 |
Granted | 3.4 | 2.1 | 1.7 |
Awarded | (1.3) | (1.8) | (1.1) |
Forfeited | (0.9) | (0.4) | (0.9) |
Number of awards outstanding at 30 June | 6.0 | 4.8 | 4.9 |
Accounting policies | ||
Provision is made for the anticipated settlement costs of legal or other disputes against the group where it is considered to be probable that a liability exists and a reliable estimate can be made of the likely outcome. Where it is possible that a settlement may be reached or it is not possible to make a reliable estimate of the estimated financial effect, appropriate disclosure is made but no provision created. | ||
Critical accounting judgements and estimates | ||
Judgement is necessary in assessing the likelihood that a claim will succeed, or a liability will arise, and an estimate to quantify the possible range of any settlement. Due to the inherent uncertainty in this evaluation process, actual losses may be different from the liability originally estimated. The group may be involved in legal proceedings in respect of which it is not possible to make a reliable estimate of any expected settlement. In such cases, appropriate disclosure is provided but no provision is made and no contingent liability is quantified. | ||
Accounting policies | ||
Provision is made for the anticipated settlement costs of legal or other disputes against the group where it is considered to be probable that a liability exists and a reliable estimate can be made of the likely outcome. Where it is possible that a settlement may be reached or it is not possible to make a reliable estimate of the estimated financial effect, appropriate disclosure is made but no provision created. | ||
Critical accounting judgements and estimates | ||
Judgement is necessary in assessing the likelihood that a claim will succeed, or a liability will arise, and an estimate to quantify the possible range of any settlement. Due to the inherent uncertainty in this evaluation process, actual losses may be different from the liability originally estimated. The group may be involved in legal proceedings in respect of which it is not possible to make a reliable estimate of any expected settlement. In such cases, appropriate disclosure is provided but no provision is made and no contingent liability is quantified. | ||
Accounting policies | ||
Provision is made for the anticipated settlement costs of legal or other disputes against the group where it is considered to be probable that a liability exists and a reliable estimate can be made of the likely outcome. Where it is possible that a settlement may be reached or it is not possible to make a reliable estimate of the estimated financial effect, appropriate disclosure is made but no provision created. | ||
Critical accounting judgements and estimates | ||
Judgement is necessary in assessing the likelihood that a claim will succeed, or a liability will arise, and an estimate to quantify the possible range of any settlement. Due to the inherent uncertainty in this evaluation process, actual losses may be different from the liability originally estimated. The group may be involved in legal proceedings in respect of which it is not possible to make a reliable estimate of any expected settlement. In such cases, appropriate disclosure is provided but no provision is made and no contingent liability is quantified. | ||
2025 | 2024 | 2023 | |
$ million | $ million | $ million | |
Income statement items | |||
Sales | 10 | 14 | 13 |
Purchases | 65 | 73 | 16 |
Balance sheet items | |||
Group payables | 2 | 2 | 3 |
Group receivables | 1 | 2 | 2 |
Loans receivable | 37 | 355 | 254 |
Cash flow items | |||
Loans and equity contributions, net | 84 | 134 | 112 |
2025 | 2024 | 2023 | |
$ million | $ million | $ million | |
Salaries and short-term employee benefits | 14 | 12 | 13 |
Annual incentive plan | 8 | 4 | 7 |
Non-Executive Directors\u2019 fees | 2 | 2 | 2 |
Share-based payments(1) | 17 | 7 | 14 |
Post-employment benefits | 2 | 2 | 2 |
43 | 27 | 38 |
2025 | 2024 | 2023 | |
$ million | $ million | $ million | |
Salaries and short-term employee benefits | 4 | 4 | 3 |
Annual incentive plan | 3 | 1 | 2 |
Non-Executive Directors' fees | 2 | 2 | 2 |
Shares vesting(1) | 4 | 18 | 5 |
Post-employment benefits | \u2014 | \u2014 | 1 |
13 | 25 | 13 |
2025 | 2024 | 2023 | |
$ million | $ million | $ million | |
Salaries and short-term employee benefits | 14 | 12 | 13 |
Annual incentive plan | 8 | 4 | 7 |
Non-Executive Directors\u2019 fees | 2 | 2 | 2 |
Share-based payments(1) | 17 | 7 | 14 |
Post-employment benefits | 2 | 2 | 2 |
43 | 27 | 38 |
2025 | 2024 | 2023 | |
$ million | $ million | $ million | |
Salaries and short-term employee benefits | 4 | 4 | 3 |
Annual incentive plan | 3 | 1 | 2 |
Non-Executive Directors' fees | 2 | 2 | 2 |
Shares vesting(1) | 4 | 18 | 5 |
Post-employment benefits | \u2014 | \u2014 | 1 |
13 | 25 | 13 |
Country of incorporation | Country of operation | Percentage of equity owned (1) | Business description | |
Subsidiaries | ||||
Diageo Ireland Unlimited Company | Ireland | Worldwide | 100% | Production, marketing and distribution of premium drinks |
Diageo Great Britain Limited | England | Great Britain | 100% | Marketing and distribution of premium drinks |
Diageo Scotland Limited | Scotland | Worldwide | 100% | Production, marketing and distribution of premium drinks |
Diageo Brands B.V. | Netherlands | Worldwide | 100% | Marketing and distribution of premium drinks |
Diageo North America, Inc. | United States | Worldwide | 100% | Production, importing, marketing and distribution of premium drinks |
United Spirits Limited(2) | India | India | 55.88% | Production, importing, marketing and distribution of premium drinks |
Diageo Capital plc(3) | Scotland | United Kingdom | 100% | Financing company for the group |
Diageo Capital B.V.(3) | Netherlands | Netherlands | 100% | Financing company for the group |
Diageo Finance plc(3) | England | United Kingdom | 100% | Financing company for the group |
Diageo Investment Corporation | United States | United States | 100% | Financing company for the US group |
Mey \u0130\u00e7ki Sanayi ve Ticaret A.\u015e. | T\u00fcrkiye | T\u00fcrkiye | 100% | Production, marketing and distribution of premium drinks |
Associates | ||||
Mo\u00ebt Hennessy(4) | France | Worldwide | 34% | Production, marketing and distribution of premium drinks |