Cover
Cover | 12 Months Ended |
Jun. 30, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Jun. 30, 2023 |
Current Fiscal Year End Date | --06-30 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 1-10691 |
Entity Registrant Name | DIAGEO plc |
Entity Incorporation, State or Country Code | X0 |
Entity Address, Address Line One | 16 Great Marlborough Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | W1F 7HS |
Entity Address, Country | GB |
Entity Common Stock, Shares Outstanding | 2,459,843,065 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0000835403 |
Business Contact | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 16 Great Marlborough Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | W1F 7HS |
Entity Address, Country | GB |
Contact Personnel Name | Thomas B. Shropshire, Jr. |
Country Region | 44 |
City Area Code | 20 |
Local Phone Number | 7947 9100 |
Contact Personnel Email Address | the.cosec@diageo.com |
American Depositary Shares | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | DEO |
Security Exchange Name | NYSE |
Ordinary shares | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | Ordinary shares of 28101/108 pence each |
Trading Symbol | DEO |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 876 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | London, United Kingdom |
Consolidated income statement
Consolidated income statement - GBP (£) £ in Millions, shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Profit or loss [abstract] | |||
Sales | £ 23,515 | £ 22,448 | £ 19,153 |
Excise duties | (6,402) | (6,996) | (6,420) |
Net sales | 17,113 | 15,452 | 12,733 |
Cost of sales | (6,899) | (5,973) | (5,038) |
Gross profit | 10,214 | 9,479 | 7,695 |
Marketing | (3,051) | (2,721) | (2,163) |
Other operating items | (2,531) | (2,349) | (1,801) |
Operating profit/(loss) | 4,632 | 4,409 | 3,731 |
Non-operating items | 328 | (17) | 14 |
Finance income | 340 | 497 | 278 |
Finance charges | (934) | (919) | (651) |
Share of after tax results of associates and joint ventures | 370 | 417 | 334 |
Profit before taxation | 4,736 | 4,387 | 3,706 |
Taxation | (970) | (1,049) | (907) |
Profit for the year | 3,766 | 3,338 | 2,799 |
Attributable to: | |||
Equity shareholders of the parent company | 3,734 | 3,249 | 2,660 |
Non-controlling interests | 32 | 89 | 139 |
Profit for the year | £ 3,766 | £ 3,338 | £ 2,799 |
Weighted average number of shares | |||
Shares in issue excluding own shares (in shares) | 2,264 | 2,318 | 2,337 |
Dilutive potential ordinary shares (in shares) | 7 | 7 | 8 |
Weighted average number of shares (in shares) | 2,271 | 2,325 | 2,345 |
Basic earnings per share | |||
Basic earnings per share (in pounds per shares) | £ 1.649 | £ 1.402 | £ 1.138 |
Diluted earnings per share | |||
Diluted earnings per share (in pounds per shares) | £ 1.644 | £ 1.397 | £ 1.134 |
Consolidated statement of compr
Consolidated statement of comprehensive income - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net remeasurement of post employment benefit plans | |||
Group | £ (643) | £ 616 | £ 16 |
Associates and joint ventures | 13 | 5 | 3 |
Non-controlling interests | 0 | (1) | 0 |
Tax on post employment benefit plans | 161 | (123) | (46) |
Changes in the fair value of equity investments at fair value through other comprehensive income | (4) | (12) | 0 |
Items that will not be recycled subsequently to the income statement | (473) | 485 | (27) |
Exchange differences on translation of foreign operations | |||
Group | (876) | 1,128 | (1,233) |
Associates and joint ventures | (59) | 60 | (240) |
Non-controlling interests | (148) | 171 | (173) |
Net investment hedges | 416 | (623) | 810 |
Exchange (gain)/loss recycled to the income statement | |||
Exchange Gain Loss Recycled To The Income Statement On Translation Of Foreign Operations In Respect Of Step Acquisitions | (18) | 63 | 0 |
Exchange Gain Loss Recycled To The Income Statement On Translation Of Foreign Operations In Respect Of Step Acquisitions | (1) | 0 | 0 |
Tax on exchange differences – group | (2) | (6) | (9) |
Tax on exchange differences – non-controlling interests | 0 | 0 | (1) |
Effective portion of changes in fair value of cash flow hedges | |||
Hedge of foreign currency debt of the group | 6 | 233 | (298) |
Transaction exposure hedging of the group | 273 | (172) | 101 |
Hedges by associates and joint ventures | 24 | (15) | (1) |
Commodity price risk hedging of the group | (56) | 78 | 41 |
Recycled to income statement – hedge of foreign currency debt of the group | 54 | (239) | 175 |
Recycled to income statement – transaction exposure hedging of the group | (13) | 42 | 10 |
Recycled to income statement – commodity price risk hedging of the group | (33) | (46) | (2) |
Tax on effective portion of changes in fair value of cash flow hedges | (39) | 32 | (6) |
Hyperinflation adjustments | 182 | 365 | (17) |
Tax on hyperinflation adjustments | (39) | (74) | 5 |
Items that may be recycled subsequently to the income statement | (329) | 997 | (838) |
Other comprehensive (loss)/income, net of tax, for the year | (802) | 1,482 | (865) |
Profit for the year | 3,766 | 3,338 | 2,799 |
Total comprehensive income for the year | 2,964 | 4,820 | 1,934 |
Attributable to: | |||
Equity shareholders of the parent company | 3,080 | 4,561 | 1,969 |
Non-controlling interests | £ (116) | £ 259 | £ (35) |
Consolidated balance sheet
Consolidated balance sheet - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Non-current assets | ||
Intangible assets | £ 11,512 | £ 11,902 |
Property, plant and equipment | 6,142 | 5,848 |
Biological assets | 156 | 94 |
Investments in associates and joint ventures | 3,829 | 3,652 |
Other investments | 57 | 37 |
Other receivables | 31 | 37 |
Other financial assets | 394 | 345 |
Deferred tax assets | 141 | 114 |
Post employment benefit assets | 960 | 1,553 |
Non-current assets | 23,222 | 23,582 |
Current assets | ||
Inventories | 7,661 | 7,094 |
Trade and other receivables | 2,720 | 2,933 |
Corporate tax receivables | 232 | 149 |
Assets held for sale | 0 | 222 |
Other financial assets | 347 | 251 |
Cash and cash equivalents | 1,439 | 2,285 |
Current assets | 12,399 | 12,934 |
Total assets | 35,621 | 36,516 |
Current liabilities | ||
Borrowings and bank overdrafts | (1,701) | (1,522) |
Other financial liabilities | (359) | (444) |
Share buyback liability | 0 | (117) |
Trade and other payables | (5,300) | (5,887) |
Liabilities held for sale | 0 | (61) |
Corporate tax payables | (135) | (252) |
Provisions | (119) | (159) |
Current liabilities | (7,614) | (8,442) |
Non-current liabilities | ||
Borrowings | (14,801) | (14,498) |
Other financial liabilities | (747) | (703) |
Other payables | (368) | (380) |
Provisions | (243) | (258) |
Deferred tax liabilities | (2,183) | (2,319) |
Post employment benefit liabilities | (373) | (402) |
Non-current liabilities | (18,715) | (18,560) |
Total liabilities | (26,329) | (27,002) |
Net assets | 9,292 | 9,514 |
Equity | ||
Share capital | 712 | 723 |
Share premium | 1,351 | 1,351 |
Other reserves | 1,861 | 2,174 |
Retained earnings | 3,898 | 3,550 |
Equity attributable to equity shareholders of the parent company | 7,822 | 7,798 |
Non-controlling interests | 1,470 | 1,716 |
Total equity | £ 9,292 | £ 9,514 |
Consolidated statement of chang
Consolidated statement of changes in equity - GBP (£) £ in Millions | Total | Adjustment to 2021 closing equity in respect of hyperinflation in Turkey | Adjusted balance at 30 June 2022 | Equity attributable to parent company shareholder | Equity attributable to parent company shareholder Adjustment to 2021 closing equity in respect of hyperinflation in Turkey | Equity attributable to parent company shareholder Adjusted balance at 30 June 2022 | Share capital | Share capital Adjusted balance at 30 June 2022 | Share premium | Share premium Adjusted balance at 30 June 2022 | Capital redemption reserve | Capital redemption reserve Adjusted balance at 30 June 2022 | Hedging and exchange reserve | Hedging and exchange reserve Adjusted balance at 30 June 2022 | Total | Total Adjustment to 2021 closing equity in respect of hyperinflation in Turkey | Total Adjusted balance at 30 June 2022 | Own shares | Own shares Adjusted balance at 30 June 2022 | Other retained earnings | Other retained earnings Adjustment to 2021 closing equity in respect of hyperinflation in Turkey | Other retained earnings Adjusted balance at 30 June 2022 | Non-controlling interests | Non-controlling interests Adjusted balance at 30 June 2022 |
Beginning balance at Jun. 30, 2020 | £ 8,440 | £ 6,772 | £ 742 | £ 1,351 | £ 3,201 | £ (929) | £ 2,407 | £ (1,936) | £ 4,343 | £ 1,668 | ||||||||||||||
Profit for the year | 2,799 | 2,660 | 2,660 | 2,660 | 139 | |||||||||||||||||||
Other comprehensive (loss)/income | (865) | (691) | (652) | (39) | (39) | (174) | ||||||||||||||||||
Total comprehensive income for the year | 1,934 | 1,969 | (652) | 2,621 | 2,621 | (35) | ||||||||||||||||||
Employee share schemes | 49 | 49 | 49 | 59 | (10) | |||||||||||||||||||
Share-based incentive plans | 49 | 49 | 49 | 49 | ||||||||||||||||||||
Share-based incentive plans in respect of associates | 3 | 3 | 3 | 3 | ||||||||||||||||||||
Tax on share-based incentive plans | 9 | 9 | 9 | 9 | ||||||||||||||||||||
Purchase of non-controlling interests | (42) | (15) | (15) | (15) | (27) | |||||||||||||||||||
Associates' transactions with non-controlling interests | (91) | (91) | (91) | (91) | ||||||||||||||||||||
Change in fair value of put option | (2) | (2) | (2) | (2) | ||||||||||||||||||||
Share buyback programme | (200) | (200) | (1) | 1 | (200) | (200) | ||||||||||||||||||
Dividend declared for the year | (1,718) | (1,646) | (1,646) | (1,646) | (72) | |||||||||||||||||||
Ending balance at Jun. 30, 2021 | 8,431 | £ 251 | £ 8,682 | 6,897 | £ 251 | £ 7,148 | 741 | £ 741 | 1,351 | £ 1,351 | 3,202 | £ 3,202 | (1,581) | £ (1,581) | 3,184 | £ 251 | £ 3,435 | (1,877) | £ (1,877) | 5,061 | £ 251 | £ 5,312 | 1,534 | £ 1,534 |
Profit for the year | 3,338 | 3,249 | 3,249 | 3,249 | 89 | |||||||||||||||||||
Other comprehensive (loss)/income | 1,482 | 1,312 | 535 | 777 | 777 | 170 | ||||||||||||||||||
Total comprehensive income for the year | 4,820 | 4,561 | 535 | 4,026 | 4,026 | 259 | ||||||||||||||||||
Employee share schemes | 89 | 89 | 89 | 39 | 50 | |||||||||||||||||||
Share-based incentive plans | 59 | 59 | 59 | 59 | ||||||||||||||||||||
Share-based incentive plans in respect of associates | 4 | 4 | 4 | 4 | ||||||||||||||||||||
Tax on share-based incentive plans | 9 | 9 | 9 | 9 | ||||||||||||||||||||
Share-based payments and purchase of own shares in respect of subsidiaries | (17) | (11) | (11) | (11) | (6) | |||||||||||||||||||
Unclaimed dividend | 4 | 3 | 3 | 3 | 1 | |||||||||||||||||||
Change in fair value of put option | (34) | (34) | (34) | (34) | ||||||||||||||||||||
Share buyback programme | (2,310) | (2,310) | (18) | 18 | (2,310) | (2,310) | ||||||||||||||||||
Dividend declared for the year | (1,792) | (1,720) | (1,720) | (1,720) | (72) | |||||||||||||||||||
Ending balance at Jun. 30, 2022 | 9,514 | 7,798 | 723 | 1,351 | 3,220 | (1,046) | 3,550 | (1,838) | 5,388 | 1,716 | ||||||||||||||
Profit for the year | 3,766 | 3,734 | 3,734 | 3,734 | 32 | |||||||||||||||||||
Other comprehensive (loss)/income | (802) | (654) | (324) | (330) | (330) | (148) | ||||||||||||||||||
Total comprehensive income for the year | 2,964 | 3,080 | (324) | 3,404 | 3,404 | (116) | ||||||||||||||||||
Employee share schemes | 48 | 48 | 48 | 24 | 24 | |||||||||||||||||||
Share-based incentive plans | 49 | 49 | 49 | 49 | ||||||||||||||||||||
Share-based incentive plans in respect of associates | 6 | 6 | 6 | 6 | ||||||||||||||||||||
Tax on share-based incentive plans | 6 | 6 | 6 | 6 | ||||||||||||||||||||
Share-based payments and purchase of own shares in respect of subsidiaries | 5 | 3 | 3 | 3 | 2 | |||||||||||||||||||
Purchase of non-controlling interests | (146) | (111) | (111) | (111) | (35) | |||||||||||||||||||
Associates' transactions with non-controlling interests | (7) | (7) | (7) | (7) | ||||||||||||||||||||
Unclaimed dividend | 1 | 1 | 1 | 1 | 0 | |||||||||||||||||||
Change in fair value of put option | (16) | (16) | (16) | (16) | ||||||||||||||||||||
Share buyback programme | (1,273) | (1,273) | (11) | 11 | (1,273) | (1,273) | ||||||||||||||||||
Dividend declared for the year | (1,859) | (1,762) | (1,762) | (1,762) | (97) | |||||||||||||||||||
Ending balance at Jun. 30, 2023 | £ 9,292 | £ 7,822 | £ 712 | £ 1,351 | £ 3,231 | £ (1,370) | £ 3,898 | £ (1,814) | £ 5,712 | £ 1,470 |
Consolidated statement of cash
Consolidated statement of cash flows - GBP (£) £ in Millions | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows from operating activities | ||||
Profit for the year | £ 3,766 | £ 3,338 | £ 2,799 | |
Taxation | 970 | 1,049 | 907 | |
Share of after tax results of associates and joint ventures | (370) | (417) | (334) | |
Net finance charges | 594 | 422 | 373 | |
Non-operating items | (328) | 17 | (14) | |
Operating profit | 4,632 | 4,409 | 3,731 | |
Increase in inventories | (675) | (740) | (443) | |
Decrease/(increase) in trade and other receivables | 121 | (378) | (446) | |
(Decrease)/increase in trade and other payables and provisions | (621) | 939 | 1,220 | |
Net (increase)/decrease in working capital | (1,175) | (179) | 331 | |
Depreciation, amortisation and impairment | 1,066 | 828 | 447 | |
Dividends received | 219 | 190 | 290 | |
Post employment payments less amounts included in operating profit | (25) | (89) | (30) | |
Other items | 62 | 53 | 88 | |
Adjustments to reconcile profit (loss), Total | 1,322 | 982 | 795 | |
Cash generated from operations | 4,779 | 5,212 | 4,857 | |
Interest received | 131 | 110 | 89 | |
Interest paid | (685) | (438) | (440) | |
Taxation paid | (1,201) | (949) | (852) | |
Interest and income taxes paid (received), classified as operating activities | (1,755) | (1,277) | (1,203) | |
Net cash inflow from operating activities | 3,024 | 3,935 | 3,654 | |
Cash flows from investing activities | ||||
Disposal of property, plant and equipment and computer software | 13 | 17 | 13 | |
Purchase of property, plant and equipment and computer software | (1,180) | (1,097) | (626) | |
Movements in loans and other investments | (57) | (72) | (4) | |
Sale of businesses and brands | 462 | 82 | 14 | |
Acquisition of subsidiaries(1) | [1] | (342) | (206) | (450) |
Investments in associates and joint ventures(1) | [1] | (93) | (65) | (38) |
Net cash outflow from investing activities | (1,197) | (1,341) | (1,091) | |
Cash flows from financing activities | ||||
Share buyback programme | (1,381) | (2,284) | (109) | |
Net sale of own shares for share schemes | 29 | 18 | 49 | |
Purchase of treasury shares in respect of subsidiaries | 0 | (15) | 0 | |
Dividends paid to non-controlling interests | (97) | (81) | (77) | |
Proceeds from bonds | 2,229 | 2,263 | 1,031 | |
Repayment of bonds | (1,340) | (1,521) | (1,247) | |
Purchase of shares of non-controlling interests | (146) | 0 | (42) | |
Cash inflow from other borrowings | 433 | 503 | 34 | |
Cash outflow from other borrowings | (374) | (424) | (787) | |
Equity dividends paid | (1,761) | (1,718) | (1,646) | |
Net cash outflow from financing activities | (2,408) | (3,259) | (2,794) | |
Net decrease in net cash and cash equivalents | (581) | (665) | (231) | |
Exchange differences | (227) | 239 | (285) | |
Net cash and cash equivalents at beginning of the year | 2,211 | 2,637 | 3,153 | |
Net cash and cash equivalents at end of the year | 1,403 | 2,211 | 2,637 | |
Net cash and cash equivalents consist of: | ||||
Cash and cash equivalents | 1,439 | 2,285 | 2,749 | |
Bank overdrafts | £ (36) | £ (74) | £ (112) | |
[1] (1) For the years ended 30 June 2022 and 30 June 2021 , the previously reported line item of 'Acquisition of businesses' has been replaced with 'Acquisition of subsidiaries' and 'Investments in associates and joint ventures' to show separately the amounts which had previously been shown combined. |
Accounting information and poli
Accounting information and policies | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Accounting information and policies | Introduction This section describes the basis of preparation of the consolidated financial statements and the group’s accounting policies that are applicable to the financial statements as a whole. Accounting policies, critical accounting estimates and judgements specific to a note are included in the note to which they relate. Furthermore, the section details new accounting standards, amendments and interpretations, that the group has adopted in the current financial year or will adopt in subsequent years. (a) Basis of preparation The consolidated financial statements are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRSs) adopted by the UK (UK-adopted International Accounting Standards) and IFRSs, as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. IFRS as adopted by the UK differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the group’s consolidated financial statements for the years presented. The consolidated financial statements are prepared on a going concern basis under the historical cost convention, unless stated otherwise in the relevant accounting policy. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. (b) Going concern Management prepared cash flow forecasts which were also sensitised to reflect severe but plausible downside scenarios taking into consideration the group's principal risks. In the base case scenario, management included assumptions for mid-single digit net sales growth, operating margin improvement and global TBA market share growth. In light of the ongoing geopolitical volatility, the base case outlook and severe but plausible downside scenarios incorporated considerations for a prolonged global recession, supply chain disruptions, higher inflation and further geopolitical deterioration. Even under these scenarios, the group’s liquidity is still expected to remain strong, as it was protected by issuing €500 million of fixed rate euro and $2 billion of fixed rate dollar-denominated bonds in the year ended 30 June 2023. Mitigating actions, should they be required, are all within management’s control and could include reductions in discretionary spending such as acquisitions and capital expenditure, as well as a temporary suspension of the share buyback programme and dividend payments in the next 12 months, or drawdowns on committed facilities. Having considered the outcome of these assessments, the Directors are comfortable that the company is a going concern for at least 12 months from the date of signing the group's consolidated financial statements. (c) Consolidation The consolidated financial statements include the results of the company and its subsidiaries together with the group’s attributable share of the results of associates and joint ventures. A subsidiary is an entity controlled by Diageo plc. The group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Where the group has the ability to exercise joint control over an entity but has rights to specified assets and obligations for liabilities of that entity, the entity is included on the basis of the group’s rights over those assets and liabilities. (d) Foreign currencies Items included in the financial statements of the group’s subsidiaries, associates and joint ventures are measured using the currency of the primary economic environment in which each entity operates (its functional currency). The consolidated financial statements are presented in sterling, which is the functional currency of the parent company, Diageo plc. The functional currency of Diageo plc is determined by using management judgement that considers the parent company as an extension of its subsidiaries. The income statements and cash flows of non-sterling entities are translated into sterling at weighted average rates of exchange, except for subsidiaries in hyperinflationary economies that are translated with the closing rate at the end of the year and for substantial transactions that are translated at the rate on the date of the transaction. Exchange differences arising on the retranslation to closing rates are taken to the exchange reserve. Assets and liabilities are translated at closing rates. Exchange differences arising on the retranslation at closing rates of the opening balance sheets of overseas entities are taken to the exchange reserve, as are exchange differences arising on foreign currency borrowings and financial instruments designated as net investment hedges, to the extent that they are effective. Tax charges and credits arising on such items are also taken to the exchange reserve. Gains and losses accumulated in the exchange reserve are recycled to the income statement when the foreign operation is sold. Other exchange differences are taken to the income statement. Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. The principal foreign exchange rates used in the translation of financial statements for the three years ended 30 June 2023, expressed in US dollars and euros per £1, were as follows: 2023 2022 2021 US dollar Income statement and cash flows (1) 1.20 1.33 1.35 Assets and liabilities (2) 1.26 1.21 1.39 Euro Income statement and cash flows (1) 1.15 1.18 1.13 Assets and liabilities (2) 1.17 1.16 1.17 (1) Weighted average rates (2) Closing rates The group uses foreign exchange hedges to mitigate the effect of exchange rate movements. For further information, see note 16. (e) Critical accounting estimates and judgements Details of critical estimates and judgements which the Directors consider could have a significant impact on the financial statements are set out in the related notes as follows: – Exceptional items – management judgement whether exceptional or not – page 219 – Taxation – management judgement whether a provision is required and management estimate of amount of corporate tax payable or receivable, the recoverability of deferred tax assets and expectation on manner of recovery of deferred taxes – pages 224 and 228 – Brands, goodwill, other intangibles and contingent considerations – management judgement whether the assets and liabilities are to be recognised and synergies resulting from an acquisition. Management judgement and estimate are required in determining future cash flows and appropriate applicable assumptions to support the intangible asset and contingent consideration value – pages 236 – Post employment benefits – management judgement whether a surplus can be recovered and management estimate in determining the assumptions in calculating the liabilities of the funds – page 244 – Contingent liabilities and legal proceedings – management judgement in assessing the likelihood of whether a liability will arise and an estimate to quantify the possible range of any settlement; and significant unprovided tax matters where maximum exposure is provided for each – page 272 (f) Hyperinflationary accounting The group applied hyperinflationary accounting for its operations in Turkey, Venezuela and Lebanon. Turkey has been a hyperinflationary economy where cumulative inflation for the three years ended 30 June 2022 exceeded 100%. Consequently, since March 2022, the group applies hyperinflationary accounting for its Turkish operations. The group’s consolidated financial statements for the years ended 30 June 2023 and 30 June 2022 include the results and financial position of its Turkish operations restated to the measuring unit current at the end of each period, with hyperinflationary gains and losses in respect of monetary items being reported in finance income and charges. Comparative amounts presented in the consolidated financial statements were not restated. Hyperinflationary accounting needs to be applied as if Turkey has always been a hyperinflationary economy, hence, as per Diageo’s accounting policy choice, the differences between equity at 30 June 2021 as reported and the equity after the restatement of the non-monetary items to the measuring unit current at 30 June 2021 were recognised in retained earnings. Such restatement includes impairment of TRY 2,133 million (£177 million) recognised on the goodwill in the Turkey cash-generating unit and TRY 1,627 million (£135 million) in respect of the Yenì Raki brand, as a result of the increased carrying values for those due to hyperinflation adjustments. When applying IAS 29 on an ongoing basis, comparatives in stable currency are not restated and the effect of inflating opening net assets to the measuring unit current at the end of the reporting period is presented in other comprehensive income. The inflation rate used by the group is the official rate published by the Turkish Statistical Institute. The movement in the publicly available official price index for the year ended 30 June 2023 was 38% (2022 – 79%). Venezuela is a hyperinflationary economy where the government maintains a regime of strict currency controls with multiple foreign currency rate systems. The exchange rate used to translate the results of the group’s Venezuelan operations was VES/£ 3,807 for the year ended 30 June 2023 (2022 – VES/£ 759).This rate reflects management’s estimate of the exchange rate considering inflation and the most appropriate official exchange rate. Movement in the price index for the year ended 30 June 2023 was 382% (2022 – 268%). The inflation rate used by the group is provided by an independent valuer because no reliable, officially published rate is available for Venezuela. The following table presents the contribution of the group’s Venezuelan operations to consolidated net sales, operating profit, operating cash flow and assets for the years ended 30 June 2023 and 30 June 2022 and with the amounts that would have resulted if the official reference exchange rate had been applied: Year ended 30 June 2023 Year ended 30 June 2022 At estimated exchange rate At official reference At estimated At official reference 3,807 VES/£ 36 VES/£ 759 VES/£ 7 VES/£ £ million £ million £ million £ million Net sales — 9 — 15 Operating loss — — (1) (1) Other finance (charges)/income - hyperinflation adjustment (2) (212) 1 157 Net cash outflow from operating activities — (3) — (5) Net assets 6 657 41 4,606 Sterling amounts presented at the official reference exchange rate are results of simple mathematical conversion. The impact of hyperinflationary accounting for Lebanon was immaterial both in the current and comparative periods. (g) New accounting standards and interpretations The following amendments to the accounting standards, issued by the IASB and endorsed by the UK, were adopted by the group from 1 July 2022 with no impact on the group’s consolidated results, financial position or disclosures: – Amendments to IFRS 3 Updating a Reference to the Conceptual Framework – Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 37 Onerous Contracts - Cost of Fulfilling a Contract – Amendments to Annual improvements 2018-2020 - IFRS 9 - Fees in the '10 per cent' Test, IFRS 16 - Lease incentives, IAS 41 - Taxation in Fair Value Measurements – Amendments to IAS 12 International Tax Reform – Pillar Two Model Rules The following standard and amendments issued by the IASB have been endorsed by the UK and have not been adopted by the group: IFRS 17 – Insurance contracts (effective from the year ending 30 June 2024) is ultimately intended to replace IFRS 4. Based on a preliminary assessment, the group believes that the adoption of IFRS 17 will not have a significant impact on its consolidated results or financial position. Amendments to IAS 12 - Income taxes (effective from the year ending 30 June 2024) requires an entity to recognise deferred tax on initial recognition of particular transactions to the extent that the transaction gives rise to equal amounts of deferred tax assets and liabilities. The proposed amendments would apply to transactions such as leases and decommissioning obligations for which an entity recognises both an asset and a liability. The group believes that the adoption of these amendments will not have a significant impact on its consolidated results and financial position. There are a number of other amendments and clarifications to IFRSs, effective in future years, which are not expected to significantly impact the group’s consolidated results or financial position. (h) Climate change considerations The impact of climate change assessment and the net zero carbon emission target for Diageo's direct operations (Scope 1 & 2) for 2030 have been considered as part of the assessment of estimates and judgements in preparing the group's consolidated financial statements. The climate change scenario analyses performed in 2023 – conducted in line with TCFD recommendations (‘Transition Scenario’ (RCP 2.6), a ‘Moderate Warming’ Scenario (RCP 4.5) and a ‘Severe Warming Scenario’ (RCP 8.5)) – identified no material financial impact to these financial statements. The following considerations were made in respect of the financial statements: • The impact of climate change on factors (like residual values, useful lives and depreciation methods) that determine the carrying value of non-current assets. • The impact of climate change on forecasts of cash flows used (including forecast depreciation in line with capital expenditure plans for Diageo's net zero carbon emission commitment) in impairment assessments for the value-in-use of non-current assets including goodwill (see note 9). • The impact of climate change on post-employment assets . |
Segmental information
Segmental information | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of operating segments [abstract] | |
Segmental information | Results for the year Introduction This section explains the results and performance of the group for the three years ended 30 June 2023. Disclosures are provided for segmental information, operating costs, exceptional items, finance income and charges, the group's share of results of associates and joint ventures, taxation. For associates, joint ventures and taxation, balance sheet disclosures are also provided in this section. 2. Segmental information 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. Diageo is an international manufacturer and distributor of premium drinks. Diageo also owns a number of investments in associates and joint ventures, as set out in note 6. The segmental information presented is consistent with management reporting provided to the Executive Committee (the chief operating decision-maker). The Executive Committee considers the business principally from a geographical perspective based on the location of third-party sales and the business analysis is presented by geographical segment. In addition to these geographical selling segments, a further segment reviewed by the Executive Committee is the Supply Chain and Procurement (SC&P) segment, which manufactures products for other group companies and includes the production sites in the United Kingdom, Ireland, Italy, Guatemala and Mexico, as well as comprises the global procurement function. The group's operations also include the Corporate segment. Corporate costs are in respect of central costs, including finance, marketing, corporate relations, human resources and legal, as well as certain information systems, facilities and employee costs that are not allocable to the geographical segments or to the SC&P. Diageo uses shared services operations to deliver transaction processing activities for markets and operational entities. These centres are located in India, Hungary, Colombia and the Philippines. These captive business service centres also perform certain central finance activities, including elements of financial planning and reporting, treasury and HR services. The costs of shared services operations are recharged to the regions. For planning and management reporting purposes, Diageo uses budgeted exchange rates that are set at the prior year's weighted average exchange rate. In order to ensure a consistent basis on which performance is measured through the year, prior period results are also restated to the budgeted exchange rate. Segmental information for net sales and operating profit before exceptional items are reported on a consistent basis with management reporting. The adjustments required to retranslate the segmental information to actual exchange rates and to reconcile it to the group’s reported results are shown in the tables below. The comparative segmental information, prior to retranslation, has not been restated at the current year’s budgeted exchange rates but is presented at the budgeted rates for the respective year. In addition, for management reporting purposes, Diageo presents the result of acquisitions and disposals completed in the current and prior year separately from the results of the geographical segments. The impact of acquisitions and disposals on net sales and operating profit is disclosed under the appropriate geographical segments in the tables below at budgeted exchange rates. (a) Segmental information for the consolidated income statement North America Europe Asia Latin America and Caribbean Africa SC&P Eliminate Total Corporate Total £ million £ million £ million £ million £ million £ million £ million £ million £ million £ million 2023 Sales 7,382 5,996 5,403 2,260 2,386 3,073 (3,073) 23,427 88 23,515 Net sales At budgeted exchange rates (1) 6,052 3,377 3,084 1,642 1,631 2,942 (2,876) 15,852 87 15,939 Acquisitions and disposals 20 20 35 3 104 — — 182 — 182 SC&P allocation 8 38 8 9 3 (66) — — — — Retranslation to actual exchange rates 678 (41) 73 145 (39) 197 (197) 816 1 817 Hyperinflation — 175 — — — — — 175 — 175 Net sales 6,758 3,569 3,200 1,799 1,699 3,073 (3,073) 17,025 88 17,113 Operating profit/(loss) At budgeted exchange rates (1) 2,337 1,076 886 597 347 (32) — 5,211 (292) 4,919 Acquisitions and disposals (18) (13) 5 — 27 — — 1 (6) (5) SC&P allocation 3 (24) (6) (3) (2) 32 — — — — Fair value remeasurements 87 25 — 1 — — — 113 — 113 Retranslation to actual exchange rates 280 18 20 66 (152) — — 232 (28) 204 Hyperinflation — 23 — — — — — 23 — 23 Operating profit/(loss) before exceptional items 2,689 1,105 905 661 220 — — 5,580 (326) 5,254 Exceptional operating items (97) (8) (473) — (44) — — (622) — (622) Operating profit/(loss) 2,592 1,097 432 661 176 — — 4,958 (326) 4,632 Non-operating items 328 Net finance charges (594) Share of after tax results of associates and joint ventures 370 Profit before taxation 4,736 North America Europe Asia Latin America and Caribbean Africa SC&P Eliminate Total Corporate Total £ million £ million £ million £ million £ million £ million £ million £ million £ million £ million 2022 Sales 6,682 5,740 5,624 1,945 2,403 2,010 (2,010) 22,394 54 22,448 Net sales At budgeted exchange rates (1) 5,955 3,258 2,879 1,486 1,699 2,095 (2,016) 15,356 55 15,411 Acquisitions and disposals 34 23 — 3 15 — — 75 — 75 SC&P allocation 9 46 9 12 3 (79) — — — — Retranslation to actual exchange rates 97 (304) (4) 24 (35) (6) 6 (222) (1) (223) Hyperinflation — 189 — — — — — 189 — 189 Net sales 6,095 3,212 2,884 1,525 1,682 2,010 (2,010) 15,398 54 15,452 Operating profit/(loss) At budgeted exchange rates (1) 2,388 1,086 703 528 346 (22) — 5,029 (256) 4,773 Acquisitions and disposals (28) 11 — — (10) — — (27) — (27) SC&P allocation (1) (18) (2) — (1) 22 — — — — Fair value remeasurements 32 36 — (8) — — — 60 — 60 Retranslation to actual exchange rates 63 (108) 10 18 (20) — — (37) 18 (19) Hyperinflation — 10 — — — — — 10 — 10 Operating profit/(loss) before exceptional items 2,454 1,017 711 538 315 — — 5,035 (238) 4,797 Exceptional operating items (1) (146) (241) — — — — (388) — (388) Operating profit/(loss) 2,453 871 470 538 315 — — 4,647 (238) 4,409 Non-operating items (17) Net finance charges (422) Share of after tax results of associates and joint ventures 417 Profit before taxation 4,387 North America Europe Asia Latin America and Caribbean Africa SC&P Eliminate Total Corporate Total £ million £ million £ million £ million £ million £ million £ million £ million £ million £ million 2021 Sales 5,803 4,795 5,146 1,369 2,020 1,537 (1,537) 19,133 20 19,153 Net sales At budgeted exchange rates (1) 5,527 2,579 2,561 1,176 1,541 1,627 (1,548) 13,463 20 13,483 Acquisitions and disposals 28 2 — — 5 — — 35 — 35 SC&P allocation 9 45 9 13 3 (79) — — — — Retranslation to actual exchange rates (355) (68) (82) (143) (137) (11) 11 (785) — (785) Net sales 5,209 2,558 2,488 1,046 1,412 1,537 (1,537) 12,713 20 12,733 Operating profit/(loss) At budgeted exchange rates (1) 2,469 728 628 422 228 (97) — 4,378 (218) 4,160 Acquisitions and disposals (18) (3) — — — — — (21) — (21) SC&P allocation (30) (32) (5) (27) (3) 97 — — — — Fair value remeasurement of contingent consideration (9) (27) — — — — — (36) — (36) Retranslation to actual exchange rates (175) (31) (15) (92) (54) — — (367) 10 (357) Operating profit/(loss) before exceptional items 2,237 635 608 303 171 — — 3,954 (208) 3,746 Exceptional operating items — (15) — — — — — (15) — (15) Operating profit/(loss) 2,237 620 608 303 171 — — 3,939 (208) 3,731 Non-operating items 14 Net finance charges (373) Share of after tax results of associates and joint ventures 334 Profit before taxation 3,706 (1) These items represent the IFRS 8 performance measures for the geographical and SC&P segments. (i) The net sales figures for SC&P reported to the Executive Committee primarily comprise inter-segment sales and these are eliminated in a separate column in the above segmental analysis. Apart from sales by the SC&P segment to the other operating segments, inter-segmental sales are not material. (ii) The group ’s net finance charges are managed centrally and are not attributable to individual operating segments. (iii) Approximate ly 38% of annual net sales occurred in the last four months of calendar year 2022. (b) Other segmental information North Europe Asia Latin Africa SC&P Corporate Total 2023 Purchase of property, plant and equipment and computer software 197 209 166 121 126 356 5 1,180 Depreciation and intangible asset amortisation (95) (98) (61) (18) (80) (134) (10) (496) Exceptional impairment of tangible assets (52) 2 (22) — — — — (72) Exceptional impairment of intangible assets (29) (25) (444) — — — — (498) 2022 Purchase of property, plant and equipment and computer software 230 187 146 128 139 256 11 1,097 Depreciation and intangible asset amortisation (80) (93) (93) (16) (81) (116) (10) (489) Exceptional impairment of tangible assets — (3) — — — — — (3) Exceptional impairment of intangible assets — (96) (240) — — — — (336) 2021 Purchase of property, plant and equipment and computer software 153 23 56 20 125 125 124 626 Depreciation and intangible asset amortisation (76) (31) (60) (16) (79) (126) (59) (447) (c) Category and geographical analysis Category analysis Geographic analysis Spirits Beer Ready to Other Total United India Great Rest of Total 2023 Sales (1) 19,004 3,355 899 257 23,515 6,972 2,751 2,138 11,654 23,515 Non-current assets (2), (3) 5,816 1,798 2,909 11,204 21,727 2022 Sales (1) 18,164 3,128 882 274 22,448 6,327 3,219 2,142 10,760 22,448 Non-current assets (2), (3) 5,899 2,396 2,413 10,861 21,569 2021 Sales (1) 15,634 2,562 741 216 19,153 5,441 3,011 1,822 8,879 19,153 Non-current assets (2), (3) 4,320 2,561 2,119 10,063 19,063 (1) The geographical analysis of sales is based on the location of third-party customers. (2) The geographical analysis of non-current assets is based on the geographical location of the assets and comprises intangible assets, property, plant and equipment, biological assets, investments in associates and joint ventures, other investments and non-current other receivables. |
Operating costs
Operating costs | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Operating costs | 3. Operating costs 2023 2022 £ million 2021 £ million Excise duties 6,402 6,996 6,420 Cost of sales 6,899 5,973 5,038 Marketing 3,051 2,721 2,163 Other operating items 2,531 2,349 1,801 18,883 18,039 15,422 Comprising: Excise duties India 1,625 2,182 2,127 Great Britain 1,095 1,172 1,018 United States 687 614 589 Other 2,995 3,028 2,686 Increase in inventories (513) (909) (293) Raw materials and consumables 4,328 4,017 3,126 Marketing 3,051 2,721 2,163 Other external charges 2,747 2,597 1,978 Staff costs 1,830 1,795 1,586 Depreciation, amortisation and impairment 1,066 828 447 Gains on disposal of properties (4) (2) (1) Net foreign exchange losses 10 10 22 Other operating income (34) (14) (26) 18,883 18,039 15,422 (a) Other external charges Other external charges include research and development expenditure in respect of new drinks products and package design of £53 million (2022 – £43 million; 2021 – £40 million) and maintenance and repairs of £143 million (2022 – £136 million; 2021 – £107 million). (b) Auditors fees Other external charges include the fees of the principal auditors of the group, PricewaterhouseCoopers LLP and its affiliates (PwC) and are analysed below. 2023 2022 2021 Audit of these financial statements 5.2 4.2 3.8 Audit of financial statements of subsidiaries 5.7 6.1 4.4 Audit related assurance services (1) 2.7 2.5 2.6 Total audit fees (Audit fees) 13.6 12.8 10.8 Other assurance services (Audit related fees) (2) 1.2 0.7 0.8 14.8 13.5 11.6 (1) Audit related assurance services are in respect of reporting under section 404 of the US Sarbanes-Oxley Act and the review of the interim financial information. (2) Other assurance services comprise the aggregate fees for assurance and related services that are not reported under ‘total audit fees’. (i) Disclosure requirements for auditors fees in the United States are different from those required in the United Kingdom. The terminology by category required in the United States is disclosed in brackets in the above table. Audit services provided by firms other than PwC for the year ended 30 June 2023 were £0.1 million (2022 – £0.1 million; 2021 – £0.1 million). Further PwC fees for audit services in respect of post employment plans were £0.3 million for the year ended 30 June 2023 (2022 – £0.2 million; 2021 – £0.2 million). (c) Staff costs and average number of employees 2023 2022 2021 Aggregate remuneration Wages and salaries 1,548 1,557 1,336 Share-based incentive plans 48 59 50 Employer’s social security 115 107 83 Employer’s pension Defined benefit plans 67 36 82 Defined contribution plans 44 33 25 Other post employment plans 8 3 10 1,830 1,795 1,586 The average number of employees on a full-time equivalent basis (excluding employees of associates and joint ventures) was as follows: 2023 2022 2021 North America 2,884 2,811 2,562 Europe 2,789 3,014 3,237 Asia Pacific 6,856 6,500 6,474 Latin America and Caribbean 1,495 1,500 1,505 Africa 3,526 4,061 4,016 SC&P 6,934 5,025 5,085 Corporate and other 5,753 5,076 4,687 30,237 27,987 27,566 At 30 June 2023 on a full-time equivalent basis, the group had 30,269 (2022 – 28,558; 2021 – 27,783) employees. The average number of employees of the group, including part-time employees, for the year was 30,419 (2022 – 28,137; 2021 – 28,025). (d) Exceptional operating items Included in the table above are exceptional operating items as follows: 2023 £ million 2022 £ million 2021 £ million Depreciation, amortisation and impairment Brand and goodwill impairment 498 336 — Tangible asset impairment and accelerated depreciation 72 — — Staff costs 10 — 5 Other external charges 60 52 13 Other operating income (18) — (3) Total exceptional operating items (note 4) 622 388 15 Cost of sales 67 — — Other operating expenses 555 388 15 |
Exceptional items
Exceptional items | 12 Months Ended |
Jun. 30, 2023 | |
Exceptional Items [Abstract] | |
Exceptional items | 4. Exceptional items Accounting policies Critical accounting judgements Exceptional items are those that in management’s judgement need to be disclosed separately. Such items are included within the income statement caption to which they relate. 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 considered to be material and unusual or non-recurring in nature 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 other material, unusual non-recurring items, that are 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. Taxation items Exceptional current and deferred tax items comprise material and unusual or non-recurring items that impact taxation. 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. 2023 2022 2021 Exceptional operating items Brand and goodwill impairment (1) (498) (336) — Supply chain agility programme (2) (100) — — Distribution termination fee (3) (44) — — Winding down Russian operations (4) 20 (50) — Other exceptional operating items (5) — (2) (15) (622) (388) (15) Non-operating items Sale of businesses and brands Guinness Cameroun S.A. (6) 310 — — Archers brand (7) 20 — — USL Popular brands (8) 4 — — USL businesses (9) 1 — 3 Tyku brand (10) (3) — — Picon brand (11) — 91 — Meta Abo Brewery (12) — (95) — Windsor business (13) — (19) — Step acquisition - Mr Black (14) (8) — — Other non-operating exceptional items (15) 4 6 11 328 (17) 14 Exceptional items before taxation (294) (405) (1) Tax on exceptional items (note 7 (b)) 186 31 (84) Total exceptional items (108) (374) (85) Attributable to: Equity shareholders of the parent company 33 (271) (86) Non-controlling interests (141) (103) 1 Total exceptional items (108) (374) (85) (1) In the year ended 30 June 2023, an impairment charge of £498 million was recognised in exceptional operating items mainly driven by the McDowell's brand in India. In the year ended 30 June 2022, an impairment charge of £336 million was recognised in exceptional operating items in respect of the McDowell's brand (£240 million), the Bell's brand (£77 million) and goodwill related to Smirnov (£19 million). For further information, see note 9 (d). (2) In the year ended 30 June 2023, an exceptional charge of £100 million was accounted for in respect of the supply chain agility programme announced in July 2022. With this five-year spanning programme, Diageo expects to strengthen its supply chain, improve its resilience and agility, drive efficiencies, deliver additional productivity savings and make its supply operations more sustainable. Total implementation cost of the programme is expected to be up to £500 million over the five-year period, which will comprise non-cash items and one-off expenses, the majority of which are expected to be recognised as exceptional operating items. The exceptional charge for the year ended 30 June 2023 was primarily in respect of accelerated depreciation, being additional depreciation of assets in the period directly attributable to the programme, and impairment of property, plant and equipment in respect of North America and India. Restructuring cash expenditure was £12 million in the year ended 30 June 2023. (3) In the year ended 30 June 2023, Diageo agreed with one of its distributors in Africa to terminate the distribution license of one of its spirits brands, in respect of which a provision of £44 million was provided for and was recognised as an operating exceptional charge. No payment was made in the period. (4) In the year ended 30 June 2023, Diageo released unutilised provisions of £20 million from the £50 million exceptional charge taken in the year ended 30 June 2022, in respect of winding down its operations in Russia. (5) Other exceptional operating items include subsequent gains and charges of items that were originally recognised as exceptional at inception. In the year ended 30 June 2022, other exceptional operating items resulted in a loss of £2 million driven by the reinvestment of 'Raising the Bar' corporate tax benefits. In the year ended 30 June 2021, other exceptional operating items were a loss of £15 million mainly driven by the charge of the ongoing litigation in Turkey. (6) On 26 May 2023, Diageo announced the completion of the sale of its wholly owned subsidiary in Cameroon, Guinness Cameroun S.A., to the Castel Group for an aggregate consideration of £384 million resulting in an exceptional gain of £310 million, including cumulative translation gain in the amount of £17 million recycled to the income statement. (7) On 26 October 2022, Diageo completed the sale of its Archers brand. The transaction resulted in an exceptional gain of £20 million . (8) On 30 September 2022, Diageo announced the completion of the sale of the Popular brands of its United Spirits Limited (USL) business. The transaction resulted in an exceptional gain of £4 million. (9) Certain subsidiaries of USL were sold in the year ended 30 June 2023. The sale of these subsidiaries resulted in an exceptional gain of £1 million (2022 – nil; 2021 – £3 million). (10) In the year ended 30 June 2023, Diageo sold its Tyku brand. The transaction resulted in an exceptional loss of £3 million. (11) In May 2022, Diageo sold its Picon brand. The sale resulted in an exceptional non-operating gain of £91 million, net of disposal costs. (12) In the year ended 30 June 2022, a loss of £95 million was recognised as a non-operating item attributable to the sale of Meta Abo Brewery Share Company in Ethiopia. (13) On 25 March 2022, Diageo agreed to the sale of its Windsor business in Korea. At 30 June 2022, assets and liabilities attributable to Windsor business were classified as held for sale and were measured at the lower of their cost and fair value less cost of disposal. In the year ended 30 June 2022, a loss of £19 million was recognised as a non-operating item, mainly in relation to transaction and other costs directly attributable to the prospective sale of the business. The conditional agreement was terminated in the year ended 30 June 2023 as the buyer was unable to meet certain conditions to completion. (14) On 29 September 2022, the group acquired the part of the entire issued share capital of Mr Black Spirits Pty Ltd, owner of Mr Black, the Australian premium cold brew coffee liqueur, that it did not already own. As a result of Mr Black becoming a subsidiary of the group in the year ended 30 June 2023, a loss of £8 million arose, being the difference between the book value of the associate prior to the transaction and its fair value plus transaction costs. (15) Other exceptional non-operating items include subsequent gains and charges of items that were originally recognised as exceptional at inception. In the year ended 30 June 2023, other exceptional non-operating items resulted in a net gain of £4 million (2022 – £6 million; 2021 – £11 million), mainly driven by the deferred consideration received in respect of the sale of United National Breweries. For further information on acquisition and sale of businesses and brands, see notes 8 (a) and 8 (b). Cash payments and receipts included in net cash inflow from operating activities in respect of exceptional items were as follows: 2023 £ million 2022 £ million 2021 £ million Thalidomide (note 15 (d) (i)) (14) (16) (15) Winding down Russian operations (13) (13) — Supply chain agility programme (12) — — Donations — (37) (50) Indirect tax in Korea — — (10) Ongoing litigation in Turkey — — (1) Substitution drawback — — 60 Total cash payments (39) (66) (16) |
Finance income and charges
Finance income and charges | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Finance income and charges | 5. Finance income and charges 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. 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. 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 sterling. The impact of derivatives, excluding cash flow hedges that are in 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. 2023 £ million 2022 £ million 2021 £ million Interest income 160 127 119 Fair value gain on financial instruments 103 341 124 Total interest income (1) 263 468 243 Interest charge on bank loans, bonds and overdrafts (470) (371) (365) Interest charge on leases (15) (12) (16) Interest charge on other borrowings (271) (92) (84) Fair value loss on financial instruments (102) (346) (126) Total interest charges (1) (858) (821) (591) Net interest charges (595) (353) (348) Net finance income in respect of post employment plans in surplus (note 14) 59 22 18 Hyperinflation adjustment in respect of Turkey (note 1 (f)) 10 — — Hyperinflation adjustment in respect of Venezuela (note 1 (f)) — 1 2 Interest income in respect of direct and indirect tax 8 2 15 Unwinding of discounts — 4 — Total other finance income 77 29 35 Net finance charge in respect of post employment plans in deficit (note 14) (15) (12) (13) Hyperinflation adjustment in respect of Turkey (note 1 (f)) — (34) — Hyperinflation adjustment in respect of Venezuela (note 1 (f)) (2) — — Hyperinflation adjustment and foreign exchange revaluation of monetary items in respect of Lebanon (note 1 (f)) — (3) (8) Unwinding of discounts (13) (11) (20) Interest charge in respect of direct and indirect tax (25) (16) (11) Change in financial liability (Level 3) (8) (20) (7) Guarantee fees (1) (1) (1) Other finance charges (12) (1) — Total other finance charges (76) (98) (60) Net other finance income/(charges) 1 (69) (25) (1) Includes £81 million interest income and £(522) million interest charge in respect of financial assets and liabilities that are not measured at fair value through income statement (2022 – £27 million income and £(417) million charge; 2021 – £28 million income and £(429) million charge). |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Jun. 30, 2023 | |
Interests In Other Entities [Abstract] | |
Investments in associates and joint ventures | 6. Investments in associates and joint ventures 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’s 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’s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs. 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’s share of the associate’s future cash flows and its fair value less costs of disposal. Diageo’s principal associate is Moët Hennessy of which Diageo owns 34%. Moët Hennessy is the wines and spirits division of LVMH Moët Hennessy Louis Vuitton SA (LVMH). LVMH is based in France and is listed on the Paris Stock Exchange. Moët Hennessy is also based in France and is a producer and exporter of champagne and cognac brands. A number of joint distribution arrangements have been established with LVMH in Asia Pacific and France, principally covering distribution of Diageo’s Scotch whisky and gin premium brands and Moët Hennessy’s champagne and cognac premium brands. Diageo and LVMH have each undertaken not to engage in any champagne or cognac activities competing with those of Moët Hennessy. The arrangements also contain certain provisions for the protection of Diageo as a non-controlling shareholder in Moët Hennessy. (a) An analysis of the movement in the group’s investments in associates and joint ventures is as follows: Moët Others Total Cost less provisions At 30 June 2021 3,128 180 3,308 Exchange differences 48 12 60 Additions — 65 65 Share of profit/(loss) after tax 425 (8) 417 Dividends (186) (4) (190) Share of movements in other comprehensive income and equity (6) — (6) Impairment charged during the year — (2) (2) At 30 June 2022 3,409 243 3,652 Exchange differences (51) (8) (59) Additions — 93 93 Share of profit/(loss) after tax 379 (9) 370 Step acquisition — (17) (17) Dividends (214) (5) (219) Share of movements in other comprehensive income and equity 36 — 36 Transfer — 1 1 Impairment charged during the year — (28) (28) At 30 June 2023 3,559 270 3,829 (i) Investment in associates includes loans given to and preference shares invested in associates of £168 million (2022 – £163 million). (ii) If certain performance targets are met by associates in the Distill Ventures programme, an additional £27 million (2022 – £22 million) will be invested in those associates. (b) Moët Hennessy prepares its financial statements under IFRS as endorsed by the EU in euros to 31 December each year. The results were adjusted for alignment with Diageo accounting policies and were translated at £1 = €1.15 (2022 – £1 = €1.18; 2021 – £1 = €1.13). Income statement information for the three years ended 30 June 2023 and balance sheet information as at 30 June 2023 and 30 June 2022 of Moët Hennessy are as follows: 2023 2022 2021 Sales 6,003 5,553 4,819 Profit for the year 1,117 1,250 985 Total comprehensive income 1,161 1,269 999 2023 2022 Non-current assets 6,774 5,957 Current assets 9,155 8,447 Total assets 15,929 14,404 Non-current liabilities (2,108) (1,791) Current liabilities (3,160) (2,415) Total liabilities (5,268) (4,206) Net assets 10,661 10,198 (i) Including acquisition fair value adjustments principally in respect of Moët Hennessy’s brands and translated at £1 = €1.17 (2022 – £1 = €1.16). (c) Inform ation on transactions between the group and its associates and joint ventures is disclosed in note 21. (d) Investments in associates and joint ventures comprise the cost of shares less goodwill written off on acquisitions prior to 1 July 1998 of £1,384 million (2022 – £1,340 million), plus the group’s share of post acquisition reserves of £2,445 million (2022 – £2,312 million). ( e) The associates and joint ventures have not reported any material contingent liabilities in their latest financial statements. |
Taxation
Taxation | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
Taxation | 7. Taxation 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. 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’s 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’s 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’s 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. (a) Analysis of taxation charge for the year United Kingdom Rest of world Total 2023 2022 2021 2023 2022 2021 2023 2022 2021 Current tax Current year 160 174 100 879 867 684 1,039 1,041 784 Adjustments in respect of prior years 33 10 1 (39) 16 28 (6) 26 29 193 184 101 840 883 712 1,033 1,067 813 Deferred tax Origination and reversal of temporary differences 25 — 13 (70) 21 18 (45) 21 31 Changes in tax rates — 2 46 11 1 32 11 3 78 Adjustments in respect of prior years 6 — 8 (35) (42) (23) (29) (42) (15) 31 2 67 (94) (20) 27 (63) (18) 94 Taxation on profit 224 186 168 746 863 739 970 1,049 907 (b) Exceptional tax (credits)/charges The taxation charge includes the following exceptional items: 2023 2022 2021 Brand impairment (1) (124) (55) — US guarantee fee claim (2) (57) — — Supply chain agility programme (23) — — Distribution termination fee (11) — — Disposal of businesses and brands (3) 29 23 — Winding down Russian operations — 3 — Tax rate change in the United Kingdom (4) — — 46 Tax rate change in the Netherlands (5) — — 42 Other items — (2) (4) (186) (31) 84 (1) In the year ended 30 June 2023, an exceptional tax credit of £124 million was recognised mainly in respect of the impairment of the McDowell's brand. In the year ended 30 June 2022, the exceptional tax credit of £55 million consists of tax impact on the impairment of the McDowell's and Bell's brands for £35 million and £20 million, respectively. (2) In the year ended 30 June 2023, an exceptional tax credit of £57 million was recognised in respect of the deductibility of fees paid to Diageo plc for guaranteeing externally issued debt of US group entities. Following engagement with the tax authorities, guarantee fees for the periods ended 30 June 2012 to 30 June 2022 are fully deductible. (3) In the year ended 30 June 2023, the exceptional net tax charge of £29 million mainly comprised of a tax charge of £42 million in respect of the sale of Guinness Cameroun S.A., partly offset by a tax credit of £10 million in respect of the sale of certain USL businesses. In the year ended 30 June 2022, a £23 million exceptional tax charge was recognised in respect of the gain on the sale of the Picon brand. (4) On 24 May 2021, legislation was substantively enacted in the UK to increase the corporate tax rate to 25% with effect from 1 April 2023. As a result of the change, an exceptional tax charge of £46 million was recognised for the year ended 30 June 2021 in relation to the remeasurement of deferred tax assets and liabilities. In addition, there was a one-off charge of £48 million to other comprehensive income and equity, mainly in respect of the remeasurement of the deferred tax liabilities on the post employment assets. (5) On 15 December 2020, legislation was substantively enacted in the Netherlands to maintain the headline corporate tax rate at 25%, reversing a previously enacted reduction in the corporate tax rate to 21.7% from 2021. As a result of the change, an exceptional tax charge of £42 million was recognised for the year ended 30 June 2021 in relation to the remeasurement of deferred tax liabilities. In the year ended 30 June 2022, the Dutch Senate enacted an increased tax rate of 25.8%. The remeasurement of deferred tax liabilities was recognised as an underlying tax charge. (c) Taxation rate reconciliation and factors that may affect future tax charges 2023 2023 2022 2022 2021 2021 Profit before taxation 4,736 4,387 3,706 Notional charge at UK corporation tax rate 971 20.5 833 19.0 704 19.0 Elimination of notional tax on share of after tax results of associates and joint ventures (76) (1.6) (79) (1.8) (63) (1.7) Differences in overseas tax rates 95 2.0 161 3.7 128 3.5 Disposal of businesses and brands (42) (0.9) 21 0.5 (2) (0.1) Other items not chargeable (63) (1.3) (49) (1.1) (52) (1.4) Impairment (2) — 36 0.8 — — Other items not deductible 71 1.5 58 1.3 67 1.8 Irrecoverable withholding taxes 38 0.8 39 0.9 25 0.7 Movement in provision in respect of uncertain tax positions (1) 27 0.6 42 0.9 1 — Changes in tax rates (2) 11 0.2 3 0.1 78 2.1 Adjustments in respect of prior years (3) (60) (1.3) (16) (0.4) 21 0.6 Taxation on profit 970 20.5 1,049 23.9 907 24.5 Tax rate before exceptional items — 23.0 — 22.5 — 22.2 (1) Movement in provision in respect of uncertain tax positions includes both current and prior year uncertain tax position movements. (2) Changes in tax rates for the year ended 30 June 2021 are mainly due to the tax rate change in the Netherlands and the United Kingdom. (3) Excludes prior year movement in provisions. Also included an exceptional tax credit of £57 million in respect of the deductibility of fees paid to Diageo plc for guaranteeing externally issued debt of its US group entities. The table above reconciles the notional taxation charge calculated at the UK tax rate, to the actual total tax charge. As a group operating in multiple countries, the actual tax rates applicable to profits in those countries are different from the UK tax rate. The impact is shown in the table above as differences in overseas tax rates. The group’s worldwide business leads to the consideration of a number of important factors which may affect future tax charges, such as the levels and mix of profitability in different jurisdictions, transfer pricing regulations, tax rates imposed and tax regime reforms, acquisitions, disposals, restructuring activities, and settlements or agreements with tax authorities. Significant ongoing changes in the international tax environment and an increase in global tax audit activity means that tax uncertainties and associated risks have been gradually increasing. In the medium term, these risks could result in an increase in tax liabilities or adjustments to the carrying value of deferred tax assets and liabilities. See note 19 (f). The group has a number of ongoing tax audits worldwide for which provisions are recognised in line with the relevant accounting standard, taking into account best estimates and management’s judgements concerning the ultimate outcome of the tax audits. For the year ended 30 June 2023 , ongoing audits that are provided for individually are not expected to result in a material tax liability. The current tax asset of £232 million ( 30 June 2022 – £149 million) and tax liability of £135 million ( 30 June 2022 – £252 million) include £173 million ( 30 June 2022 – £156 million ) of provisions for tax uncertainties. The cash tax paid in the year ended 30 June 2023 amounts to £1,201 million (30 June 2022 – £949 million ) and is £231 million higher than the current tax charge ( 30 June 2022 – £100 million lower). This arises as a result of timing differences between the accrual of income taxes, the movement in the provision for uncertain tax positions and the actual payment of cash. In December 2021, the OECD released a framework for Pillar Two Model Rules which will introduce a global minimum corporate tax rate of 15% applicable to multinational enterprise groups with global revenue over €750 million. The legislation implementing the rules in the UK was substantively enacted on 20 June 2023 and will apply to Diageo from the financial year ending 30 June 2025 onwards. Diageo is reviewing this legislation and also monitoring the status of implementation of the model rules outside of the UK to understand the potential impact on the group. Diageo has applied the temporary exception under IAS 12 in relation to the accounting for deferred taxes arising from the implementation of the Pillar Two rules. (d) Deferred tax assets and liabilities Deferred tax recognised in the consolidated balance sheet comprise the following net deferred tax (liabilities)/assets: Property, Intangible Post Tax losses Other temporary differences (1) £ million Total At 30 June 2021 (381) (1,636) (129) 57 244 (1,845) Exchange differences (21) (155) 3 3 17 (153) Recognised in income statement (42) (3) (10) 2 74 21 Reclassification 2 40 — — (7) 35 Recognised in other comprehensive loss and equity (20) (104) (103) — 20 (207) Tax rate change – recognised in income statement (1) (3) — 1 — (3) Tax rate change – recognised in other comprehensive loss and equity — — (22) — 2 (20) Acquisition of subsidiaries — (31) — — — (31) Sale of businesses (5) — — — 3 (2) At 30 June 2022 (468) (1,892) (261) 63 353 (2,205) Exchange differences 33 113 (3) 1 (10) 134 Recognised in income statement (30) 93 2 (15) 24 74 Recognised in other comprehensive income and equity (6) (30) 152 — (50) 66 Tax rate change – recognised in income statement (1) (12) (1) — 3 (11) Acquisition of subsidiaries — (71) — — — (71) Transfer from asset held for sale (2) (37) — — 5 (34) Sale of businesses 10 — (1) — (4) 5 At 30 June 2023 (464) (1,836) (112) 49 321 (2,042) (1 ) Deferred tax on other temporary differences includes hyperinflation, fair value movement on cross-currency swaps, interest and finance costs, share-based payments and intra-group sales of products. After offsetting deferred tax assets and liabilities that relate to taxes levied by the same taxation authority on the same taxable fiscal unit, the net deferred tax liability comprises: 2023 2022 Deferred tax assets 141 114 Deferred tax liabilities (2,183) (2,319) (2,042) (2,205) Deferred tax assets of £141 million include £65 million ( 2022 – £47 million) arising in jurisdictions with prior year taxable losses, primarily in Germany and Brazil. It is considered more likely than not that there will be sufficient future taxable profits to realise these deferred tax assets, which for the most part arose on losses from a historic one-off transaction, and on existing provisions. The majority of deferred tax assets can be carried forward indefinitely. From the total recognised tax losses of £49 million, it is expected that £10 million will be utilised in the year ending 30 June 2024. (e) Unrecognised deferred tax assets The following table shows the tax value of tax losses which has not been recognised due to uncertainty over their utilisation in future periods. The gross value of those losses is £632 million (2022 – £674 million). 2023 2022 Capital losses – indefinite 98 98 Trading losses – indefinite 24 25 Trading and capital losses – expiry dates up to 2032 39 46 161 169 Additionally, no deferred tax asset has been recognised in respect of certain temporary differences arising from brand valuations, as the group is not planning to sell those brands thus the benefit from the temporary differences is unlikely to be realised. (f) Unrecognised deferred tax liabilities Relevant legislation largely exempts overseas dividends remitted from tax. A tax liability is more likely to arise in respect of withholding taxes levied by the overseas jurisdiction. Deferred tax is provided where there is an intention to distribute earnings, and a tax liability arises. It is impractical to estimate the amount of unrecognised deferred tax liabilities in respect of these unremitted earnings. The aggregate amount of temporary differences in respect of investments in subsidiaries, branches, interests in associates and joint ventures for which deferred tax liabilities have not been recognised is approximately £19.8 billion (2022 – £21.0 billion). |
Acquisition and sale of busines
Acquisition and sale of businesses and brands and purchase of non-controlling interests | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisition and sale of businesses and purchase of non-controlling interests | Operating assets and liabilities Introduction This section describes the assets used in the group’s operations and the liabilities incurred. Liabilities relating to the group’s financing activities are included in section ‘Risk management and capital structure’ and balance sheet information in respect of associates, joint ventures and taxation are covered in section ‘Results for the year’. This section also provides detailed disclosures on the group’s recent acquisitions and disposals, performance and financial position of its defined benefit post employment plans. 8. Acquisition and sale of businesses and brands and purchase of non-controlling interests Accounting policies The consolidated financial statements include the results of the company and its subsidiaries together with the group’s 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’s 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, a judgement is made to determine whether it controls and therefore should fully consolidate the investee. An assessment is carried out to determine whether 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 the substantive and protective rights that the group and the other investors hold. This assessment is 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 judgement. 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. (a) Acquisition of businesses Fair value of net assets acquired and cash consideration paid in respect of the acquisition of subsidiaries in the three years ended 30 June 2023 were as follows: Net assets acquired and consideration Don Papa Other 2023 2022 2021 Brands and other intangibles 293 45 338 120 334 Property, plant and equipment 1 24 25 — 15 Inventories 6 21 27 6 12 Other working capital (2) (1) (3) 3 (3) Deferred tax (67) (4) (71) (31) (15) Borrowings — — — — (8) (Overdraft)/Cash (1) 1 — 1 4 Fair value of assets and liabilities 230 86 316 99 339 Goodwill arising on acquisition 64 28 92 70 274 Settlement of pre-existing relationship — — — (1) — Step acquisitions — (11) (11) (6) — Consideration payable 294 103 397 162 613 Satisfied by: Cash consideration paid (218) (98) (316) (88) (358) Contingent consideration payable (72) (4) (76) (70) (253) Deferred consideration payable (4) (1) (5) (4) (2) (294) (103) (397) (162) (613) Cash consideration paid in respect of the acquisition of businesses and purchase of shares of non-controlling interests in the three years ended 30 June 2023 were as follows: Consideration 2023 2022 2021 Acquisitions in the year - subsidiaries Cash consideration paid (316) (88) (358) Cash acquired — 1 4 Prior year acquisitions - subsidiaries Contingent consideration paid for Casamigos — (83) (89) Other consideration (26) (36) (7) Investments in associates Cash consideration paid (14) (4) — Capital injection (79) (61) (38) Net cash outflow on acquisition of businesses (435) (271) (488) Purchase of shares of non-controlling interests (146) — (42) Total net cash outflow (581) (271) (530) Acquisitions in the year On 10 March 2023, Diageo completed the acquisition of Kanlaon Limited and Chat Noir Co. Inc., (the owner of Don Papa Rum) to support Diageo’s participation in the super-premium dark rum segment for upfront cash consideration of €246 million ( £218 million ), deferred consideration of €4 million ( £4 million ) and contingent consideration of up to €178 million ( £158 million ) through to 2028 subject to certain financial performance targets, reflecting the brand’s expected growth potential. The fair value of the contingent consideration of €82 million (£72 million) was estimated by calculating the present value of the future expected cash flows which is dependent on management’s estimates in respect of the forecasting of future cash flows and the discount rates applicable to the future cash flows. The goodwill arising on the acquisition of Don Papa Rum represents expected revenue synergies and the acquired workforce. Don Papa Rum contributed £10 million to net sales and £15 million operating loss to the period, out of which £15 million is related to acquisition transa ction and integration costs i n the year ended 30 June 2023. The fair value measurement of assets and liabilities acquired is in progress. The fair values of assets and liabilities acquired are provisional and will be finalised in the year ending 30 June 2024. Diageo completed further acquisitions in the year ended 30 June 2023: (i) on 29 September 2022, the acquisition of the remaining issued share capital of Mr Black Spirits Pty Ltd, owner of Mr Black, the Australian premium cold brew coffee liqueur, that it did not already own; and (ii) on 2 November 2022, the acquisition of the entire issued share capital of Balcones Distilling, a Texas craft distiller and one of the leading producers of American single malt whiskey in the United States. The aggregate up-front cash consideration paid on completion of these transactions in the year ended 30 June 2023 was £98 million. Prior year acquisitions On 31 March 2022, Diageo acquired 100% equity interest in 21Seeds, to support Diageo's participation in the super premium flavoured tequila segment, for a total consideration of £62 million upfront in cash and a contingent consideration of up to £61 million linked to performance targets. Diageo completed further acquisitions in the year ended 30 June 2022, including (i) on 27 January 2022, the acquisition of Casa UM, to expand Reserve portfolio with premium artisanal mezcal brand, Mezcal Unión and (ii) on 29 June 2022, the acquisition of Vivanda, owner of the technology behind 'What's your Whisky' platform and the Journey of Flavour experience at Johnnie Walker Princes Street, to support Diageo's ambition to provide customised brand experiences across all channels. The aggregate upfront cash consideration paid on completion of these transactions in the year ended 30 June 2022 was £26 million. In addition, these transactions included provision for further contingent consideration of up to £18 million in aggregate, linked to performance targets and a further deferred consideration of £4 million. On 30 September 2020, Diageo completed the acquisition of Aviation Gin LLC (Aviation Gin) and Davos Brands LLC (Davos Brands) to support Diageo's participation in the super-premium gin segment for a total consideration of $337 million (£263 million) upfront in cash and contingent consideration of up to $275 million (£214 million) linked to performance targets. Diageo also completed a number of additional acquisitions in the year ended 30 June 2021, comprising: (i) in February 2021, the acquisition of Chase Distillery Limited, to further support Diageo's participation in the premium-plus gin segment in the United Kingdom; (ii) in March 2021, the acquisition of Far West Spirits LLC, owner of the Lone River Ranch Water brand, to improve Diageo's participation in the ready to drink category in the United States; and (iii) in April 2021, the acquisition of Sons of Liberty Spirits Company, to expand Diageo's spirits-based ready to drink portfolio with Loyal 9 Cocktails. The aggregate upfront cash consideration paid on completion of these three transactions in the year ended 30 June 2021 was £95 million. In addition, two of these transactions included provision for further contingent consideration of up to £86 million in aggregate, in each case linked to performance targets, and one of the transactions provided for a further £2 million of deferred consideration, of which £1 million was paid by 30 June 2021. Purchase of shares of non-controlling interests On 24 March 2023, Diageo completed the purchase of 14.97% of the share capital of EABL for an aggregate consideration of KES 22,732 million (£142 million) in cash and transaction costs of £4 million. This took Diageo’s shareholding in EABL from 50.03% to 65%. EABL was already controlled and therefore consolidated prior to this transaction. In the year ended 30 June 2021, EABL, a Diageo subsidiary completed the acquisition of 30% of shares in Serengeti Breweries Limited for a consideration of $55 million (£42 million) in cash and £16 million in the form of shareholder loan from two Diageo subsidiaries in 2021, increasing Diageo's effective economic interest from 40.2% to 47.0%. All transactions were recognised in retained earnings. (b) Sale of businesses and brands Cash consideration received and net assets disposed of in respect of sale of businesses and brands in the three years ended 30 June 2023 were as follows: Guinness Cameroun S.A. Other 2023 2022 2021 Sale consideration Cash received 384 115 499 106 14 (Cash)/overdraft disposed of (13) — (13) 2 — Transaction and other directly attributable costs paid (17) (7) (24) (26) — Net cash received 354 108 462 82 14 Transaction costs payable (8) 3 (5) (16) 1 346 111 457 66 15 Net assets disposed of Goodwill — — — (14) — Property, plant and equipment (103) (3) (106) (11) (2) Assets and liabilities held for sale — (79) (79) — — Inventories (24) (4) (28) (4) — Other working capital 69 — 69 15 1 Other borrowings 2 — 2 1 — Corporate tax (3) — (3) (5) — Deferred tax 5 — 5 (2) — Post employment benefit liabilities 4 — 4 — — (50) (86) (136) (20) (1) Impairment charge recognised up until the date of sale (3) — (3) — — Exchange recycled from other comprehensive income 17 1 18 (63) — Gain/(loss) on disposal before taxation 310 26 336 (17) 14 Taxation (42) 13 (29) (23) — Gain/(loss) on disposal after taxation 268 39 307 (40) 14 On 26 May 2023, Diageo completed the sale of Guinness Cameroun S.A., its brewery in Cameroon. The aggregate consideration for the disposal was £384 million, the disposed net asset of £63 million mainly included property, plant and equipment and trade and other payables. The transaction resulted in a non-operating exceptional gain of £310 million. The disposed Cameroon operations contributed net sales of £101 million (2022 – £124 million; 2021 – £113 million), operating profit of £26 million (2022– £27 million; 2021– £22 million) in the year ended 30 June 2023. On 30 September 2022, Diageo completed the sale of the Popular brands of its USL business. The aggregate consideration for the disposal was £87 million, the disposed net assets included net working capital of £31 million and brands of £22 million, and £16 million goodwill was derecognised. The transaction resulted in a non-operating exceptional gain of £4 million. Popular brands contributed net sales of £34 million (2022– £139 million; 2021 – £148 million), operating profit of £5 million (2022– £26 million; 2021– £30 million) in the year ended 30 June 2023. On 25 April 2022, Diageo sold its Ethiopian subsidiary, Meta Abo Brewery Share Company. A loss of £95 million was recognised as a non-operating item attributable to the sale, including cumulative translation losses in the amount of £63 million recycled to the income statement. On 10 May 2022, Diageo completed the sale of the Picon brand for an upfront consideration of €117 million (£100 million). The gain of £91 million, net of disposal cost, was recognised as a non-operating item in the income statement. In the year ended 30 June 2022, ZAR 133 million (£6 million) (2021 – £10 million) of deferred consideration was paid to Diageo in respect of the sale of United National Breweries. The disposal was completed on 1 April 2020 for an aggregate consideration of ZAR 600 million (£27 million) from which ZAR 378 million (£17 million) was deferred. Prior year disposals further included the sale of certain USL subsidiaries in the year ended 30 June 2021 for an aggregate consideration of £3 million, which resulted in an exceptional gain of £3 million. (c) Assets and liabilities held for sale Assets and liabilities held for sale at 30 June 2022 included Diageo’s Windsor business in Korea and the portfolio of Popular brands of USL. In March 2022, Diageo agreed to sell its Windsor business in Korea to Bayside/Metis Private Equity Consortium. On 27 September 2022, Diageo announced the termination of the conditional agreement. Consequently, the recoverable assets and liabilities attributable to the business were reclassified out of held for sale. On 27 May 2022, USL reached agreement with Inbrew Beverages Pvt Limited for the sale of Popular brands. On 30 September 2022, Diageo announced the completion of the sale of the selected Popular brands, accordingly the assets and liabilities attributable to the business were disposed from held for sale. |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2022 | |
Intangible assets and goodwill [abstract] | |
Intangible assets | 9. Intangible assets 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. 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. 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. 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’s 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. The below additional considerations have been applied by management regarding the potential financial impacts of increasing inflationary pressures, recently observable worldwide: – changes in the interest rate environment are taken into consideration when determining the discount rates; – terminal growth rates do not exceed the long-term annual inflation rate of the country or region, thus excluding any increased inflation growth experienced in the short-term; – additional sensitivity scenarios are applied for those markets or regions where the inflation and/or the exchange devaluation is considered significant based on management’s judgement. 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 2023 – conducted in line with TCFD recommendations (‘Transition Scenario’ (RCP 2.6), a ‘Moderate Warming’ Scenario (RCP 4.5) and a ‘Severe Warming Scenario (RCP 8.5)) – identified no material financial impact to the current year impairment assessments. Brands Goodwill Other Computer Total Cost At 30 June 2021 8,458 2,627 1,421 673 13,179 Hyperinflation adjustment in respect of Turkey 315 208 — 1 524 Exchange differences 639 145 194 28 1,006 Additions 109 70 55 67 301 Disposals (23) (42) — (23) (88) Reclassification to asset held for sale (560) — — (8) (568) At 30 June 2022 8,938 3,008 1,670 738 14,354 Hyperinflation adjustment in respect of Turkey 81 60 — — 141 Exchange differences (531) (257) (64) (16) (868) Additions 338 92 13 155 598 Disposals — — — (26) (26) Reclassification from/(to) asset held for sale 453 (29) — — 424 At 30 June 2023 9,279 2,874 1,619 851 14,623 Amortisation and impairment At 30 June 2021 1,097 670 80 568 2,415 Exchange differences 51 60 (1) 25 135 Amortisation for the year — — 7 38 45 Impairment 317 19 — — 336 Disposals (23) (28) — (20) (71) Reclassification to asset held for sale (400) — — (8) (408) At 30 June 2022 1,042 721 86 603 2,452 Exchange differences (96) (61) (1) (15) (173) Amortisation for the year — — 16 40 56 Impairment 498 — — — 498 Disposals — — — (24) (24) Reclassification from/(to) asset held for sale 315 (13) — — 302 At 30 June 2023 1,759 647 101 604 3,111 Carrying amount At 30 June 2023 7,520 2,227 1,518 247 11,512 At 30 June 2022 7,896 2,287 1,584 135 11,902 At 30 June 2021 7,361 1,957 1,341 105 10,764 (a) Brands The principal acquired brands, all of which are regarded as having indefinite useful economic lives, are as follows: Principal markets 2023 £ million 2022 £ million Crown Royal whisky United States 1,162 1,210 Captain Morgan rum Global 954 993 Smirnoff vodka Global 654 681 Johnnie Walker whisky Global 625 625 Casamigos tequila United States 479 499 McDowell's No.1 whisky, rum and brandy India 308 778 Don Papa rum Europe 282 — Yenì raki Turkey 249 294 Shui Jing Fang Chinese white spirit Greater China 246 279 Don Julio tequila United States 235 207 Aviation American gin United States 209 218 Seagram's 7 Crown whiskey United States 177 184 Signature whisky India 176 191 Zacapa rum Global 152 158 Black Dog whisky India 149 162 Antiquity whisky India 145 158 Windsor Premier whisky Korea 137 — Gordon's gin Europe 119 119 Bell's whisky Europe 102 102 Other brands 960 1,038 7,520 7,896 The brands are protected by trademarks which are renewable indefinitely in all of the major markets where they are sold. There are not believed to be any legal, regulatory or contractual provisions that limit the useful lives of these brands. The nature of the premium drinks industry is that obsolescence is not a common issue, with indefinite brand lives being commonplace, and Diageo has a number of brands that were originally created more than 100 years ago. Accordingly, the Directors believe that it is appropriate that the brands are treated as having indefinite lives for accounting purposes and are therefore not amortised. (b) Goodwill For the purposes of impairment testing, goodwill has been attributed to the following cash-generating units: 2023 £ million 2022 £ million North America 767 773 Europe Turkey 216 255 Asia Pacific Greater China 124 141 India 673 747 Latin America and Caribbean – Mexico 161 142 Other cash-generating units 286 229 2,227 2,287 Goodwill has arisen on the acquisition of businesses and includes synergies arising from cost savings, the opportunity to utilise Diageo’s distribution network to leverage marketing of the acquired products and the extension of the group’s portfolio of brands in new markets around the world. (c) Other intangibles Other intangibles principally comprise distribution rights. Diageo owns the global distribution rights for Ketel One vodka products in perpetuity, and the Directors believe that it is appropriate to treat these rights as having an indefinite life for accounting purposes. The carrying value at 30 June 2023 was £1,428 million (2022 – £1,488 million). (d) Impairment testing Impairment tests are performed annually, or more frequently if events or circumstances indicate that the carrying amount may not be recoverable. Recoverable amounts are calculated based on the value in use approach, also considering fair value less costs of disposal. The value in use calculations are based on discounted forecast cash flows using the assumption that cash flows continue in perpetuity at the terminal growth rate of each country or region. The individual brands, other intangibles with indefinite useful lives and the associated property, plant and equipment are aggregated as separate cash-generating units. Separate tests are carried out for each cash-generating unit and for each of the markets. Goodwill is attributed to each of the markets. The key assumptions used for the value in use calculations are as follows: Cash flows Cash flows are forecasted for each cash-generating unit for the financial years based on management's approved plans and reflect the following assumptions: – Cash flows are projected based on the actual operating results and a three-year strategic plan approved by management. Cash flows are extrapolated up to five years using expected growth rates in line with management’s best estimates. Growth rates reflect expectations of sales growth, operating costs and margin, based on past experience and external sources of information. A simple average of these projections serves as the estimation of the recoverable amount of the cash-generating units. Management has no information which would indicate that any of the scenarios are more likely than others; – The five-year forecast period is extended by up to an additional ten years at acquisition date for some intangible assets and goodwill when management believes that this period is justified by the maturity of the market and expects to achieve growth in excess of the terminal growth rate driven by Diageo’s sales, marketing and distribution expertise. These cash flows beyond the five-year period are projected using steady or progressively declining growth rates. The main exception is India and the USL brands, where the forecast period is extended by an additional one year of detailed forecasts; – Cash flows for the subsequent years after the forecast period are extrapolated based on a terminal growth rate which does not exceed the long-term annual inflation rate of the country or region. Discount rates The discount rates used are the weighted average cost of capital which reflect the returns on government bonds and an equity risk premium adjusted for the drinks industry specific to the cash-generating units. The group applies post-tax discount rates to post-tax cash flows as the valuation calculated using this method closely approximates to applying pre-tax discount rates to pre-tax cash flows. For goodwill, these assumptions are based on the cash-generating unit or group of units to which the goodwill is attributed. For brands, they are based on a weighted average taking into account the country or countries where sales are made. The pre-tax discount rates, terminal and long-term growth rates used for impairment testing are as follows: 2023 2022 Pre-tax discount rate Terminal growth rate Long-term growth rate Pre-tax discount rate Terminal growth rate Long-term growth rate North America – United States 9 2 4 8 2 4 Europe United Kingdom 9 2 5 8 2 4 Turkey 28 16 28 31 15 25 Asia Pacific Australia 10 3 5 7 2 5 Korea 11 (2) 4 7 2 5 India 14 4 15 14 4 11 Greater China 11 2 6 7 2 7 Latin America and Caribbean Brazil 16 3 6 12 3 6 Mexico 13 3 6 14 3 6 Africa Africa Emerging Markets 35 8 18 12 5 11 South Africa 20 5 6 16 — 6 Nigeria 35 5 18 24 12 15 As a result of the impairment review, in the year ended 30 June 2023, an impairment charge of £420 million in respect of the McDowell's brand and £24 million in respect of the Director’s Special brand were recognised in exceptional operating items. Value in use and fair value less costs of disposal methodologies were both considered to assess the recoverable amount. The value in use that was calculated exceeded the fair value less costs of disposal. The charge is mainly driven by the adverse inflationary environment and the reduction in forecast cash flow assumptions in Lower Prestige and Popular segments in India. The brand impairment reduced the deferred tax liability by £111 million . The recoverable amount is £379 million in respect of the McDowell's brand and £11 million in respect of the Director’s Special brand cash-generating units. As a result of the impairment review, in the year ended 30 June 2023, an additional impairment charge of £54 million was recognised in exceptional operating items in respect of some brands where book value was not recoverable. The charge is mainly driven by strategic change in some categories as a result of the challenging operating environment and premiumisation. Value in use and fair value less costs of disposal methodologies were both considered to assess the recoverable amount. The value in use that was calculated exceeded the fair value less costs of disposal. The brand impairment reduced the deferred tax liability by £13 million . I n the year ended 30 June 2022, an impairment charge of £240 million in respect of the McDowell's brand was recognised in exceptional operating items, based on its value in use. The brand impairment reduced the deferred tax liability by £35 million. Further, in the year ended 30 June 2022 , an impairment charge of £77 million in respect of the Bell’s brand was recognised in exceptional operating items, based on its value in use. The impairment reduced the deferred tax liability attributable to the brand by £20 million. In the year ended 30 June 2022, Diageo decided to wind down its operations in Russia. As a result, an impairment charge of £19 million in respect of the Smirnov goodwill was recognised in exceptional operating items. The Turkish economy became hyperinflationary for the year ended 30 June 2022, and an impairment charge of TRY 3,760 million ( £312 million ) on the opening carrying amount of the Turkey cash-generating unit was recognised in retained earnings. From this impairment charge, TRY 1,627 million ( £135 million ) was directly attributable to the Yenì Raki brand and the remaining TRY 2,133 million ( £177 million ) impairment charge was recognised on the Turkey goodwill. (e) Sensitivity to change in key assumptions Impairment testing for the year ended 30 June 2023 has identified the following cash-generating units as being sensitive to reasonably possible changes in assumptions. The table below shows the headroom at 30 June 2023 and the impairment charge that would be required if the assumptions in the calculation of their value in use were changed: Increase in discount rate Decrease in terminal growth rate Decrease in annual growth rate in forecast period 2024-2029 Decrease in cash flows (1) Carrying value of CGU Headroom Reasonably possible change Potential impairment charge Reasonably possible change Potential impairment charge Reasonably possible change Potential impairment charge Reasonably possible change Potential impairment charge McDowell's 379 — 1ppt (38) 1ppt (26) 2ppt (67) 10 % (76) (1) Including reasonably possible changes in productivity saving assumptions. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 10. Property, plant and equipment 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 – 10 to 50 years; within plant and equipment casks and containers – 15 to 50 years; other plant and equipment – 5 to 40 years; fixtures and fittings – 5 to 10 years; and returnable bottles and crates – 5 to 10 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 Plant and Fixtures Returnable Under Total Cost At 30 June 2021 2,160 4,714 121 528 659 8,182 Hyperinflation adjustment in respect of Turkey and Venezuela 56 32 2 — 7 97 Exchange differences 107 226 1 11 45 390 Sale of businesses (4) (58) (3) (19) (1) (85) Additions 230 245 8 41 612 1,136 Disposals (65) (122) (15) (32) (3) (237) Transfers 177 249 10 13 (449) — Reclassification to assets held for sale (8) (25) — — — (33) At 30 June 2022 2,653 5,261 124 542 870 9,450 Hyperinflation adjustment in respect of Turkey and Venezuela 5 10 1 — 4 20 Exchange differences (166) (331) (6) (49) (30) (582) Acquisitions 8 14 — 3 — 25 Sale of businesses (35) (147) (3) (55) (3) (243) Additions 111 214 13 50 832 1,220 Disposals (64) (141) (12) (105) (2) (324) Transfers 146 238 12 28 (424) — Reclassification from assets held for sale 2 — 1 — — 3 At 30 June 2023 2,660 5,118 130 414 1,247 9,569 Depreciation At 30 June 2021 658 2,218 86 371 — 3,333 Exchange differences 31 94 1 9 — 135 Depreciation charge for the year 125 276 14 29 — 444 Exceptional impairment 2 1 — — — 3 Sale of businesses (4) (50) (2) (18) — (74) Disposals (62) (113) (13) (30) — (218) Transfers 5 4 (9) — — — Reclassification to assets held for sale (5) (16) — — — (21) At 30 June 2022 750 2,414 77 361 — 3,602 Exchange differences (38) (176) (3) (27) — (244) Depreciation charge for the year 125 269 13 33 — 440 Exceptional accelerated depreciation and impairment 31 41 — — — 72 Sale of businesses (21) (80) (2) (34) — (137) Disposals (63) (130) (11) (103) — (307) Reclassification from assets held for sale — — 1 — — 1 At 30 June 2023 784 2,338 75 230 — 3,427 Carrying amount At 30 June 2023 1,876 2,780 55 184 1,247 6,142 At 30 June 2022 1,903 2,847 47 181 870 5,848 At 30 June 2021 1,502 2,496 35 157 659 4,849 The net book value of land and buildings comprises freeholds of £1,481 million ( 2022 – £1,444 million ), long leaseholds of £3 million ( 2022 – £3 million ) and short leaseholds of £389 million ( 2022 – £410 million ). Depreciation was not charged on £141 million ( 2022 – £114 million ) of land. Property, plant and equipment is net of a government grant of £147 million (2022 – £153 million) received in prior years in respect of the construction of a rum distillery in the US Virgin Islands. |
Biological assets
Biological assets | 12 Months Ended |
Jun. 30, 2023 | |
Biological Assets [Abstract] | |
Biological assets | 11. Biological assets 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. 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. Agricultural produce is measured at fair value less costs to sell at the point of harvest which is used as the cost of inventory when the harvested agave is transferred. Changes in biological assets were as follows: Biological Fair value At 30 June 2021 66 Exchange differences 10 Transferred to inventories (11) Fair value change (5) Farming cost capitalised 34 At 30 June 2022 94 Exchange differences 15 Transferred to inventories (8) Fair value change — Farming cost capitalised 55 At 30 June 2023 156 At 30 June 2023, the number of agave plants was approximately 37 million (2022 – 33 million), ranging from new plantations up to seven year-old plants. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 12. Leases Accounting policies Where the group is the lessee, all leases are recognised on the balance sheet as right-of-use assets 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. (a) Movement in right-of-use assets The company principally leases warehouses, office buildings, plant and machinery, cars and distribution vehicles in the ordinary course of business. Land and buildings Plant and equipment Under construction Total At 30 June 2021 230 184 29 443 Exchange differences 26 14 — 40 Additions 129 56 — 185 Transfers 29 — (29) — Reclassification to assets held for sale (1) (1) — (2) Disposals (6) — — (6) Depreciation (54) (41) — (95) At 30 June 2022 353 212 — 565 Exchange differences (3) (23) — (26) Additions 45 37 — 82 Reclassification from assets held for sale 1 1 — 2 Derecognition due to disposal of business (1) (1) — (2) Depreciation (56) (39) — (95) At 30 June 2023 339 187 — 526 (b) Lease liabilities 2023 2022 Current lease liabilities (75) (85) Non-current lease liabilities (373) (390) (448) (475) The future cash outflows, which are not included in lease liabilities on the balance sheet, in respect of extension and termination options which are not reasonably expected to be exercised are estimated at £261 million ( 2022 – £282 million). (c) Amounts recognised in the consolidated income statement In the year ended 30 June 2023, other external charges (within other operating items) included £57 million (2022 – £39 million) in respect of leases of low value assets and short term leases and £4 million (2022 – £9 million) in respect of variable lease payments. Refer to note 5 for further information relating to the interest expenses on lease liabilities. The total cash outflow for leases in the year ended 30 June 2023 was £172 million (2022 – £154 million). |
Other investments
Other investments | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Noncurrent Investments Other Than Investments Accounted For Using Equity Method [Abstract] | |
Other investments | 13. Other investments 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 on a case by case basis. 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 Other investments Total Cost less allowances or fair value At 30 June 2021 10 30 40 Exchange differences 2 1 3 Additions 6 9 15 Repayments and disposals (1) (1) (2) Fair value adjustment — (13) (13) Step acquisitions — (6) (6) Capitalised interest 1 — 1 Transfer — (1) (1) At 30 June 2022 18 19 37 Exchange differences (1) — (1) Additions 20 9 29 Repayments and disposals (3) — (3) Fair value adjustment — (4) (4) Capitalised interest 1 — 1 Impairment charged during the year — (2) (2) At 30 June 2023 35 22 57 |
Post employment benefits
Post employment benefits | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of defined benefit plans [abstract] | |
Post employment benefits | 14. Post employment benefits Accounting policies The group’s 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’ assets and the present value of the plans’ 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. Critical accounting estimates and judgements Application of IAS 19 requires the exercise of estimate and judgement in relation to various assumptions. (a) Post employment benefit plans The group operates a number of pension plans throughout the world, devised in accordance with local conditions and practices. Diageo's most significant plans are defined benefit plans and are funded by payments to separately administered trusts or insurance companies. The group also operates a number of plans that are generally unfunded, primarily in the United States, which provide to employees post employment medical benefits. The principal plans are in the United Kingdom, Ireland and the United States where benefits are based on employees’ length of service and salary at retirement. All valuations were performed by independent actuaries using the projected unit credit method to determine pension costs. The most recent funding valuations of the significant defined benefit plans were carried out as follows: Principal plans Date of valuation United Kingdom (1) 1 April 2021 Ireland (2) 31 December 2021 United States 1 January 2022 (1) The Diageo Pension Scheme (DPS, the UK Scheme) closed to new members in November 2005. Employees who joined Diageo in the United Kingdom between November 2005 and January 2018, had been eligible to become members of the Diageo Lifestyle Plan (a cash balance defined benefit plan). Since then, new employees have been eligible to become members of a master trust defined contribution plans. (2) The Guinness Ireland Group Pension Scheme (GIGPS, the Irish scheme) closed to new members in May 2013. Employees who have joined Diageo in Ireland since the defined benefit scheme closed have been eligible to become members of a master trust defined contribution plans. The assets of the UK and Irish pension plans are held in separate trusts administered by trustees who are required to act in the best interests of the plans’ beneficiaries. For DPS, the trustee is Diageo Pension Trust Limited. As required by legislation, one-third of the directors of the Trust are nominated by the members of the DPS, member nominated directors are appointed from both the pensioner member community and the active member community. For the Irish Scheme, Diageo Ireland makes four nominations and appoints three further candidates nominated by representative groupings. The amounts charged to the consolidated income statement and statement of comprehensive income for the group’s defined benefit plans for the three years ended 30 June 2023 are as follows: 2023 2022 2021 Current service cost and administrative expenses (76) (107) (105) Past service (losses)/gains – ordinary activities (1) 34 — Past service losses – exceptional — — (5) Gains on curtailments and settlements 2 34 18 Charge to operating profit (75) (39) (92) Net finance income in respect of post employment plans 44 10 5 Charge before taxation (1) (31) (29) (87) Actual returns less amounts included in finance income (1,435) (1,432) (6) Experience (losses)/gains (226) (35) 80 Changes in financial assumptions 958 2,133 125 Changes in demographic assumptions 53 (40) (183) Other comprehensive (loss)/income (650) 626 16 Changes in the surplus restriction 7 (11) — Total other comprehensive (loss)/income (643) 615 16 (i) The year ended 30 June 2022 includes settlement gains of £27 million in respect of the Enhanced Transfer Values (ETV) exercise carried out in the Irish Schemes and past service gains of £28 million as a result of the changes of the benefits in the Irish Scheme. In the year ended 30 June 2021, the exceptional past service loss of £5 million is in respect of the equalisation of Guaranteed Minimum Pension (GMP) benefits for men and women. (1) The (charge)/income before taxation is in respect of the following countries: 2023 2022 2021 United Kingdom 15 (27) (46) Ireland 1 45 4 United States (32) (31) (28) Other (15) (16) (17) (31) (29) (87) In addition to the charge in respect of defined benefit post employment plans, contributions to the group’s defined contribution plans were £44 million (2022 – £33 million; 2021 – £25 million). The movements in the net surplus for the two years ended 30 June 2023 is set out below: Plan Plan Net At 30 June 2021 9,892 (9,445) 447 Exchange differences 93 (100) (7) Income/(charge) before taxation 176 (205) (29) Other comprehensive (loss)/income (1) (1,432) 2,058 626 Contributions by the group 128 — 128 Settlements paid (2) (52) 52 — Employee contributions 5 (5) — Benefits paid (411) 411 — At 30 June 2022 8,399 (7,234) 1,165 Exchange differences (49) 55 6 Disposals — 4 4 Income/(charge) before taxation 298 (329) (31) Other comprehensive (loss)/income (1) (1,435) 785 (650) Contributions by the group 100 — 100 Employee contributions 5 (5) — Benefits paid (472) 472 — At 30 June 2023 6,846 (6,252) 594 (1) Excludes surplus restriction. (2) Includes settlement payment of £52 million on ETV exercise in Ireland. The plan assets and liabilities by type of post employment benefit and country are as follows: 2023 2022 Plan Plan Plan Plan Pensions United Kingdom 4,578 (4,041) 6,041 (4,897) Ireland 1,588 (1,310) 1,645 (1,409) United States 441 (411) 453 (408) Other 180 (194) 191 (212) Post employment medical 2 (227) 2 (225) Other post employment 57 (69) 67 (83) 6,846 (6,252) 8,399 (7,234) The balance sheet analysis of the post employment plans is as follows: 2023 2022 Non- (1) Non- Non- (1) Non- Funded plans 960 (132) 1,553 (144) Unfunded plans — (241) — (258) 960 (373) 1,553 (402) (1) Includes surplus restriction of £7 million (2022 – £14 million). The disclosures have been prepared in accordance with IFRIC 14. In particular, where the calculation for a plan results in a surplus, the recognised asset is limited to the present value of any available future refunds from the plan or reductions in future contributions to the plan, and any additional liabilities are recognised as required. At 30 June 2023, the DPS had a net surplus of £589 million (2022 – £1,174 million; 2021 – £840 million) and the GIGPS had a net surplus of £260 million (2022 a surplus of £221 million; 2021 a deficit of £79 million) and other schemes in a surplus totalled of £111 million (2022 – £158 million; 2021 – £178 million). Both of these surpluses have been recognised, with no provision made against them, as they are expected to be recoverable through a combination of a reduction in future cash contributions or ultimately via a cash refund when the last member’s obligations have been met. (b) Principal risks and assumptions The material post employment plans are not exposed to any unusual, entity-specific or scheme-specific risks but there are general risks: Inflation – The majority of the plans’ obligations are linked to inflation. Higher inflation will lead to increased liabilities which is partially offset by the plans holding inflation linked gilts, swaps and caps against the level of inflationary increases. Interest rate – The plan liabilities are determined using discount rates derived from yields on AA-rated corporate bonds. A decrease in corporate bond yields will increase plan liabilities though this will be partially offset by an increase in the value of the bonds held by the post employment plans. Mortality – The majority of the obligations are to provide benefits for the life of the members and their partners, so any increase in life expectancy will result in an increase in the plans’ liabilities. Asset returns – Assets held by the pension plans are invested in a diversified portfolio of equities, bonds and other assets. Volatility in asset values will lead to movements in the net deficit/surplus reported in the consolidated balance sheet for post employment plans which in addition will also impact the post employment expense in the consolidated income statement. The following weighted average assumptions were used to determine the group’s deficit/surplus in the main post employment plans at 30 June in the relevant year. The assumptions used to calculate the charge/credit in the consolidated income statement for the year ending 30 June are based on the assumptions disclosed as at the previous 30 June. United Kingdom Ireland United States (1) 2023% 2022% 2021% 2023% 2022% 2021% 2023% 2022% 2021% Rate of general increase in salaries (2) 3.7 3.6 3.4 3.9 3.8 3.0 — — — Rate of increase to pensions in payment 2.9 2.9 3.1 2.3 2.2 1.7 — — — Rate of increase to deferred pensions 2.7 2.6 2.5 2.4 2.3 1.6 — — — Discount rate for plan liabilities 5.2 3.8 1.9 3.6 3.2 1.0 4.9 4.4 2.7 Inflation – CPI 2.7 2.6 2.5 2.5 2.4 1.6 2.2 2.3 2.3 Inflation - RPI 3.2 3.1 3.0 — — — — — — (1) The salary increase assumption in the United States is not a significant assumption as only a minimal amount of members’ pension entitlement is dependent on a member’s projected final salary. (2) The salary increase assumptions include an allowance for age-related promotional salary increases. For the principal UK and Irish pension funds, the table below illustrates the expected age at death of an average worker who retires currently at the age of 65, and one who is currently aged 45 and subsequently retires at the age of 65: United Kingdom (1) Ireland (2) United States 2023 2022 2021 2023 2022 2021 2023 2022 2021 Retiring currently at age 65 Male 86.8 87.1 87.2 87.2 87.7 86.9 85.6 85.5 85.4 Female 88.4 88.7 88.7 89.6 90.0 89.3 87.2 87.2 87.1 Currently aged 45, retiring at age 65 Male 88.1 88.5 88.6 88.8 89.3 88.6 87.1 87.0 86.9 Female 90.4 90.7 90.8 91.3 91.7 91.1 88.7 88.6 88.5 (1) Based on the CMI’s S3 mortality tables with scaling factors based on the experience of the plan and where people live, with suitable future improvements. (2) Based on the CMI's S3 mortality tables with scaling factors based on the experience of the plan, with suitable future improvements. For the significant assumptions, the following sensitivity analyses estimate the potential impacts on the consolidated income statement for the year ending 30 June 2024 and on the plan liabilities at 30 June 2023 : United Kingdom Ireland United States Benefit/(cost) Operating Profit after Plan (1) Operating Profit after Plan (1) Operating Profit after Plan (1) Effect of 0.5% increase in discount rate 2 15 259 1 5 85 2 2 22 Effect of 0.5% decrease in discount rate (2) (14) (267) (1) (4) (95) (2) (2) (24) Effect of 0.5% increase in inflation (1) (8) (156) — (2) (49) — (1) (9) Effect of 0.5% decrease in inflation 2 8 173 — 2 50 — 1 8 Effect of one year increase in life expectancy — (6) (131) — (2) (55) — (1) (15) (1) The estimated effect on the liabilities excludes the impact of any interest rate and inflation swaps held by the pension plans. (i) The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions and may not be representative of the actual change. Each sensitivity is calculated on a change in the key assumption while holding all other assumptions constant. The sensitivity to inflation includes the impact on all inflation linked assumptions (e.g. pension increases and salary increases where appropriate). (c) Investment and hedging strategy The investment strategy for the group’s funded post employment plans is determined locally by the trustees of the plan and/or Diageo, as appropriate, and takes account of the relevant statutory requirements. The objective of the investment strategy is to achieve a target rate of return in excess of the movement on the liabilities, whilst taking an acceptable level of investment risk relative to the liabilities. This objective is implemented by using the funds of the plans to invest in a variety of asset classes that are expected over the long-term to deliver a target rate of return. The majority of the investment strategies have significant amounts allocated to bonds, in order to provide a natural hedge against movements in the liabilities of the plans. At 30 June 2023, approximately 97% and 98% (2022 – 100% and 103%) of the UK plans’ liabilities measured on the Trustee's funding basis (gilts+50bp) were hedged against future movements in interest rates and inflation, respectively, through the combined effect of bonds and swaps. At 30 June 2023, approximately 92% and 112% (2022 – 70% and 76%) of the Irish plans’ liabilities measured on the Trustee's funding basis (euro-swaps+50bp) were hedged against future movements in interest rates and inflation, respectively, through the combined effect of bonds and swaps. The discount rates used are based on the yields of high-quality fixed income investments. For the UK plans, which represent approximately 65% of total plan liabilities, the discount rate is determined by reference to the yield curves of AA-rated corporate bonds for which the timing and amount of cash outflows are similar to those of the plans. A similar process is used to determine the discount rates used for the non-UK plans. An analysis of the fair value of the plan assets is as follows: 2023 United Kingdom Ireland United States and other Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Quoted Unquoted Total Equities 12 916 — 291 64 98 76 1,305 1,381 Bonds Fixed-interest government 18 24 — 6 48 8 66 38 104 Inflation-linked government — — — 96 2 2 2 98 100 Investment grade corporate — 29 — 328 21 227 21 584 605 Non-investment grade 22 289 6 186 2 133 30 608 638 Loan securities 13 526 — 84 — — 13 610 623 Repurchase agreements 2,351 826 — — — — 2,351 826 3,177 Liability Driven Investment (LDI) — — — 81 — — — 81 81 Property 29 462 — 62 — 1 29 525 554 Hedge funds — — — 12 — 5 — 17 17 Interest rate and inflation swaps — (971) 102 (18) — — 102 (989) (887) Cash and other 46 (14) 5 347 — 69 51 402 453 Total bid value of assets 2,491 2,087 113 1,475 137 543 2,741 4,105 6,846 2022 United Kingdom Ireland United States and other Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Quoted Unquoted Total Equities 23 1,218 — 319 70 105 93 1,642 1,735 Bonds Fixed-interest government 2 86 — 30 49 152 51 268 319 Inflation-linked government — — — 199 1 1 1 200 201 Investment grade corporate — 68 — 388 25 222 25 678 703 Non-investment grade 44 557 2 200 1 1 47 758 805 Loan securities 11 1,271 — 98 — — 11 1,369 1,380 Repurchase agreements 2,400 (215) — — — — 2,400 (215) 2,185 Liability Driven Investment (LDI) — 119 — 46 — — — 165 165 Property 28 716 — 74 — 1 28 791 819 Hedge funds — 107 — 92 — 5 — 204 204 Interest rate and inflation swaps — (900) — 37 — — — (863) (863) Cash and other 24 481 7 154 — 80 31 715 746 Total bid value of assets 2,532 3,508 9 1,637 146 567 2,687 5,712 8,399 (i) The asset classes include some cash holdings that are temporary. This cash is likely to be invested imminently and so has been included in the asset class where it is anticipated to be invested in the long-term. Total cash contributions by the group to all post employment plans in the year ending 30 June 2024 are estimated to be approximately £75 million ($95 million). (d) Deficit funding arrangements UK plans In the year ended 30 June 2011 the group established a Pension Funding Partnership (PFP) in respect of the UK Scheme. Whisky inventory was transferred into the partnership but the group retains control over the partnership which at 30 June 2023 held inventory with a book value of £732 million (2022 – £561 million). The partnership is fully consolidated in the group financial statements. The UK Scheme has a limited interest in the partnership and, as a partner, is entitled to a distribution from the profits of the partnership. The arrangement is expected to cease in 2030, and contributions to the UK scheme in any year will be dependent on the funding position of the UK scheme at the previous 31 March. Given the surplus funding position in the DPS, there were no contributions to the DPS in the years ended 30 June 2023 and 30 June 2022. In 2030, the group will be required, dependent upon the funding position of the UK Scheme at that time, to pay an amount not greater than the actuarial deficit at that time, up to a maximum of £430 million in cash, to purchase the UK Scheme’s interest in the partnership. If the UK Scheme is in surplus at an actuarial triennial valuation excluding the value of the PFP, then the group can exit the PFP with the agreement of the trustees. During the year ended 30 June 2023, following a remeasurement of the Diageo Lifestyle Plan, Diageo made a £16 million one-off deficit contribution to satisfy minimum funding requirement. Irish plans The 31 December 2021 triennial actuarial valuation of the Guinness Ireland Group Pension Scheme was completed during the year ended 30 June 2023 showing the Scheme is fully funded on the Trustee’s ongoing funding basis and the statutory minimum funding standard basis. Given the fully funded position, no deficit contributions were payable in the year ended 30 June 2023 and the Trustee agreed to the company's request to terminate the contingent arrangements comprising mortgages over certain land and buildings and fixed and floating charges over certain receivables of the group up to a value of €200 million (£171 million). The company has agreed with the Trustee conditional contributions of up to €35 million (£30 million) by 31 December 2024, €39 million (£33 million) by 31 December 2027 and €39 million (£33 million) by 31 December 2030 if a deficit is identified at those valuations. (e) Timing of benefit payments The following table provides information on the timing of the benefit payments and the average duration of the defined benefit obligations and the distribution of the timing of benefit payments: United Kingdom Ireland United States 2023 2022 2023 2022 2023 2022 Maturity analysis of benefits expected to be paid Within one year 303 295 73 70 57 58 Between 1 to 5 years 1,090 1,082 367 353 174 187 Between 6 to 15 years 2,439 2,556 727 704 331 310 Between 16 to 25 years 2,244 2,252 645 634 206 183 Beyond 25 years 2,664 2,787 747 768 187 174 Total 8,740 8,972 2,559 2,529 955 912 years years years years years years Average duration of the defined benefit obligation 14 15 14 15 9 9 The projected benefit payments are based on the assumptions underlying the assessment of the obligations, including inflation. They are disclosed undiscounted and therefore appear large relative to the discounted value of the plan liabilities recognised on the consolidated balance sheet. They are in respect of benefits that have accrued at the balance sheet date and make no allowance for any benefits to be accrued subsequently. (f) Related party disclosures Information on transactions between the group and its pension plans is given in note 21. |
Working capital
Working capital | 12 Months Ended |
Jun. 30, 2023 | |
Summary Of Additional Information About Working Capital [Abstract] | |
Working capital | 15. Working capital 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. Cost is calculated at the weighted average cost incurred in acquiring inventories. Maturing inventories and raw materials which are retained for more than one year are classified as current assets, as they are expected to be realised in the normal operating cycle. Trade and other receivables are initially recognised at fair value less transaction costs and subsequently carried at amortised cost less any allowance for discounts and doubtful debts. Trade receivables 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’s involvement in agreeing terms between banks and suppliers. Provisions are liabilities of uncertain timing or amount. A provision 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. (a) Inventories 2023 2022 Raw materials and consumables 543 489 Work in progress 132 86 Maturing inventories 5,794 5,229 Finished goods and goods for resale 1,192 1,290 7,661 7,094 Maturing inventories include whisk(e)y, rum, tequila and Chinese white spirits. The following amounts of inventories are expected to be utilised after more than one year: 2023 2022 Raw materials and consumables 23 15 Maturing inventories 4,063 3,713 4,086 3,728 Inventories are disclosed net of provisions for obsolescence, an analysis of which is as follows: 2023 2022 2021 Balance at beginning of the year 94 96 98 Exchange differences (27) 6 (8) Income statement charge 55 6 20 Utilised (19) (13) (14) Sale of businesses (1) (1) — 102 94 96 (b) Trade and other receivables 2023 2022 Current Non-current Current Non-current Trade receivables 2,011 — 2,155 — Interest receivable 12 — 18 — VAT recoverable and other prepaid taxes 271 15 290 15 Other receivables 163 13 158 13 Prepayments 229 3 290 9 Accrued income 34 — 22 — 2,720 31 2,933 37 At 30 June 2023, approximately 26%, 14% and 11% of the group’s trade receivables of £2,011 million are due from counterparties based in the United States, United Kingdom and India, respectively. Accrued income primarily represents amounts receivable from customers in respect of performance obligations satisfied but not yet invoiced. The aged analysis of trade receivables, net of expected credit loss allowance, is as follows: 2023 2022 Not overdue 1,967 2,114 Overdue 1 – 30 days 25 19 Overdue 31 – 60 days 7 8 Overdue 61 – 90 days 3 5 Overdue 91 – 180 days 6 5 Overdue more than 180 days 3 4 2,011 2,155 Trade and other receivables are disclosed net of expected credit loss allowance for doubtful debts, an analysis of which is as follows: 2023 2022 2021 Balance at beginning of the year 118 112 160 Exchange differences (12) 6 (13) Income statement (release)/charge (3) 21 (15) Written off (14) (21) (20) 89 118 112 (c) Trade and other payables 2023 2022 Current Non-current Current Non-current Trade payables 2,659 — 2,705 — Interest payable 237 — 143 — Tax and social security excluding income tax 632 — 696 — Other payables 432 368 600 380 Accruals 1,229 — 1,635 — Deferred income 73 — 90 — Dividend payable to non-controlling interests 38 — 18 — 5,300 368 5,887 380 Interest payable at 30 June 2023 includes interest on non-derivative financial instruments of £217 million (2022 – £141 million). Accruals at 30 June 2023 include £561 million (2022 – £613 million) accrued discounts attributed to sales recognised. Deferred income represents amounts paid by customers in respect of performance obligations not yet satisfied. The amount of contract liabilities recognised as revenue in the current year is £90 million (2022 – £72 million). Non-current liabilities include the net present value of contingent consideration in respect of prior acquisitions of £293 million (2022 – £353 million). For further information on contingent consideration, please refer to note 16 (g). (d) Provisions Thalidomide Other Total At 30 June 2022 178 239 417 Exchange differences (1) (26) (27) Disposal of businesses — (2) (2) Provisions charged during the year — 31 31 Provisions utilised during the year (14) (61) (75) Transfers from other payables — 12 12 Unwinding of discounts 5 1 6 At 30 June 2023 168 194 362 Current liabilities 13 106 119 Non-current liabilities 155 88 243 168 194 362 Provisions have been established in respect of the discounted value of the group’s commitment to the UK and Australian Thalidomide Trusts. These provisions will be utilised over the period of the commitments up to 2037. The largest item in other provisions at 30 June 2023 is £51 million (2022 – £49 million) in respect of employee deferred compensation plans which will be utilised when employees leave the group. |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments and risk management | Introduction This section sets out the policies and procedures applied to manage the group’s capital structure and the financial risks the group is exposed to. Diageo considers the following components of its balance sheet to be capital: borrowings and equity. Diageo manages its capital structure to achieve capital efficiency, provide flexibility to invest through the economic cycle and give efficient access to debt markets at attractive cost levels. 16. Financial instruments and risk management 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 t rade 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. 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 a change in exchange or interest rates (cash flow hedges) and hedges of net investments in foreign operations (net investment hedges). The designated portion of the hedging instruments is 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 dollar offset, critical terms, regression analysis and hypothetical 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 hedge s 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. Net investment hedges take the form of either foreign currency borrowings or derivatives. 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 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. The group’s funding, liquidity and exposure to foreign currency and interest rate risks are managed by the group’s treasury department. The treasury department uses a range of financial instruments to manage these underlying risks. Treasury operations are conducted within a framework of Board-approved policies and guidelines, which are recommended and monitored by the Finance Committee, chaired by the Chief Financial Officer. The policies and guidelines include benchmark exposure and/or hedge cover levels for key areas of treasury risk which are periodically reviewed by the Board following, for example, significant business, strategic or accounting changes. The framework provides for limited defined levels of flexibility in execution to allow for the optimal application of the Board-approved strategies. Transactions arising from the application of this flexibility are carried at fair value, gains or losses are taken to the income statement as they arise and are separately monitored on a daily basis using Value at Risk analysis. In the years ended 30 June 2023 and 30 June 2022 gains and losses on these transactions were not material. The group does not use derivatives for speculative purposes. All transactions in derivative financial instruments are initially undertaken to manage the risks arising from underlying business activities. The group purchases insurance for commercial or, where required, for legal or contractual reasons. In addition, the group retains insurable risk where external insurance is not considered an economic means of mitigating these risks. The Finance Committee receives a quarterly report on the key activities of the treasury department, however any exposures which differ from the defined benchmarks are reported as they arise. (a) Currency risk The group presents its consolidated financial statements in sterling and conducts business in many currencies. As a result, it is subject to foreign currency risk due to exchange rate movements, which will affect the group’s transactions and the translation of the results and underlying net assets of its operations. To manage the currency risk, the group uses certain financial instruments. Where hedge accounting is applied, hedges are documented and tested for effectiveness on an ongoing basis. Hedge of net investment in foreign operations The group hedges a certain portion of its exposure to fluctuations in the sterling value of its foreign operations by designating borrowings held in foreign currencies and using foreign currency spots, forwards, swaps and other financial derivatives. For the year ended 30 June 2023 the group’s intention was to maintain total net investment Value at Risk to total net asset value below 20% , where Value at Risk is defined as the maximum amount of loss over a one-year period with a 95% pr obability confidence level. At 30 June 2023 foreign currency borrowings designated in net investment hedge relationships amounted to £10,627 million (2022 £8,742 million), including financial derivatives. Hedge of foreign currency debt The group uses cross currency interest rate swaps to hedge the foreign currency risk associated with certain foreign currency denominated borrowings. Transaction exposure hedging The group’s policy is to hedge forecast transactional foreign currency risk on major currency pair exposures up to 24 months, targeting 75% coverage for the current financial year, and on other currency exposures up to 18 months. The group’s exposure to foreign currency risk arising principally on forecasted sales transactions is managed using forward agreements and options. (b) Interest rate risk The group has an exposure to interest rate risk, arising principally on changes in US dollar, euro and sterling interest rates. To manage interest rate risk, the group manages its proportion of fixed to floating rate borrowings within limits approved by the Board, primarily through issuing fixed and floating rate borrowings, and by utilising interest rate swaps. These practices aim to minimise the group’s net finance charges with acceptable year-on-year volatility. To facilitate operational efficiency and effective hedge accounting, for the year ended 30 June 2023 the group’s policy was to maintain fixed rate borrowings within a band of 40% to 90% of forecast net borrowings. For these calculations, net borrowings exclude interest rate related fair value adjustments. The majority of the group’s existing interest rate derivatives are designated as hedges and are expected to be effective. Fair value of these derivatives is recognised in the income statement, along with any changes in the relevant fair value of the underlying hedged asset or liability. The interest rate profile of the group's net borrowings is as follows: 2023 2022 £ million % £ million % Fixed rate 11,961 77 11,070 78 Floating rate (1) 3,225 21 2,612 19 Impact of financial derivatives and fair value adjustments (93) (1) (20) — Lease liabilities 448 3 475 3 Net borrowings 15,541 100 14,137 100 (1) The floating rate portion of net borrowings includes cash and cash equivalents, collaterals, floating rate loans and bonds and bank overdrafts. The table below sets out the average monthly net borrowings and effective interest rate: Average monthly net borrowings Effective interest rate 2023 £ million 2022 £ million 2021 £ million 2023 % 2022 % 2021 % 15,244 12,692 12,702 3.9 2.7 2.7 (i) For this calculation, net interest charge excludes fair value adjustments to derivative financial instruments and average monthly net borrowings include the impact of interest rate swaps that are no longer in a hedge relationship but exclude the market value adjustment for cross currency interest rate swaps. IBOR reform In accordance with the UK Financial Conduct Authority’s announcement on 5 March 2021, LIBOR benchmark rates were discontinued after 31 December 2021, except for the majority of the US dollar settings which are discontinued from 30 June 2023. There have been amendments to the contractual terms of IBOR-referenced interest rates and the corresponding update of the hedge designations. By 30 June 2022, changes required to systems and processes in relation to the fair valuation of financial instruments were implemented and the transition had no material tax or accounting implications. The group also evaluated the implications of the reference rate changes in relation to other valuation models and credit risk, and concluded that they were not material. In line with the relief provided by the amendment, the group assumes that the interest rate benchmark on which the cash flows of the hedged item, the hedging instrument or the hedged risk are based are not altered by the IBOR reform. The derivative hedging instruments provide a close approximation to the extent and nature of the risk exposure the group manages through hedging relationships. Included in floating rate net borrowings are interest rate swaps designated in fair value hedges, with a notional amount of £2,063 million (2022 – £2,893 million) whose interest rates are based on USD LIBOR. In preparation for the discontinuation of USD LIBOR, the group have amended these agreements to reference the Secured Overnight Financing Rate (SOFR) resulting in economically equivalent trades upon transition. The floating legs of the transitioned trades will become SOFR based subsequent to the last USD LIBOR based interest payments. (c) Commodity price risk Commodity price risk is managed in line with the principles approved by the Board either through long-term purchase contracts with suppliers or, where appropriate, derivative contracts. The group policy is to maintain the Value at Risk of commodity price risk arising from commodity exposures below 75 bps of forecast gross profit in any given financial year. Where derivative contracts are used, the commodity price risk exposure is hedged up to 24 months of forecast volume through exchange-traded and over-the-counter contracts (futures, forwards and swaps) and cash flow hedge accounting is applied. (d) Market risk sensitivity analysis The group uses a sensitivity analysis that estimates the impacts on the consolidated income statement and other comprehensive income of either an instantaneous increase or decrease of 0.5% in market interest rates or a 10% strengthening or weakening in sterling against all other currencies, from the rates applicable for each class of financial instruments on the consolidated balance sheet at these dates with all other variables remaining constant. The sensitivity analysis excludes the impact of market risk on the net post employment benefit liabilities and assets, and corporate tax payable. This analysis is for illustrative purposes only, as in practice interest and foreign exchange rates rarely change in isolation. The sensitivity analysis estimates the impact of changes in interest and foreign exchange rates. All hedges are expected to be highly effective for this analysis and it considers the impact of all financial instruments including financial derivatives, cash and cash equivalents, borrowings and other financial assets and liabilities. The results of the sensitivity analysis should not be considered as projections of likely future events, gains or losses as actual results in the future may differ materially due to developments in the global financial markets which may cause fluctuations in interest and exchange rates to vary from the hypothetical amounts disclosed in the table below. Impact on income Impact on consolidated (1) (2) 2023 2022 2023 2022 £ million £ million £ million £ million 0.5% decrease in interest rates 16 13 36 31 0.5% increase in interest rates (16) (13) (35) (30) 10% weakening of sterling (45) (33) (1,336) (1,125) 10% strengthening of sterling 36 28 1,093 922 (1) The impact on foreign currency borrowings and derivatives in net investment hedges is largely offset by the foreign exchange difference arising on the translation of net investments. (2) The impact on the consolidated statement of comprehensive income includes the impact on the income statement. (e) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group. Credit risk arises on cash balances (including bank deposits and cash and cash equivalents), derivative financial instruments and credit exposures to customers, including outstanding loans, trade and other receivables, financial guarantees and committed transactions. The carrying amount of financial assets of £4,637 million (2022 – £5,445 million) represents the group’s exposure to credit risk at the balance sheet date as disclosed in section (i), excluding the impact of any collateral held or other credit enhancements. A financial asset is in default when the counterparty fails to pay its contractual obligations. Financial assets are written off when there is no reasonable expectation of recovery. Credit risk is managed separately for financial and business related credit exposures. Financial credit risk Diageo aims to minimise its financial credit risk through the application of risk management policies approved and monitored by the Board. Counterparties are predominantly limited to investment grade banks and financial institutions, and policy restricts the exposure to any one counterparty by setting credit limits taking into account the credit quality of the counterparty. The group’s policy is designed to ensure that individual counterparty limits are adhered to and that there are no significant concentrations of credit risk. The Board also defines the types of financial instruments which may be transacted. The credit risk arising through the use of financial instruments for currency, interest rate and commodity price risk management is estimated with reference to the fair value of contracts with a positive value, rather than the notional amount of the instruments themselves. Diageo annually reviews the credit limits applied and regularly monitors the counterparties’ credit quality reflecting market credit conditions. When derivative transactions are undertaken with bank counterparties, the group may, where appropriate, enter into certain agreements with such bank counterparties whereby the parties agree to post cash collateral for the benefit of the other if the net valuations of the derivatives are above a predetermined threshold. At 30 June 2023, the collateral held under these agreements amounted to $(19) million ( £(15) million ) (2022 – $23 million (£19 million)). Business related credit risk (f) Liquidity risk Liquidity risk is the risk of Diageo encountering difficulties in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets. The group uses short-term commercial paper to finance its day-to-day operations. The group’s policy with regard to the expected maturity profile of borrowings is to limit the amount of such borrowings maturing within 12 months to 50% of gross borrowings less money market demand deposits, and the level of commercial paper to 30% of gross borrowings less money market demand deposits. In addition, the group’s policy is to maintain backstop facilities with relationship banks to support commercial paper obligations. The following tables provide an analysis of the anticipated contractual cash flows including interest payable for the group’s financial liabilities and derivative instruments on an undiscounted basis. Where interest payments are calculated at a floating rate, rates of each cash flow until maturity of the instruments are calculated based on the forward yield curve prevailing at the respective year ends. The gross cash flows of cross currency swaps are presented for the purposes of this table. All other derivative contracts are presented on a net basis. Financial assets and liabilities are presented gross in the consolidated balance sheet although, in practice, the group uses netting arrangements to reduce its liquidity requirements on these instruments. Contractual cash flows Due within Due between Due between Due after Total Carrying 2023 Borrowings (1) (1,707) (3,615) (2,980) (8,652) (16,954) (16,502) Interest on borrowings (1)(2) (541) (750) (623) (1,503) (3,417) (217) Lease capital repayments (75) (104) (69) (200) (448) (448) Lease future interest payments (18) (28) (19) (37) (102) — Trade and other financial liabilities (3) (4,417) (231) (122) (96) (4,866) (4,782) Non-derivative financial liabilities (6,758) (4,728) (3,813) (10,488) (25,787) (21,949) Cross currency swaps (gross) Receivable 43 87 87 1,341 1,558 Payable (28) (56) (56) (930) (1,070) Other derivative instruments (net) 19 (88) (79) (54) (202) Derivative instruments (2) 34 (57) (48) 357 286 134 2022 Borrowings (1) (1,524) (2,842) (2,738) (9,276) (16,380) (16,020) Interest on borrowings (1)(2) (427) (626) (560) (1,622) (3,235) (141) Lease capital repayments (85) (107) (61) (222) (475) (475) Lease future interest payments (13) (20) (16) (44) (93) — Trade and other financial liabilities (3) (4,765) (123) (142) (126) (5,156) (5,145) Non-derivative financial liabilities (6,814) (3,718) (3,517) (11,290) (25,339) (21,781) Cross currency swaps (gross) Receivable 851 90 90 1,442 2,473 Payable (783) (56) (56) (958) (1,853) Other derivative instruments (net) (86) (123) (78) (65) (352) Derivative instruments (2) (18) (89) (44) 419 268 22 (1) For the purpose of these tables, borrowings are defined as gross borrowings excluding lease liabilities and fair value of derivative instruments as disclosed in note 17. (2) Carrying amount of interest on borrowings, interest on derivatives and interest on other payable is included within interest payable in note 15. (3) Primarily consists of trade and other payables that meet the definition of financial liabilities under IAS 32. The group had available undrawn committed bank facilities as follows: 2023 £ million 2022 £ million Expiring within one year 99 793 Expiring between one and two years 496 103 Expiring after two years 2,083 1,893 2,678 2,789 The facilities can be used for general corporate purposes and, together with cash and cash equivalents, support the group’s commercial paper programmes. There are no financial covenants on the group’s material short- and long-term borrowings. Certain of these borrowings contain cross default provisions and negative pledges. The committed bank facilities are subject to a single financial covenant, being minimum interest cover ratio of two times (defined as the ratio of operating profit before exceptional items, aggregated with share of after tax results of associates and joint ventures, to net interest charges). They are also subject to pari passu ranking and negative pledge covenants. Any non-compliance with covenants underlying Diageo’s financing arrangements could, if not waived, constitute an event of default with respect to any such arrangements, and any non-compliance with covenants may, in particular circumstances, lead to an acceleration of maturity on certain borrowings and the inability to access committed facilities. Diageo was in full compliance with its financial, pari passu ranking and negative pledge covenants in respect of its material short- and long-term borrowings throughout each of the years presented. (g) Fair value measurements Fair value measurements of financial instruments are presented through the use of a three-level fair value hierarchy that prioritises the valuation techniques used in fair value calculations. The group maintains policies and procedures to value instruments using the most relevant data available. If multiple inputs that fall into different levels of the hierarchy are used in the valuation of an instrument, the instrument is categorised on the basis of the most subjective input. Foreign currency forwards and swaps, cross currency swaps and interest rate swaps are valued using discounted cash flow techniques. These techniques incorporate inputs at levels 1 and 2, such as foreign exchange rates and interest rates. These market inputs are used in the discounted cash flow calculation incorporating the instrument’s term, notional amount and discount rate, and taking credit risk into account. As significant inputs to the valuation are observable in active markets, these instruments are categorised as level 2 in the hierarchy. Other financial liabilities include a put option, which does not have an expiry date, held by Industrias Licoreras de Guatemala (ILG) to sell the remaining 50% equity stake in Rum Creation & Products Inc., the owner of the Zacapa rum brand, to Diageo. The liability is fair valued using the discounted cash flow method and as at 30 June 2023, an amount of £218 million (30 June 2022 – £216 million) is recognised as a liability with changes in the fair value of the put option included in retained earnings. As the valuation of this option uses assumptions not observable in the market, it is categorised as level 3 in the hierarchy. As at 30 June 2023, because it is unknown when or if ILG will exercise the option, the liability is measured as if the exercise date is on the last day of the next financial year considering forecast future performance. The option is sensitive to reasonably possible changes in assumptions; if the option were to be exercised as at 30 June 2025, the fair value of the liability would increase by approximately £30 million . Included in other financial liabilities, the contingent consideration on acquisition of businesses represents the present value of payments up to £422 million , which are expected to be paid over the next eight years . Contingent considerations linked to certain volume targets at 30 June 2023 included £113 million in respect of the acquisition of Aviation Gin and Davos Brands (2022 – £157 million), £59 million in respect of the acquisition of 21Seeds (2022 – £59 million) and £18 million in respect of the acquisition of Lone River Ranch Water (2022 – £57 million). Contingent consideration of £70 million in respect of the acquisition of Don Papa Rum (2022 – £nil) is linked to certain financial performance targets. Contingent considerations are fair valued based on discounted cash flow method using assumptions not observable in the market. Contingent considerations are sensitive to possible changes in assumptions; a 10% increase or decrease in volume would increase or decrease the fair value of contingent considerations linked to certain volume targets by approximately £30 million and £50 million, respectively, and a 10% increase or decrease in cash flows would increase or decrease the fair value of contingent considerations linked to certain financial performance targets by approximately £25 million. There were no significant changes in the measurement and valuation techniques, or significant transfers between the levels of the financial assets and liabilities in the year ended 30 June 2023. The group’s financial assets and liabilities measured at fair value are categorised as follows: 2023 £ million 2022 £ million Derivative assets 594 480 Derivative liabilities (440) (456) Valuation techniques based on observable market input (Level 2) 154 24 Financial assets - other 192 184 Financial liabilities - other (529) (587) Valuation techniques based on unobservable market input (Level 3) (337) (403) In the years ended 30 June 2023 and 30 June 2022, the increase in financial assets - other of £8 million (2022 – £46 million) is principally in respect of acquisitions. The movements in level 3 instruments, measured on a recurring basis, are as follows: Zacapa Contingent consideration recognised on acquisition of businesses Zacapa Contingent consideration recognised on acquisition of businesses 2023 2023 2022 2022 £ million £ million £ million £ million At the beginning of the year (216) (371) (149) (429) Net (losses)/gains included in the income statement (8) 117 (20) 62 Net gains/(losses) included in exchange in other comprehensive income 9 11 (26) (39) Net losses included in retained earnings (16) — (34) — Acquisitions — (76) — (70) Settlement of liabilities 13 8 13 105 At the end of the year (218) (311) (216) (371) (h) Results of hedge relationships The group targets a one-to-one hedge ratio. The strength of the economic relationship between the hedged items and the hedging instruments is analysed on an ongoing basis. Ineffectiveness can arise from subsequent change in the forecast transactions as a result of differences in timing, cash flows or value except when the critical terms of the hedging instrument and hedged item are closely aligned. The change in the credit risk of the hedging instruments or the hedged items is not expected to be the primary factor in the economic relationship. The notional amounts, contractual maturities and rates of the hedging instruments designated in hedging relationships by the main risk categories are as follows: Notional amounts Maturity Range of hedged rates (1) 2023 Net investment hedges Derivatives in net investment hedges of foreign operations 637 July 2023 US dollar 1.27 Cash flow hedges Derivatives in cash flow hedge (foreign currency debt) 873 September 2036 - April 2043 US dollar 1.60 - 1.88 Derivatives in cash flow hedge (foreign currency risk) 1,734 September 2023 - December 2024 US dollar 1.05 - 1.33, Mexican peso 14.76 - 18.38 Derivatives in cash flow hedge (commodity price risk) 217 July 2023 - September 2024 Feed Wheat: 183.75 - 240.00 USD/Bu LME Aluminium: 2,248 - 3,399 USD/Mt Fair value hedges Derivatives in fair value hedge (interest rate risk) 3,999 September 2023 - April 2030 (0.01) - 3.09% 2022 Net investment hedges Derivatives in net investment hedges of foreign operations 11 July 2022 Turkish lira 22.27 Cash flow hedges Derivatives in cash flow hedge (foreign currency debt) 1,694 April 2023 - April 2043 US dollar 1.22 - 1.88 Derivatives in cash flow hedge (foreign currency risk) 1,874 September 2022 - June 2024 US dollar 1.22 - 1.42, euro 1.13 - 1.17 Derivatives in cash flow hedge (commodity price risk) 234 July 2022 - March 2024 Natural Gas: 1.67 - 3.57 GBP/therm(ec) LME Aluminium: 2,009 - 3,399 USD/Mt Fair value hedges Derivatives in fair value hedge (interest rate risk) 4,444 September 2022 - April 2030 (0.01) - 3.09% (1) In case of derivatives in cash flow hedges (commodity price risk and foreign currency risk), the range of the most significant contract’s hedged rates are presented. For hedges of the cash flow risk from a change in forward exchange rates using cross currency interest rate swaps, the retranslation of the related bond principal to closing exchange rates and recognition of interest on the related bonds will affect the income statement in each year until the related bonds mature in 2036 and 2043. Exchange retranslation and the interest on the hedged bonds in the income statement are expected to offset those on the cross currency swaps in each of the years. In respect of cash flow hedging instruments, a gain of £247 million (2022 – £124 million gain; 2021 – £157 million loss) was recognised in other comprehensive income due to changes in fair value. A gain of £13 million was transferred out of other comprehensive income to other operating expenses and a loss of £54 million to other finance charges, respectively, (2022 – a loss of £42 million and a gain of £239 million; 2021 – a loss of £10 million and a loss of £175 million) to offset the foreign exchange impact on the underlying transactions. A gain of £33 million (2022 – £46 million gain, 2021 – £2 million gain) was transferred out of other comprehensive income to operating profit in relation to commodity hedges. The carrying amount of hedged items recognised in the consolidated balance sheet in relation to hedges of cash flow risk arising from foreign currency debts equals the notional value of the hedging instruments at 30 June 2023 and are included within borrowings. The notional amount for cash flow hedges of foreign currency debt at 30 June 2023 was £873 million (2022 – £1,694 million). For cash flow hedges of forecast transactions at 30 June 2023, based on year end interest and exchange rates, a gain to the income statement of £143 million in the year ending 30 June 2024 and a gain of £20 million in the year ending 30 June 2025 is expected to be recognised. In respect of hedges of foreign currency borrowings that are no longer applicable at 30 June 2023, a loss of £18 million (2022 – a loss of £19 million) was reported in reserves. There was no significant ineffectiveness on net investment and cash flow hedges during the year ended 30 June 2023. The £3,999 million (2022 – £4,444 million) notional value of hedged items in fair value hedges equals to the notional value of hedging instruments designated in these relationships at 30 June 2023 and the carrying amount of hedged items are included within borrowings in the consolidated balance sheet. For fair value hedges that are no longer applicable, the accumulated fair value changes shown on the consolidated balance sheet at 30 June 2023 was £nil (2022 – £1 million). The following table sets out information regarding the effectiveness of hedging relationships designated by the group, as well as the impacts on the income statement and other comprehensive income: At the beginning of the year Consolidated Income Consolidated statement of comprehensive income Other At the end 2023 Net investment hedges Derivatives in net investment hedges of foreign operations (1) — — 1 — Cash flow hedges Derivatives in cash f |
Net borrowings
Net borrowings | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |
Net borrowings | 17. Net borrowings 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. Bank overdrafts form an integral part of the group’s 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. 2023 £ million 2022 £ million Bank overdrafts 36 74 Commercial paper 198 — Bank and other loans 121 105 Credit support obligations 15 (19) $ 300 million 8% bonds due 2022 (1) — 248 $ 1,350 million 2.625% bonds due 2023 (2) — 1,115 € 600 million 0.125% bonds due 2023 513 — $ 500 million 3.5% bonds due 2023 (2) 397 — € 500 million 0.5% bonds due 2024 427 — Fair value adjustment to borrowings (6) (1) Borrowings due within one year 1,701 1,522 € 600 million 0.125% bonds due 2023 — 516 $ 500 million 3.5% bonds due 2023 (2) — 413 € 500 million 0.5% bonds due 2024 — 430 $ 600 million 2.125% bonds due 2024 (2) 476 495 € 500 million 1.75% bonds due 2024 427 430 $ 500 million 5.20% bonds due 2025 (2) 396 — $ 750 million 1.375% bonds due 2025 (2) 594 618 € 600 million 1% bonds due 2025 511 515 € 500 million 3.5% bonds due 2025 427 — € 850 million 2.375% bonds due 2026 725 731 £ 500 million 1.750% bonds due 2026 497 498 $ 750 million 5.3% bonds due 2027 (2) 593 — € 750 million 1.875% bonds due 2027 638 643 € 500 million 1.5% bonds due 2027 426 430 € 700 million 0.125% bonds due 2028 595 600 $ 500 million 3.875% bonds due 2028 (2) 395 411 £ 300 million 2.375% bonds due 2028 298 298 $ 1,000 million 2.375% bonds due 2029 (2) 787 819 £ 300 million 2.875% bonds due 2029 299 298 € 750 million 1.15% bonds due 2029 640 645 $ 1,000 million 2% bonds due 2030 (2) 789 821 € 1,000 million 2.5% bonds due 2032 850 856 $ 750 million 2.125% bonds due 2032 (2) 590 614 £ 400 million 1.25% bonds due 2033 396 395 $ 750 million 5.5% bonds due 2033 (2) 590 — € 900 million 1.15% bonds due 2034 764 770 $ 400 million 7.45% bonds due 2035 (1) 317 331 $ 600 million 5.875% bonds due 2036 (2) 472 491 £ 600 million 2.75% bonds due 2038 595 595 $ 500 million 4.250% bonds due 2042 (1) 393 409 $ 500 million 3.875% bonds due 2043 (2) 391 407 Bank and other loans 296 293 Fair value adjustment to borrowings (366) (274) Borrowings due after one year 14,801 14,498 Total borrowings before derivative financial instruments 16,502 16,020 Fair value of cross currency interest rate swaps (348) (367) Fair value of foreign currency swaps and forwards 1 11 Fair value of interest rate hedging instruments 377 283 Lease liabilities 448 475 Gross borrowings 16,980 16,422 Less: Cash and cash equivalents (1,439) (2,285) Net borrowings 15,541 14,137 (1) SEC-registered debt issued on an unsecured basis by Diageo Investment Corporation, a 100% owned finance subsidiary of Diageo plc and fully and unconditionally guaranteed by Diageo plc. No other subsidiary of Diageo plc guarantees the security. (2) SEC-registered debt issued on an unsecured basis by Diageo Capital plc, a 100% owned finance subsidiary of Diageo plc and fully and unconditionally guaranteed by Diageo plc. No other subsidiary of Diageo plc guarantees the security. (i) The interest rates shown are those contracted on the underlying borrowings before taking into account any interest rate hedges (see note 16). (ii) Bonds are stated net of unamortised finance costs of £81 million (2022 – £85 million). (iii) All bonds, medium-term notes and commercial paper issued on an unsecured basis by the group’s 100% owned subsidiaries are fully and unconditionally guaranteed on an unsecured basis by Diageo plc and no other subsidiary of Diageo plc guarantees such securities. Gross borrowings before derivative financial instruments are expected to mature as follows: 2023 £ million 2022 £ million Within one year 1,701 1,522 Between one and three years 3,522 2,817 Between three and five years 2,874 2,625 Beyond five years 8,405 9,056 16,502 16,020 During the year, the following bonds were issued and repaid: 2023 £ million 2022 £ million 2021 £ million Issued € denominated 441 1,371 636 £ denominated — 892 395 $ denominated 1,788 — — Repaid € denominated — (769) (696) $ denominated (1,340) (752) (551) 889 742 (216) (a) Reconciliation of movement in net borrowings 2023 £ million 2022 £ million At beginning of the year 14,137 12,109 Net decrease in cash and cash equivalents before exchange 581 665 Net increase in bonds and other borrowings (1) 950 825 Increase in net borrowings from cash flows 1,531 1,490 Exchange differences on net borrowings (159) 334 Other non-cash items (2) 32 204 Net borrowings at end of the year 15,541 14,137 (1) In the year ended 30 June 2023, net increase in bonds and other borrowings excludes £2 million cash outflow in respect of derivatives designated in forward point hedges (2022 – £4 million). (2) In the year ended 30 June 2023, other non-cash items are principally in respect of fair value changes of cross currency interest rate swaps and interest rate swaps of £(34) million and lease liabilities of £(82) million, partially offset by the £84 million fair value change of borrowings. In the year ended 30 June 2022, other non-cash items are principally in respect of fair value changes of cross currency interest rate swaps and interest rate swaps of £(346) million and lease liabilities of £(183) million, partially offset by the £331 million fair value change of borrowings. (b) Analysis of net borrowings by currency 2023 2022 Cash and cash Gross (1) Cash and cash Gross (1) US dollar 542 (5,751) 1,315 (3,260) Euro (2) 48 (3,864) 61 (2,943) Sterling 46 (6,227) 67 (9,214) Indian rupee 123 (31) 26 (74) Mexican peso 25 (286) 14 (264) Hungarian forint 3 (261) 2 (214) Kenyan shilling 28 (253) 53 (254) Chinese yuan 199 (63) 290 (75) Nigerian naira 83 — 133 — Other (2) 342 (244) 324 (124) Total 1,439 (16,980) 2,285 (16,422) (1) Includes foreign currency forwards and swaps and leases. (2) Includes £21 million (Euro) cash and cash equivalents in cash-pooling arrangements (2022 – £23 million (Turkish lira and Euro)). |
Equity
Equity | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of reserves within equity [abstract] | |
Equity | 18. Equity 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. Cancellations of share options are treated as an acceleration of the vesting period and any outstanding charge is recognised in operating profit immediately. Any surplus or deficit arising on the sale of the Diageo plc shares held by the group is included as a movement in equity. Dividends are recognised in the financial statements in the year in which they are approved. (a) Allotted and fully paid share capital – ordinary shares of 28 101 ⁄ 108 pence each Number of shares Nominal value At 30 June 2023 2,460 712 At 30 June 2022 2,498 723 At 30 June 2021 2,559 741 (b) Hedging and exchange reserve Hedging Exchange Total At 30 June 2020 93 (1,022) (929) Other comprehensive income/(loss) 20 (672) (652) At 30 June 2021 113 (1,694) (1,581) Other comprehensive (loss)/income (87) 622 535 At 30 June 2022 26 (1,072) (1,046) Other comprehensive income/(loss) 216 (540) (324) At 30 June 2023 242 (1,612) (1,370) Currency basis spreads included in the hedging reserve represent the cost of hedging arising as a result of imperfections of foreign exchange markets. Exclusion of currency basis spreads would result in a £20 million credit (2022 – £22 million credit, 2021 – £22 million credit) to the hedging reserve. (c) Own shares Movements in own shares Number Purchase At 30 June 2020 227 1,936 Share trust arrangements (1) (11) Shares used to satisfy options (3) (48) Shares purchased - share buyback programme 3 109 Shares cancelled (3) (109) At 30 June 2021 223 1,877 Share trust arrangements (2) (23) Shares used to satisfy options (2) (16) Shares purchased - share buyback programme 61 2,284 Shares cancelled (61) (2,284) At 30 June 2022 219 1,838 Share trust arrangements (1) (12) Shares used to satisfy options (2) (12) Shares purchased - share buyback programme 38 1,381 Shares cancelled (38) (1,381) At 30 June 2023 216 1,814 Share trust arrangements At 30 June 2023, the employee share trusts owned 3 million of ordinary shares in Diageo plc (the company) at a cost of £52 million and market value of £101 million (2022 – 2 million shares at a cost of £25 million, market value £63 million; 2021 – 2 million shares at a cost of £47 million, market value £74 million). Dividends receivable by the employee share trusts on the shares are waived and the trustee abstains from voting. Purchase of own shares Authorisation was given by shareholders on 6 October 2022 to purchase a maximum of 227,870,414 ordinary shares at a minimum price of 28 101 /108 pence and a maximum price of the higher of (a) 105% of the average market value of the company's ordinary shares for the five business days prior to the day the purchase is made and (b) the higher of the price of the last independent trade and the highest current independent bid on the trading venue where the purchase is carried out. The programme expires at the conclusion of the next Annual General Meeting or on 5 January 2024 , if earlier. Diageo completed a total of £1.4 billion return of capital for the year ended 30 June 2023, which included £0.9 billion related to the successful completion of Diageo’s previous share buyback programme in which £4.5 billion of capital was returned to shareholders finalised in February 2023, and returned an additional £0.5 billion of capital to shareholders which was announced as a new share buyback programme on 16 February 2023 and completed on 2 June 2023. During the year ended 30 June 2023, the group purchased 38 million ordinary shares (2022 – 61 million; 2021 – 3 million), representing approximately 1.5% of the issued ordinary share capital (2022 – 2.4%; 2021 – 0.1%) at an average price of 3616 pence per share, and an aggregate cost of £1,381 million (including £13 million of transaction costs) (2022 – 3709 pence per share, and an aggregate cost of £2,284 million, including £16 million of transaction costs; 2021 – 3407 pence per share, and an aggregate cost of £109 million, including £1 million of transaction costs) under the share buyback programme. The shares purchased under the share buyback programmes were cancelled. The monthly breakdown of all shares purchased and the average price paid per share (excluding expenses) for the year ended 30 June 2023 were as follows: Period Number of shares Total number of Average price paid pence Authorised purchases unutilised at month end July 2022 1,660,507 1,660,507 3567 177,756,956 August 2022 1,646,883 1,646,883 3820 176,110,073 September 2022 2,273,226 2,273,226 3744 173,836,847 1-6 October 2022 131,864 131,864 3702 173,704,983 7-31 October 2022 (1) — — — 227,870,414 November 2022 4,497,414 4,497,414 3679 223,373,000 December 2022 4,571,923 4,571,923 3710 218,801,077 January 2023 7,989,915 7,989,915 3558 210,811,162 February 2023 1,718,877 1,718,877 3577 209,092,285 March 2023 4,353,777 4,353,777 3541 204,738,508 April 2023 2,883,950 2,883,950 3672 201,854,558 May 2023 5,196,558 5,196,558 3534 196,658,000 June 2023 410,562 410,562 3348 196,247,438 Total 37,335,456 37,335,456 3617 196,247,438 (1) New maximum number of purchasable shares was authorised by shareholders at the AGM held on 6 October 2022. (d) Dividends 2023 2022 2021 £ million £ million £ million Amounts recognised as distributions to equity shareholders in the year Final dividend for the year ended 30 June 2022 46.82 pence per share (2021 – 44.59 pence; 2020 – 42.47 pence) 1,066 1,040 992 Interim dividend for the year ended 30 June 2023 30.83 pence per share (2022 – 29.36 pence; 2021 – 27.96 pence) 696 680 654 1,762 1,720 1,646 The proposed final dividend of £1,113 million (49.17 pence per share) for the year ended 30 June 2023 was approved by a duly authorised committee of the Board of Directors on 31 July 2023. As this was after the balance sheet date and the dividend is subject to approval by shareholders at the Annual General Meeting, this dividend has not been included as a liability in these consolidated financial statements. There are no corporate tax consequences arising from this treatment. Dividends are waived on all treasury shares owned by the company and all shares owned by the employee share trusts. (e) Non-controlling interests Diageo consolidates USL, a company incorporated in India, with a 42.79% non-controlling interest, Sichuan Shuijingfang Company Limited, a company incorporated in China, with a 36.83% non-controlling interest and has a 50% controlling interest in Ketel One Worldwide B.V. (Ketel One), a company incorporated in the Netherlands. Summarised financial information for USL and other subsidiaries, after fair value adjustments on acquisition, and the amounts attributable to non-controlling interests are as follows: 2023 2022 2021 USL Others Total Total Total Income statement Sales 2,713 2,628 5,341 5,797 5,140 Net sales 1,087 2,051 3,138 3,055 2,553 (Loss)/profit for the year (1) (215) 289 74 227 298 Other comprehensive (loss)/income (2) (133) (154) (287) 333 (434) Total comprehensive (loss)/income (348) 135 (213) 560 (136) Attributable to non-controlling interests (149) 33 (116) 259 (35) Balance sheet Non-current assets (3) 1,074 3,175 4,249 5,017 4,669 Current assets 790 1,049 1,839 2,002 1,492 Non-current liabilities (151) (1,164) (1,315) (1,499) (1,356) Current liabilities (384) (1,035) (1,419) (1,646) (1,335) Net assets 1,329 2,025 3,354 3,874 3,470 Attributable to non-controlling interests 568 902 1,470 1,716 1,534 Cash flow Net cash inflow from operating activities 120 383 503 690 661 Net cash inflow/(outflow) from investing activities 34 (231) (197) (289) (137) Net cash outflow from financing activities (48) (93) (141) (322) (371) Net increase in cash and cash equivalents 106 59 165 79 153 Exchange differences (7) (77) (84) 52 (19) Dividends payable to non-controlling interests — (97) (97) (72) (72) (1) (Loss)/profit for the year includes exceptional operating expenses attributable to non-controlling interests. (2) Other comprehensive (loss)/income is principally in respect of exchange on translating the subsidiaries to sterling. (3) Non-current assets include the global distribution rights to distribute Ketel One vodka products throughout the world. The carrying value of the distribution rights at 30 June 2023 was £1,428 million (2022 – £1,488 million; 2021 – £1,295 million). (i) On 31 December 2022, United Spirits Limited (USL) completed the merger with its subsidiary, Pioneer Distilleries Limited (PDL) 75% owned by USL. Under the terms, PDL's minority shareholders received additional shares in USL in exchange for their 25% interest in PDL and non-controlling interest increased from 42.73% to 42.79%. (ii) On 24 March 2023, Diageo completed the purchase of an additional 14.97% of the share capital of EABL. This increased Diageo’s controlling shareholding position in EABL from 50.03% to 65.00% . (f) Employee share compensation The group uses a number of share award and option plans to grant to its directors and employees. The annual fair value charge in respect of the equity settled plans for the three years ended 30 June 2023 is as follows: 2023 £ million 2022 £ million 2021 £ million Executive share award plans 41 51 41 Executive share option plans 4 4 4 Savings plans 4 4 4 49 59 49 Executive share awards have been made primarily under the Diageo 2014 Long Term Incentive Plan (DLTIP) from September 2014 onwards and delivered in conditional awards in the form of performance shares, performance share options, time-vesting restricted stock units (RSUs) and/or time-vesting share options (or cash-based equivalents in certain locations for regulatory reasons). Share options are granted at the market value at the time of grant. Prior to the introduction of the DLTIP, employees in associated companies were granted awards under the Diageo plc 2011 Associated Companies Share Incentive Plan (DACSIP). In the case of Executive Directors, conditional awards of time-vesting RSUs or forfeitable shares may be awarded under the 2020 Deferred Bonus Share Plan (DBSP), with vesting not subject to any performance conditions and not subject to a post-vesting retention period. The DLTIP plan rules will be presented for renewal at the AGM in September 2023 and any future awards made post approval will be made under the new plan rules. Share awards normally vest and are released on the third anniversary of the grant date. Participants do not make a payment to receive the award at grant. Executive Directors are required to hold any vested shares awarded under DLTIP for a further two-year post-vesting holding period. Share options may normally be exercised between three and ten years after the grant date. Executives in North America and Latin America and Caribbean are granted awards over the company’s ADRs (one ADR is equivalent to four ordinary shares). Performance shares under the DLTIP (for awards in 2020 and thereafter) are subject to the achievement of three performance measures: 1) compound annual growth in profit before exceptional items over three years; 2) compound annual growth in organic net sales over three years; 3) environmental, social and governance (ESG) priorities, weighted 40% , 40% and 20% of the maximum respectively, as set out in the Directors’ remuneration report. Performance share options under the DLTIP are subject to the achievement of two equally weighted performance measures: 1) a comparison of Diageo’s three-year TSR with a peer group; 2) cumulative free cash flow over a three-year period, measured at constant exchange rates. Performance measures and targets are set annually by the Remuneration Committee. The vesting range is 20% for Executive Directors and 25% for other participants for achieving minimum performance targets, up to 100% for achieving the maximum target level. Retesting of the performance measures is not permitted. For performance shares under the DLTIP, dividends are accrued on awards and are given to participants to the extent that the awards actually vest at the end of the performance period. Dividends are normally paid out in the form of shares. Savings plans are provided in the form of a savings-related share option plan. For UK employees, awards were made under the Diageo 2010 Sharesave plan (for options granted up until 2020) and the Diageo 2020 Sharesave plan (for options granted from 2021). For Republic of Ireland (ROI) based employees, awards were made under the Diageo 2009 Irish Sharesave Scheme (for options granted up until 2019) and the Diageo 2019 Irish Sharesave Scheme (for options granted in 2020). These are HMRC and Irish Revenue approved all-employee savings plans. For ROI employees, grants from 2021 and 2022 were made under the Diageo 2020 Sharesave plan which is not an approved plan in the Republic of Ireland. These plans are made available to UK and ROI employees who are employed on the annual results announcement date. Participants can save monthly, with deductions taken directly from net pay, for a period of 3 or 5 years.In return, employees are granted the option to buy Diageo shares using the savings accrued at the end of the relevant savings period and at a 20% discounted option price, which is set at the time of grant. Provided participants fulfil the terms set out within the relevant UK or ROI tax approved scheme rules, any gains from the option exercise are free from UK or ROI income tax. For the ROI Sharesave awards granted in 2021 and 2022, as these are not made under a Revenue tax approved plan, the gains from the option exercise are subject to ROI income tax. For US employees, the awards are made under the Diageo plc 2017 United States Employee Stock Purchase Plan. Employees agree to make regular monthly savings for a period of one year and acquire American Depositary Receipts (ADRs) at 15% discounted price (which is set at the time of grant) using their contributions at the end of the plan cycle. They receive the benefit of tax relief if certain conditions are satisfied. For the three years ended 30 June 2023, the calculation of the fair value of each share award used the Monte Carlo and Black Scholes pricing model and the following assumptions: 2023 2022 2021 Risk free interest rate 3.1 % 0.4 % (0.1 %) Expected life of the awards 35 months 40 months 36 months Dividend yield 2.0 % 2.1 % 2.7 % Weighted average share price 3758 p 3545 p 2557 p Weighted average fair value of awards granted in the year 1992 p 2729 p 2107 p Number of awards granted in the year 1.7 million 2.1 million 2.1 million Fair value of all awards granted in the year £34 million £57 million £45 million Transactions on schemes Transactions on the executive share award plans for the three years ended 30 June 2023 were as follows: 2023 2022 2021 Number of awards outstanding at 1 July 5.2 5.3 5.6 Granted 1.7 2.1 2.1 Awarded (1.1) (1.1) (1.2) Forfeited (0.9) (1.1) (1.2) Number of awards outstanding at 30 June 4.9 5.2 5.3 The exercise price of share options outstanding at 30 June 2023 was in the range of 1709 pence - 3864 pence (2022 – 1704 pence - 4024 pence; 2021 – 1232 pence - 3483 pence). At 30 June 2023, 2.5 million share options were exercisable at a weighted average exercise price of 2443 pence. Weighted average remaining contractual life of share options was five years at 30 June 2023. |
Contingent liabilities and lega
Contingent liabilities and legal proceedings | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of contingent liabilities [abstract] | |
Contingent liabilities and legal proceedings | 19. Contingent liabilities and legal proceedings 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. (a) Guarantees and related matters As of 30 June 2023 , the group has no material unprovided guarantees or indemnities in respect of liabilities of third parties. (b) Acquisition of USL shares from UBHL and related proceedings in relation to the USL transaction On 4 July 2013 , Diageo completed its acquisition, under a share purchase agreement with United Breweries (Holdings) Limited (UBHL) and various other sellers (the SPA), of shares representing 14.98% in USL, including shares representing 6.98% from UBHL. The SPA was signed on 9 November 2012 as part of the transaction announced by Diageo in relation to USL on that day (the Original USL Transaction). Following a series of further transactions, as of 30 June 2023 , Diageo has a 55.88% investment in USL (excluding 2.38% owned by the USL Benefit Trust). Prior to the acquisition from UBHL on 4 July 2013 , the High Court of Karnataka (High Court) had granted leave to UBHL under the Indian Companies Act 1956 (the Leave Order) to enable the sale by UBHL to Diageo to take place (the UBHL Share Sale) notwithstanding the continued existence of certain winding-up petitions that were pending against UBHL on the date of the SPA. At the time of the completion of the UBHL Share Sale, the Leave Order remained subject to review on appeal. However, as stated by Diageo at the time of closing, it was considered unlikely that any appeal process in respect of the Leave Order would definitively conclude on a timely basis and, accordingly, Diageo waived the conditionality under the SPA relating to the absence of insolvency proceedings in relation to UBHL and acquired the 6.98% stake in USL from UBHL at that time. Following appeal and counter-appeal in respect of the Leave Order, this matter is now before the Supreme Court of India which has issued an order that the status quo be maintained with regard to the UBHL Share Sale pending a hearing on the matter before it. Following a number of adjournments, the next date for a substantive hearing is yet to be fixed. In separate proceedings, the High Court passed a winding-up order against UBHL on 7 February 2017 , and appeals filed by UBHL against that order have since been dismissed, initially by a division bench of the High Court and subsequently by the Supreme Court of India. Diageo continues to believe that the acquisition price of INR 1,440 per share paid to UBHL for the USL shares is fair and reasonable as regards UBHL, UBHL’s shareholders and UBHL’s secured and unsecured creditors. However, adverse results for Diageo in the proceedings referred to above could, absent leave or relief in other proceedings, ultimately result in Diageo losing title to the 6.98% stake in USL acquired from UBHL. Diageo believes, including by reason of its rights under USL’s articles of association to nominate USL’s CEO and CFO and the right to appoint, through USL, a majority of the directors on the boards of USL’s subsidiaries as well as its ability as promoter to nominate for appointment up to two-thirds of USL’s directors for so long as the chairperson of USL is an independent director, that it would remain in control of USL and would continue to be able to consolidate USL as a subsidiary for accounting purposes regardless of the outcome of this litigation. There can be no certainty as to the outcome of the existing or any further related legal proceedings or the time frame within which they would be concluded. (c) Continuing matters relating to Dr Vijay Mallya and affiliates On 25 February 2016 , Diageo and USL each announced that they had entered into arrangements with Dr Mallya under which he had agreed to resign from his position as a director and as chairman of USL and from his positions in USL’s subsidiaries. Diageo’s agreement with Dr Mallya (the February 2016 Agreement) provided for a payment of $75 million ( £60 million) to Dr Mallya over a five-year period of which $40 million ( £32 million ) was paid on signing of the February 2016 Agreement with the balance being payable in equal instalments of $7 million ( £6 million ) a year over five years (2017-2021). All payments were subject to and conditional on Dr Mallya’s compliance with the agreement. The February 2016 Agreement also provided for the release of Dr Mallya’s personal obligations to indemnify Diageo Holdings Netherlands B.V. (DHN) in respect of its earlier liability ( $141 million ( £112 million )) under a backstop guarantee of certain borrowings of Watson Limited (Watson) (a company affiliated with Dr Mallya). On account of various breaches and other provisions of agreements between Dr Mallya and persons connected with him and Diageo and/or USL, Diageo did not make the five instalment payments due during the five -year period between 2017 and 2021. In addition, Diageo has also demanded that Dr Mallya repay the $40 million ( £32 million ) paid by Diageo in February 2016 and sought compensation for various losses incurred by the relevant members of the Diageo group. On 16 November 2017 , Diageo and other relevant members of the Diageo group commenced claims in the High Court of Justice in England and Wales (the English High Court) against Dr Mallya in relation to these matters. At the same time DHN also commenced claims in the English High Court against Dr Mallya, his son Sidhartha Mallya, Watson and Continental Administration Services Limited (CASL) (a company affiliated with Dr Mallya and understood to hold assets on trust for him and certain persons affiliated with him) for in excess of $142 million ( £113 million ) (plus interest) in relation to Watson’s liability to DHN in respect of its borrowings referred to above and the breach of associated security documents. Dr Mallya, Sidhartha Mallya and the relevant affiliated companies filed a defence to these claims, and Dr Mallya also filed a counterclaim for payment of the two instalment payments that had by that time been withheld as described above. Diageo continues to prosecute its claims and to defend the counterclaim. As part of these proceedings, Diageo and the other relevant members of its group filed an application for strike out and/or summary judgement in respect of certain aspects of the defence filed by Dr Mallya and the other defendants, including their defence in relation to Watson and CASL’s liability to repay DHN. The application was successful resulting in Watson being ordered to pay approximately $135 million (£107 million) plus various amounts in respect of interest to DHN, with CASL being held liable as co-surety for 50% of any such amount unpaid by Watson. These amounts were, contrary to the relevant orders, not paid by the relevant deadlines and Watson and CASL’s remaining defences in the proceedings were struck out. Diageo and DHN have accordingly sought asset disclosure and are considering further enforcement steps against Watson and CASL, both in the United Kingdom and in other jurisdictions where they are present or hold assets. A trial of the remaining elements of these claims was due to commence on 21 November 2022. However, on 26 July 2021 Dr Mallya was declared bankrupt by the English High Court pursuant to a bankruptcy petition presented by a consortium of Indian banks. Diageo and the relevant members of its group have informed the Trustee in Bankruptcy of their position as creditors in the bankruptcy and have engaged with the Trustee regarding their claims and the status of the current proceedings. An appeal by Dr Mallya against his bankruptcy (and an appeal by the bank consortium against orders made in the course of the bankruptcy proceedings) are pending. In light of the uncertainty posed by the ongoing bankruptcy proceedings, the trial of Diageo’s claim was initially relisted to take place in February 202 4. However, Dr Mallya’s appeal against his bankruptcy and the banks’ cross appeal will not now be heard until April 2024, and thus the trial of Diageo’s claim has been deferred from February 2024 until after those appeals have been determined. At this stage, it is not possible to assess the extent to which the various ongoing proceedings related to the bankruptcy will affect the remaining elements of the claims by Diageo and the relevant members of its group. Upon completion of an initial inquiry in April 2015 into past improper transactions which identified references to certain additional parties and matters, USL carried out an additional inquiry into these transactions (Additional Inquiry) which was completed in July 2016. The Additional Inquiry, prima facie, identified transactions indicating actual and potential diversion of funds from USL and its Indian and overseas subsidiaries to, in most cases, entities that appeared to be affiliated or associated with Dr Mallya. All amounts identified in the Additional Inquiry have been provided for or expensed in the financial statements of USL or its subsidiaries in the respective prior periods. USL has filed recovery suits against relevant parities identified pursuant to the Additional Inquiry. Further, at this stage, it is not possible for the management of USL to estimate the financial impact on USL, if any, arising out of potential non-compliance with applicable laws in relation to such fund diversions. (d) Other matters in relation to USL In respect of the Watson backstop guarantee arrangements, the Securities and Exchange Board of India (SEBI) issued a notice to Diageo on 16 June 2016 that if there is any net liability incurred by Diageo (after any recovery under relevant security or other arrangements, which matters remain pending) on account of the Watson backstop guarantee, such liability, if any, would be considered to be part of the price paid for the acquisition of USL shares under the SPA which formed part of the Original USL Transaction and that, in that case, additional equivalent payments would be required to be made to those shareholders (representing 0.04% of the shares in USL) who tendered in the open offer made as part of the Original USL Transaction. Diageo believes that the Watson backstop guarantee arrangements were not part of the price paid or agreed to be paid for any USL shares under the Original USL Transaction and that therefore SEBI's decision was not consistent with applicable law, and Diageo appealed against it before the Securities Appellate Tribunal, Mumbai (SAT). On 1 November 2017, SAT issued an order in respect of Diageo’s appeal in which, amongst other things, it observed that the relevant officer at SEBI had neither considered Diageo’s earlier reply nor provided Diageo with an opportunity to be heard, and accordingly directed SEBI to pass a fresh order after giving Diageo an opportunity to be heard. Following SAT’s order, Diageo made its further submissions in the matter, including at a personal hearing before a Deputy General Manager of SEBI. On 26 June 2019, SEBI issued an order reiterating the directions contained in its previous notice dated 16 June 2016. A s with the previous SEBI notice, Diageo believes that SEBI's latest order is not consistent with applicable law. Diageo appealed against this order before SAT and, after a hearing in March 2023, SAT allowed Diageo’s appeal on 26 July 2023. Accordingly, SEBI’s order dated 26 June 2019 stands quashed. Under applicable law, SEBI is entitled to file an appeal against SAT’s order before the Supreme Court of India. Therefore, pending any appeal which may be filed by SEBI, there can be no certainty as to its outcome or the timeframe within which any such appeal would be concluded. (e) USL’s dispute with IDBI Bank Limited Prior to the acquisition by Diageo of a controlling interest in USL, USL had prepaid a term loan of INR 6,280 million (£60 million ) taken through IDBI Bank Limited (IDBI), an Indian bank, which was secured on certain fixed assets and brands of USL, as well as by a pledge of certain shares in USL held by the USL Benefit Trust (of which USL is the sole beneficiary). The maturity date of the loan was 31 March 2015. IDBI disputed the prepayment, following which USL filed a writ petition in November 2013 before the High Court of Karnataka (the High Court) challenging the bank’s actions. Following the original maturity date of the loan, USL received notices from IDBI seeking to recall the loan, demanding a further sum of INR 459 million ( £4 million ) on account of the outstanding principal, accrued interest and other amounts, and also threatening to enforce the security in the event that USL did not make these further payments. Pursuant to an application filed by USL before the High Court in the writ proceedings, the High Court directed that, subject to USL depositing such further amount with the bank (which amount was duly deposited by USL), the bank should hold the amount in a suspense account and not deal with any of the secured assets including the shares until disposal of the original writ petition filed by USL before the High Court. On 27 June 2019, a single judge bench of the High Court issued an order dismissing the writ petition filed by USL, amongst other things, on the basis that the matter involved an issue of breach of contract by USL and was therefore not maintainable in exercise of the court’s writ jurisdiction. USL filed an appeal against this order before a division bench of the High Court, which on 30 July 2019 issued an interim order directing the bank to not deal with any of the secured assets until the next date of hearing. On 13 January 2020, the division bench of the High Court admitted the writ appeal and extended the interim stay. This appeal is currently pending. Based on the assessment of USL’s management supported by external legal opinions, USL continues to believe that it has a strong case on the merits and therefore continues to believe that the secured assets will be released to USL and the aforesaid amount of INR 459 million ( £4 million ) remains recoverable from IDBI. (f) Tax The international tax environment has seen increased scrutiny and rapid change over recent years bringing with it greater uncertainty for multinationals. Against this backdrop, Diageo has been monitoring developments and continues to engage transparently with the tax authorities in the countries where Diageo operates to ensure that the group manages its arrangements on a sustainable basis. The group operates in a large number of markets with complex tax and legislative regimes that are open to subjective interpretation, and for which tax audits can take several years to resolve. In the context of these operations, it is possible that tax exposures which have not yet materialised (including those which could arise as a result of tax assessments) may result in losses to the group. In the circumstances where tax authorities have raised assessments, challenging interpretations which may lead to a possible material outflow, these have been included as contingent liabilities. Where the potential tax exposures are known to us and have not been assessed, the group considers disclosure of such matters taking into account their size and nature, relevant regulatory requirements and potential prejudice of the future resolution or assessment thereof. Diageo has a large number of ongoing tax cases in Brazil and India. Since assessing an accurate value of contingent liabilities in these markets requires a high degree of judgement, contingent liabilities are disclosed on the basis of the current known possible exposure from tax assessment values. While not all of these cases are individually significant, the current aggregate known possible exposure from tax assessment values is up to approximately £616 million for Brazil and up to approximately £90 million for India. The group believes that the likelihood that the tax authorities will ultimately prevail is lower than probable but higher than remote. Due to the fiscal environment in Brazil and in India, the possibility of further tax assessments related to the same matters cannot be ruled out and the judicial processes may take extended periods to conclude. Based on its current assessment, Diageo believes that no provision is required in respect of these issues. Payments were made under protest in India in respect of the periods 1 April 2006 to 31 March 2019 in relation to tax assessments where the risk is considered to be remote or possible. These payments have to be made in order to be able to challenge the assessments and as such have been recognised as a receivable in the group's balance sheet. The total amount of payments under protest recognised as a receivable as at 30 June 2023 is £116 million (corporate tax payments of £104 million and indirect tax payments of £12 million). (g) Other disputes On 31 May 2023, a complaint against Diageo North America, Inc (DNA) was filed in the Supreme Court of New York by Combs Wine and Spirits LLC (an entity associated with Mr Sean Combs) alleging, inter alia, breach of contract in respect of a joint venture agreement related to DeLeón tequila. DNA has also served notice of material breaches and termination to Mr Combs and his relevant associated entities of certain agreements related to services provided by Mr Combs and these entities in respect of Cîroc, and notice of material breaches and an intent to arbitrate in respect of the DeLeón joint venture agreement. Diageo categorically denies the allegations that have been made by Mr Combs and his associated parties in the complaint and will defend itself vigorously. Diageo will refrain from making any further disclosures given the inherent uncertainties of these matters and the prejudicial nature any such disclosures may have on the potential outcomes related thereto or other associated matters. (h) Other The group has extensive international operations and routinely makes judgements on a range of legal, customs and tax matters which are incidental to the group's operations. Some of these judgements are or may become the subject of challenges and involve proceedings, the outcome of which cannot be foreseen. In particular, the group is currently a defendant in various customs proceedings that challenge the declared customs value of products imported by certain Diageo companies. Diageo continues to defend its position vigorously in these proceedings. Save as disclosed above, neither Diageo, nor any member of the Diageo group, is or has been engaged in, nor (so far as Diageo is aware) is there pending or threatened by or against it, any legal or arbitration proceedings which may have a significant effect on the financial position of the Diageo group. |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of Commitments [Abstract] | |
Commitments | 20. Commitments (a) Capital commitments Commitments for expenditure on intangibles and property, plant and equipment not provided for in these consolidated financial sta tements are estimated at £599 million (2022 – £399 million; 2021 – £263 million). (b) Other commitments The future minimum lease rentals payable in the year ended 30 June 2023 for short-term leases and leases of low-value assets are estimated at £36 million (2022 – £13 million; 2021 – £11 million). The total future cash outflows for leases that had not yet commenced, and not recognised as lease liabilities at 30 June 2023, are estimated at £11 million (2022 – £11 million; 2021 – £132 million). |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 21. Related party transactions Transactions between the group and its related parties are made on terms equivalent to those that prevail in arm’s length transactions. (a) Subsidiaries Transactions between the company and its subsidiaries are eliminated on consolidation and therefore are not disclosed. Details of the principal group companies are given in note 22. (b) Associates and joint ventures Sales and purchases to and from associates and joint ventures are principally in respect of premium drinks products but also include the provision of management services. Transactions and balances with associates and joint ventures are set out in the table below: 2023 £ million 2022 £ million 2021 £ million Income statement items Sales 10 11 8 Purchases 13 31 23 Balance sheet items Group payables 2 2 5 Group receivables 1 2 1 Loans payable — — 9 Loans receivable 197 175 108 Cash flow items Loans and equity contributions, net 93 66 38 Other disclosures in respect of associates and joint ventures are included in note 6. (c) Key management personnel The key management of the group comprises the Executive and Non-Executive Directors, the members of the Executive Committee and the Company Secretary. They are listed under ‘Board of Directors and Company Secretary’ and ‘Executive Committee’. 2023 2022 2021 £ million £ million £ million Salaries and short-term employee benefits 11 10 9 Annual incentive plan 6 13 13 Non-Executive Directors’ fees 1 1 1 Share-based payments (1) 12 19 12 Post employment benefits 2 2 1 Termination benefits — — 2 32 45 38 (1) Time-apportioned fair value of unvested options and share awards. Non-Executive Directors do not receive share-based payments or post employment benefits. (d) Pension plans In October 2022, Diageo plc provided an interim credit facility to Diageo Pension Trust Limited, consisting of £850 million for the Diageo Pension Scheme, to support temporary liquidity challenges until 29 December 2022. In December 2022, the maturity date was extended to 29 June 2023. The facility amount was reduced on 22 May 2023 to £350 million and on 14 June 2023 the maturity date was extended to 11 October 2023. The facility was subsequently cancelled on 25 July 2023. The Diageo pension plans are recharged with the cost of administration services provided by the group to the pension plans and with professional fees paid by the group on behalf of the pension plans. The total amount recharged for the year was £0.1 million (2022 – £0.1 million ; 2021 – £0.1 million). (e) Directors’ remuneration 2023 2022 2021 £ million £ million £ million Salaries and short-term employee benefits 3 3 2 Annual incentive plan 2 4 4 Non-Executive Directors' fees 1 1 1 Share option exercises (1) — 4 — Shares vesting (1) 4 3 1 Post employment benefits 1 — — 11 15 8 |
Principal group companies
Principal group companies | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of subsidiaries [abstract] | |
Principal group companies | 22. Principal group companies The companies listed below include those which principally affect the profits and assets of the group. The operating companies listed below may carry on the business described in the countries listed in conjunction with their subsidiaries and other group companies. 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 İçki Sanayi ve Ticaret A.Ş. Turkey Turkey 100% Production, marketing and distribution of premium drinks Associates Moët Hennessy, SAS (4) France France 34% Production, marketing and distribution of premium drinks (1) All percentages, unless otherwise stated, are in respect of holdings of ordinary share capital and are equivalent to the percentages of voting rights held by the group. (2) Percentage ownership excludes 2.38% owned by the USL Benefit Trust. (3) Directly owned by Diageo plc. |
Post balance sheet events
Post balance sheet events | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Post balance sheet events | 23. Post balance sheet events Starting 1 July 2023, in line with reporting requirements the functional currency of Diageo plc has changed from sterling to US dollar which is applied prospectively. This is because the group's share of net sales and expenses in the US and other countries whose currencies correlate closely with the US dollar has been increasing over the years, and that trend is expected to continue in line with the group's strategic focus. Diageo has also decided to change its presentation currency to US dollar with effect from 1 July 2023, applied retrospectively, as it believes that this change will provide better alignment of the reporting of performance with its business exposures. Diageo will propose adopting new Articles of Association (New Articles) at the AGM to be held on 28 September 2023 which reflects the change in the functional currency of Diageo plc and presentation currency of the group from sterling to US dollar. The New Articles shall, among other things, empower the Board to declare and/or pay dividends in any currency or currencies and enable the Board to make provisions for shareholders to receive dividends in a different currency to the currency in which dividends were declared. Subject to the approval of the New Articles by shareholders at the AGM and commencing with the interim dividend that is expected to be declared in January 2024, Diageo’s future dividends will be declared in US dollar. Holders of ordinary shares will continue to receive their dividends in sterling but will have the option to elect to receive it in US dollar. Holders of ADRs will continue to receive dividends in US dollar. On 31 July 2023, the Board approved plans for a further return of capital programme of $1.0 billion to shareholders. |
Accounting information and po_2
Accounting information and policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Basis of preparation | (a) Basis of preparation The consolidated financial statements are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRSs) adopted by the UK (UK-adopted International Accounting Standards) and IFRSs, as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. IFRS as adopted by the UK differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the group’s consolidated financial statements for the years presented. The consolidated financial statements are prepared on a going concern basis under the historical cost convention, unless stated otherwise in the relevant accounting policy. |
Going concern | (b) Going concern Management prepared cash flow forecasts which were also sensitised to reflect severe but plausible downside scenarios taking into consideration the group's principal risks. In the base case scenario, management included assumptions for mid-single digit net sales growth, operating margin improvement and global TBA market share growth. In light of the ongoing geopolitical volatility, the base case outlook and severe but plausible downside scenarios incorporated considerations for a prolonged global recession, supply chain disruptions, higher inflation and further geopolitical deterioration. Even under these scenarios, the group’s liquidity is still expected to remain strong, as it was protected by issuing €500 million of fixed rate euro and $2 billion of fixed rate dollar-denominated bonds in the year ended 30 June 2023. Mitigating actions, should they be required, are all within management’s control and could include reductions in discretionary spending such as acquisitions and capital expenditure, as well as a temporary suspension of the share buyback programme and dividend payments in the next 12 months, or drawdowns on committed facilities. Having considered the outcome of these assessments, the Directors are comfortable that the company is a going concern for at least 12 months from the date of signing the group's consolidated financial statements. |
Consolidation | (c) Consolidation The consolidated financial statements include the results of the company and its subsidiaries together with the group’s attributable share of the results of associates and joint ventures. A subsidiary is an entity controlled by Diageo plc. The group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Where the group has the ability to exercise joint control over an entity but has rights to specified assets and obligations for liabilities of that entity, the entity is included on the basis of the group’s rights over those assets and liabilities. |
Foreign currencies | (d) Foreign currencies Items included in the financial statements of the group’s subsidiaries, associates and joint ventures are measured using the currency of the primary economic environment in which each entity operates (its functional currency). The consolidated financial statements are presented in sterling, which is the functional currency of the parent company, Diageo plc. The functional currency of Diageo plc is determined by using management judgement that considers the parent company as an extension of its subsidiaries. The income statements and cash flows of non-sterling entities are translated into sterling at weighted average rates of exchange, except for subsidiaries in hyperinflationary economies that are translated with the closing rate at the end of the year and for substantial transactions that are translated at the rate on the date of the transaction. Exchange differences arising on the retranslation to closing rates are taken to the exchange reserve. Assets and liabilities are translated at closing rates. Exchange differences arising on the retranslation at closing rates of the opening balance sheets of overseas entities are taken to the exchange reserve, as are exchange differences arising on foreign currency borrowings and financial instruments designated as net investment hedges, to the extent that they are effective. Tax charges and credits arising on such items are also taken to the exchange reserve. Gains and losses accumulated in the exchange reserve are recycled to the |
Critical accounting estimates and judgements | (e) Critical accounting estimates and judgements Details of critical estimates and judgements which the Directors consider could have a significant impact on the financial statements are set out in the related notes as follows: – Exceptional items – management judgement whether exceptional or not – page 219 – Taxation – management judgement whether a provision is required and management estimate of amount of corporate tax payable or receivable, the recoverability of deferred tax assets and expectation on manner of recovery of deferred taxes – pages 224 and 228 – Brands, goodwill, other intangibles and contingent considerations – management judgement whether the assets and liabilities are to be recognised and synergies resulting from an acquisition. Management judgement and estimate are required in determining future cash flows and appropriate applicable assumptions to support the intangible asset and contingent consideration value – pages 236 – Post employment benefits – management judgement whether a surplus can be recovered and management estimate in determining the assumptions in calculating the liabilities of the funds – page 244 – Contingent liabilities and legal proceedings – management judgement in assessing the likelihood of whether a liability will arise and an estimate to quantify the possible range of any settlement; and significant unprovided tax matters where maximum exposure is provided for each – page 272 |
Hyperinflation | (f) Hyperinflationary accounting The group applied hyperinflationary accounting for its operations in Turkey, Venezuela and Lebanon. |
Adoption of new IFRS standards and amendments up to current year end | (g) New accounting standards and interpretations The following amendments to the accounting standards, issued by the IASB and endorsed by the UK, were adopted by the group from 1 July 2022 with no impact on the group’s consolidated results, financial position or disclosures: – Amendments to IFRS 3 Updating a Reference to the Conceptual Framework – Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 37 Onerous Contracts - Cost of Fulfilling a Contract – Amendments to Annual improvements 2018-2020 - IFRS 9 - Fees in the '10 per cent' Test, IFRS 16 - Lease incentives, IAS 41 - Taxation in Fair Value Measurements – Amendments to IAS 12 International Tax Reform – Pillar Two Model Rules |
New IFRS standards applicable in future years | The following standard and amendments issued by the IASB have been endorsed by the UK and have not been adopted by the group: IFRS 17 – Insurance contracts (effective from the year ending 30 June 2024) is ultimately intended to replace IFRS 4. Based on a preliminary assessment, the group believes that the adoption of IFRS 17 will not have a significant impact on its consolidated results or financial position. Amendments to IAS 12 - Income taxes (effective from the year ending 30 June 2024) requires an entity to recognise deferred tax on initial recognition of particular transactions to the extent that the transaction gives rise to equal amounts of deferred tax assets and liabilities. The proposed amendments would apply to transactions such as leases and decommissioning obligations for which an entity recognises both an asset and a liability. The group believes that the adoption of these amendments will not have a significant impact on its consolidated results and financial position. There are a number of other amendments and clarifications to IFRSs, effective in future years, which are not expected to significantly impact the group’s consolidated results or financial position. |
Climate Change Considerations | (h) Climate change considerations The impact of climate change assessment and the net zero carbon emission target for Diageo's direct operations (Scope 1 & 2) for 2030 have been considered as part of the assessment of estimates and judgements in preparing the group's consolidated financial statements. The climate change scenario analyses performed in 2023 – conducted in line with TCFD recommendations (‘Transition Scenario’ (RCP 2.6), a ‘Moderate Warming’ Scenario (RCP 4.5) and a ‘Severe Warming Scenario’ (RCP 8.5)) – identified no material financial impact to these financial statements. The following considerations were made in respect of the financial statements: • The impact of climate change on factors (like residual values, useful lives and depreciation methods) that determine the carrying value of non-current assets. • The impact of climate change on forecasts of cash flows used (including forecast depreciation in line with capital expenditure plans for Diageo's net zero carbon emission commitment) in impairment assessments for the value-in-use of non-current assets including goodwill (see note 9). • The impact of climate change on post-employment assets . |
Sales | 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 | 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 | 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 | Critical accounting judgements Exceptional items are those that in management’s judgement need to be disclosed separately. Such items are included within the income statement caption to which they relate. 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 considered to be material and unusual or non-recurring in nature 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 other material, unusual non-recurring items, that are 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. |
Finance income and charges | Net interest includes interest income and charges in respect of financial instruments and the results of hedging transactions used to manage interest rate risk. 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. 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 sterling. |
Investment in associates and joint ventures | 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’s 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’s operating profit. Associates and joint ventures are initially recorded at cost including transaction costs. 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’s share of the associate’s future cash flows and its fair value less costs of disposal. |
Taxation | 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. 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’s 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’s 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’s 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 |
Acquisition and sale of businesses and purchase of non-controlling interests | The consolidated financial statements include the results of the company and its subsidiaries together with the group’s 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’s 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, a judgement is made to determine whether it controls and therefore should fully consolidate the investee. An assessment is carried out to determine whether 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 the substantive and protective rights that the group and the other investors hold. This assessment is 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 judgement. 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. |
Intangible assets and goodwill | 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. 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. 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. 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’s 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. The below additional considerations have been applied by management regarding the potential financial impacts of increasing inflationary pressures, recently observable worldwide: – changes in the interest rate environment are taken into consideration when determining the discount rates; – terminal growth rates do not exceed the long-term annual inflation rate of the country or region, thus excluding any increased inflation growth experienced in the short-term; – additional sensitivity scenarios are applied for those markets or regions where the inflation and/or the exchange devaluation is considered significant based on management’s judgement. 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 2023 – conducted in line with TCFD recommendations (‘Transition Scenario’ (RCP 2.6), a ‘Moderate Warming’ Scenario (RCP 4.5) and a ‘Severe Warming Scenario (RCP 8.5)) – identified no material financial impact to the current year impairment assessments. |
Property, plant and equipment | 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 – 10 to 50 years; within plant and equipment casks and containers – 15 to 50 years; other plant and equipment – 5 to 40 years; fixtures and fittings – 5 to 10 years; and returnable bottles and crates – 5 to 10 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. |
Biological assets | Biological assets held by the group consist of agave (Agave Azul Tequilana Weber) plants. The harvested plants are used during the production of tequila. 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. Agricultural produce is measured at fair value less costs to sell at the point of harvest which is used as the cost of inventory when the harvested agave is transferred. |
Leases | Where the group is the lessee, all leases are recognised on the balance sheet as right-of-use assets 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. |
Other investments | 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 on a case by case basis. 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. |
Post employment benefits | The group’s 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’ assets and the present value of the plans’ 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. Critical accounting estimates and judgements Application of IAS 19 requires the exercise of estimate and judgement in relation to various assumptions. |
Inventories | 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. Cost is calculated at the weighted average cost incurred in acquiring inventories. Maturing inventories and raw materials which are retained for more than one year are classified as current assets, as they are expected to be realised in the normal operating cycle. |
Trade and other receivables | Trade and other receivables are initially recognised at fair value less transaction costs and subsequently carried at amortised cost less any allowance for discounts and doubtful debts. Trade receivables 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 | 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’s involvement in agreeing terms between banks and suppliers. |
Provisions | Provisions are liabilities of uncertain timing or amount. A provision 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. |
Financial instruments and risk management | 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 t rade 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. 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 a change in exchange or interest rates (cash flow hedges) and hedges of net investments in foreign operations (net investment hedges). The designated portion of the hedging instruments is 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 dollar offset, critical terms, regression analysis and hypothetical 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 hedge s 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. Net investment hedges take the form of either foreign currency borrowings or derivatives. 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 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. |
Borrowings | 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. Bank overdrafts form an integral part of the group’s 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. |
Own shares | 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 | 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. Cancellations of share options are treated as an acceleration of the vesting period and any outstanding charge is recognised in operating profit immediately. Any surplus or deficit arising on the sale of the Diageo plc shares held by the group is included as a movement in equity. |
Dividends | Dividends are recognised in the financial statements in the year in which they are approved. |
Contingent liabilities and legal proceedings | 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 |
Accounting information and po_3
Accounting information and policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Schedule of principal foreign exchange rates used in the translation of financial statements | The principal foreign exchange rates used in the translation of financial statements for the three years ended 30 June 2023, expressed in US dollars and euros per £1, were as follows: 2023 2022 2021 US dollar Income statement and cash flows (1) 1.20 1.33 1.35 Assets and liabilities (2) 1.26 1.21 1.39 Euro Income statement and cash flows (1) 1.15 1.18 1.13 Assets and liabilities (2) 1.17 1.16 1.17 (1) Weighted average rates |
Disclosure Of Venezuelan Operations Explanatory1 | The following table presents the contribution of the group’s Venezuelan operations to consolidated net sales, operating profit, operating cash flow and assets for the years ended 30 June 2023 and 30 June 2022 and with the amounts that would have resulted if the official reference exchange rate had been applied: Year ended 30 June 2023 Year ended 30 June 2022 At estimated exchange rate At official reference At estimated At official reference 3,807 VES/£ 36 VES/£ 759 VES/£ 7 VES/£ £ million £ million £ million £ million Net sales — 9 — 15 Operating loss — — (1) (1) Other finance (charges)/income - hyperinflation adjustment (2) (212) 1 157 Net cash outflow from operating activities — (3) — (5) Net assets 6 657 41 4,606 Sterling amounts presented at the official reference exchange rate are results of simple mathematical conversion. |
Segmental information (Tables)
Segmental information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of operating segments [abstract] | |
Schedule of segmental information for the consolidated income statement - continuing operations | (a) Segmental information for the consolidated income statement North America Europe Asia Latin America and Caribbean Africa SC&P Eliminate Total Corporate Total £ million £ million £ million £ million £ million £ million £ million £ million £ million £ million 2023 Sales 7,382 5,996 5,403 2,260 2,386 3,073 (3,073) 23,427 88 23,515 Net sales At budgeted exchange rates (1) 6,052 3,377 3,084 1,642 1,631 2,942 (2,876) 15,852 87 15,939 Acquisitions and disposals 20 20 35 3 104 — — 182 — 182 SC&P allocation 8 38 8 9 3 (66) — — — — Retranslation to actual exchange rates 678 (41) 73 145 (39) 197 (197) 816 1 817 Hyperinflation — 175 — — — — — 175 — 175 Net sales 6,758 3,569 3,200 1,799 1,699 3,073 (3,073) 17,025 88 17,113 Operating profit/(loss) At budgeted exchange rates (1) 2,337 1,076 886 597 347 (32) — 5,211 (292) 4,919 Acquisitions and disposals (18) (13) 5 — 27 — — 1 (6) (5) SC&P allocation 3 (24) (6) (3) (2) 32 — — — — Fair value remeasurements 87 25 — 1 — — — 113 — 113 Retranslation to actual exchange rates 280 18 20 66 (152) — — 232 (28) 204 Hyperinflation — 23 — — — — — 23 — 23 Operating profit/(loss) before exceptional items 2,689 1,105 905 661 220 — — 5,580 (326) 5,254 Exceptional operating items (97) (8) (473) — (44) — — (622) — (622) Operating profit/(loss) 2,592 1,097 432 661 176 — — 4,958 (326) 4,632 Non-operating items 328 Net finance charges (594) Share of after tax results of associates and joint ventures 370 Profit before taxation 4,736 North America Europe Asia Latin America and Caribbean Africa SC&P Eliminate Total Corporate Total £ million £ million £ million £ million £ million £ million £ million £ million £ million £ million 2022 Sales 6,682 5,740 5,624 1,945 2,403 2,010 (2,010) 22,394 54 22,448 Net sales At budgeted exchange rates (1) 5,955 3,258 2,879 1,486 1,699 2,095 (2,016) 15,356 55 15,411 Acquisitions and disposals 34 23 — 3 15 — — 75 — 75 SC&P allocation 9 46 9 12 3 (79) — — — — Retranslation to actual exchange rates 97 (304) (4) 24 (35) (6) 6 (222) (1) (223) Hyperinflation — 189 — — — — — 189 — 189 Net sales 6,095 3,212 2,884 1,525 1,682 2,010 (2,010) 15,398 54 15,452 Operating profit/(loss) At budgeted exchange rates (1) 2,388 1,086 703 528 346 (22) — 5,029 (256) 4,773 Acquisitions and disposals (28) 11 — — (10) — — (27) — (27) SC&P allocation (1) (18) (2) — (1) 22 — — — — Fair value remeasurements 32 36 — (8) — — — 60 — 60 Retranslation to actual exchange rates 63 (108) 10 18 (20) — — (37) 18 (19) Hyperinflation — 10 — — — — — 10 — 10 Operating profit/(loss) before exceptional items 2,454 1,017 711 538 315 — — 5,035 (238) 4,797 Exceptional operating items (1) (146) (241) — — — — (388) — (388) Operating profit/(loss) 2,453 871 470 538 315 — — 4,647 (238) 4,409 Non-operating items (17) Net finance charges (422) Share of after tax results of associates and joint ventures 417 Profit before taxation 4,387 North America Europe Asia Latin America and Caribbean Africa SC&P Eliminate Total Corporate Total £ million £ million £ million £ million £ million £ million £ million £ million £ million £ million 2021 Sales 5,803 4,795 5,146 1,369 2,020 1,537 (1,537) 19,133 20 19,153 Net sales At budgeted exchange rates (1) 5,527 2,579 2,561 1,176 1,541 1,627 (1,548) 13,463 20 13,483 Acquisitions and disposals 28 2 — — 5 — — 35 — 35 SC&P allocation 9 45 9 13 3 (79) — — — — Retranslation to actual exchange rates (355) (68) (82) (143) (137) (11) 11 (785) — (785) Net sales 5,209 2,558 2,488 1,046 1,412 1,537 (1,537) 12,713 20 12,733 Operating profit/(loss) At budgeted exchange rates (1) 2,469 728 628 422 228 (97) — 4,378 (218) 4,160 Acquisitions and disposals (18) (3) — — — — — (21) — (21) SC&P allocation (30) (32) (5) (27) (3) 97 — — — — Fair value remeasurement of contingent consideration (9) (27) — — — — — (36) — (36) Retranslation to actual exchange rates (175) (31) (15) (92) (54) — — (367) 10 (357) Operating profit/(loss) before exceptional items 2,237 635 608 303 171 — — 3,954 (208) 3,746 Exceptional operating items — (15) — — — — — (15) — (15) Operating profit/(loss) 2,237 620 608 303 171 — — 3,939 (208) 3,731 Non-operating items 14 Net finance charges (373) Share of after tax results of associates and joint ventures 334 Profit before taxation 3,706 (1) These items represent the IFRS 8 performance measures for the geographical and SC&P segments. (i) The net sales figures for SC&P reported to the Executive Committee primarily comprise inter-segment sales and these are eliminated in a separate column in the above segmental analysis. Apart from sales by the SC&P segment to the other operating segments, inter-segmental sales are not material. (ii) The group ’s net finance charges are managed centrally and are not attributable to individual operating segments. (iii) Approximate ly 38% of annual net sales occurred in the last four months of calendar year 2022. |
Schedule of other segmental information | (b) Other segmental information North Europe Asia Latin Africa SC&P Corporate Total 2023 Purchase of property, plant and equipment and computer software 197 209 166 121 126 356 5 1,180 Depreciation and intangible asset amortisation (95) (98) (61) (18) (80) (134) (10) (496) Exceptional impairment of tangible assets (52) 2 (22) — — — — (72) Exceptional impairment of intangible assets (29) (25) (444) — — — — (498) 2022 Purchase of property, plant and equipment and computer software 230 187 146 128 139 256 11 1,097 Depreciation and intangible asset amortisation (80) (93) (93) (16) (81) (116) (10) (489) Exceptional impairment of tangible assets — (3) — — — — — (3) Exceptional impairment of intangible assets — (96) (240) — — — — (336) 2021 Purchase of property, plant and equipment and computer software 153 23 56 20 125 125 124 626 Depreciation and intangible asset amortisation (76) (31) (60) (16) (79) (126) (59) (447) |
Disclosure Of Category And Geographical Analysis Explanatory1 | (c) Category and geographical analysis Category analysis Geographic analysis Spirits Beer Ready to Other Total United India Great Rest of Total 2023 Sales (1) 19,004 3,355 899 257 23,515 6,972 2,751 2,138 11,654 23,515 Non-current assets (2), (3) 5,816 1,798 2,909 11,204 21,727 2022 Sales (1) 18,164 3,128 882 274 22,448 6,327 3,219 2,142 10,760 22,448 Non-current assets (2), (3) 5,899 2,396 2,413 10,861 21,569 2021 Sales (1) 15,634 2,562 741 216 19,153 5,441 3,011 1,822 8,879 19,153 Non-current assets (2), (3) 4,320 2,561 2,119 10,063 19,063 (1) The geographical analysis of sales is based on the location of third-party customers. (2) The geographical analysis of non-current assets is based on the geographical location of the assets and comprises intangible assets, property, plant and equipment, biological assets, investments in associates and joint ventures, other investments and non-current other receivables. |
Operating costs (Tables)
Operating costs (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Disclosure of information about operating costs | 3. Operating costs 2023 2022 £ million 2021 £ million Excise duties 6,402 6,996 6,420 Cost of sales 6,899 5,973 5,038 Marketing 3,051 2,721 2,163 Other operating items 2,531 2,349 1,801 18,883 18,039 15,422 Comprising: Excise duties India 1,625 2,182 2,127 Great Britain 1,095 1,172 1,018 United States 687 614 589 Other 2,995 3,028 2,686 Increase in inventories (513) (909) (293) Raw materials and consumables 4,328 4,017 3,126 Marketing 3,051 2,721 2,163 Other external charges 2,747 2,597 1,978 Staff costs 1,830 1,795 1,586 Depreciation, amortisation and impairment 1,066 828 447 Gains on disposal of properties (4) (2) (1) Net foreign exchange losses 10 10 22 Other operating income (34) (14) (26) 18,883 18,039 15,422 |
Schedule of auditor fees | Other external charges include the fees of the principal auditors of the group, PricewaterhouseCoopers LLP and its affiliates (PwC) and are analysed below. 2023 2022 2021 Audit of these financial statements 5.2 4.2 3.8 Audit of financial statements of subsidiaries 5.7 6.1 4.4 Audit related assurance services (1) 2.7 2.5 2.6 Total audit fees (Audit fees) 13.6 12.8 10.8 Other assurance services (Audit related fees) (2) 1.2 0.7 0.8 14.8 13.5 11.6 (1) Audit related assurance services are in respect of reporting under section 404 of the US Sarbanes-Oxley Act and the review of the interim financial information. (2) Other assurance services comprise the aggregate fees for assurance and related services that are not reported under ‘total audit fees’. (i) Disclosure requirements for auditors fees in the United States are different from those required in the United Kingdom. The terminology by category required in the United States is disclosed in brackets in the above table. |
Schedule of additional information | (c) Staff costs and average number of employees 2023 2022 2021 Aggregate remuneration Wages and salaries 1,548 1,557 1,336 Share-based incentive plans 48 59 50 Employer’s social security 115 107 83 Employer’s pension Defined benefit plans 67 36 82 Defined contribution plans 44 33 25 Other post employment plans 8 3 10 1,830 1,795 1,586 The average number of employees on a full-time equivalent basis (excluding employees of associates and joint ventures) was as follows: 2023 2022 2021 North America 2,884 2,811 2,562 Europe 2,789 3,014 3,237 Asia Pacific 6,856 6,500 6,474 Latin America and Caribbean 1,495 1,500 1,505 Africa 3,526 4,061 4,016 SC&P 6,934 5,025 5,085 Corporate and other 5,753 5,076 4,687 30,237 27,987 27,566 |
Schedule of exceptional operating items | Included in the table above are exceptional operating items as follows: 2023 £ million 2022 £ million 2021 £ million Depreciation, amortisation and impairment Brand and goodwill impairment 498 336 — Tangible asset impairment and accelerated depreciation 72 — — Staff costs 10 — 5 Other external charges 60 52 13 Other operating income (18) — (3) Total exceptional operating items (note 4) 622 388 15 Cost of sales 67 — — Other operating expenses 555 388 15 |
Exceptional items (Tables)
Exceptional items (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Exceptional Items [Abstract] | |
Schedule of exceptional items | 2023 2022 2021 Exceptional operating items Brand and goodwill impairment (1) (498) (336) — Supply chain agility programme (2) (100) — — Distribution termination fee (3) (44) — — Winding down Russian operations (4) 20 (50) — Other exceptional operating items (5) — (2) (15) (622) (388) (15) Non-operating items Sale of businesses and brands Guinness Cameroun S.A. (6) 310 — — Archers brand (7) 20 — — USL Popular brands (8) 4 — — USL businesses (9) 1 — 3 Tyku brand (10) (3) — — Picon brand (11) — 91 — Meta Abo Brewery (12) — (95) — Windsor business (13) — (19) — Step acquisition - Mr Black (14) (8) — — Other non-operating exceptional items (15) 4 6 11 328 (17) 14 Exceptional items before taxation (294) (405) (1) Tax on exceptional items (note 7 (b)) 186 31 (84) Total exceptional items (108) (374) (85) Attributable to: Equity shareholders of the parent company 33 (271) (86) Non-controlling interests (141) (103) 1 Total exceptional items (108) (374) (85) |
Schedule of exceptional cash flows | Cash payments and receipts included in net cash inflow from operating activities in respect of exceptional items were as follows: 2023 £ million 2022 £ million 2021 £ million Thalidomide (note 15 (d) (i)) (14) (16) (15) Winding down Russian operations (13) (13) — Supply chain agility programme (12) — — Donations — (37) (50) Indirect tax in Korea — — (10) Ongoing litigation in Turkey — — (1) Substitution drawback — — 60 Total cash payments (39) (66) (16) |
Finance income and charges (Tab
Finance income and charges (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of finance income and charges | 2023 £ million 2022 £ million 2021 £ million Interest income 160 127 119 Fair value gain on financial instruments 103 341 124 Total interest income (1) 263 468 243 Interest charge on bank loans, bonds and overdrafts (470) (371) (365) Interest charge on leases (15) (12) (16) Interest charge on other borrowings (271) (92) (84) Fair value loss on financial instruments (102) (346) (126) Total interest charges (1) (858) (821) (591) Net interest charges (595) (353) (348) Net finance income in respect of post employment plans in surplus (note 14) 59 22 18 Hyperinflation adjustment in respect of Turkey (note 1 (f)) 10 — — Hyperinflation adjustment in respect of Venezuela (note 1 (f)) — 1 2 Interest income in respect of direct and indirect tax 8 2 15 Unwinding of discounts — 4 — Total other finance income 77 29 35 Net finance charge in respect of post employment plans in deficit (note 14) (15) (12) (13) Hyperinflation adjustment in respect of Turkey (note 1 (f)) — (34) — Hyperinflation adjustment in respect of Venezuela (note 1 (f)) (2) — — Hyperinflation adjustment and foreign exchange revaluation of monetary items in respect of Lebanon (note 1 (f)) — (3) (8) Unwinding of discounts (13) (11) (20) Interest charge in respect of direct and indirect tax (25) (16) (11) Change in financial liability (Level 3) (8) (20) (7) Guarantee fees (1) (1) (1) Other finance charges (12) (1) — Total other finance charges (76) (98) (60) Net other finance income/(charges) 1 (69) (25) (1) Includes £81 million interest income and £(522) million interest charge in respect of financial assets and liabilities that are not measured at fair value through income statement (2022 – £27 million income and £(417) million charge; 2021 – £28 million income and £(429) million charge). |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Interests In Other Entities [Abstract] | |
Schedule of movement in the group's investments in associates and joint ventures | (a) An analysis of the movement in the group’s investments in associates and joint ventures is as follows: Moët Others Total Cost less provisions At 30 June 2021 3,128 180 3,308 Exchange differences 48 12 60 Additions — 65 65 Share of profit/(loss) after tax 425 (8) 417 Dividends (186) (4) (190) Share of movements in other comprehensive income and equity (6) — (6) Impairment charged during the year — (2) (2) At 30 June 2022 3,409 243 3,652 Exchange differences (51) (8) (59) Additions — 93 93 Share of profit/(loss) after tax 379 (9) 370 Step acquisition — (17) (17) Dividends (214) (5) (219) Share of movements in other comprehensive income and equity 36 — 36 Transfer — 1 1 Impairment charged during the year — (28) (28) At 30 June 2023 3,559 270 3,829 (i) Investment in associates includes loans given to and preference shares invested in associates of £168 million (2022 – £163 million). (ii) If certain performance targets are met by associates in the Distill Ventures programme, an additional £27 million (2022 – £22 million) will be invested in those associates. |
Schedule of income statement of associates | Income statement information for the three years ended 30 June 2023 and balance sheet information as at 30 June 2023 and 30 June 2022 of Moët Hennessy are as follows: 2023 2022 2021 Sales 6,003 5,553 4,819 Profit for the year 1,117 1,250 985 Total comprehensive income 1,161 1,269 999 |
Schedule of balance sheet of associates | 2023 2022 Non-current assets 6,774 5,957 Current assets 9,155 8,447 Total assets 15,929 14,404 Non-current liabilities (2,108) (1,791) Current liabilities (3,160) (2,415) Total liabilities (5,268) (4,206) Net assets 10,661 10,198 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
Schedule of analysis of taxation charge for the year | (a) Analysis of taxation charge for the year United Kingdom Rest of world Total 2023 2022 2021 2023 2022 2021 2023 2022 2021 Current tax Current year 160 174 100 879 867 684 1,039 1,041 784 Adjustments in respect of prior years 33 10 1 (39) 16 28 (6) 26 29 193 184 101 840 883 712 1,033 1,067 813 Deferred tax Origination and reversal of temporary differences 25 — 13 (70) 21 18 (45) 21 31 Changes in tax rates — 2 46 11 1 32 11 3 78 Adjustments in respect of prior years 6 — 8 (35) (42) (23) (29) (42) (15) 31 2 67 (94) (20) 27 (63) (18) 94 Taxation on profit 224 186 168 746 863 739 970 1,049 907 |
Schedule of exceptional tax (credits)/charges | (b) Exceptional tax (credits)/charges The taxation charge includes the following exceptional items: 2023 2022 2021 Brand impairment (1) (124) (55) — US guarantee fee claim (2) (57) — — Supply chain agility programme (23) — — Distribution termination fee (11) — — Disposal of businesses and brands (3) 29 23 — Winding down Russian operations — 3 — Tax rate change in the United Kingdom (4) — — 46 Tax rate change in the Netherlands (5) — — 42 Other items — (2) (4) (186) (31) 84 (1) In the year ended 30 June 2023, an exceptional tax credit of £124 million was recognised mainly in respect of the impairment of the McDowell's brand. In the year ended 30 June 2022, the exceptional tax credit of £55 million consists of tax impact on the impairment of the McDowell's and Bell's brands for £35 million and £20 million, respectively. (2) In the year ended 30 June 2023, an exceptional tax credit of £57 million was recognised in respect of the deductibility of fees paid to Diageo plc for guaranteeing externally issued debt of US group entities. Following engagement with the tax authorities, guarantee fees for the periods ended 30 June 2012 to 30 June 2022 are fully deductible. (3) In the year ended 30 June 2023, the exceptional net tax charge of £29 million mainly comprised of a tax charge of £42 million in respect of the sale of Guinness Cameroun S.A., partly offset by a tax credit of £10 million in respect of the sale of certain USL businesses. In the year ended 30 June 2022, a £23 million exceptional tax charge was recognised in respect of the gain on the sale of the Picon brand. (4) On 24 May 2021, legislation was substantively enacted in the UK to increase the corporate tax rate to 25% with effect from 1 April 2023. As a result of the change, an exceptional tax charge of £46 million was recognised for the year ended 30 June 2021 in relation to the remeasurement of deferred tax assets and liabilities. In addition, there was a one-off charge of £48 million to other comprehensive income and equity, mainly in respect of the remeasurement of the deferred tax liabilities on the post employment assets. (5) On 15 December 2020, legislation was substantively enacted in the Netherlands to maintain the headline corporate tax rate at 25%, reversing a previously enacted reduction in the corporate tax rate to 21.7% from 2021. As a result of the change, an exceptional tax charge of £42 million was recognised for the year ended 30 June 2021 in relation to the remeasurement of deferred tax liabilities. In the year ended 30 June 2022, the Dutch Senate enacted an increased tax rate of 25.8%. The remeasurement of deferred tax liabilities was recognised as an underlying tax charge. |
Schedule of taxation rate reconciliation and factors that may affect future tax charges | (c) Taxation rate reconciliation and factors that may affect future tax charges 2023 2023 2022 2022 2021 2021 Profit before taxation 4,736 4,387 3,706 Notional charge at UK corporation tax rate 971 20.5 833 19.0 704 19.0 Elimination of notional tax on share of after tax results of associates and joint ventures (76) (1.6) (79) (1.8) (63) (1.7) Differences in overseas tax rates 95 2.0 161 3.7 128 3.5 Disposal of businesses and brands (42) (0.9) 21 0.5 (2) (0.1) Other items not chargeable (63) (1.3) (49) (1.1) (52) (1.4) Impairment (2) — 36 0.8 — — Other items not deductible 71 1.5 58 1.3 67 1.8 Irrecoverable withholding taxes 38 0.8 39 0.9 25 0.7 Movement in provision in respect of uncertain tax positions (1) 27 0.6 42 0.9 1 — Changes in tax rates (2) 11 0.2 3 0.1 78 2.1 Adjustments in respect of prior years (3) (60) (1.3) (16) (0.4) 21 0.6 Taxation on profit 970 20.5 1,049 23.9 907 24.5 Tax rate before exceptional items — 23.0 — 22.5 — 22.2 (1) Movement in provision in respect of uncertain tax positions includes both current and prior year uncertain tax position movements. (2) Changes in tax rates for the year ended 30 June 2021 are mainly due to the tax rate change in the Netherlands and the United Kingdom. (3) Excludes prior year movement in provisions. Also included an exceptional tax credit of £57 million in respect of the deductibility of fees paid to Diageo plc for guaranteeing externally issued debt of its US group entities. |
Schedule of deferred tax assets and liabilities | (d) Deferred tax assets and liabilities Deferred tax recognised in the consolidated balance sheet comprise the following net deferred tax (liabilities)/assets: Property, Intangible Post Tax losses Other temporary differences (1) £ million Total At 30 June 2021 (381) (1,636) (129) 57 244 (1,845) Exchange differences (21) (155) 3 3 17 (153) Recognised in income statement (42) (3) (10) 2 74 21 Reclassification 2 40 — — (7) 35 Recognised in other comprehensive loss and equity (20) (104) (103) — 20 (207) Tax rate change – recognised in income statement (1) (3) — 1 — (3) Tax rate change – recognised in other comprehensive loss and equity — — (22) — 2 (20) Acquisition of subsidiaries — (31) — — — (31) Sale of businesses (5) — — — 3 (2) At 30 June 2022 (468) (1,892) (261) 63 353 (2,205) Exchange differences 33 113 (3) 1 (10) 134 Recognised in income statement (30) 93 2 (15) 24 74 Recognised in other comprehensive income and equity (6) (30) 152 — (50) 66 Tax rate change – recognised in income statement (1) (12) (1) — 3 (11) Acquisition of subsidiaries — (71) — — — (71) Transfer from asset held for sale (2) (37) — — 5 (34) Sale of businesses 10 — (1) — (4) 5 At 30 June 2023 (464) (1,836) (112) 49 321 (2,042) (1 ) Deferred tax on other temporary differences includes hyperinflation, fair value movement on cross-currency swaps, interest and finance costs, share-based payments and intra-group sales of products. |
Schedule of net deferred assets and liabilities | After offsetting deferred tax assets and liabilities that relate to taxes levied by the same taxation authority on the same taxable fiscal unit, the net deferred tax liability comprises: 2023 2022 Deferred tax assets 141 114 Deferred tax liabilities (2,183) (2,319) (2,042) (2,205) |
Schedule of unrecognized deferred tax assets and liabilities | (e) Unrecognised deferred tax assets The following table shows the tax value of tax losses which has not been recognised due to uncertainty over their utilisation in future periods. The gross value of those losses is £632 million (2022 – £674 million). 2023 2022 Capital losses – indefinite 98 98 Trading losses – indefinite 24 25 Trading and capital losses – expiry dates up to 2032 39 46 161 169 |
Acquisition and sale of busin_2
Acquisition and sale of businesses and brands and purchase of non-controlling interests (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about business combination [abstract] | |
Schedule of fair value of net assets acquired and cash consideration paid in business combination | Fair value of net assets acquired and cash consideration paid in respect of the acquisition of subsidiaries in the three years ended 30 June 2023 were as follows: Net assets acquired and consideration Don Papa Other 2023 2022 2021 Brands and other intangibles 293 45 338 120 334 Property, plant and equipment 1 24 25 — 15 Inventories 6 21 27 6 12 Other working capital (2) (1) (3) 3 (3) Deferred tax (67) (4) (71) (31) (15) Borrowings — — — — (8) (Overdraft)/Cash (1) 1 — 1 4 Fair value of assets and liabilities 230 86 316 99 339 Goodwill arising on acquisition 64 28 92 70 274 Settlement of pre-existing relationship — — — (1) — Step acquisitions — (11) (11) (6) — Consideration payable 294 103 397 162 613 Satisfied by: Cash consideration paid (218) (98) (316) (88) (358) Contingent consideration payable (72) (4) (76) (70) (253) Deferred consideration payable (4) (1) (5) (4) (2) (294) (103) (397) (162) (613) |
Schedule of cash consideration paid in respect of acquisition of business and purchases of shares of non-controlling interests | Cash consideration paid in respect of the acquisition of businesses and purchase of shares of non-controlling interests in the three years ended 30 June 2023 were as follows: Consideration 2023 2022 2021 Acquisitions in the year - subsidiaries Cash consideration paid (316) (88) (358) Cash acquired — 1 4 Prior year acquisitions - subsidiaries Contingent consideration paid for Casamigos — (83) (89) Other consideration (26) (36) (7) Investments in associates Cash consideration paid (14) (4) — Capital injection (79) (61) (38) Net cash outflow on acquisition of businesses (435) (271) (488) Purchase of shares of non-controlling interests (146) — (42) Total net cash outflow (581) (271) (530) |
Schedule of cash consideration received and net assets disposed of in sale of businesses | Cash consideration received and net assets disposed of in respect of sale of businesses and brands in the three years ended 30 June 2023 were as follows: Guinness Cameroun S.A. Other 2023 2022 2021 Sale consideration Cash received 384 115 499 106 14 (Cash)/overdraft disposed of (13) — (13) 2 — Transaction and other directly attributable costs paid (17) (7) (24) (26) — Net cash received 354 108 462 82 14 Transaction costs payable (8) 3 (5) (16) 1 346 111 457 66 15 Net assets disposed of Goodwill — — — (14) — Property, plant and equipment (103) (3) (106) (11) (2) Assets and liabilities held for sale — (79) (79) — — Inventories (24) (4) (28) (4) — Other working capital 69 — 69 15 1 Other borrowings 2 — 2 1 — Corporate tax (3) — (3) (5) — Deferred tax 5 — 5 (2) — Post employment benefit liabilities 4 — 4 — — (50) (86) (136) (20) (1) Impairment charge recognised up until the date of sale (3) — (3) — — Exchange recycled from other comprehensive income 17 1 18 (63) — Gain/(loss) on disposal before taxation 310 26 336 (17) 14 Taxation (42) 13 (29) (23) — Gain/(loss) on disposal after taxation 268 39 307 (40) 14 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Intangible assets and goodwill [abstract] | |
Schedule of movement in intangible assets and goodwill | Brands Goodwill Other Computer Total Cost At 30 June 2021 8,458 2,627 1,421 673 13,179 Hyperinflation adjustment in respect of Turkey 315 208 — 1 524 Exchange differences 639 145 194 28 1,006 Additions 109 70 55 67 301 Disposals (23) (42) — (23) (88) Reclassification to asset held for sale (560) — — (8) (568) At 30 June 2022 8,938 3,008 1,670 738 14,354 Hyperinflation adjustment in respect of Turkey 81 60 — — 141 Exchange differences (531) (257) (64) (16) (868) Additions 338 92 13 155 598 Disposals — — — (26) (26) Reclassification from/(to) asset held for sale 453 (29) — — 424 At 30 June 2023 9,279 2,874 1,619 851 14,623 Amortisation and impairment At 30 June 2021 1,097 670 80 568 2,415 Exchange differences 51 60 (1) 25 135 Amortisation for the year — — 7 38 45 Impairment 317 19 — — 336 Disposals (23) (28) — (20) (71) Reclassification to asset held for sale (400) — — (8) (408) At 30 June 2022 1,042 721 86 603 2,452 Exchange differences (96) (61) (1) (15) (173) Amortisation for the year — — 16 40 56 Impairment 498 — — — 498 Disposals — — — (24) (24) Reclassification from/(to) asset held for sale 315 (13) — — 302 At 30 June 2023 1,759 647 101 604 3,111 Carrying amount At 30 June 2023 7,520 2,227 1,518 247 11,512 At 30 June 2022 7,896 2,287 1,584 135 11,902 At 30 June 2021 7,361 1,957 1,341 105 10,764 |
Schedule of principal acquired brands | The principal acquired brands, all of which are regarded as having indefinite useful economic lives, are as follows: Principal markets 2023 £ million 2022 £ million Crown Royal whisky United States 1,162 1,210 Captain Morgan rum Global 954 993 Smirnoff vodka Global 654 681 Johnnie Walker whisky Global 625 625 Casamigos tequila United States 479 499 McDowell's No.1 whisky, rum and brandy India 308 778 Don Papa rum Europe 282 — Yenì raki Turkey 249 294 Shui Jing Fang Chinese white spirit Greater China 246 279 Don Julio tequila United States 235 207 Aviation American gin United States 209 218 Seagram's 7 Crown whiskey United States 177 184 Signature whisky India 176 191 Zacapa rum Global 152 158 Black Dog whisky India 149 162 Antiquity whisky India 145 158 Windsor Premier whisky Korea 137 — Gordon's gin Europe 119 119 Bell's whisky Europe 102 102 Other brands 960 1,038 7,520 7,896 |
Schedule of goodwill attributed to cash-generating units | (b) Goodwill For the purposes of impairment testing, goodwill has been attributed to the following cash-generating units: 2023 £ million 2022 £ million North America 767 773 Europe Turkey 216 255 Asia Pacific Greater China 124 141 India 673 747 Latin America and Caribbean – Mexico 161 142 Other cash-generating units 286 229 2,227 2,287 |
Schedule of pre-tax discount rates and terminal growth rates used for impairment testing | The pre-tax discount rates, terminal and long-term growth rates used for impairment testing are as follows: 2023 2022 Pre-tax discount rate Terminal growth rate Long-term growth rate Pre-tax discount rate Terminal growth rate Long-term growth rate North America – United States 9 2 4 8 2 4 Europe United Kingdom 9 2 5 8 2 4 Turkey 28 16 28 31 15 25 Asia Pacific Australia 10 3 5 7 2 5 Korea 11 (2) 4 7 2 5 India 14 4 15 14 4 11 Greater China 11 2 6 7 2 7 Latin America and Caribbean Brazil 16 3 6 12 3 6 Mexico 13 3 6 14 3 6 Africa Africa Emerging Markets 35 8 18 12 5 11 South Africa 20 5 6 16 — 6 Nigeria 35 5 18 24 12 15 |
Schedule of sensitivity to change in key assumptions | The table below shows the headroom at 30 June 2023 and the impairment charge that would be required if the assumptions in the calculation of their value in use were changed: Increase in discount rate Decrease in terminal growth rate Decrease in annual growth rate in forecast period 2024-2029 Decrease in cash flows (1) Carrying value of CGU Headroom Reasonably possible change Potential impairment charge Reasonably possible change Potential impairment charge Reasonably possible change Potential impairment charge Reasonably possible change Potential impairment charge McDowell's 379 — 1ppt (38) 1ppt (26) 2ppt (67) 10 % (76) (1) Including reasonably possible changes in productivity saving assumptions. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of movement in property, plant and equipment | Land and Plant and Fixtures Returnable Under Total Cost At 30 June 2021 2,160 4,714 121 528 659 8,182 Hyperinflation adjustment in respect of Turkey and Venezuela 56 32 2 — 7 97 Exchange differences 107 226 1 11 45 390 Sale of businesses (4) (58) (3) (19) (1) (85) Additions 230 245 8 41 612 1,136 Disposals (65) (122) (15) (32) (3) (237) Transfers 177 249 10 13 (449) — Reclassification to assets held for sale (8) (25) — — — (33) At 30 June 2022 2,653 5,261 124 542 870 9,450 Hyperinflation adjustment in respect of Turkey and Venezuela 5 10 1 — 4 20 Exchange differences (166) (331) (6) (49) (30) (582) Acquisitions 8 14 — 3 — 25 Sale of businesses (35) (147) (3) (55) (3) (243) Additions 111 214 13 50 832 1,220 Disposals (64) (141) (12) (105) (2) (324) Transfers 146 238 12 28 (424) — Reclassification from assets held for sale 2 — 1 — — 3 At 30 June 2023 2,660 5,118 130 414 1,247 9,569 Depreciation At 30 June 2021 658 2,218 86 371 — 3,333 Exchange differences 31 94 1 9 — 135 Depreciation charge for the year 125 276 14 29 — 444 Exceptional impairment 2 1 — — — 3 Sale of businesses (4) (50) (2) (18) — (74) Disposals (62) (113) (13) (30) — (218) Transfers 5 4 (9) — — — Reclassification to assets held for sale (5) (16) — — — (21) At 30 June 2022 750 2,414 77 361 — 3,602 Exchange differences (38) (176) (3) (27) — (244) Depreciation charge for the year 125 269 13 33 — 440 Exceptional accelerated depreciation and impairment 31 41 — — — 72 Sale of businesses (21) (80) (2) (34) — (137) Disposals (63) (130) (11) (103) — (307) Reclassification from assets held for sale — — 1 — — 1 At 30 June 2023 784 2,338 75 230 — 3,427 Carrying amount At 30 June 2023 1,876 2,780 55 184 1,247 6,142 At 30 June 2022 1,903 2,847 47 181 870 5,848 At 30 June 2021 1,502 2,496 35 157 659 4,849 |
Biological assets (Tables)
Biological assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Biological Assets [Abstract] | |
Changes in biological assets | Changes in biological assets were as follows: Biological Fair value At 30 June 2021 66 Exchange differences 10 Transferred to inventories (11) Fair value change (5) Farming cost capitalised 34 At 30 June 2022 94 Exchange differences 15 Transferred to inventories (8) Fair value change — Farming cost capitalised 55 At 30 June 2023 156 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of movement in right-of-use assets | (a) Movement in right-of-use assets The company principally leases warehouses, office buildings, plant and machinery, cars and distribution vehicles in the ordinary course of business. Land and buildings Plant and equipment Under construction Total At 30 June 2021 230 184 29 443 Exchange differences 26 14 — 40 Additions 129 56 — 185 Transfers 29 — (29) — Reclassification to assets held for sale (1) (1) — (2) Disposals (6) — — (6) Depreciation (54) (41) — (95) At 30 June 2022 353 212 — 565 Exchange differences (3) (23) — (26) Additions 45 37 — 82 Reclassification from assets held for sale 1 1 — 2 Derecognition due to disposal of business (1) (1) — (2) Depreciation (56) (39) — (95) At 30 June 2023 339 187 — 526 |
Lease liabilities | (b) Lease liabilities 2023 2022 Current lease liabilities (75) (85) Non-current lease liabilities (373) (390) (448) (475) |
Other investments (Tables)
Other investments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Noncurrent Investments Other Than Investments Accounted For Using Equity Method [Abstract] | |
Schedule of movements in other investments | Loans Other investments Total Cost less allowances or fair value At 30 June 2021 10 30 40 Exchange differences 2 1 3 Additions 6 9 15 Repayments and disposals (1) (1) (2) Fair value adjustment — (13) (13) Step acquisitions — (6) (6) Capitalised interest 1 — 1 Transfer — (1) (1) At 30 June 2022 18 19 37 Exchange differences (1) — (1) Additions 20 9 29 Repayments and disposals (3) — (3) Fair value adjustment — (4) (4) Capitalised interest 1 — 1 Impairment charged during the year — (2) (2) At 30 June 2023 35 22 57 |
Post employment benefits (Table
Post employment benefits (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of defined benefit plans [abstract] | |
Schedule of funding valuations of the significant defined benefit plans | The most recent funding valuations of the significant defined benefit plans were carried out as follows: Principal plans Date of valuation United Kingdom (1) 1 April 2021 Ireland (2) 31 December 2021 United States 1 January 2022 (1) The Diageo Pension Scheme (DPS, the UK Scheme) closed to new members in November 2005. Employees who joined Diageo in the United Kingdom between November 2005 and January 2018, had been eligible to become members of the Diageo Lifestyle Plan (a cash balance defined benefit plan). Since then, new employees have been eligible to become members of a master trust defined contribution plans. |
Schedule of amounts charged to consolidated income statement for group's defined benefit post employment plans and consolidated statement of comprehensive income | The amounts charged to the consolidated income statement and statement of comprehensive income for the group’s defined benefit plans for the three years ended 30 June 2023 are as follows: 2023 2022 2021 Current service cost and administrative expenses (76) (107) (105) Past service (losses)/gains – ordinary activities (1) 34 — Past service losses – exceptional — — (5) Gains on curtailments and settlements 2 34 18 Charge to operating profit (75) (39) (92) Net finance income in respect of post employment plans 44 10 5 Charge before taxation (1) (31) (29) (87) Actual returns less amounts included in finance income (1,435) (1,432) (6) Experience (losses)/gains (226) (35) 80 Changes in financial assumptions 958 2,133 125 Changes in demographic assumptions 53 (40) (183) Other comprehensive (loss)/income (650) 626 16 Changes in the surplus restriction 7 (11) — Total other comprehensive (loss)/income (643) 615 16 |
Schedule of charge before taxation | (1) The (charge)/income before taxation is in respect of the following countries: 2023 2022 2021 United Kingdom 15 (27) (46) Ireland 1 45 4 United States (32) (31) (28) Other (15) (16) (17) (31) (29) (87) |
Schedule of movement in net deficit | The movements in the net surplus for the two years ended 30 June 2023 is set out below: Plan Plan Net At 30 June 2021 9,892 (9,445) 447 Exchange differences 93 (100) (7) Income/(charge) before taxation 176 (205) (29) Other comprehensive (loss)/income (1) (1,432) 2,058 626 Contributions by the group 128 — 128 Settlements paid (2) (52) 52 — Employee contributions 5 (5) — Benefits paid (411) 411 — At 30 June 2022 8,399 (7,234) 1,165 Exchange differences (49) 55 6 Disposals — 4 4 Income/(charge) before taxation 298 (329) (31) Other comprehensive (loss)/income (1) (1,435) 785 (650) Contributions by the group 100 — 100 Employee contributions 5 (5) — Benefits paid (472) 472 — At 30 June 2023 6,846 (6,252) 594 (1) Excludes surplus restriction. (2) Includes settlement payment of £52 million on ETV exercise in Ireland. |
Schedule of plan assets and liabilities by type of post employment benefit and country | The plan assets and liabilities by type of post employment benefit and country are as follows: 2023 2022 Plan Plan Plan Plan Pensions United Kingdom 4,578 (4,041) 6,041 (4,897) Ireland 1,588 (1,310) 1,645 (1,409) United States 441 (411) 453 (408) Other 180 (194) 191 (212) Post employment medical 2 (227) 2 (225) Other post employment 57 (69) 67 (83) 6,846 (6,252) 8,399 (7,234) |
Schedule of balance sheet analysis of post employment plans | The balance sheet analysis of the post employment plans is as follows: 2023 2022 Non- (1) Non- Non- (1) Non- Funded plans 960 (132) 1,553 (144) Unfunded plans — (241) — (258) 960 (373) 1,553 (402) (1) Includes surplus restriction of £7 million (2022 – £14 million). |
Schedule of weighted average assumptions used to determine group's deficit/surplus in main post employment plans | The following weighted average assumptions were used to determine the group’s deficit/surplus in the main post employment plans at 30 June in the relevant year. The assumptions used to calculate the charge/credit in the consolidated income statement for the year ending 30 June are based on the assumptions disclosed as at the previous 30 June. United Kingdom Ireland United States (1) 2023% 2022% 2021% 2023% 2022% 2021% 2023% 2022% 2021% Rate of general increase in salaries (2) 3.7 3.6 3.4 3.9 3.8 3.0 — — — Rate of increase to pensions in payment 2.9 2.9 3.1 2.3 2.2 1.7 — — — Rate of increase to deferred pensions 2.7 2.6 2.5 2.4 2.3 1.6 — — — Discount rate for plan liabilities 5.2 3.8 1.9 3.6 3.2 1.0 4.9 4.4 2.7 Inflation – CPI 2.7 2.6 2.5 2.5 2.4 1.6 2.2 2.3 2.3 Inflation - RPI 3.2 3.1 3.0 — — — — — — (1) The salary increase assumption in the United States is not a significant assumption as only a minimal amount of members’ pension entitlement is dependent on a member’s projected final salary. |
Schedule of expected age at death of an average worker who retires currently at age of 65, and one who is currently aged 45 and subsequently retires at the age of 65 | For the principal UK and Irish pension funds, the table below illustrates the expected age at death of an average worker who retires currently at the age of 65, and one who is currently aged 45 and subsequently retires at the age of 65: United Kingdom (1) Ireland (2) United States 2023 2022 2021 2023 2022 2021 2023 2022 2021 Retiring currently at age 65 Male 86.8 87.1 87.2 87.2 87.7 86.9 85.6 85.5 85.4 Female 88.4 88.7 88.7 89.6 90.0 89.3 87.2 87.2 87.1 Currently aged 45, retiring at age 65 Male 88.1 88.5 88.6 88.8 89.3 88.6 87.1 87.0 86.9 Female 90.4 90.7 90.8 91.3 91.7 91.1 88.7 88.6 88.5 (1) Based on the CMI’s S3 mortality tables with scaling factors based on the experience of the plan and where people live, with suitable future improvements. |
Schedule of sensitivity analyses of potential impacts on consolidated income statement and on plan liabilities | For the significant assumptions, the following sensitivity analyses estimate the potential impacts on the consolidated income statement for the year ending 30 June 2024 and on the plan liabilities at 30 June 2023 : United Kingdom Ireland United States Benefit/(cost) Operating Profit after Plan (1) Operating Profit after Plan (1) Operating Profit after Plan (1) Effect of 0.5% increase in discount rate 2 15 259 1 5 85 2 2 22 Effect of 0.5% decrease in discount rate (2) (14) (267) (1) (4) (95) (2) (2) (24) Effect of 0.5% increase in inflation (1) (8) (156) — (2) (49) — (1) (9) Effect of 0.5% decrease in inflation 2 8 173 — 2 50 — 1 8 Effect of one year increase in life expectancy — (6) (131) — (2) (55) — (1) (15) (1) The estimated effect on the liabilities excludes the impact of any interest rate and inflation swaps held by the pension plans. |
Schedule of analysis of fair value of plan assets | An analysis of the fair value of the plan assets is as follows: 2023 United Kingdom Ireland United States and other Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Quoted Unquoted Total Equities 12 916 — 291 64 98 76 1,305 1,381 Bonds Fixed-interest government 18 24 — 6 48 8 66 38 104 Inflation-linked government — — — 96 2 2 2 98 100 Investment grade corporate — 29 — 328 21 227 21 584 605 Non-investment grade 22 289 6 186 2 133 30 608 638 Loan securities 13 526 — 84 — — 13 610 623 Repurchase agreements 2,351 826 — — — — 2,351 826 3,177 Liability Driven Investment (LDI) — — — 81 — — — 81 81 Property 29 462 — 62 — 1 29 525 554 Hedge funds — — — 12 — 5 — 17 17 Interest rate and inflation swaps — (971) 102 (18) — — 102 (989) (887) Cash and other 46 (14) 5 347 — 69 51 402 453 Total bid value of assets 2,491 2,087 113 1,475 137 543 2,741 4,105 6,846 2022 United Kingdom Ireland United States and other Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Quoted Unquoted Total Equities 23 1,218 — 319 70 105 93 1,642 1,735 Bonds Fixed-interest government 2 86 — 30 49 152 51 268 319 Inflation-linked government — — — 199 1 1 1 200 201 Investment grade corporate — 68 — 388 25 222 25 678 703 Non-investment grade 44 557 2 200 1 1 47 758 805 Loan securities 11 1,271 — 98 — — 11 1,369 1,380 Repurchase agreements 2,400 (215) — — — — 2,400 (215) 2,185 Liability Driven Investment (LDI) — 119 — 46 — — — 165 165 Property 28 716 — 74 — 1 28 791 819 Hedge funds — 107 — 92 — 5 — 204 204 Interest rate and inflation swaps — (900) — 37 — — — (863) (863) Cash and other 24 481 7 154 — 80 31 715 746 Total bid value of assets 2,532 3,508 9 1,637 146 567 2,687 5,712 8,399 |
Schedule of timing of benefit payments | The following table provides information on the timing of the benefit payments and the average duration of the defined benefit obligations and the distribution of the timing of benefit payments: United Kingdom Ireland United States 2023 2022 2023 2022 2023 2022 Maturity analysis of benefits expected to be paid Within one year 303 295 73 70 57 58 Between 1 to 5 years 1,090 1,082 367 353 174 187 Between 6 to 15 years 2,439 2,556 727 704 331 310 Between 16 to 25 years 2,244 2,252 645 634 206 183 Beyond 25 years 2,664 2,787 747 768 187 174 Total 8,740 8,972 2,559 2,529 955 912 years years years years years years Average duration of the defined benefit obligation 14 15 14 15 9 9 |
Working capital (Tables)
Working capital (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Summary Of Additional Information About Working Capital [Abstract] | |
Schedule of inventories | (a) Inventories 2023 2022 Raw materials and consumables 543 489 Work in progress 132 86 Maturing inventories 5,794 5,229 Finished goods and goods for resale 1,192 1,290 7,661 7,094 |
Schedule of inventories expected to be utilised after more than one year | Maturing inventories include whisk(e)y, rum, tequila and Chinese white spirits. The following amounts of inventories are expected to be utilised after more than one year: 2023 2022 Raw materials and consumables 23 15 Maturing inventories 4,063 3,713 4,086 3,728 |
Schedule of provisions for obsolescence of inventories | Inventories are disclosed net of provisions for obsolescence, an analysis of which is as follows: 2023 2022 2021 Balance at beginning of the year 94 96 98 Exchange differences (27) 6 (8) Income statement charge 55 6 20 Utilised (19) (13) (14) Sale of businesses (1) (1) — 102 94 96 |
Schedule of trade and other receivables | (b) Trade and other receivables 2023 2022 Current Non-current Current Non-current Trade receivables 2,011 — 2,155 — Interest receivable 12 — 18 — VAT recoverable and other prepaid taxes 271 15 290 15 Other receivables 163 13 158 13 Prepayments 229 3 290 9 Accrued income 34 — 22 — 2,720 31 2,933 37 |
Schedule of aged analysis of trade receivables net of allowances | The aged analysis of trade receivables, net of expected credit loss allowance, is as follows: 2023 2022 Not overdue 1,967 2,114 Overdue 1 – 30 days 25 19 Overdue 31 – 60 days 7 8 Overdue 61 – 90 days 3 5 Overdue 91 – 180 days 6 5 Overdue more than 180 days 3 4 2,011 2,155 |
Schedule of expected credit loss allowance for doubtful debts | Trade and other receivables are disclosed net of expected credit loss allowance for doubtful debts, an analysis of which is as follows: 2023 2022 2021 Balance at beginning of the year 118 112 160 Exchange differences (12) 6 (13) Income statement (release)/charge (3) 21 (15) Written off (14) (21) (20) 89 118 112 |
Schedule of trade and other payables | (c) Trade and other payables 2023 2022 Current Non-current Current Non-current Trade payables 2,659 — 2,705 — Interest payable 237 — 143 — Tax and social security excluding income tax 632 — 696 — Other payables 432 368 600 380 Accruals 1,229 — 1,635 — Deferred income 73 — 90 — Dividend payable to non-controlling interests 38 — 18 — 5,300 368 5,887 380 |
Schedule of movement in provisions | (d) Provisions Thalidomide Other Total At 30 June 2022 178 239 417 Exchange differences (1) (26) (27) Disposal of businesses — (2) (2) Provisions charged during the year — 31 31 Provisions utilised during the year (14) (61) (75) Transfers from other payables — 12 12 Unwinding of discounts 5 1 6 At 30 June 2023 168 194 362 Current liabilities 13 106 119 Non-current liabilities 155 88 243 168 194 362 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of net borrowings interest rate profile | The interest rate profile of the group's net borrowings is as follows: 2023 2022 £ million % £ million % Fixed rate 11,961 77 11,070 78 Floating rate (1) 3,225 21 2,612 19 Impact of financial derivatives and fair value adjustments (93) (1) (20) — Lease liabilities 448 3 475 3 Net borrowings 15,541 100 14,137 100 |
Schedule of average monthly net borrowings and effective interest rate | The table below sets out the average monthly net borrowings and effective interest rate: Average monthly net borrowings Effective interest rate 2023 £ million 2022 £ million 2021 £ million 2023 % 2022 % 2021 % 15,244 12,692 12,702 3.9 2.7 2.7 |
Schedule of fluctuations in interest and exchange rates to vary from hypothetical amounts | The sensitivity analysis estimates the impact of changes in interest and foreign exchange rates. All hedges are expected to be highly effective for this analysis and it considers the impact of all financial instruments including financial derivatives, cash and cash equivalents, borrowings and other financial assets and liabilities. The results of the sensitivity analysis should not be considered as projections of likely future events, gains or losses as actual results in the future may differ materially due to developments in the global financial markets which may cause fluctuations in interest and exchange rates to vary from the hypothetical amounts disclosed in the table below. Impact on income Impact on consolidated (1) (2) 2023 2022 2023 2022 £ million £ million £ million £ million 0.5% decrease in interest rates 16 13 36 31 0.5% increase in interest rates (16) (13) (35) (30) 10% weakening of sterling (45) (33) (1,336) (1,125) 10% strengthening of sterling 36 28 1,093 922 (1) The impact on foreign currency borrowings and derivatives in net investment hedges is largely offset by the foreign exchange difference arising on the translation of net investments. |
Schedule of contractual cash flows | Contractual cash flows Due within Due between Due between Due after Total Carrying 2023 Borrowings (1) (1,707) (3,615) (2,980) (8,652) (16,954) (16,502) Interest on borrowings (1)(2) (541) (750) (623) (1,503) (3,417) (217) Lease capital repayments (75) (104) (69) (200) (448) (448) Lease future interest payments (18) (28) (19) (37) (102) — Trade and other financial liabilities (3) (4,417) (231) (122) (96) (4,866) (4,782) Non-derivative financial liabilities (6,758) (4,728) (3,813) (10,488) (25,787) (21,949) Cross currency swaps (gross) Receivable 43 87 87 1,341 1,558 Payable (28) (56) (56) (930) (1,070) Other derivative instruments (net) 19 (88) (79) (54) (202) Derivative instruments (2) 34 (57) (48) 357 286 134 2022 Borrowings (1) (1,524) (2,842) (2,738) (9,276) (16,380) (16,020) Interest on borrowings (1)(2) (427) (626) (560) (1,622) (3,235) (141) Lease capital repayments (85) (107) (61) (222) (475) (475) Lease future interest payments (13) (20) (16) (44) (93) — Trade and other financial liabilities (3) (4,765) (123) (142) (126) (5,156) (5,145) Non-derivative financial liabilities (6,814) (3,718) (3,517) (11,290) (25,339) (21,781) Cross currency swaps (gross) Receivable 851 90 90 1,442 2,473 Payable (783) (56) (56) (958) (1,853) Other derivative instruments (net) (86) (123) (78) (65) (352) Derivative instruments (2) (18) (89) (44) 419 268 22 (1) For the purpose of these tables, borrowings are defined as gross borrowings excluding lease liabilities and fair value of derivative instruments as disclosed in note 17. (2) Carrying amount of interest on borrowings, interest on derivatives and interest on other payable is included within interest payable in note 15. |
Schedule of available undrawn committed bank facilities | The group had available undrawn committed bank facilities as follows: 2023 £ million 2022 £ million Expiring within one year 99 793 Expiring between one and two years 496 103 Expiring after two years 2,083 1,893 2,678 2,789 |
Schedule of financial assets and liabilities measured at fair value | The group’s financial assets and liabilities measured at fair value are categorised as follows: 2023 £ million 2022 £ million Derivative assets 594 480 Derivative liabilities (440) (456) Valuation techniques based on observable market input (Level 2) 154 24 Financial assets - other 192 184 Financial liabilities - other (529) (587) Valuation techniques based on unobservable market input (Level 3) (337) (403) |
Schedule of movements in level 3 measured on recurring basis | The movements in level 3 instruments, measured on a recurring basis, are as follows: Zacapa Contingent consideration recognised on acquisition of businesses Zacapa Contingent consideration recognised on acquisition of businesses 2023 2023 2022 2022 £ million £ million £ million £ million At the beginning of the year (216) (371) (149) (429) Net (losses)/gains included in the income statement (8) 117 (20) 62 Net gains/(losses) included in exchange in other comprehensive income 9 11 (26) (39) Net losses included in retained earnings (16) — (34) — Acquisitions — (76) — (70) Settlement of liabilities 13 8 13 105 At the end of the year (218) (311) (216) (371) |
Schedule of notional amounts, contractual maturities and rates of hedging instruments designated in hedging relationships by main risk categories | The notional amounts, contractual maturities and rates of the hedging instruments designated in hedging relationships by the main risk categories are as follows: Notional amounts Maturity Range of hedged rates (1) 2023 Net investment hedges Derivatives in net investment hedges of foreign operations 637 July 2023 US dollar 1.27 Cash flow hedges Derivatives in cash flow hedge (foreign currency debt) 873 September 2036 - April 2043 US dollar 1.60 - 1.88 Derivatives in cash flow hedge (foreign currency risk) 1,734 September 2023 - December 2024 US dollar 1.05 - 1.33, Mexican peso 14.76 - 18.38 Derivatives in cash flow hedge (commodity price risk) 217 July 2023 - September 2024 Feed Wheat: 183.75 - 240.00 USD/Bu LME Aluminium: 2,248 - 3,399 USD/Mt Fair value hedges Derivatives in fair value hedge (interest rate risk) 3,999 September 2023 - April 2030 (0.01) - 3.09% 2022 Net investment hedges Derivatives in net investment hedges of foreign operations 11 July 2022 Turkish lira 22.27 Cash flow hedges Derivatives in cash flow hedge (foreign currency debt) 1,694 April 2023 - April 2043 US dollar 1.22 - 1.88 Derivatives in cash flow hedge (foreign currency risk) 1,874 September 2022 - June 2024 US dollar 1.22 - 1.42, euro 1.13 - 1.17 Derivatives in cash flow hedge (commodity price risk) 234 July 2022 - March 2024 Natural Gas: 1.67 - 3.57 GBP/therm(ec) LME Aluminium: 2,009 - 3,399 USD/Mt Fair value hedges Derivatives in fair value hedge (interest rate risk) 4,444 September 2022 - April 2030 (0.01) - 3.09% (1) In case of derivatives in cash flow hedges (commodity price risk and foreign currency risk), the range of the most significant contract’s hedged rates are presented. |
Schedule of effectiveness and impacts of hedging relationships | The following table sets out information regarding the effectiveness of hedging relationships designated by the group, as well as the impacts on the income statement and other comprehensive income: At the beginning of the year Consolidated Income Consolidated statement of comprehensive income Other At the end 2023 Net investment hedges Derivatives in net investment hedges of foreign operations (1) — — 1 — Cash flow hedges Derivatives in cash flow hedge (foreign currency debt) 367 (54) 60 (25) 348 Derivatives in cash flow hedge (foreign currency risk) (77) (17) 260 17 183 Derivatives in cash flow hedge (commodity price risk) 50 33 (89) (19) (25) Fair value hedges Derivatives in fair value hedge (interest rate risk) (283) (94) — — (377) Fair value hedge hedged item 276 96 — — 372 Instruments in fair value hedge relationship (7) 2 — — (5) 2022 Net investment hedges Derivatives in net investment hedges of foreign operations — — 5 (6) (1) Cash flow hedges Derivatives in cash flow hedge (foreign currency debt) 154 239 (6) (20) 367 Derivatives in cash flow hedge (foreign currency risk) 53 (11) (130) 11 (77) Derivatives in cash flow hedge (commodity price risk) 16 46 32 (44) 50 Fair value hedges Derivatives in fair value hedge (interest rate risk) 63 (346) — — (283) Fair value hedge hedged item (65) 341 — — 276 Instruments in fair value hedge relationship (2) (5) — — (7) |
Schedule of financial assets and liabilities | The table below sets out the group’s accounting classification of each class of financial assets and liabilities: Fair value Fair value through other comprehensive income Assets and liabilities at amortised cost Not categorised Total Current Non-current 2023 Other investments and loans (1) 192 — 31 2 225 — 225 Trade and other receivables — — 2,234 517 2,751 2,720 31 Cash and cash equivalents — — 1,439 — 1,439 1,439 — Derivatives in cash flow hedge (foreign currency debt) 348 — — — 348 — 348 Derivatives in cash flow hedge (foreign currency risk) 192 — — — 192 147 45 Derivatives in cash flow hedge (commodity price risk) 2 — — — 2 2 — Other instruments 198 — — — 198 198 — Leases — — 1 — 1 — 1 Total other financial assets 740 — 1 — 741 347 394 Total financial assets 932 — 3,705 519 5,156 4,506 650 Borrowings (2) — — (16,502) — (16,502) (1,701) (14,801) Trade and other payables (311) — (4,472) (885) (5,668) (5,300) (368) Derivatives in fair value hedge (interest rate risk) (377) — — — (377) (6) (371) Derivatives in cash flow hedge (foreign currency risk) (9) — — — (9) (7) (2) Derivatives in cash flow hedge (commodity price risk) (27) — — — (27) (26) (1) Other instruments (245) — — — (245) (245) — Leases — — (448) — (448) (75) (373) Total other financial liabilities (658) — (448) — (1,106) (359) (747) Total financial liabilities (969) — (21,422) (885) (23,276) (7,360) (15,916) Total net financial (liabilities)/assets (37) — (17,717) (366) (18,120) (2,854) (15,266) 2022 Other investments and loans (1) 180 4 15 1 200 — 200 Trade and other receivables — — 2,365 605 2,970 2,933 37 Cash and cash equivalents — — 2,285 — 2,285 2,285 — Derivatives in fair value hedge (interest rate risk) 1 — — — 1 — 1 Derivatives in cash flow hedge (foreign currency debt) 367 — — — 367 43 324 Derivatives in cash flow hedge (foreign currency risk) 32 — — — 32 15 17 Derivatives in cash flow hedge (commodity price risk) 57 — — — 57 57 — Other instruments 136 — — — 136 136 — Leases — — 3 — 3 — 3 Total other financial assets 593 — 3 — 596 251 345 Total financial assets 773 4 4,668 606 6,051 5,469 582 Borrowings (2) — — (16,020) — (16,020) (1,522) (14,498) Trade and other payables (371) — (4,774) (1,122) (6,267) (5,887) (380) Derivatives in fair value hedge (interest rate risk) (284) — — — (284) (1) (283) Derivatives in cash flow hedge (foreign currency risk) (109) — — — (109) (81) (28) Derivatives in cash flow hedge (commodity price risk) (7) — — — (7) (5) (2) Derivatives in net investment hedge (1) — — — (1) (1) — Other instruments (271) — (117) — (388) (388) — Leases — — (475) — (475) (85) (390) Total other financial liabilities (672) — (592) — (1,264) (561) (703) Total financial liabilities (1,043) — (21,386) (1,122) (23,551) (7,970) (15,581) Total net financial (liabilities)/assets (270) 4 (16,718) (516) (17,500) (2,501) (14,999) (1) Other investments and loans are including those in respect of associates. |
Net borrowings (Tables)
Net borrowings (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of borrowings | 2023 £ million 2022 £ million Bank overdrafts 36 74 Commercial paper 198 — Bank and other loans 121 105 Credit support obligations 15 (19) $ 300 million 8% bonds due 2022 (1) — 248 $ 1,350 million 2.625% bonds due 2023 (2) — 1,115 € 600 million 0.125% bonds due 2023 513 — $ 500 million 3.5% bonds due 2023 (2) 397 — € 500 million 0.5% bonds due 2024 427 — Fair value adjustment to borrowings (6) (1) Borrowings due within one year 1,701 1,522 € 600 million 0.125% bonds due 2023 — 516 $ 500 million 3.5% bonds due 2023 (2) — 413 € 500 million 0.5% bonds due 2024 — 430 $ 600 million 2.125% bonds due 2024 (2) 476 495 € 500 million 1.75% bonds due 2024 427 430 $ 500 million 5.20% bonds due 2025 (2) 396 — $ 750 million 1.375% bonds due 2025 (2) 594 618 € 600 million 1% bonds due 2025 511 515 € 500 million 3.5% bonds due 2025 427 — € 850 million 2.375% bonds due 2026 725 731 £ 500 million 1.750% bonds due 2026 497 498 $ 750 million 5.3% bonds due 2027 (2) 593 — € 750 million 1.875% bonds due 2027 638 643 € 500 million 1.5% bonds due 2027 426 430 € 700 million 0.125% bonds due 2028 595 600 $ 500 million 3.875% bonds due 2028 (2) 395 411 £ 300 million 2.375% bonds due 2028 298 298 $ 1,000 million 2.375% bonds due 2029 (2) 787 819 £ 300 million 2.875% bonds due 2029 299 298 € 750 million 1.15% bonds due 2029 640 645 $ 1,000 million 2% bonds due 2030 (2) 789 821 € 1,000 million 2.5% bonds due 2032 850 856 $ 750 million 2.125% bonds due 2032 (2) 590 614 £ 400 million 1.25% bonds due 2033 396 395 $ 750 million 5.5% bonds due 2033 (2) 590 — € 900 million 1.15% bonds due 2034 764 770 $ 400 million 7.45% bonds due 2035 (1) 317 331 $ 600 million 5.875% bonds due 2036 (2) 472 491 £ 600 million 2.75% bonds due 2038 595 595 $ 500 million 4.250% bonds due 2042 (1) 393 409 $ 500 million 3.875% bonds due 2043 (2) 391 407 Bank and other loans 296 293 Fair value adjustment to borrowings (366) (274) Borrowings due after one year 14,801 14,498 Total borrowings before derivative financial instruments 16,502 16,020 Fair value of cross currency interest rate swaps (348) (367) Fair value of foreign currency swaps and forwards 1 11 Fair value of interest rate hedging instruments 377 283 Lease liabilities 448 475 Gross borrowings 16,980 16,422 Less: Cash and cash equivalents (1,439) (2,285) Net borrowings 15,541 14,137 (1) SEC-registered debt issued on an unsecured basis by Diageo Investment Corporation, a 100% owned finance subsidiary of Diageo plc and fully and unconditionally guaranteed by Diageo plc. No other subsidiary of Diageo plc guarantees the security. (2) SEC-registered debt issued on an unsecured basis by Diageo Capital plc, a 100% owned finance subsidiary of Diageo plc and fully and unconditionally guaranteed by Diageo plc. No other subsidiary of Diageo plc guarantees the security. (i) The interest rates shown are those contracted on the underlying borrowings before taking into account any interest rate hedges (see note 16). (ii) Bonds are stated net of unamortised finance costs of £81 million (2022 – £85 million). (iii) All bonds, medium-term notes and commercial paper issued on an unsecured basis by the group’s 100% owned subsidiaries are fully and unconditionally guaranteed on an unsecured basis by Diageo plc and no other subsidiary of Diageo plc guarantees such securities. |
Schedule of maturity of gross borrowings before derivative financial instruments | Gross borrowings before derivative financial instruments are expected to mature as follows: 2023 £ million 2022 £ million Within one year 1,701 1,522 Between one and three years 3,522 2,817 Between three and five years 2,874 2,625 Beyond five years 8,405 9,056 16,502 16,020 |
Schedule of bonds issued and repaid | During the year, the following bonds were issued and repaid: 2023 £ million 2022 £ million 2021 £ million Issued € denominated 441 1,371 636 £ denominated — 892 395 $ denominated 1,788 — — Repaid € denominated — (769) (696) $ denominated (1,340) (752) (551) 889 742 (216) |
Schedule of movement in net borrowings | (a) Reconciliation of movement in net borrowings 2023 £ million 2022 £ million At beginning of the year 14,137 12,109 Net decrease in cash and cash equivalents before exchange 581 665 Net increase in bonds and other borrowings (1) 950 825 Increase in net borrowings from cash flows 1,531 1,490 Exchange differences on net borrowings (159) 334 Other non-cash items (2) 32 204 Net borrowings at end of the year 15,541 14,137 (1) In the year ended 30 June 2023, net increase in bonds and other borrowings excludes £2 million cash outflow in respect of derivatives designated in forward point hedges (2022 – £4 million). |
Schedule of net borrowings by currency | (b) Analysis of net borrowings by currency 2023 2022 Cash and cash Gross (1) Cash and cash Gross (1) US dollar 542 (5,751) 1,315 (3,260) Euro (2) 48 (3,864) 61 (2,943) Sterling 46 (6,227) 67 (9,214) Indian rupee 123 (31) 26 (74) Mexican peso 25 (286) 14 (264) Hungarian forint 3 (261) 2 (214) Kenyan shilling 28 (253) 53 (254) Chinese yuan 199 (63) 290 (75) Nigerian naira 83 — 133 — Other (2) 342 (244) 324 (124) Total 1,439 (16,980) 2,285 (16,422) (1) Includes foreign currency forwards and swaps and leases. (2) Includes £21 million (Euro) cash and cash equivalents in cash-pooling arrangements (2022 – £23 million (Turkish lira and Euro)). |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of reserves within equity [abstract] | |
Schedule of allotted and fully paid share capital | (a) Allotted and fully paid share capital – ordinary shares of 28 101 ⁄ 108 pence each Number of shares Nominal value At 30 June 2023 2,460 712 At 30 June 2022 2,498 723 At 30 June 2021 2,559 741 |
Schedule of movement in hedging and exchange reserve | (b) Hedging and exchange reserve Hedging Exchange Total At 30 June 2020 93 (1,022) (929) Other comprehensive income/(loss) 20 (672) (652) At 30 June 2021 113 (1,694) (1,581) Other comprehensive (loss)/income (87) 622 535 At 30 June 2022 26 (1,072) (1,046) Other comprehensive income/(loss) 216 (540) (324) At 30 June 2023 242 (1,612) (1,370) |
Schedule of movements in own shares | Movements in own shares Number Purchase At 30 June 2020 227 1,936 Share trust arrangements (1) (11) Shares used to satisfy options (3) (48) Shares purchased - share buyback programme 3 109 Shares cancelled (3) (109) At 30 June 2021 223 1,877 Share trust arrangements (2) (23) Shares used to satisfy options (2) (16) Shares purchased - share buyback programme 61 2,284 Shares cancelled (61) (2,284) At 30 June 2022 219 1,838 Share trust arrangements (1) (12) Shares used to satisfy options (2) (12) Shares purchased - share buyback programme 38 1,381 Shares cancelled (38) (1,381) At 30 June 2023 216 1,814 |
Schedule of the monthly breakdown of shares purchased and the average price paid per share | The monthly breakdown of all shares purchased and the average price paid per share (excluding expenses) for the year ended 30 June 2023 were as follows: Period Number of shares Total number of Average price paid pence Authorised purchases unutilised at month end July 2022 1,660,507 1,660,507 3567 177,756,956 August 2022 1,646,883 1,646,883 3820 176,110,073 September 2022 2,273,226 2,273,226 3744 173,836,847 1-6 October 2022 131,864 131,864 3702 173,704,983 7-31 October 2022 (1) — — — 227,870,414 November 2022 4,497,414 4,497,414 3679 223,373,000 December 2022 4,571,923 4,571,923 3710 218,801,077 January 2023 7,989,915 7,989,915 3558 210,811,162 February 2023 1,718,877 1,718,877 3577 209,092,285 March 2023 4,353,777 4,353,777 3541 204,738,508 April 2023 2,883,950 2,883,950 3672 201,854,558 May 2023 5,196,558 5,196,558 3534 196,658,000 June 2023 410,562 410,562 3348 196,247,438 Total 37,335,456 37,335,456 3617 196,247,438 (1) New maximum number of purchasable shares was authorised by shareholders at the AGM held on 6 October 2022. |
Schedule of dividends | (d) Dividends 2023 2022 2021 £ million £ million £ million Amounts recognised as distributions to equity shareholders in the year Final dividend for the year ended 30 June 2022 46.82 pence per share (2021 – 44.59 pence; 2020 – 42.47 pence) 1,066 1,040 992 Interim dividend for the year ended 30 June 2023 30.83 pence per share (2022 – 29.36 pence; 2021 – 27.96 pence) 696 680 654 1,762 1,720 1,646 |
Schedule of amounts attributable to non controlling interests | Summarised financial information for USL and other subsidiaries, after fair value adjustments on acquisition, and the amounts attributable to non-controlling interests are as follows: 2023 2022 2021 USL Others Total Total Total Income statement Sales 2,713 2,628 5,341 5,797 5,140 Net sales 1,087 2,051 3,138 3,055 2,553 (Loss)/profit for the year (1) (215) 289 74 227 298 Other comprehensive (loss)/income (2) (133) (154) (287) 333 (434) Total comprehensive (loss)/income (348) 135 (213) 560 (136) Attributable to non-controlling interests (149) 33 (116) 259 (35) Balance sheet Non-current assets (3) 1,074 3,175 4,249 5,017 4,669 Current assets 790 1,049 1,839 2,002 1,492 Non-current liabilities (151) (1,164) (1,315) (1,499) (1,356) Current liabilities (384) (1,035) (1,419) (1,646) (1,335) Net assets 1,329 2,025 3,354 3,874 3,470 Attributable to non-controlling interests 568 902 1,470 1,716 1,534 Cash flow Net cash inflow from operating activities 120 383 503 690 661 Net cash inflow/(outflow) from investing activities 34 (231) (197) (289) (137) Net cash outflow from financing activities (48) (93) (141) (322) (371) Net increase in cash and cash equivalents 106 59 165 79 153 Exchange differences (7) (77) (84) 52 (19) Dividends payable to non-controlling interests — (97) (97) (72) (72) (1) (Loss)/profit for the year includes exceptional operating expenses attributable to non-controlling interests. (2) Other comprehensive (loss)/income is principally in respect of exchange on translating the subsidiaries to sterling. (3) Non-current assets include the global distribution rights to distribute Ketel One vodka products throughout the world. The carrying value of the distribution rights at 30 June 2023 was £1,428 million (2022 – £1,488 million; 2021 – £1,295 million). (i) On 31 December 2022, United Spirits Limited (USL) completed the merger with its subsidiary, Pioneer Distilleries Limited (PDL) 75% owned by USL. Under the terms, PDL's minority shareholders received additional shares in USL in exchange for their 25% interest in PDL and non-controlling interest increased from 42.73% to 42.79%. (ii) On 24 March 2023, Diageo completed the purchase of an additional 14.97% of the share capital of EABL. This increased Diageo’s controlling shareholding position in EABL from 50.03% to 65.00% . |
Schedule of employee share compensation | The annual fair value charge in respect of the equity settled plans for the three years ended 30 June 2023 is as follows: 2023 £ million 2022 £ million 2021 £ million Executive share award plans 41 51 41 Executive share option plans 4 4 4 Savings plans 4 4 4 49 59 49 |
Schedule of fair value of each share award used the Monte Carlo pricing model and weighted average assumptions | For the three years ended 30 June 2023, the calculation of the fair value of each share award used the Monte Carlo and Black Scholes pricing model and the following assumptions: 2023 2022 2021 Risk free interest rate 3.1 % 0.4 % (0.1 %) Expected life of the awards 35 months 40 months 36 months Dividend yield 2.0 % 2.1 % 2.7 % Weighted average share price 3758 p 3545 p 2557 p Weighted average fair value of awards granted in the year 1992 p 2729 p 2107 p Number of awards granted in the year 1.7 million 2.1 million 2.1 million Fair value of all awards granted in the year £34 million £57 million £45 million |
Schedule of transactions on executive share award plans | Transactions on the executive share award plans for the three years ended 30 June 2023 were as follows: 2023 2022 2021 Number of awards outstanding at 1 July 5.2 5.3 5.6 Granted 1.7 2.1 2.1 Awarded (1.1) (1.1) (1.2) Forfeited (0.9) (1.1) (1.2) Number of awards outstanding at 30 June 4.9 5.2 5.3 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of transactions between associates and joint ventures | Transactions and balances with associates and joint ventures are set out in the table below: 2023 £ million 2022 £ million 2021 £ million Income statement items Sales 10 11 8 Purchases 13 31 23 Balance sheet items Group payables 2 2 5 Group receivables 1 2 1 Loans payable — — 9 Loans receivable 197 175 108 Cash flow items Loans and equity contributions, net 93 66 38 |
Schedule of amounts incurred by entity for provision of key management personnel services | 2023 2022 2021 £ million £ million £ million Salaries and short-term employee benefits 11 10 9 Annual incentive plan 6 13 13 Non-Executive Directors’ fees 1 1 1 Share-based payments (1) 12 19 12 Post employment benefits 2 2 1 Termination benefits — — 2 32 45 38 (1) Time-apportioned |
Schedule of directors remuneration | 2023 2022 2021 £ million £ million £ million Salaries and short-term employee benefits 3 3 2 Annual incentive plan 2 4 4 Non-Executive Directors' fees 1 1 1 Share option exercises (1) — 4 — Shares vesting (1) 4 3 1 Post employment benefits 1 — — 11 15 8 |
Principal group companies (Tabl
Principal group companies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of subsidiaries [abstract] | |
Schedule of significant investments in subsidiaries | The companies listed below include those which principally affect the profits and assets of the group. The operating companies listed below may carry on the business described in the countries listed in conjunction with their subsidiaries and other group companies. 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 İçki Sanayi ve Ticaret A.Ş. Turkey Turkey 100% Production, marketing and distribution of premium drinks Associates Moët Hennessy, SAS (4) France France 34% Production, marketing and distribution of premium drinks (1) All percentages, unless otherwise stated, are in respect of holdings of ordinary share capital and are equivalent to the percentages of voting rights held by the group. (2) Percentage ownership excludes 2.38% owned by the USL Benefit Trust. (3) Directly owned by Diageo plc. |
Schedule of significant investments in associates | The companies listed below include those which principally affect the profits and assets of the group. The operating companies listed below may carry on the business described in the countries listed in conjunction with their subsidiaries and other group companies. 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 İçki Sanayi ve Ticaret A.Ş. Turkey Turkey 100% Production, marketing and distribution of premium drinks Associates Moët Hennessy, SAS (4) France France 34% Production, marketing and distribution of premium drinks (1) All percentages, unless otherwise stated, are in respect of holdings of ordinary share capital and are equivalent to the percentages of voting rights held by the group. (2) Percentage ownership excludes 2.38% owned by the USL Benefit Trust. (3) Directly owned by Diageo plc. |
Accounting information and po_4
Accounting information and policies - Going Concern Narrative (Details) - Jun. 30, 2023 € in Millions, $ in Billions | EUR (€) | USD ($) |
Euro | European debt issuance programme | ||
Schedule Of Going Concern [Line Items] | ||
Notional amounts | € | € 500 | |
US dollar | US shelf programme | ||
Schedule Of Going Concern [Line Items] | ||
Notional amounts | $ | $ 2 |
Accounting information and po_5
Accounting information and policies - Principal foreign exchange rates used in translation of financial statements (Details) | 12 Months Ended | ||
Jun. 30, 2023 € / £ $ / £ | Jun. 30, 2022 $ / £ € / £ | Jun. 30, 2021 € / £ $ / £ | |
US dollar | |||
Foreign exchange rates [abstract] | |||
Income statement and cash flows | $ / £ | 1.20 | 1.33 | 1.35 |
Assets and liabilities | $ / £ | 1.26 | 1.21 | 1.39 |
Euro | |||
Foreign exchange rates [abstract] | |||
Income statement and cash flows | € / £ | 1.15 | 1.18 | 1.13 |
Assets and liabilities | € / £ | 1.17 | 1.16 | 1.17 |
Accounting information and po_6
Accounting information and policies - Contribution of the Group's Venezuelan and Turkish operations (Details) ₺ in Millions, £ in Millions | 12 Months Ended | |||
Jun. 30, 2023 GBP (£) Bs. / £ | Jun. 30, 2022 GBP (£) Bs. / £ | Jun. 30, 2022 TRY (₺) | Jun. 30, 2021 GBP (£) | |
Disclosure of geographical areas [line items] | ||||
Net sales | £ 17,113 | £ 15,452 | £ 12,733 | |
Operating loss | 4,632 | 4,409 | 3,731 | |
Net cash outflow from operating activities | 4,779 | 5,212 | £ 4,857 | |
Net assets | £ 9,292 | 9,514 | ||
Turkey | ||||
Disclosure of geographical areas [line items] | ||||
Impairment charge | 312 | ₺ 3,760 | ||
Goodwill | Turkey | ||||
Disclosure of geographical areas [line items] | ||||
Impairment charge | 177 | 2,133 | ||
Brand names | Yenì raki | ||||
Disclosure of geographical areas [line items] | ||||
Impairment charge | £ 135 | ₺ 1,627 | ||
Turkey | ||||
Disclosure of geographical areas [line items] | ||||
Movement in price index in hyperinflationary economy | 38% | 79% | 79% | |
Venezuela | ||||
Disclosure of geographical areas [line items] | ||||
Movement in price index in hyperinflationary economy | 382% | 268% | 268% | |
Net sales | £ 0 | £ 0 | ||
Operating loss | 0 | (1) | ||
Other finance (charges)/income - hyperinflation adjustment | (2) | 1 | ||
Net cash outflow from operating activities | 0 | 0 | ||
Net assets | 6 | 41 | ||
Venezuela | Reported if in compliance with requirement of IFRS | ||||
Disclosure of geographical areas [line items] | ||||
Net sales | 9 | 15 | ||
Operating loss | 0 | (1) | ||
Other finance (charges)/income - hyperinflation adjustment | (212) | 157 | ||
Net cash outflow from operating activities | (3) | (5) | ||
Net assets | £ 657 | £ 4,606 | ||
Venezuelan Bolivar Soberano | ||||
Disclosure of geographical areas [line items] | ||||
Closing foreign exchange rate | Bs. / £ | 3,807 | 759 | ||
Venezuelan Bolivar Soberano | Reported if in compliance with requirement of IFRS | ||||
Disclosure of geographical areas [line items] | ||||
Closing foreign exchange rate | Bs. / £ | 36 | 7 |
Segmental information - Consoli
Segmental information - Consolidated income statement (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | |||
Sales | £ 23,515 | £ 22,448 | £ 19,153 |
Net sales | |||
At budgeted exchange rates | 15,939 | 15,411 | 13,483 |
Acquisitions and disposals | 182 | 75 | 35 |
SC&P allocation | 0 | 0 | 0 |
Retranslation to actual exchange rates | 817 | (223) | (785) |
Hyper Related Adjustment In Respect Of Net Sales | 175 | 189 | |
Net sales | 17,113 | 15,452 | 12,733 |
Operating profit/(loss) | |||
At budgeted exchange rates | 4,919 | 4,773 | 4,160 |
Acquisitions and disposals | (5) | (27) | (21) |
SC&P allocation | 0 | 0 | 0 |
Fair value remeasurements | 113 | ||
Fair value remeasurement of contingent consideration | (36) | ||
Fair value remeasurements | 60 | ||
Retranslation to actual exchange rates | 204 | (19) | (357) |
Hyperinflation | 23 | 10 | |
Operating profit/(loss) before exceptional items | 5,254 | 4,797 | 3,746 |
Exceptional operating items | (622) | (388) | (15) |
Operating profit/(loss) | 4,632 | 4,409 | 3,731 |
Non-operating items | 328 | (17) | 14 |
Net finance charges | (594) | (422) | (373) |
Share of after tax results of associates and joint ventures | |||
Share of after tax results of associates and joint ventures | 370 | 417 | 334 |
Profit before taxation | £ 4,736 | 4,387 | 3,706 |
Annual net sales occur in the last four months | 38% | ||
Moet Hennessy | |||
Net sales | |||
Net sales | £ 6,003 | 5,553 | 4,819 |
Share of after tax results of associates and joint ventures | |||
Share of after tax results of associates and joint ventures | 379 | 425 | |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Sales | 23,427 | 22,394 | 19,133 |
Net sales | |||
At budgeted exchange rates | 15,852 | 15,356 | 13,463 |
Acquisitions and disposals | 182 | 75 | 35 |
SC&P allocation | 0 | 0 | 0 |
Retranslation to actual exchange rates | 816 | (222) | (785) |
Hyper Related Adjustment In Respect Of Net Sales | 175 | 189 | |
Net sales | 17,025 | 15,398 | 12,713 |
Operating profit/(loss) | |||
At budgeted exchange rates | 5,211 | 5,029 | 4,378 |
Acquisitions and disposals | 1 | (27) | (21) |
SC&P allocation | 0 | 0 | 0 |
Fair value remeasurements | 113 | ||
Fair value remeasurement of contingent consideration | (36) | ||
Fair value remeasurements | 60 | ||
Retranslation to actual exchange rates | 232 | (37) | (367) |
Hyperinflation | 23 | 10 | |
Operating profit/(loss) before exceptional items | 5,580 | 5,035 | 3,954 |
Exceptional operating items | (622) | (388) | (15) |
Operating profit/(loss) | 4,958 | 4,647 | 3,939 |
Operating segments | North America | |||
Disclosure of operating segments [line items] | |||
Sales | 7,382 | 6,682 | 5,803 |
Net sales | |||
At budgeted exchange rates | 6,052 | 5,955 | 5,527 |
Acquisitions and disposals | 20 | 34 | 28 |
SC&P allocation | 8 | 9 | 9 |
Retranslation to actual exchange rates | 678 | 97 | (355) |
Hyper Related Adjustment In Respect Of Net Sales | 0 | 0 | |
Net sales | 6,758 | 6,095 | 5,209 |
Operating profit/(loss) | |||
At budgeted exchange rates | 2,337 | 2,388 | 2,469 |
Acquisitions and disposals | (18) | (28) | (18) |
SC&P allocation | 3 | (1) | (30) |
Fair value remeasurements | 87 | ||
Fair value remeasurement of contingent consideration | (9) | ||
Fair value remeasurements | 32 | ||
Retranslation to actual exchange rates | 280 | 63 | (175) |
Hyperinflation | 0 | 0 | |
Operating profit/(loss) before exceptional items | 2,689 | 2,454 | 2,237 |
Exceptional operating items | (97) | (1) | 0 |
Operating profit/(loss) | 2,592 | 2,453 | 2,237 |
Operating segments | Europe | |||
Disclosure of operating segments [line items] | |||
Sales | 5,996 | 5,740 | 4,795 |
Net sales | |||
At budgeted exchange rates | 3,377 | 3,258 | 2,579 |
Acquisitions and disposals | 20 | 23 | 2 |
SC&P allocation | 38 | 46 | 45 |
Retranslation to actual exchange rates | (41) | (304) | (68) |
Hyper Related Adjustment In Respect Of Net Sales | 175 | 189 | |
Net sales | 3,569 | 3,212 | 2,558 |
Operating profit/(loss) | |||
At budgeted exchange rates | 1,076 | 1,086 | 728 |
Acquisitions and disposals | (13) | 11 | (3) |
SC&P allocation | (24) | (18) | (32) |
Fair value remeasurements | 25 | ||
Fair value remeasurement of contingent consideration | (27) | ||
Fair value remeasurements | 36 | ||
Retranslation to actual exchange rates | 18 | (108) | (31) |
Hyperinflation | 23 | 10 | |
Operating profit/(loss) before exceptional items | 1,105 | 1,017 | 635 |
Exceptional operating items | (8) | (146) | (15) |
Operating profit/(loss) | 1,097 | 871 | 620 |
Operating segments | Asia Pacific | |||
Disclosure of operating segments [line items] | |||
Sales | 5,403 | 5,624 | 5,146 |
Net sales | |||
At budgeted exchange rates | 3,084 | 2,879 | 2,561 |
Acquisitions and disposals | 35 | 0 | 0 |
SC&P allocation | 8 | 9 | 9 |
Retranslation to actual exchange rates | 73 | (4) | (82) |
Hyper Related Adjustment In Respect Of Net Sales | 0 | 0 | |
Net sales | 3,200 | 2,884 | 2,488 |
Operating profit/(loss) | |||
At budgeted exchange rates | 886 | 703 | 628 |
Acquisitions and disposals | 5 | 0 | 0 |
SC&P allocation | (6) | (2) | (5) |
Fair value remeasurements | 0 | ||
Fair value remeasurement of contingent consideration | 0 | ||
Fair value remeasurements | 0 | ||
Retranslation to actual exchange rates | 20 | 10 | (15) |
Hyperinflation | 0 | 0 | |
Operating profit/(loss) before exceptional items | 905 | 711 | 608 |
Exceptional operating items | (473) | (241) | 0 |
Operating profit/(loss) | 432 | 470 | 608 |
Operating segments | Latin America and Caribbean | |||
Disclosure of operating segments [line items] | |||
Sales | 2,260 | 1,945 | 1,369 |
Net sales | |||
At budgeted exchange rates | 1,642 | 1,486 | 1,176 |
Acquisitions and disposals | 3 | 3 | 0 |
SC&P allocation | 9 | 12 | 13 |
Retranslation to actual exchange rates | 145 | 24 | (143) |
Hyper Related Adjustment In Respect Of Net Sales | 0 | 0 | |
Net sales | 1,799 | 1,525 | 1,046 |
Operating profit/(loss) | |||
At budgeted exchange rates | 597 | 528 | 422 |
Acquisitions and disposals | 0 | 0 | 0 |
SC&P allocation | (3) | 0 | (27) |
Fair value remeasurements | 1 | ||
Fair value remeasurement of contingent consideration | 0 | ||
Fair value remeasurements | (8) | ||
Retranslation to actual exchange rates | 66 | 18 | (92) |
Hyperinflation | 0 | 0 | |
Operating profit/(loss) before exceptional items | 661 | 538 | 303 |
Exceptional operating items | 0 | 0 | 0 |
Operating profit/(loss) | 661 | 538 | 303 |
Operating segments | Africa | |||
Disclosure of operating segments [line items] | |||
Sales | 2,386 | 2,403 | 2,020 |
Net sales | |||
At budgeted exchange rates | 1,631 | 1,699 | 1,541 |
Acquisitions and disposals | 104 | 15 | 5 |
SC&P allocation | 3 | 3 | 3 |
Retranslation to actual exchange rates | (39) | (35) | (137) |
Hyper Related Adjustment In Respect Of Net Sales | 0 | 0 | |
Net sales | 1,699 | 1,682 | 1,412 |
Operating profit/(loss) | |||
At budgeted exchange rates | 347 | 346 | 228 |
Acquisitions and disposals | 27 | (10) | 0 |
SC&P allocation | (2) | (1) | (3) |
Fair value remeasurements | 0 | ||
Fair value remeasurement of contingent consideration | 0 | ||
Fair value remeasurements | 0 | ||
Retranslation to actual exchange rates | (152) | (20) | (54) |
Hyperinflation | 0 | 0 | |
Operating profit/(loss) before exceptional items | 220 | 315 | 171 |
Exceptional operating items | (44) | 0 | 0 |
Operating profit/(loss) | 176 | 315 | 171 |
Operating segments | SC&P | |||
Disclosure of operating segments [line items] | |||
Sales | 3,073 | 2,010 | 1,537 |
Net sales | |||
At budgeted exchange rates | 2,942 | 2,095 | 1,627 |
Acquisitions and disposals | 0 | 0 | 0 |
SC&P allocation | (66) | (79) | (79) |
Retranslation to actual exchange rates | 197 | (6) | (11) |
Hyper Related Adjustment In Respect Of Net Sales | 0 | 0 | |
Net sales | 3,073 | 2,010 | 1,537 |
Operating profit/(loss) | |||
At budgeted exchange rates | (32) | (22) | (97) |
Acquisitions and disposals | 0 | 0 | 0 |
SC&P allocation | 32 | 22 | 97 |
Fair value remeasurements | 0 | ||
Fair value remeasurement of contingent consideration | 0 | ||
Fair value remeasurements | 0 | ||
Retranslation to actual exchange rates | 0 | 0 | 0 |
Hyperinflation | 0 | 0 | |
Operating profit/(loss) before exceptional items | 0 | 0 | 0 |
Exceptional operating items | 0 | 0 | 0 |
Operating profit/(loss) | 0 | 0 | 0 |
Elimination of intersegment sales | |||
Disclosure of operating segments [line items] | |||
Sales | (3,073) | (2,010) | (1,537) |
Net sales | |||
At budgeted exchange rates | (2,876) | (2,016) | (1,548) |
Acquisitions and disposals | 0 | 0 | 0 |
SC&P allocation | 0 | 0 | 0 |
Retranslation to actual exchange rates | (197) | 6 | 11 |
Hyper Related Adjustment In Respect Of Net Sales | 0 | 0 | |
Net sales | (3,073) | (2,010) | (1,537) |
Corporate and other | |||
Disclosure of operating segments [line items] | |||
Sales | 88 | 54 | 20 |
Net sales | |||
At budgeted exchange rates | 87 | 55 | 20 |
Acquisitions and disposals | 0 | 0 | 0 |
SC&P allocation | 0 | 0 | 0 |
Retranslation to actual exchange rates | 1 | (1) | 0 |
Hyper Related Adjustment In Respect Of Net Sales | 0 | 0 | |
Net sales | 88 | 54 | 20 |
Operating profit/(loss) | |||
At budgeted exchange rates | (292) | (256) | (218) |
Acquisitions and disposals | (6) | 0 | 0 |
SC&P allocation | 0 | 0 | 0 |
Fair value remeasurements | 0 | ||
Fair value remeasurement of contingent consideration | 0 | ||
Fair value remeasurements | 0 | ||
Retranslation to actual exchange rates | (28) | 18 | 10 |
Hyperinflation | 0 | 0 | |
Operating profit/(loss) before exceptional items | (326) | (238) | (208) |
Exceptional operating items | 0 | 0 | 0 |
Operating profit/(loss) | £ (326) | £ (238) | £ (208) |
Segmental information - Other i
Segmental information - Other information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | £ 1,180 | £ 1,097 | £ 626 |
Depreciation and intangible asset amortisation | (496) | (489) | (447) |
Exceptional impairment of tangible assets | (72) | (3) | |
Exceptional impairment of intangible assets | (498) | (336) | |
Operating segments | North America | |||
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | 197 | 230 | 153 |
Depreciation and intangible asset amortisation | (95) | (80) | (76) |
Exceptional impairment of tangible assets | (52) | 0 | |
Exceptional impairment of intangible assets | (29) | 0 | |
Operating segments | Europe | |||
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | 209 | 187 | 23 |
Depreciation and intangible asset amortisation | (98) | (93) | (31) |
Exceptional impairment of tangible assets | 2 | (3) | |
Exceptional impairment of intangible assets | (25) | (96) | |
Operating segments | Asia Pacific | |||
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | 166 | 146 | 56 |
Depreciation and intangible asset amortisation | (61) | (93) | (60) |
Exceptional impairment of tangible assets | (22) | 0 | |
Exceptional impairment of intangible assets | (444) | (240) | |
Operating segments | Latin America and Caribbean | |||
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | 121 | 128 | 20 |
Depreciation and intangible asset amortisation | (18) | (16) | (16) |
Exceptional impairment of tangible assets | 0 | 0 | |
Exceptional impairment of intangible assets | 0 | 0 | |
Operating segments | Africa | |||
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | 126 | 139 | 125 |
Depreciation and intangible asset amortisation | (80) | (81) | (79) |
Exceptional impairment of tangible assets | 0 | 0 | |
Exceptional impairment of intangible assets | 0 | 0 | |
Operating segments | SC&P | |||
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | 356 | 256 | 125 |
Depreciation and intangible asset amortisation | (134) | (116) | (126) |
Exceptional impairment of tangible assets | 0 | 0 | |
Exceptional impairment of intangible assets | 0 | 0 | |
Corporate and other | |||
Disclosure of operating segments [line items] | |||
Purchase of property, plant and equipment and computer software | 5 | 11 | 124 |
Depreciation and intangible asset amortisation | (10) | (10) | £ (59) |
Exceptional impairment of tangible assets | 0 | 0 | |
Exceptional impairment of intangible assets | £ 0 | £ 0 |
Segmental information - Categor
Segmental information - Category analysis (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of products and services [line items] | |||
Sales | £ 23,515 | £ 22,448 | £ 19,153 |
Spirits | |||
Disclosure of products and services [line items] | |||
Sales | 19,004 | 18,164 | 15,634 |
Beer | |||
Disclosure of products and services [line items] | |||
Sales | 3,355 | 3,128 | 2,562 |
Ready to Drink | |||
Disclosure of products and services [line items] | |||
Sales | 899 | 882 | 741 |
Other | |||
Disclosure of products and services [line items] | |||
Sales | £ 257 | £ 274 | £ 216 |
Segmental information - Geograp
Segmental information - Geographic analysis (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of geographical areas [line items] | |||
Sales | £ 23,515 | £ 22,448 | £ 19,153 |
Non-current assets | 21,727 | 21,569 | 19,063 |
United States | |||
Disclosure of geographical areas [line items] | |||
Sales | 6,972 | 6,327 | 5,441 |
Non-current assets | 5,816 | 5,899 | 4,320 |
India | |||
Disclosure of geographical areas [line items] | |||
Sales | 2,751 | 3,219 | 3,011 |
Non-current assets | 1,798 | 2,396 | 2,561 |
Great Britain | |||
Disclosure of geographical areas [line items] | |||
Sales | 2,138 | 2,142 | 1,822 |
Non-current assets | 2,909 | 2,413 | 2,119 |
Rest of World | |||
Disclosure of geographical areas [line items] | |||
Sales | 11,654 | 10,760 | 8,879 |
Non-current assets | £ 11,204 | £ 10,861 | £ 10,063 |
Operating costs - Operating cos
Operating costs - Operating costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Expense by nature [line items] | |||
Excise duties | £ 6,402 | £ 6,996 | £ 6,420 |
Cost of sales | 6,899 | 5,973 | 5,038 |
Marketing | 3,051 | 2,721 | 2,163 |
Other operating items | 2,531 | 2,349 | 1,801 |
Operating expenses | 18,883 | 18,039 | 15,422 |
Increase in inventories | (513) | (909) | (293) |
Raw materials and consumables | 4,328 | 4,017 | 3,126 |
Marketing | 3,051 | 2,721 | 2,163 |
Other external charges | 2,747 | 2,597 | 1,978 |
Staff costs | 1,830 | 1,795 | 1,586 |
Depreciation, amortisation and impairment | 1,066 | 828 | 447 |
Gains on disposal of properties | (4) | (2) | (1) |
Net foreign exchange losses | 10 | 10 | 22 |
Other operating income | (34) | (14) | (26) |
India | |||
Expense by nature [line items] | |||
Excise duties | 1,625 | 2,182 | 2,127 |
United Kingdom | |||
Expense by nature [line items] | |||
Excise duties | 1,095 | 1,172 | 1,018 |
United States | |||
Expense by nature [line items] | |||
Excise duties | 687 | 614 | 589 |
Other | |||
Expense by nature [line items] | |||
Excise duties | £ 2,995 | £ 3,028 | £ 2,686 |
Operating costs - Other externa
Operating costs - Other external charges (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |||
Research and development expenditure | £ 53 | £ 43 | £ 40 |
Maintenance and repairs expense | £ 143 | £ 136 | £ 107 |
Operating costs - Auditor fees
Operating costs - Auditor fees (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Principal auditor | |||
Disclosure of operating costs [line items] | |||
Audit of these financial statements | £ 5.2 | £ 4.2 | £ 3.8 |
Audit of financial statements of subsidiaries | 5.7 | 6.1 | 4.4 |
Audit related assurance services(1) | 2.7 | 2.5 | 2.6 |
Total audit fees (Audit fees) | 13.6 | 12.8 | 10.8 |
Other assurance services (Audit related fees)(2) | 1.2 | 0.7 | 0.8 |
Auditors remuneration, Total | 14.8 | 13.5 | 11.6 |
Other than principal auditor | |||
Disclosure of operating costs [line items] | |||
Total audit fees (Audit fees) | £ 0.1 | £ 0.1 | £ 0.1 |
Operating costs - Staff costs (
Operating costs - Staff costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Aggregate remuneration | |||
Wages and salaries | £ 1,548 | £ 1,557 | £ 1,336 |
Share-based incentive plans | 48 | 59 | 50 |
Employer’s social security | 115 | 107 | 83 |
Employer’s pension | |||
Defined benefit plans | 67 | 36 | 82 |
Defined contribution plans | 44 | 33 | 25 |
Other post employment plans | 8 | 3 | 10 |
Staff costs | £ 1,830 | £ 1,795 | £ 1,586 |
Operating costs - Average numbe
Operating costs - Average number of employees (Details) - employee | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | |||
Average number of employees | 30,237 | 27,987 | 27,566 |
Operating segments | North America | |||
Disclosure of operating segments [line items] | |||
Average number of employees | 2,884 | 2,811 | 2,562 |
Operating segments | Europe | |||
Disclosure of operating segments [line items] | |||
Average number of employees | 2,789 | 3,014 | 3,237 |
Operating segments | Asia Pacific | |||
Disclosure of operating segments [line items] | |||
Average number of employees | 6,856 | 6,500 | 6,474 |
Operating segments | Latin America and Caribbean | |||
Disclosure of operating segments [line items] | |||
Average number of employees | 1,495 | 1,500 | 1,505 |
Operating segments | Africa | |||
Disclosure of operating segments [line items] | |||
Average number of employees | 3,526 | 4,061 | 4,016 |
Operating segments | SC&P | |||
Disclosure of operating segments [line items] | |||
Average number of employees | 6,934 | 5,025 | 5,085 |
Corporate and other | |||
Disclosure of operating segments [line items] | |||
Average number of employees | 5,753 | 5,076 | 4,687 |
Operating costs - Narrative (De
Operating costs - Narrative (Details) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 GBP (£) employee | Jun. 30, 2022 GBP (£) employee | Jun. 30, 2021 GBP (£) employee | |
Disclosure of operating costs [line items] | |||
Number of employees on full time equivalent basis | employee | 30,269 | 28,558 | 27,783 |
Average number of employees, including part time | employee | 30,419 | 28,137 | 28,025 |
Other than principal auditor | |||
Disclosure of operating costs [line items] | |||
Auditor's remuneration for audit services | £ 0.1 | £ 0.1 | £ 0.1 |
Principal auditor | |||
Disclosure of operating costs [line items] | |||
Auditor's remuneration for audit services | 13.6 | 12.8 | 10.8 |
Audit services in respect of employee pension plans | £ 0.3 | £ 0.2 | £ 0.2 |
Operating costs - Exceptional o
Operating costs - Exceptional operating items (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Depreciation, amortisation and impairment | |||
Depreciation, amortisation and impairment | £ 1,066 | £ 828 | £ 447 |
Staff costs | 1,830 | 1,795 | 1,586 |
Other external charges | 2,747 | 2,597 | 1,978 |
Other operating income | (34) | (14) | (26) |
Operating profit/(loss) | (4,632) | (4,409) | (3,731) |
Cost of sales | 6,899 | 5,973 | 5,038 |
Total exceptional items | |||
Depreciation, amortisation and impairment | |||
Staff costs | 10 | 0 | 5 |
Other external charges | 60 | 52 | 13 |
Other operating income | (18) | 0 | (3) |
Operating profit/(loss) | 622 | 388 | 15 |
Cost of sales | 67 | 0 | 0 |
Other operating expenses | 555 | 388 | 15 |
Total exceptional items | Intangible assets [Member] | |||
Depreciation, amortisation and impairment | |||
Depreciation, amortisation and impairment | 498 | 336 | 0 |
Total exceptional items | Property, plant and equipment | |||
Depreciation, amortisation and impairment | |||
Depreciation, amortisation and impairment | £ 72 | £ 0 | £ 0 |
Exceptional items - Schedule of
Exceptional items - Schedule of exceptional items (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Exceptional Items [Line Items] | |||
Other (expenses) / income | £ (2,747) | £ (2,597) | £ (1,978) |
Operating profit | 4,632 | 4,409 | 3,731 |
Non-operating items | 328 | (17) | 14 |
Exceptional items before taxation | 4,736 | 4,387 | 3,706 |
Items included in taxation | (970) | (1,049) | (907) |
Total exceptional items | 3,766 | 3,338 | 2,799 |
Attributable to: | |||
Equity shareholders of the parent company | 3,734 | 3,249 | 2,660 |
Non-controlling interests | 32 | 89 | 139 |
Total exceptional items | |||
Disclosure Of Exceptional Items [Line Items] | |||
Other (expenses) / income | (60) | (52) | (13) |
Operating profit | (622) | (388) | (15) |
Non-operating items | 328 | (17) | 14 |
Exceptional items before taxation | (294) | (405) | (1) |
Items included in taxation | 186 | 31 | (84) |
Total exceptional items | (108) | (374) | (85) |
Attributable to: | |||
Equity shareholders of the parent company | 33 | (271) | (86) |
Non-controlling interests | (141) | (103) | 1 |
Brand, goodwill, tangible and other assets impairment | |||
Disclosure Of Exceptional Items [Line Items] | |||
Brand, goodwill, tangible and other assets impairment | (498) | (336) | 0 |
Items included in taxation | 124 | 55 | 0 |
Supply Chain Agility Programme | |||
Disclosure Of Exceptional Items [Line Items] | |||
Other (expenses) / income | (100) | 0 | 0 |
Items included in taxation | 23 | 0 | 0 |
Distribution termination fee | |||
Disclosure Of Exceptional Items [Line Items] | |||
Other (expenses) / income | (44) | 0 | 0 |
Items included in taxation | 11 | 0 | 0 |
Winding down Russian operations | |||
Disclosure Of Exceptional Items [Line Items] | |||
Other (expenses) / income | 20 | (50) | 0 |
Items included in taxation | 0 | (3) | 0 |
Other exceptional operating items | |||
Disclosure Of Exceptional Items [Line Items] | |||
Other (expenses) / income | 0 | (2) | (15) |
Guinness Cameroun SA | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | 310 | 0 | 0 |
Items included in taxation | (42) | ||
Archer brand | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | 20 | 0 | 0 |
USL Popular brands | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | 4 | 0 | 0 |
USL businesses | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | 1 | 0 | 3 |
Items included in taxation | 10 | ||
Tyku brand | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | (3) | 0 | 0 |
Picon brand | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | 0 | 91 | 0 |
Items included in taxation | (23) | ||
Meta Abo Brewery | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | 0 | (95) | 0 |
Windsor business | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | 0 | (19) | 0 |
Step acquisitions | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | (8) | 0 | 0 |
Other non-operating exceptional items | |||
Disclosure Of Exceptional Items [Line Items] | |||
Non-operating items | £ 4 | £ 6 | £ 11 |
Exceptional items - Schedule _2
Exceptional items - Schedule of exceptional items - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
May 26, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Exceptional Items [Line Items] | ||||
Other (expenses) / income | £ (2,747) | £ (2,597) | £ (1,978) | |
Non-operating items | 328 | (17) | 14 | |
Guinness Cameroun SA | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Consideration paid (received) | £ (384) | (384) | ||
Non-operating items | 310 | |||
Brand and tangible asset impairment | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Impairment loss recognised in profit or loss | 498 | 336 | 0 | |
Brand and tangible asset impairment | Goodwill | Smirnov | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Impairment loss | 19 | |||
McDowell's No.1 brand impairment | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Impairment loss recognised in profit or loss | 240 | |||
Bell's brand impairment | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Impairment loss recognised in profit or loss | 77 | |||
Supply Chain Agility Programme | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Other (expenses) / income | £ (100) | 0 | 0 | |
Spanning Programme, Period | 5 years | |||
Restructuring cash expenditure | £ (12) | |||
Supply Chain Agility Programme | Maximum | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Implementation cost, Total | (500) | |||
Distribution termination fee | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Other (expenses) / income | (44) | 0 | 0 | |
Winding down Russian operations | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Other (expenses) / income | 20 | (50) | 0 | |
Other exceptional operating items | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Other (expenses) / income | 0 | (2) | (15) | |
Guinness Cameroun SA | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Exchange recycled from other comprehensive income | 17 | |||
Non-operating items | 310 | 0 | 0 | |
Archer brand | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | 20 | 0 | 0 | |
USL Popular brands | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | 4 | 0 | 0 | |
USL businesses | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | 1 | 0 | 3 | |
Tyku brand | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | (3) | 0 | 0 | |
Sale of Picon brand | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | 0 | 91 | 0 | |
Meta Abo Brewery | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | 0 | (95) | 0 | |
Windsor business | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | 0 | (19) | 0 | |
Step acquisitions | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | (8) | 0 | 0 | |
Other non-operating exceptional items | ||||
Disclosure Of Exceptional Items [Line Items] | ||||
Non-operating items | £ 4 | £ 6 | £ 11 |
Exceptional items - Schedule _3
Exceptional items - Schedule of exceptional cash flows (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | £ 3,024 | £ 3,935 | £ 3,654 |
Thalidomide | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | (14) | (16) | (15) |
Winding down Russian operations | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | (13) | (13) | 0 |
Supply Chain Agility Programme | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | (12) | 0 | 0 |
Donations | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | 0 | (37) | (50) |
Indirect tax in Korea | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | 0 | 0 | (10) |
Ongoing litigation in Turkey | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | 0 | 0 | (1) |
Substitution drawback | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | 0 | 0 | 60 |
Total cash payments | |||
Disclosure Of Exceptional Items [Line Items] | |||
Net cash inflow from operating activities | £ (39) | £ (66) | £ (16) |
Finance income and charges - Sc
Finance income and charges - Schedule of finance income and charges (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Finance Income And Charges [Line Items] | |||
Interest income | £ 160 | £ 127 | £ 119 |
Fair value gain on financial instruments | 103 | 341 | 124 |
Total interest income | 263 | 468 | 243 |
Interest charge on bank loans, bonds and overdrafts | (470) | (371) | (365) |
Interest charge on leases | (15) | (12) | (16) |
Interest charge on other borrowings | (271) | (92) | (84) |
Fair value loss on financial instruments | (102) | (346) | (126) |
Total interest charges | (858) | (821) | (591) |
Net interest charges | (595) | (353) | (348) |
Net finance income in respect of post employment plans in surplus (note 14) | 59 | 22 | 18 |
Finance Income From Hyper Inflation Adjustment (Turkey) | 10 | 0 | 0 |
Finance Income From Hyper Inflation Adjustment (Venezuela) | 0 | 1 | 2 |
Interest income in respect of direct and indirect tax | 8 | 2 | 15 |
Unwinding of discounts | 0 | 4 | 0 |
Total other finance income | 77 | 29 | 35 |
Net finance charge in respect of post employment plans in deficit (note 14) | (15) | (12) | (13) |
Finance Charge From Hyper Inflation Adjustment (Turkey) | 0 | (34) | 0 |
Finance Charge From Hyper Inflation Adjustment (Venezuela) | (2) | 0 | 0 |
Hyperinflation adjustment and foreign exchange revaluation of monetary items in respect of Lebanon (note 1 (f)) | 0 | (3) | (8) |
Unwinding of discounts | (13) | (11) | (20) |
Interest charge in respect of direct and indirect tax | (25) | (16) | (11) |
Change in financial liability (Level 3) | (8) | (20) | (7) |
Guarantee fees | (1) | (1) | (1) |
Other finance charges | (12) | (1) | 0 |
Total other finance charges | (76) | (98) | (60) |
Net other finance income/(charges) | 1 | (69) | (25) |
Interest income on financial assets not designated at fair value through profit or loss | 81 | 27 | 28 |
Interest expense on financial liabilities not designated at fair value through profit or loss | £ (522) | £ (417) | £ (429) |
Investments in associates and_3
Investments in associates and joint ventures - Narrative (Details) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 GBP (£) € / £ | Jun. 30, 2022 GBP (£) € / £ | Jun. 30, 2021 € / £ | |
Disclosure of associates [line items] | |||
Cost of shares less goodwill written off on acquisitions | £ 1,384 | £ 1,340 | |
Group's share of post acquisition reserves | £ 2,445 | £ 2,312 | |
Moet Hennessy | |||
Disclosure of associates [line items] | |||
Ownership interest in associate | 34% | ||
Country of incorporation | France | ||
Average exchange rate (EUR per GBP) | € / £ | 1.15 | 1.18 | 1.13 |
Investments in associates and_4
Investments in associates and joint ventures - Analysis of movement in the group's investments in associates and joint ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of significant investments in associates and joint ventures [line items] | |||
Cost less provisions, Beginning balance | £ 3,652 | £ 3,308 | |
Exchange differences | (59) | 60 | |
Additions | 93 | 65 | |
Share of profit/(loss) after tax | 370 | 417 | £ 334 |
Step acquisition | (17) | ||
Dividends | (219) | (190) | |
Share of movements in other comprehensive income and equity | 36 | (6) | |
Transfer | 1 | ||
Impairment charged during the year | (28) | (2) | |
Cost less provisions, Ending balance | 3,829 | 3,652 | 3,308 |
Loans and preference shares invested in associates | 168 | 163 | |
Additional investments in associates subject to performance targets | 27 | 22 | |
Moet Hennessy | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Cost less provisions, Beginning balance | 3,409 | 3,128 | |
Exchange differences | (51) | 48 | |
Additions | 0 | 0 | |
Share of profit/(loss) after tax | 379 | 425 | |
Step acquisition | 0 | ||
Dividends | (214) | (186) | |
Share of movements in other comprehensive income and equity | 36 | (6) | |
Transfer | 0 | ||
Impairment charged during the year | 0 | 0 | |
Cost less provisions, Ending balance | 3,559 | 3,409 | 3,128 |
Others | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Cost less provisions, Beginning balance | 243 | 180 | |
Exchange differences | (8) | 12 | |
Additions | 93 | 65 | |
Share of profit/(loss) after tax | (9) | (8) | |
Step acquisition | (17) | ||
Dividends | (5) | (4) | |
Share of movements in other comprehensive income and equity | 0 | 0 | |
Transfer | 1 | ||
Impairment charged during the year | (28) | (2) | |
Cost less provisions, Ending balance | £ 270 | £ 243 | £ 180 |
Investments in associates and_5
Investments in associates and joint ventures - Summary income statement of Moet Hennesy (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of associates [line items] | |||
Sales | £ 17,113 | £ 15,452 | £ 12,733 |
Profit for the year | 3,766 | 3,338 | 2,799 |
Total comprehensive income | 2,964 | 4,820 | 1,934 |
Moet Hennessy | |||
Disclosure of associates [line items] | |||
Sales | 6,003 | 5,553 | 4,819 |
Profit for the year | 1,117 | 1,250 | 985 |
Total comprehensive income | £ 1,161 | £ 1,269 | £ 999 |
Investments in associates and_6
Investments in associates and joint ventures - Summary balance sheet of Moet Hennessy (Details) £ in Millions | Jun. 30, 2023 GBP (£) € / £ | Jun. 30, 2022 GBP (£) € / £ |
Disclosure of associates [line items] | ||
Non-current assets | £ 23,222 | £ 23,582 |
Current assets | 12,399 | 12,934 |
Total assets | 35,621 | 36,516 |
Non-current liabilities | (18,715) | (18,560) |
Current liabilities | (7,614) | (8,442) |
Total liabilities | (26,329) | (27,002) |
Net assets | 9,292 | 9,514 |
Moet Hennessy | ||
Disclosure of associates [line items] | ||
Non-current assets | 6,774 | 5,957 |
Current assets | 9,155 | 8,447 |
Total assets | 15,929 | 14,404 |
Non-current liabilities | (2,108) | (1,791) |
Current liabilities | (3,160) | (2,415) |
Total liabilities | (5,268) | (4,206) |
Net assets | £ 10,661 | £ 10,198 |
Fair value | Moet Hennessy | ||
Disclosure of associates [line items] | ||
Closing foreign exchange rate | € / £ | 1.17 | 1.16 |
Taxation - Analysis of taxation
Taxation - Analysis of taxation charge for the year (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current tax | |||
Current year | £ 1,039 | £ 1,041 | £ 784 |
Adjustments in respect of prior years | (6) | 26 | 29 |
Current tax | 1,033 | 1,067 | 813 |
Deferred tax | |||
Origination and reversal of temporary differences | (45) | 21 | 31 |
Changes in tax rates | 11 | 3 | 78 |
Adjustments in respect of prior years | (29) | (42) | (15) |
Deferred tax | (63) | (18) | 94 |
Taxation on profit | 970 | 1,049 | 907 |
United Kingdom | |||
Current tax | |||
Current year | 160 | 174 | 100 |
Adjustments in respect of prior years | 33 | 10 | 1 |
Current tax | 193 | 184 | 101 |
Deferred tax | |||
Origination and reversal of temporary differences | 25 | 0 | 13 |
Changes in tax rates | 0 | 2 | 46 |
Adjustments in respect of prior years | 6 | 0 | 8 |
Deferred tax | 31 | 2 | 67 |
Taxation on profit | 224 | 186 | 168 |
Rest of world | |||
Current tax | |||
Current year | 879 | 867 | 684 |
Adjustments in respect of prior years | (39) | 16 | 28 |
Current tax | 840 | 883 | 712 |
Deferred tax | |||
Origination and reversal of temporary differences | (70) | 21 | 18 |
Changes in tax rates | 11 | 1 | 32 |
Adjustments in respect of prior years | (35) | (42) | (23) |
Deferred tax | (94) | (20) | 27 |
Taxation on profit | £ 746 | £ 863 | £ 739 |
Taxation - Exceptional tax (cre
Taxation - Exceptional tax (credits)/charges (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
May 24, 2021 | Dec. 15, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | £ 970 | £ 1,049 | £ 907 | ||
Applicable tax rate | 20.50% | 19% | 19% | ||
United Kingdom, at 1 April 2023 | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Applicable tax rate | 25% | ||||
The Netherlands, from 2021 | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Applicable tax rate, previously enacted | 21.70% | ||||
US MAP | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | £ (57) | £ 0 | £ 0 | ||
Supply Chain Agility Programme | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | (23) | 0 | 0 | ||
Disposal of businesses and brands | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | 29 | 0 | |||
Sale of Picon brand | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | 23 | ||||
Brand and tangible asset impairment | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | (124) | (55) | 0 | ||
Winding down Russian operations | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | 0 | 3 | 0 | ||
Tax rate change in the United Kingdom | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | 0 | 0 | 46 | ||
Remeasurement of deferred tax assets on post employment liabilities to other comprehensive income | 48 | ||||
Tax rate change in the Netherlands | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | 0 | £ 0 | 42 | ||
Applicable tax rate | 25% | 25.80% | |||
Other items | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | 0 | £ (2) | (4) | ||
Total exceptional items | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | (186) | (31) | 84 | ||
USL businesses | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | (10) | ||||
McDowell's brand impairment | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | (35) | ||||
Bell's brand impairment | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | (20) | ||||
Distribution termination fee | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | (11) | £ 0 | £ 0 | ||
Guinness Cameroun SA | |||||
Disclosure Of Exceptional Tax Expense Income [Line Items] | |||||
Exceptional tax (credits)/charges | £ 42 |
Taxation - Taxation rate reconc
Taxation - Taxation rate reconciliation and factors that may affect future tax charges (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Profit before taxation | £ 4,736 | £ 4,387 | £ 3,706 |
Notional charge at UK corporation tax rate | 971 | 833 | 704 |
Elimination of notional tax on share of after tax results of associates and joint ventures | (76) | (79) | (63) |
Differences in overseas tax rates | 95 | 161 | 128 |
Disposal of businesses and brands | (42) | 21 | (2) |
Other items not chargeable | (63) | (49) | (52) |
Impairment | (2) | 36 | 0 |
Other items not deductible | 71 | 58 | 67 |
Irrecoverable withholding taxes | 38 | 39 | 25 |
Movements in provision related to uncertain tax positions | 27 | 42 | 1 |
Changes in tax rates | 11 | 3 | 78 |
Adjustments in respect of prior years | (60) | (16) | 21 |
Taxation on profit | £ 970 | £ 1,049 | £ 907 |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Notional charge at UK corporation tax rate | 20.50% | 19% | 19% |
Elimination of notional tax on share of after tax results of associates and joint ventures | (1.60%) | (1.80%) | (1.70%) |
Differences in overseas tax rates | 2% | 3.70% | 3.50% |
Disposal of businesses and brands | (0.90%) | 0.50% | (0.10%) |
Other items not chargeable | (1.30%) | (1.10%) | (1.40%) |
Impairment | 0% | 0.80% | 0% |
Other items not deductible | 1.50% | 1.30% | 1.80% |
Irrecoverable withholding taxes | 0.80% | 0.90% | 0.70% |
Movements in provision related to uncertain tax positions | 0.60% | 0.90% | 0% |
Changes in tax rates | 0.20% | 0.10% | 2.10% |
Adjustments in respect of prior years | (1.30%) | (0.40%) | 0.60% |
Taxation on profit | 20.50% | 23.90% | 24.50% |
Tax rate before exceptional items | 23% | 22.50% | 22.20% |
Taxation - Change in deferred t
Taxation - Change in deferred tax assets and liabilities (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | £ (2,205) | £ (1,845) |
Exchange differences | 134 | (153) |
Recognised in income statement | 74 | 21 |
Reclassification | 35 | |
Recognised in other comprehensive loss and equity | 66 | (207) |
Tax rate change – recognised in income statement | (11) | (3) |
Tax rate change – recognised in other comprehensive loss and equity | (20) | |
Acquisition of subsidiaries | (71) | (31) |
Transfer from asset held for sale | (34) | |
Sale of businesses | 5 | (2) |
Ending balance | (2,042) | (2,205) |
Tax losses | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 63 | 57 |
Exchange differences | 1 | 3 |
Recognised in income statement | (15) | 2 |
Reclassification | 0 | |
Recognised in other comprehensive loss and equity | 0 | 0 |
Tax rate change – recognised in income statement | 0 | 1 |
Tax rate change – recognised in other comprehensive loss and equity | 0 | |
Acquisition of subsidiaries | 0 | 0 |
Transfer from asset held for sale | 0 | |
Sale of businesses | 0 | 0 |
Ending balance | 49 | 63 |
Other temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 353 | 244 |
Exchange differences | (10) | 17 |
Recognised in income statement | 24 | 74 |
Reclassification | (7) | |
Recognised in other comprehensive loss and equity | (50) | 20 |
Tax rate change – recognised in income statement | 3 | 0 |
Tax rate change – recognised in other comprehensive loss and equity | 2 | |
Acquisition of subsidiaries | 0 | 0 |
Transfer from asset held for sale | 5 | |
Sale of businesses | (4) | 3 |
Ending balance | 321 | 353 |
Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (468) | (381) |
Exchange differences | 33 | (21) |
Recognised in income statement | (30) | (42) |
Reclassification | 2 | |
Recognised in other comprehensive loss and equity | (6) | (20) |
Tax rate change – recognised in income statement | (1) | (1) |
Tax rate change – recognised in other comprehensive loss and equity | 0 | |
Acquisition of subsidiaries | 0 | 0 |
Transfer from asset held for sale | (2) | |
Sale of businesses | 10 | (5) |
Ending balance | (464) | (468) |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (1,892) | (1,636) |
Exchange differences | 113 | (155) |
Recognised in income statement | 93 | (3) |
Reclassification | 40 | |
Recognised in other comprehensive loss and equity | (30) | (104) |
Tax rate change – recognised in income statement | (12) | (3) |
Tax rate change – recognised in other comprehensive loss and equity | 0 | |
Acquisition of subsidiaries | (71) | (31) |
Transfer from asset held for sale | (37) | |
Sale of businesses | 0 | 0 |
Ending balance | (1,836) | (1,892) |
Post employment plan | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (261) | (129) |
Exchange differences | (3) | 3 |
Recognised in income statement | 2 | (10) |
Reclassification | 0 | |
Recognised in other comprehensive loss and equity | 152 | (103) |
Tax rate change – recognised in income statement | (1) | 0 |
Tax rate change – recognised in other comprehensive loss and equity | (22) | |
Acquisition of subsidiaries | 0 | 0 |
Transfer from asset held for sale | 0 | |
Sale of businesses | (1) | 0 |
Ending balance | £ (112) | £ (261) |
Taxation - Net deferred tax ass
Taxation - Net deferred tax assets and liabilities (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Income Taxes [Abstract] | |||
Deferred tax assets | £ 141 | £ 114 | |
Deferred tax liabilities | (2,183) | (2,319) | |
Net deferred tax liabilities | £ (2,042) | £ (2,205) | £ (1,845) |
Taxation - Unrecognised deferre
Taxation - Unrecognised deferred tax assets (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross value of tax losses which has not been recognised | £ 632 | £ 674 |
Unrecognised deferred tax assets | 161 | 169 |
Capital losses – indefinite | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised deferred tax assets | 98 | 98 |
Trading losses – indefinite | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised deferred tax assets | 24 | 25 |
Trading and capital losses – expiry dates up to 2032 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised deferred tax assets | £ 39 | £ 46 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Current tax asset | £ 232 | £ 149 | |
Current tax liabilities | 135 | 252 | |
Provision for tax uncertainties | 173 | 156 | |
Income taxes paid, classified as operating activities | 1,201 | 949 | £ 852 |
Difference between current tax charge and cash tax paid | (231) | 100 | |
Deferred tax assets | 141 | 114 | |
Deferred tax assets arising in jurisdictions with prior year taxable losses | 65 | 47 | |
Deferred tax | 2,042 | 2,205 | 1,845 |
Deferred tax asset on losses expected to be utilized in the next 12 months | 10 | ||
Unrecognised temporary differences in respect of investments in subsidiaries, branches, interests in associates and joint ventures | 19,800 | 21,000 | |
Tax losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax | £ (49) | £ (63) | £ (57) |
Acquisition and sale of busin_3
Acquisition and sale of businesses and brands and purchase of non-controlling interests - Fair value of net assets acquired and cash consideration paid in business combination (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of business combinations and purchase of NCI [line items] | |||
(Overdraft)/Cash | £ 0 | £ 1 | £ 4 |
Goodwill arising on acquisition | 92 | 70 | 274 |
Settlement of pre-existing relationship | 0 | (1) | 0 |
Step acquisitions | (11) | (6) | 0 |
Consideration payable | (397) | (162) | (613) |
Cash transferred | (316) | (88) | (358) |
Contingent consideration payable | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Contingent and deferred consideration payable | (76) | (70) | (253) |
Deferred consideration payable | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Contingent and deferred consideration payable | (5) | (4) | (2) |
Fair value | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Brands and other intangibles | 338 | 120 | 334 |
Property, plant and equipment | 25 | 0 | 15 |
Inventories | 27 | 6 | 12 |
Other working capital | (3) | 3 | (3) |
Deferred tax | (71) | (31) | (15) |
Borrowings | 0 | 0 | (8) |
(Overdraft)/Cash | 0 | 1 | 4 |
Fair value of assets and liabilities | 316 | 99 | 339 |
Other businesses acquired | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Goodwill arising on acquisition | 28 | ||
Settlement of pre-existing relationship | 0 | ||
Step acquisitions | (11) | ||
Consideration payable | (103) | ||
Cash transferred | (98) | (26) | (95) |
Other businesses acquired | Contingent consideration payable | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Contingent and deferred consideration payable | (4) | ||
Other businesses acquired | Deferred consideration payable | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Contingent and deferred consideration payable | (1) | £ (4) | £ (2) |
Other businesses acquired | Fair value | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Brands and other intangibles | 45 | ||
Property, plant and equipment | 24 | ||
Inventories | 21 | ||
Other working capital | (1) | ||
Deferred tax | (4) | ||
Borrowings | 0 | ||
(Overdraft)/Cash | 1 | ||
Fair value of assets and liabilities | 86 | ||
Don Papa rum | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Goodwill arising on acquisition | 64 | ||
Settlement of pre-existing relationship | 0 | ||
Step acquisitions | 0 | ||
Consideration payable | (294) | ||
Cash transferred | (218) | ||
Don Papa rum | Contingent consideration payable | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Contingent and deferred consideration payable | (72) | ||
Don Papa rum | Deferred consideration payable | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Contingent and deferred consideration payable | (4) | ||
Don Papa rum | Fair value | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Brands and other intangibles | 293 | ||
Property, plant and equipment | 1 | ||
Inventories | 6 | ||
Other working capital | (2) | ||
Deferred tax | (67) | ||
Borrowings | 0 | ||
(Overdraft)/Cash | (1) | ||
Fair value of assets and liabilities | £ 230 |
Acquisition and sale of busin_4
Acquisition and sale of businesses and brands and purchase of non-controlling interests - Cash consideration paid in respect of acquisition of business and purchases of shares of non-controlling interest (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of business combinations and purchase of NCI [line items] | |||
Cash transferred | £ (316) | £ (88) | £ (358) |
(Overdraft)/Cash | 0 | 1 | 4 |
Capital injection | (79) | (61) | (38) |
Net cash outflow on acquisition of businesses | (435) | (271) | (488) |
Purchase of shares of non-controlling interests | (146) | 0 | (42) |
Total net cash outflow | (581) | (271) | (530) |
Investments in associates | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Cash transferred | (14) | (4) | 0 |
Other subsidiaries | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Cash transferred | (316) | (88) | (358) |
Other subsidiaries | Prior year acquisitions | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Cash transferred | (26) | (36) | (7) |
Casamigos Tequila LLC | Prior year acquisitions | |||
Disclosure of business combinations and purchase of NCI [line items] | |||
Cash transferred | £ 0 | £ (83) | £ (89) |
Acquisition and sale of busin_5
Acquisition and sale of businesses and brands and purchase of non-controlling interests - Acquisitions in the year (Details) € in Millions, £ in Millions | 4 Months Ended | ||||
Jun. 30, 2023 GBP (£) | Mar. 10, 2023 GBP (£) | Mar. 10, 2023 EUR (€) | Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | |
Disclosure of detailed information about business combination [line items] | |||||
Cash transferred | £ 316 | £ 88 | £ 358 | ||
Other businesses acquired | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash transferred | 98 | 26 | 95 | ||
Deferred consideration payable | |||||
Disclosure of detailed information about business combination [line items] | |||||
Deferred/contingent consideration payable | 5 | 4 | 2 | ||
Deferred consideration payable | Other businesses acquired | |||||
Disclosure of detailed information about business combination [line items] | |||||
Deferred/contingent consideration payable | 1 | 4 | 2 | ||
Contingent consideration payable | |||||
Disclosure of detailed information about business combination [line items] | |||||
Deferred/contingent consideration payable | 76 | 70 | 253 | ||
Contingent consideration payable | Other businesses acquired | |||||
Disclosure of detailed information about business combination [line items] | |||||
Deferred/contingent consideration payable | 4 | ||||
Maximum | Other businesses acquired | |||||
Disclosure of detailed information about business combination [line items] | |||||
Contingent consideration | £ 18 | £ 86 | |||
Don Papa rum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash transferred | £ 218 | € 246 | |||
Revenue of acquiree since acquisition date | 10 | ||||
Profit (loss) of acquiree since acquisition date | 15 | ||||
Acquisition transaction cost | £ 15 | ||||
Don Papa rum | Deferred consideration payable | |||||
Disclosure of detailed information about business combination [line items] | |||||
Deferred/contingent consideration payable | 4 | 4 | |||
Don Papa rum | Contingent consideration payable | |||||
Disclosure of detailed information about business combination [line items] | |||||
Deferred/contingent consideration payable | 72 | 82 | |||
Don Papa rum | Maximum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Contingent consideration | £ 158 | € 178 |
Acquisition and sale of busin_6
Acquisition and sale of businesses and brands and purchase of non-controlling interests - Prior year acquisitions (Details) £ in Millions, $ in Millions | 12 Months Ended | |||||
Jun. 30, 2021 GBP (£) transaction instalment | Jun. 30, 2023 GBP (£) | Jun. 30, 2022 GBP (£) | Mar. 31, 2022 GBP (£) | Sep. 30, 2020 GBP (£) | Sep. 30, 2020 USD ($) | |
Disclosure of detailed information about business combination [line items] | ||||||
Cash transferred | £ 358 | £ 316 | £ 88 | |||
Number of transactions completed during the period, business combinations | transaction | 3 | |||||
Number of transactions completed during the period including provisions for contingent consideration, business combination | instalment | 2 | |||||
Other businesses acquired | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Cash transferred | £ 95 | 98 | 26 | |||
Deferred consideration paid for subsidiaries | 1 | |||||
Maximum | Other businesses acquired | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Contingent consideration | 86 | 18 | ||||
21Seeds | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Percentage of interest acquired | 100% | |||||
Cash transferred | £ 62 | |||||
21Seeds | Maximum | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Contingent consideration | £ 61 | |||||
Aviation Gin and Davos Brands | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Cash transferred | £ 263 | $ 337 | ||||
Aviation Gin and Davos Brands | Maximum | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Contingent consideration | £ 214 | $ 275 | ||||
Deferred consideration payable | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Deferred/contingent consideration payable | 2 | 5 | 4 | |||
Deferred consideration payable | Other businesses acquired | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Deferred/contingent consideration payable | £ 2 | £ 1 | £ 4 |
Acquisition and sale of busin_7
Acquisition and sale of businesses and brands and purchase of non-controlling interests - Purchase of shares of non-controlling interests (Details) £ in Millions, Ksh in Millions, $ in Millions | 3 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | 15 Months Ended | |||||
Jun. 30, 2023 GBP (£) | Jun. 30, 2021 GBP (£) | Mar. 23, 2023 | Jun. 30, 2023 GBP (£) | Oct. 20, 2020 | Mar. 24, 2023 GBP (£) | Mar. 24, 2023 KES (Ksh) | Jun. 30, 2022 GBP (£) | Nov. 06, 2020 GBP (£) | Nov. 06, 2020 USD ($) | |
Disclosure of detailed information about business combination [line items] | ||||||||||
Cash transferred | £ 316 | £ 358 | £ 316 | £ 88 | ||||||
Proportion of ownership interest in subsidiary | 100% | |||||||||
Consideration paid | £ 397 | £ 613 | £ 397 | £ 162 | ||||||
East African Breweries Limited | Serengeti Breweries Limited | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Percentage of interest acquired | 30% | |||||||||
Consideration paid | £ 42 | $ 55 | ||||||||
Shareholder loans | £ 16 | |||||||||
Diageo Kenya Limited | East African Breweries Limited | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Percentage of interest acquired | 14.97% | 14.97% | ||||||||
Cash transferred | £ 142 | Ksh 22,732 | ||||||||
Proportion of ownership interest in subsidiary | 65% | 50.03% | ||||||||
Acquisition transaction cost | £ 4 | |||||||||
Serengeti Breweries Limited | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Proportion of ownership interest in subsidiary | 47% | 40.20% | ||||||||
East African Breweries Limited | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Proportion of ownership interest in subsidiary | 65% | 50.03% |
Acquisition and sale of busin_8
Acquisition and sale of businesses and brands and purchase of non-controlling interests - Sales of businesses and brands (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net assets disposed of | |||
Goodwill | £ (2,227) | £ (2,287) | |
Property, plant and equipment | (6,142) | (5,848) | £ (4,849) |
Deferred tax | 2,042 | 2,205 | 1,845 |
Net defined benefit liability (asset) | (594) | (1,165) | (447) |
Net assets | (9,292) | (9,514) | |
Gain/(loss) on disposal before taxation | 4,736 | 4,387 | 3,706 |
Taxation | (970) | (1,049) | (907) |
Profit for the year | 3,766 | 3,338 | 2,799 |
Disposal group, disposed of by sale, not discontinued operations | |||
Sale consideration | |||
Cash received | 499 | 106 | 14 |
(Cash)/overdraft disposed of | (13) | 2 | 0 |
Transaction and other directly attributable costs paid | (24) | (26) | 0 |
Net cash received | 462 | 82 | 14 |
Transaction costs payable | (5) | (16) | 1 |
Consideration received sale of businesses and brands | 457 | 66 | 15 |
Net assets disposed of | |||
Goodwill | 0 | (14) | 0 |
Property, plant and equipment | (106) | (11) | (2) |
Assets and liabilities held for sale | (79) | 0 | 0 |
Inventories | (28) | (4) | 0 |
Other working capital | 69 | 15 | 1 |
Other borrowings | 2 | 1 | 0 |
Corporate tax | (3) | (5) | 0 |
Deferred tax | 5 | (2) | 0 |
Net defined benefit liability (asset) | 4 | 0 | 0 |
Net assets | (136) | (20) | (1) |
Impairment charge recognised up until the date of sale | (3) | 0 | 0 |
Exchange recycled from other comprehensive income | 18 | (63) | 0 |
Gain/(loss) on disposal before taxation | 336 | (17) | 14 |
Taxation | (29) | (23) | 0 |
Profit for the year | 307 | £ (40) | £ 14 |
Disposal group, disposed of by sale, not discontinued operations | Guinness Cameroun SA | |||
Sale consideration | |||
Cash received | 384 | ||
(Cash)/overdraft disposed of | (13) | ||
Transaction and other directly attributable costs paid | (17) | ||
Net cash received | 354 | ||
Transaction costs payable | (8) | ||
Consideration received sale of businesses and brands | 346 | ||
Net assets disposed of | |||
Goodwill | 0 | ||
Property, plant and equipment | (103) | ||
Assets and liabilities held for sale | 0 | ||
Inventories | (24) | ||
Other working capital | 69 | ||
Other borrowings | 2 | ||
Corporate tax | (3) | ||
Deferred tax | 5 | ||
Net defined benefit liability (asset) | 4 | ||
Net assets | (50) | ||
Impairment charge recognised up until the date of sale | (3) | ||
Exchange recycled from other comprehensive income | 17 | ||
Gain/(loss) on disposal before taxation | 310 | ||
Taxation | (42) | ||
Profit for the year | 268 | ||
Disposal group, disposed of by sale, not discontinued operations | Other Individually Immaterial Business Disposed | |||
Sale consideration | |||
Cash received | 115 | ||
(Cash)/overdraft disposed of | 0 | ||
Transaction and other directly attributable costs paid | (7) | ||
Net cash received | 108 | ||
Transaction costs payable | 3 | ||
Consideration received sale of businesses and brands | 111 | ||
Net assets disposed of | |||
Goodwill | 0 | ||
Property, plant and equipment | (3) | ||
Assets and liabilities held for sale | (79) | ||
Inventories | (4) | ||
Other working capital | 0 | ||
Other borrowings | 0 | ||
Corporate tax | 0 | ||
Deferred tax | 0 | ||
Net defined benefit liability (asset) | 0 | ||
Net assets | (86) | ||
Impairment charge recognised up until the date of sale | 0 | ||
Exchange recycled from other comprehensive income | 1 | ||
Gain/(loss) on disposal before taxation | 26 | ||
Taxation | 13 | ||
Profit for the year | £ 39 |
Acquisition and sale of busin_9
Acquisition and sale of businesses and brands and purchase of non-controlling interests - Sales of businesses and brands narrative (Details) € in Millions, £ in Millions, R in Millions | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||
May 26, 2023 GBP (£) | Sep. 30, 2022 GBP (£) | May 10, 2022 GBP (£) | May 10, 2022 EUR (€) | Apr. 01, 2020 GBP (£) | Apr. 01, 2020 ZAR (R) | Sep. 30, 2022 GBP (£) | May 26, 2023 GBP (£) | Jun. 30, 2023 GBP (£) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 ZAR (R) | Jun. 30, 2021 GBP (£) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations1 [Line Items] | ||||||||||||
Net sales | £ 17,113 | £ 15,452 | £ 12,733 | |||||||||
Non-operating items | 328 | (17) | 14 | |||||||||
Operating profit | 4,632 | 4,409 | 3,731 | |||||||||
Increase (decrease) in working capital | 1,175 | 179 | (331) | |||||||||
USL Popular brands | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations1 [Line Items] | ||||||||||||
Consideration paid (received) | £ (87) | |||||||||||
Net sales | £ 34 | 139 | 148 | |||||||||
Non-operating items | 4 | |||||||||||
Operating profit | £ 5 | 26 | 30 | |||||||||
Increase (decrease) in working capital | (31) | |||||||||||
Decrease through loss of control of subsidiary, intangible assets other than goodwill | 22 | |||||||||||
Goodwill derecognised without having previously been included in disposal group classified as held for sale | £ 16 | |||||||||||
Guinness Cameroun SA | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations1 [Line Items] | ||||||||||||
Consideration paid (received) | £ (384) | (384) | ||||||||||
Sale of businesses | £ 63 | |||||||||||
Net sales | £ 101 | 124 | 113 | |||||||||
Non-operating items | £ 310 | |||||||||||
Operating profit | £ 26 | 27 | 22 | |||||||||
Meta Abo Brewery | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations1 [Line Items] | ||||||||||||
Non-operating items | (95) | |||||||||||
Exchange recycled from other comprehensive income | (63) | |||||||||||
Picon Brand | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations1 [Line Items] | ||||||||||||
Non-operating items | 91 | |||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | £ (100) | € (117) | ||||||||||
United National Breweries | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations1 [Line Items] | ||||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | £ (6) | R (133) | (10) | |||||||||
Aggregate consideration | £ 27 | R 600 | ||||||||||
Contingent consideration | £ (17) | R (378) | ||||||||||
USL businesses | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations1 [Line Items] | ||||||||||||
Non-operating items | 3 | |||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | £ (3) |
Intangible assets - Narrative (
Intangible assets - Narrative (Details) ₺ in Millions, £ in Millions | 12 Months Ended | |||
Jun. 30, 2023 GBP (£) | Jun. 30, 2022 TRY (₺) | Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Period over which management approves strategic plan | 3 years | |||
Period over which management has projected cash flows | 5 years | |||
Deferred tax income | £ (74) | £ (21) | ||
India and USL Brands | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Extension of period over which management has projected cash flows | 1 year | |||
Turkey | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss on opening balance as result of hyperinflationary accounting | ₺ (3,760) | (312) | ||
Goodwill | Turkey | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss on opening balance as result of hyperinflationary accounting | (2,133) | (177) | ||
Goodwill | Brand and tangible asset impairment | Smirnov | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss | (19) | |||
Brand names | McDowell's No.1 whisky, rum and brandy | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Recoverable amount of asset or cash-generating unit | £ 379 | |||
Brand names | Director's Special | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Recoverable amount of asset or cash-generating unit | 11 | |||
Brand names | Yenì raki | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss on opening balance as result of hyperinflationary accounting | ₺ (1,627) | (135) | ||
Brand names | Brand and tangible asset impairment | McDowell's No.1 whisky, rum and brandy | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss | (420) | (240) | ||
Deferred tax income | 35 | |||
Brand names | Brand and tangible asset impairment | Director's Special | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss | (24) | |||
Brand names | Brand and tangible asset impairment | Mcdowell's and Director's Special | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Deferred tax income | 111 | |||
Brand names | Brand and tangible asset impairment | Other brands | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss | (54) | |||
Deferred tax income | £ 13 | |||
Brand names | Brand and tangible asset impairment | Bell's whisky | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss | (77) | |||
Deferred tax income | 20 | |||
Business combinations | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Period over which management has projected cash flows | 5 years | |||
Extension of period over which management has projected cash flows | 10 years | |||
Ketel One distribution right | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Other intangible assets | £ 1,428 | £ 1,488 | £ 1,295 | |
Maximum | Computer software | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Useful life measured as period of time, intangible assets other than goodwill | 8 years |
Intangible assets - Schedule of
Intangible assets - Schedule of movements in intangible assets and goodwill (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | £ 11,902 | £ 10,764 |
Intangible assets and goodwill at end of period | 11,512 | 11,902 |
Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 14,354 | 13,179 |
Hyperinflation adjustments | 141 | 524 |
Exchange differences | (868) | 1,006 |
Additions | 598 | 301 |
Disposals | (26) | (88) |
Reclassification from/(to) asset held for sale | (424) | |
Reclassification to asset held for sale | (568) | |
Intangible assets and goodwill at end of period | 14,623 | 14,354 |
Amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (2,452) | (2,415) |
Exchange differences | 173 | (135) |
Amortisation for the year | 56 | 45 |
Impairment | 498 | 336 |
Disposals | 24 | 71 |
Reclassification from/(to) asset held for sale | 302 | |
Reclassification to asset held for sale | 408 | |
Intangible assets and goodwill at end of period | (3,111) | (2,452) |
Brands | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 7,896 | 7,361 |
Intangible assets and goodwill at end of period | 7,520 | 7,896 |
Brands | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 8,938 | 8,458 |
Hyperinflation adjustments | 81 | 315 |
Exchange differences | (531) | 639 |
Additions | 338 | 109 |
Disposals | 0 | (23) |
Reclassification from/(to) asset held for sale | (453) | |
Reclassification to asset held for sale | (560) | |
Intangible assets and goodwill at end of period | 9,279 | 8,938 |
Brands | Amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (1,042) | (1,097) |
Exchange differences | 96 | (51) |
Impairment | 498 | 317 |
Disposals | 0 | 23 |
Reclassification from/(to) asset held for sale | 315 | |
Reclassification to asset held for sale | 400 | |
Intangible assets and goodwill at end of period | (1,759) | (1,042) |
Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 2,287 | 1,957 |
Intangible assets and goodwill at end of period | 2,227 | 2,287 |
Goodwill | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 3,008 | 2,627 |
Hyperinflation adjustments | 60 | 208 |
Exchange differences | (257) | 145 |
Additions | 92 | 70 |
Disposals | 0 | (42) |
Reclassification from/(to) asset held for sale | 29 | |
Reclassification to asset held for sale | 0 | |
Intangible assets and goodwill at end of period | 2,874 | 3,008 |
Goodwill | Amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (721) | (670) |
Exchange differences | 61 | (60) |
Impairment | 0 | 19 |
Disposals | 0 | 28 |
Reclassification from/(to) asset held for sale | (13) | |
Reclassification to asset held for sale | 0 | |
Intangible assets and goodwill at end of period | (647) | (721) |
Other intangibles | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 1,584 | 1,341 |
Intangible assets and goodwill at end of period | 1,518 | 1,584 |
Other intangibles | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 1,670 | 1,421 |
Hyperinflation adjustments | 0 | 0 |
Exchange differences | (64) | 194 |
Additions | 13 | 55 |
Disposals | 0 | 0 |
Reclassification from/(to) asset held for sale | 0 | |
Reclassification to asset held for sale | 0 | |
Intangible assets and goodwill at end of period | 1,619 | 1,670 |
Other intangibles | Amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (86) | (80) |
Exchange differences | 1 | 1 |
Amortisation for the year | 16 | 7 |
Impairment | 0 | 0 |
Disposals | 0 | 0 |
Reclassification from/(to) asset held for sale | 0 | |
Reclassification to asset held for sale | 0 | |
Intangible assets and goodwill at end of period | (101) | (86) |
Computer software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 135 | 105 |
Intangible assets and goodwill at end of period | 247 | 135 |
Computer software | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 738 | 673 |
Hyperinflation adjustments | 0 | 1 |
Exchange differences | (16) | 28 |
Additions | 155 | 67 |
Disposals | (26) | (23) |
Reclassification from/(to) asset held for sale | 0 | |
Reclassification to asset held for sale | (8) | |
Intangible assets and goodwill at end of period | 851 | 738 |
Computer software | Amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (603) | (568) |
Exchange differences | 15 | (25) |
Amortisation for the year | 40 | 38 |
Impairment | 0 | 0 |
Disposals | 24 | 20 |
Reclassification from/(to) asset held for sale | 0 | |
Reclassification to asset held for sale | 8 | |
Intangible assets and goodwill at end of period | £ (604) | £ (603) |
Intangible assets - Schedule _2
Intangible assets - Schedule of Principal acquired brands with indefinite useful life (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal acquired brands with indefinite useful life | £ 11,512 | £ 11,902 | £ 10,764 |
Brands | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal acquired brands with indefinite useful life | £ 7,520 | 7,896 | £ 7,361 |
Brands | Crown Royal whisky | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | United States | ||
Principal acquired brands with indefinite useful life | £ 1,162 | 1,210 | |
Brands | Captain Morgan rum | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Global | ||
Principal acquired brands with indefinite useful life | £ 954 | 993 | |
Brands | Smirnoff vodka | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Global | ||
Principal acquired brands with indefinite useful life | £ 654 | 681 | |
Brands | Johnnie Walker whisky | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Global | ||
Principal acquired brands with indefinite useful life | £ 625 | 625 | |
Brands | Casamigos tequila | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | United States | ||
Principal acquired brands with indefinite useful life | £ 479 | 499 | |
Brands | McDowell's No.1 whisky, rum and brandy | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | India | ||
Principal acquired brands with indefinite useful life | £ 308 | 778 | |
Brands | Don Papa rum | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Europe | ||
Principal acquired brands with indefinite useful life | £ 282 | 0 | |
Brands | Yenì raki | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Turkey | ||
Principal acquired brands with indefinite useful life | £ 249 | 294 | |
Brands | Shui Jing Fang Chinese white spirit | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Greater China | ||
Principal acquired brands with indefinite useful life | £ 246 | 279 | |
Brands | Don Julio tequila | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | United States | ||
Principal acquired brands with indefinite useful life | £ 235 | 207 | |
Brands | Aviation American gin | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | United States | ||
Principal acquired brands with indefinite useful life | £ 209 | 218 | |
Brands | Seagram's 7 Crown whiskey | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | United States | ||
Principal acquired brands with indefinite useful life | £ 177 | 184 | |
Brands | Signature whisky | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | India | ||
Principal acquired brands with indefinite useful life | £ 176 | 191 | |
Brands | Zacapa rum | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Global | ||
Principal acquired brands with indefinite useful life | £ 152 | 158 | |
Brands | Black Dog whisky | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | India | ||
Principal acquired brands with indefinite useful life | £ 149 | 162 | |
Brands | Antiquity whisky | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | India | ||
Principal acquired brands with indefinite useful life | £ 145 | 158 | |
Brands | Windsor Premier whisky | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Korea | ||
Principal acquired brands with indefinite useful life | £ 137 | 0 | |
Brands | Gordon's gin | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Europe | ||
Principal acquired brands with indefinite useful life | £ 119 | 119 | |
Brands | Bell's whisky | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal markets | Europe | ||
Principal acquired brands with indefinite useful life | £ 102 | 102 | |
Brands | Other brands | |||
Disclosure of intangible assets with indefinite useful life [line items] | |||
Principal acquired brands with indefinite useful life | £ 960 | £ 1,038 |
Intangible assets - Schedule _3
Intangible assets - Schedule of Goodwill attributed to cash-generating units (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of information for cash-generating units [line items] | ||
Goodwill attributed to cash-generating unit | £ 2,227 | £ 2,287 |
United States | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill attributed to cash-generating unit | 767 | 773 |
Turkey | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill attributed to cash-generating unit | 216 | 255 |
Greater China | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill attributed to cash-generating unit | 124 | 141 |
India | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill attributed to cash-generating unit | 673 | 747 |
Mexico | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill attributed to cash-generating unit | 161 | 142 |
Other cash-generating units | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill attributed to cash-generating unit | £ 286 | £ 229 |
Intangible assets - Schedule _4
Intangible assets - Schedule of Pre-tax discount rates and terminal growth rates used for impairment testing (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
United States | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 9% | 8% |
Terminal growth rate | 2% | 2% |
Long-term growth rate | 4% | 4% |
United Kingdom | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 9% | 8% |
Terminal growth rate | 2% | 2% |
Long-term growth rate | 5% | 4% |
Turkey | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 28% | 31% |
Terminal growth rate | 16% | 15% |
Long-term growth rate | 28% | 25% |
Australia | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 10% | 7% |
Terminal growth rate | 3% | 2% |
Long-term growth rate | 5% | 5% |
Korea | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 11% | 7% |
Terminal growth rate | (2.00%) | 2% |
Long-term growth rate | 4% | 5% |
India | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 14% | 14% |
Terminal growth rate | 4% | 4% |
Long-term growth rate | 15% | 11% |
Greater China | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 11% | 7% |
Terminal growth rate | 2% | 2% |
Long-term growth rate | 6% | 7% |
Brazil | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 16% | 12% |
Terminal growth rate | 3% | 3% |
Long-term growth rate | 6% | 6% |
Mexico | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 13% | 14% |
Terminal growth rate | 3% | 3% |
Long-term growth rate | 6% | 6% |
Africa Emerging Markets | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 35% | 12% |
Terminal growth rate | 8% | 5% |
Long-term growth rate | 18% | 11% |
South Africa | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 20% | 16% |
Terminal growth rate | 5% | 0% |
Long-term growth rate | 6% | 6% |
Nigeria | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rate | 35% | 24% |
Terminal growth rate | 5% | 12% |
Long-term growth rate | 18% | 15% |
Intangible assets - Sensitivity
Intangible assets - Sensitivity to change in key assumptions (Details) - McDowell's No.1 whisky, rum and brandy £ in Millions | 12 Months Ended |
Jun. 30, 2023 GBP (£) | |
Disclosure of intangible assets sensitivity to change in key assumptions [line items] | |
Carrying amount of asset or cash-generating unit | £ 379 |
Headroom | |
Disclosure of intangible assets sensitivity to change in key assumptions [line items] | |
Headroom | £ 0 |
Increase in discount rate | |
Disclosure of intangible assets sensitivity to change in key assumptions [line items] | |
Reasonably possible change | 1% |
Potential impairment loss | £ 38 |
Decrease in terminal growth rate | |
Disclosure of intangible assets sensitivity to change in key assumptions [line items] | |
Reasonably possible change | 1% |
Potential impairment loss | £ 26 |
Decrease in annual growth rate in forecast period 2024-2029 | |
Disclosure of intangible assets sensitivity to change in key assumptions [line items] | |
Reasonably possible change | 2% |
Potential impairment loss | £ 67 |
Decrease in cash flows(1) | |
Disclosure of intangible assets sensitivity to change in key assumptions [line items] | |
Reasonably possible change | 10% |
Potential impairment loss | £ 76 |
Property, plant and equipment -
Property, plant and equipment - Changes in property plant and equipment (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | £ 5,848 | £ 4,849 |
Reclassification from assets held for sale | 2 | |
Exceptional impairment | (72) | (3) |
Ending Balance | 6,142 | 5,848 |
Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 1,903 | 1,502 |
Ending Balance | 1,876 | 1,903 |
Plant and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 2,847 | 2,496 |
Ending Balance | 2,780 | 2,847 |
Fixtures and fittings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 47 | 35 |
Ending Balance | 55 | 47 |
Returnable bottles and crates | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 181 | 157 |
Ending Balance | 184 | 181 |
Under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 659 | |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 9,450 | 8,182 |
Hyperinflation adjustment in respect of Turkey and Venezuela | 20 | 97 |
Exchange differences | (582) | 390 |
Acquisitions | 25 | |
Sale of businesses | (243) | (85) |
Additions | 1,220 | 1,136 |
Disposals | (324) | (237) |
Transfers | 0 | 0 |
Reclassification from assets held for sale | 3 | |
Reclassification from assets held for sale | (33) | |
Ending Balance | 9,569 | 9,450 |
Cost | Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 2,653 | 2,160 |
Hyperinflation adjustment in respect of Turkey and Venezuela | 5 | 56 |
Exchange differences | (166) | 107 |
Acquisitions | 8 | |
Sale of businesses | (35) | (4) |
Additions | 111 | 230 |
Disposals | (64) | (65) |
Transfers | 146 | 177 |
Reclassification from assets held for sale | 2 | |
Reclassification from assets held for sale | (8) | |
Ending Balance | 2,660 | 2,653 |
Cost | Plant and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 5,261 | 4,714 |
Hyperinflation adjustment in respect of Turkey and Venezuela | 10 | 32 |
Exchange differences | (331) | 226 |
Acquisitions | 14 | |
Sale of businesses | (147) | (58) |
Additions | 214 | 245 |
Disposals | (141) | (122) |
Transfers | 238 | 249 |
Reclassification from assets held for sale | 0 | |
Reclassification from assets held for sale | (25) | |
Ending Balance | 5,118 | 5,261 |
Cost | Fixtures and fittings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 124 | 121 |
Hyperinflation adjustment in respect of Turkey and Venezuela | 1 | 2 |
Exchange differences | (6) | 1 |
Acquisitions | 0 | |
Sale of businesses | (3) | (3) |
Additions | 13 | 8 |
Disposals | (12) | (15) |
Transfers | 12 | 10 |
Reclassification from assets held for sale | 1 | |
Reclassification from assets held for sale | 0 | |
Ending Balance | 130 | 124 |
Cost | Returnable bottles and crates | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 542 | 528 |
Hyperinflation adjustment in respect of Turkey and Venezuela | 0 | 0 |
Exchange differences | (49) | 11 |
Acquisitions | 3 | |
Sale of businesses | (55) | (19) |
Additions | 50 | 41 |
Disposals | (105) | (32) |
Transfers | 28 | 13 |
Reclassification from assets held for sale | 0 | |
Reclassification from assets held for sale | 0 | |
Ending Balance | 414 | 542 |
Cost | Under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | 870 | 659 |
Hyperinflation adjustment in respect of Turkey and Venezuela | 4 | 7 |
Exchange differences | (30) | 45 |
Acquisitions | 0 | |
Sale of businesses | (3) | (1) |
Additions | 832 | 612 |
Disposals | (2) | (3) |
Transfers | (424) | (449) |
Reclassification from assets held for sale | 0 | |
Reclassification from assets held for sale | 0 | |
Ending Balance | 1,247 | 870 |
Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | (3,602) | (3,333) |
Exchange differences | 244 | (135) |
Sale of businesses | 137 | 74 |
Disposals | 307 | 218 |
Transfers | 0 | |
Reclassification from assets held for sale | (1) | |
Depreciation, property, plant and equipment | (440) | (444) |
Exceptional impairment | (72) | (3) |
Reclassification from assets held for sale | 21 | |
Ending Balance | (3,427) | (3,602) |
Depreciation | Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | (750) | (658) |
Exchange differences | 38 | (31) |
Sale of businesses | 21 | 4 |
Disposals | 63 | 62 |
Transfers | (5) | |
Reclassification from assets held for sale | 0 | |
Depreciation, property, plant and equipment | (125) | (125) |
Exceptional impairment | (31) | (2) |
Reclassification from assets held for sale | 5 | |
Ending Balance | (784) | (750) |
Depreciation | Plant and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | (2,414) | (2,218) |
Exchange differences | 176 | (94) |
Sale of businesses | 80 | 50 |
Disposals | 130 | 113 |
Transfers | (4) | |
Reclassification from assets held for sale | 0 | |
Depreciation, property, plant and equipment | (269) | (276) |
Exceptional impairment | (41) | (1) |
Reclassification from assets held for sale | 16 | |
Ending Balance | (2,338) | (2,414) |
Depreciation | Fixtures and fittings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | (77) | (86) |
Exchange differences | 3 | (1) |
Sale of businesses | 2 | 2 |
Disposals | 11 | 13 |
Transfers | 9 | |
Reclassification from assets held for sale | (1) | |
Depreciation, property, plant and equipment | (13) | (14) |
Exceptional impairment | 0 | 0 |
Reclassification from assets held for sale | 0 | |
Ending Balance | (75) | (77) |
Depreciation | Returnable bottles and crates | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning Balance | (361) | (371) |
Exchange differences | 27 | (9) |
Sale of businesses | 34 | 18 |
Disposals | 103 | 30 |
Transfers | 0 | |
Reclassification from assets held for sale | 0 | |
Depreciation, property, plant and equipment | (33) | (29) |
Exceptional impairment | 0 | 0 |
Reclassification from assets held for sale | 0 | |
Ending Balance | £ (230) | £ (361) |
Property, plant and equipment_2
Property, plant and equipment - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | £ 6,142 | £ 5,848 | £ 4,849 |
Government grants | 147 | 153 | |
Freeholds land and buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,481 | 1,444 | |
Long leasehold land and buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3 | 3 | |
Short leasehold land and buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 389 | 410 | |
Fixtures and fittings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 55 | 47 | 35 |
Returnable bottles and crates | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 184 | 181 | £ 157 |
Land | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | £ 141 | £ 114 | |
Minimum | Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 10 years | ||
Minimum | Casks and containers | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 15 years | ||
Minimum | Other plant and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 5 years | ||
Minimum | Fixtures and fittings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 5 years | ||
Minimum | Returnable bottles and crates | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 5 years | ||
Maximum | Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 50 years | ||
Maximum | Casks and containers | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 50 years | ||
Maximum | Other plant and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 40 years | ||
Maximum | Fixtures and fittings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 10 years | ||
Maximum | Returnable bottles and crates | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful life (in years) | 10 years |
Biological assets - Disclosure
Biological assets - Disclosure of reconciliation of changes in biological assets (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of changes in biological assets [abstract] | ||
Biological assets, beginning balance | £ 94 | £ 66 |
Exchange differences | 15 | 10 |
Transferred to inventories | (8) | (11) |
Fair value change | 0 | (5) |
Farming cost capitalised | 55 | 34 |
Biological assets, ending balance | £ 156 | £ 94 |
Biological assets - Narrative (
Biological assets - Narrative (Details) - numberOfPlant numberOfPlant in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of detailed information about biological assets [line items] | ||
Number of plant | 37 | 33 |
Maximum | ||
Disclosure of detailed information about biological assets [line items] | ||
Agave plantation maturity | 7 years |
Leases - Movement in right-of-u
Leases - Movement in right-of-use assets (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | £ 565 | £ 443 |
Exchange differences | (26) | 40 |
Additions | 82 | 185 |
Transfers | 0 | |
Reclassification to assets held for sale | (2) | |
Disposal | (6) | |
Reclassification from assets held for sale | 2 | |
Decrease through derecognition, right of use assets | (2) | |
Depreciation | (95) | (95) |
Ending balance | 526 | 565 |
Land and buildings | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 353 | 230 |
Exchange differences | (3) | 26 |
Additions | 45 | 129 |
Transfers | 29 | |
Reclassification to assets held for sale | (1) | |
Disposal | (6) | |
Reclassification from assets held for sale | 1 | |
Decrease through derecognition, right of use assets | (1) | |
Depreciation | (56) | (54) |
Ending balance | 339 | 353 |
Plant and equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 212 | 184 |
Exchange differences | (23) | 14 |
Additions | 37 | 56 |
Transfers | 0 | |
Reclassification to assets held for sale | (1) | |
Disposal | 0 | |
Reclassification from assets held for sale | 1 | |
Decrease through derecognition, right of use assets | (1) | |
Depreciation | (39) | (41) |
Ending balance | 187 | 212 |
Under construction | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 0 | 29 |
Exchange differences | 0 | 0 |
Additions | 0 | 0 |
Transfers | (29) | |
Reclassification to assets held for sale | 0 | |
Disposal | 0 | |
Reclassification from assets held for sale | 0 | |
Decrease through derecognition, right of use assets | 0 | |
Depreciation | 0 | 0 |
Ending balance | £ 0 | £ 0 |
Leases - Schedule of lease liab
Leases - Schedule of lease liabilities (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Lease liabilities [abstract] | ||
Current lease liabilities | £ (75) | £ (85) |
Non-current lease liabilities | (373) | (390) |
Lease liabilities | £ (448) | £ (475) |
Leases - Future cash outflow no
Leases - Future cash outflow not reflected in lease liability - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Future cash outflows not included in lease liabilities in respect of extension and termination options which are not reasonably expected to be exercised | £ 261 | £ 282 |
Leases - Amounts recognised in
Leases - Amounts recognised in the consolidated income statement - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure Of Quantitative Information About Leases [Line Items] | ||
Expenses in respect of leases of low value assets and short term leases | £ 57 | £ 39 |
Expenses in respect of variable lease payments | 4 | 9 |
Total cash outflow for leases | £ 172 | £ 154 |
Other investments - Movements i
Other investments - Movements in other investments (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of financial assets [line items] | ||
Beginning balance | £ 37 | £ 40 |
Exchange differences | (1) | 3 |
Additions | 29 | 15 |
Repayments and disposals | (3) | (2) |
Fair value adjustment | (4) | (13) |
Step acquisitions | (6) | |
Capitalised interest | 1 | 1 |
Transfer | (1) | |
Impairment charged during the year | (2) | |
Ending balance | 57 | 37 |
Customers and third parties | Loans | ||
Disclosure of financial assets [line items] | ||
Beginning balance | 6 | 3 |
Ending balance | 6 | 6 |
Associates | Loans | ||
Disclosure of financial assets [line items] | ||
Beginning balance | 12 | 7 |
Ending balance | 29 | 12 |
Loans | ||
Disclosure of financial assets [line items] | ||
Beginning balance | 18 | 10 |
Exchange differences | (1) | 2 |
Additions | 20 | 6 |
Repayments and disposals | (3) | (1) |
Fair value adjustment | 0 | 0 |
Step acquisitions | 0 | |
Capitalised interest | 1 | 1 |
Transfer | 0 | |
Impairment charged during the year | 0 | |
Ending balance | 35 | 18 |
Others | ||
Disclosure of financial assets [line items] | ||
Beginning balance | 19 | 30 |
Exchange differences | 0 | 1 |
Additions | 9 | 9 |
Repayments and disposals | 0 | (1) |
Fair value adjustment | (4) | (13) |
Step acquisitions | (6) | |
Capitalised interest | 0 | 0 |
Transfer | (1) | |
Impairment charged during the year | (2) | |
Ending balance | £ 22 | £ 19 |
Other investments - Narrative (
Other investments - Narrative (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of financial assets [line items] | |||
Loan guaranteed by subsidiary | £ 57 | £ 37 | £ 40 |
Customers and third parties | |||
Disclosure of financial assets [line items] | |||
Allowances of loans made to customers and other third parties | 121 | 129 | 113 |
Customers and third parties | Loans | |||
Disclosure of financial assets [line items] | |||
Loan guaranteed by subsidiary | 6 | 6 | 3 |
Associates | Loans | |||
Disclosure of financial assets [line items] | |||
Loan guaranteed by subsidiary | £ 29 | £ 12 | £ 7 |
Post employment benefits - Amou
Post employment benefits - Amounts charged to consolidated income statement for group's defined benefit post employment plans and consolidated statement of comprehensive income (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost and administrative expenses | £ (76) | £ (107) | £ (105) |
Past service (losses)/gains – ordinary activities | (1) | 34 | 0 |
Past service losses – exceptional | 0 | 0 | (5) |
Gains on curtailments and settlements | 2 | 34 | 18 |
Charge to operating profit | (75) | (39) | (92) |
Net finance income in respect of post employment plans | 44 | 10 | 5 |
Charge before taxation | (31) | (29) | (87) |
Actual returns less amounts included in finance income | (1,435) | (1,432) | (6) |
Experience (losses)/gains | (226) | (35) | 80 |
Changes in financial assumptions | 958 | 2,133 | 125 |
Changes in demographic assumptions | 53 | (40) | (183) |
Other comprehensive (loss)/income | (650) | 626 | 16 |
Changes in the surplus restriction | 7 | (11) | 0 |
Total other comprehensive (loss)/income | (643) | 615 | 16 |
Ireland | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Charge before taxation | 1 | 45 | 4 |
Net settlement gain | 27 | ||
Past service gain | (28) | ||
United Kingdom | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Charge before taxation | £ 15 | £ (27) | (46) |
Guaranteed minimum pension equalisation | United Kingdom | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Past service losses – exceptional | £ (5) |
Post employment benefits - Sche
Post employment benefits - Schedule of charge before taxation (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Charge before taxation | £ (31) | £ (29) | £ (87) |
United Kingdom | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Charge before taxation | 15 | (27) | (46) |
Ireland | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Charge before taxation | 1 | 45 | 4 |
United States | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Charge before taxation | (32) | (31) | (28) |
Other | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Charge before taxation | £ (15) | £ (16) | £ (17) |
Post employment benefits - Move
Post employment benefits - Movement in net surplus (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning Balance | £ 1,165 | £ 447 | |
Exchange differences | 6 | (7) | |
Disposals | 4 | ||
Charge before taxation | (31) | (29) | £ (87) |
Other comprehensive (loss)/income | (650) | 626 | 16 |
Contributions by the group | 100 | 128 | |
Settlements paid | 0 | ||
Employee contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Ending Balance | 594 | 1,165 | 447 |
Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning Balance | 8,399 | 9,892 | |
Exchange differences | (49) | 93 | |
Disposals | 0 | ||
Charge before taxation | 298 | 176 | |
Other comprehensive (loss)/income | (1,435) | (1,432) | |
Contributions by the group | 100 | 128 | |
Settlements paid | 52 | ||
Employee contributions | 5 | 5 | |
Benefits paid | (472) | (411) | |
Ending Balance | 6,846 | 8,399 | 9,892 |
Plan liabilities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Beginning Balance | (7,234) | (9,445) | |
Exchange differences | 55 | (100) | |
Disposals | 4 | ||
Charge before taxation | (329) | (205) | |
Other comprehensive (loss)/income | 785 | 2,058 | |
Contributions by the group | 0 | 0 | |
Settlements paid | (52) | ||
Employee contributions | (5) | (5) | |
Benefits paid | 472 | 411 | |
Ending Balance | £ (6,252) | £ (7,234) | £ (9,445) |
Post employment benefits - Plan
Post employment benefits - Plan assets and liabilities by type of post employment benefit and country (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | £ 594 | £ 1,165 | £ 447 |
Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | 6,846 | 8,399 | 9,892 |
Plan liabilities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | (6,252) | (7,234) | £ (9,445) |
Pensions | Plan assets | United Kingdom | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | 4,578 | 6,041 | |
Pensions | Plan assets | Ireland | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | 1,588 | 1,645 | |
Pensions | Plan assets | United States | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | 441 | 453 | |
Pensions | Plan assets | Other | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | 180 | 191 | |
Pensions | Plan liabilities | United Kingdom | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | (4,041) | (4,897) | |
Pensions | Plan liabilities | Ireland | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | (1,310) | (1,409) | |
Pensions | Plan liabilities | United States | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | (411) | (408) | |
Pensions | Plan liabilities | Other | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | (194) | (212) | |
Post employment medical | Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | 2 | 2 | |
Post employment medical | Plan liabilities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | (227) | (225) | |
Other post employment | Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | 57 | 67 | |
Other post employment | Plan liabilities | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan asset and liabilities by type and country | £ (69) | £ (83) |
Post employment benefits - Bala
Post employment benefits - Balance sheet analysis of post employment plans (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of defined benefit plans [line items] | ||
Non-current assets | £ 960 | £ 1,553 |
Non-current liabilities | (373) | (402) |
Surplus restriction | 7 | 14 |
Funded plans | ||
Disclosure of defined benefit plans [line items] | ||
Non-current assets | 960 | 1,553 |
Non-current liabilities | (132) | (144) |
Unfunded plans | ||
Disclosure of defined benefit plans [line items] | ||
Non-current liabilities | £ (241) | £ (258) |
Post employment benefits - Ba_2
Post employment benefits - Balance sheet analysis of post employment plans (Parenthetical) (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
DPS | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/Deficit in plan | £ 589 | £ 1,174 | £ 840 |
GIGIPS | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/Deficit in plan | 260 | 221 | (79) |
Other Schemes | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/Deficit in plan | £ 111 | £ 158 | £ 178 |
Post employment benefits - Weig
Post employment benefits - Weighted average assumptions used to determine group's deficit/surplus in main post employment plans (Details) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
United Kingdom | |||
Disclosure of defined benefit plans [line items] | |||
Rate of general increase in salaries | 3.70% | 3.60% | 3.40% |
Rate of increase to pensions in payment | 2.90% | 2.90% | 3.10% |
Rate of increase to deferred pensions | 2.70% | 2.60% | 2.50% |
Discount rate for plan liabilities | 5.20% | 3.80% | 1.90% |
United Kingdom | CPI | |||
Disclosure of defined benefit plans [line items] | |||
Inflation | 2.70% | 2.60% | 2.50% |
United Kingdom | RPI | |||
Disclosure of defined benefit plans [line items] | |||
Inflation | 3.20% | 3.10% | 3% |
Ireland | |||
Disclosure of defined benefit plans [line items] | |||
Rate of general increase in salaries | 3.90% | 3.80% | 3% |
Rate of increase to pensions in payment | 2.30% | 2.20% | 1.70% |
Rate of increase to deferred pensions | 2.40% | 2.30% | 1.60% |
Discount rate for plan liabilities | 3.60% | 3.20% | 1% |
Ireland | CPI | |||
Disclosure of defined benefit plans [line items] | |||
Inflation | 2.50% | 2.40% | 1.60% |
United States | |||
Disclosure of defined benefit plans [line items] | |||
Rate of general increase in salaries | 0% | 0% | 0% |
Rate of increase to pensions in payment | 0% | 0% | 0% |
Rate of increase to deferred pensions | 0% | 0% | 0% |
Discount rate for plan liabilities | 4.90% | 4.40% | 2.70% |
United States | CPI | |||
Disclosure of defined benefit plans [line items] | |||
Inflation | 2.20% | 2.30% | 2.30% |
Post employment benefits - Expe
Post employment benefits - Expected age at death of an average worker who retires currently at age 65, one who is currently aged 45 and subsequently retires at the age of 65 (Details) - yr | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
United Kingdom | Retiring currently at age 65 | Male | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 86.8 | 87.1 | 87.2 |
United Kingdom | Retiring currently at age 65 | Female | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 88.4 | 88.7 | 88.7 |
United Kingdom | Currently aged 45, retiring at age 65 | Male | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 88.1 | 88.5 | 88.6 |
United Kingdom | Currently aged 45, retiring at age 65 | Female | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 90.4 | 90.7 | 90.8 |
Ireland | Retiring currently at age 65 | Male | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 87.2 | 87.7 | 86.9 |
Ireland | Retiring currently at age 65 | Female | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 89.6 | 90 | 89.3 |
Ireland | Currently aged 45, retiring at age 65 | Male | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 88.8 | 89.3 | 88.6 |
Ireland | Currently aged 45, retiring at age 65 | Female | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 91.3 | 91.7 | 91.1 |
United States | Retiring currently at age 65 | Male | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 85.6 | 85.5 | 85.4 |
United States | Retiring currently at age 65 | Female | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 87.2 | 87.2 | 87.1 |
United States | Currently aged 45, retiring at age 65 | Male | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 87.1 | 87 | 86.9 |
United States | Currently aged 45, retiring at age 65 | Female | |||
Disclosure of defined benefit plans [line items] | |||
Expected age at death of an average worker | 88.7 | 88.6 | 88.5 |
Post employment benefits - Sens
Post employment benefits - Sensitivity analyses of potential impacts on consolidated income statement and on plan liabilities (Details) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 GBP (£) yr | Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | £ 4,632 | £ 4,409 | £ 3,731 |
Profit for the year | £ 3,766 | £ 3,338 | £ 2,799 |
Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | ||
Percentage of reasonably possible decrease in actuarial assumption | 0.50% | ||
Inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | ||
Percentage of reasonably possible decrease in actuarial assumption | 0.50% | ||
Life expectancy | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Duration of reasonably possible increase in actuarial assumption | yr | 1 | ||
United Kingdom | Effect of 0.5% increase in discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | £ 2 | ||
Profit for the year | 15 | ||
Plan liabilities | 259 | ||
United Kingdom | Effect of 0.5% decrease in discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | (2) | ||
Profit for the year | (14) | ||
Plan liabilities | (267) | ||
United Kingdom | Effect of 0.5% increase in inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | (1) | ||
Profit for the year | (8) | ||
Plan liabilities | (156) | ||
United Kingdom | Effect of 0.5% decrease in inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 2 | ||
Profit for the year | 8 | ||
Plan liabilities | 173 | ||
United Kingdom | Effect of one year increase in life expectancy | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 0 | ||
Profit for the year | (6) | ||
Plan liabilities | (131) | ||
Ireland | Effect of 0.5% increase in discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 1 | ||
Profit for the year | 5 | ||
Plan liabilities | 85 | ||
Ireland | Effect of 0.5% decrease in discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | (1) | ||
Profit for the year | (4) | ||
Plan liabilities | (95) | ||
Ireland | Effect of 0.5% increase in inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 0 | ||
Profit for the year | (2) | ||
Plan liabilities | (49) | ||
Ireland | Effect of 0.5% decrease in inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 0 | ||
Profit for the year | 2 | ||
Plan liabilities | 50 | ||
Ireland | Effect of one year increase in life expectancy | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 0 | ||
Profit for the year | (2) | ||
Plan liabilities | (55) | ||
United States | Effect of 0.5% increase in discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 2 | ||
Profit for the year | 2 | ||
Plan liabilities | 22 | ||
United States | Effect of 0.5% decrease in discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | (2) | ||
Profit for the year | (2) | ||
Plan liabilities | (24) | ||
United States | Effect of 0.5% increase in inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 0 | ||
Profit for the year | (1) | ||
Plan liabilities | (9) | ||
United States | Effect of 0.5% decrease in inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 0 | ||
Profit for the year | 1 | ||
Plan liabilities | 8 | ||
United States | Effect of one year increase in life expectancy | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Operating profit | 0 | ||
Profit for the year | (1) | ||
Plan liabilities | £ (15) |
Post employment benefits - Anal
Post employment benefits - Analysis of fair value of plan assets (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of fair value of plan assets [line items] | ||
Equities | £ 1,381 | £ 1,735 |
Property | 554 | 819 |
Hedge funds | 17 | 204 |
Interest rate and inflation swaps | (887) | (863) |
Cash and other | 453 | 746 |
Total bid value of assets | 6,846 | 8,399 |
Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 104 | 319 |
Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 100 | 201 |
Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 605 | 703 |
Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 638 | 805 |
Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 623 | 1,380 |
Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 3,177 | 2,185 |
Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 81 | 165 |
Quoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 76 | 93 |
Property | 29 | 28 |
Hedge funds | 0 | 0 |
Interest rate and inflation swaps | 102 | 0 |
Cash and other | 51 | 31 |
Total bid value of assets | 2,741 | 2,687 |
Quoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 66 | 51 |
Quoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 2 | 1 |
Quoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 21 | 25 |
Quoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 30 | 47 |
Quoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 13 | 11 |
Quoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 2,351 | 2,400 |
Quoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Unquoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 1,305 | 1,642 |
Property | 525 | 791 |
Hedge funds | 17 | 204 |
Interest rate and inflation swaps | (989) | (863) |
Cash and other | 402 | 715 |
Total bid value of assets | 4,105 | 5,712 |
Unquoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 38 | 268 |
Unquoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 98 | 200 |
Unquoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 584 | 678 |
Unquoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 608 | 758 |
Unquoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 610 | 1,369 |
Unquoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 826 | (215) |
Unquoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 81 | 165 |
United Kingdom | Quoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 12 | 23 |
Property | 29 | 28 |
Hedge funds | 0 | 0 |
Interest rate and inflation swaps | 0 | 0 |
Cash and other | 46 | 24 |
Total bid value of assets | 2,491 | 2,532 |
United Kingdom | Quoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 18 | 2 |
United Kingdom | Quoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United Kingdom | Quoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United Kingdom | Quoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 22 | 44 |
United Kingdom | Quoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 13 | 11 |
United Kingdom | Quoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 2,351 | 2,400 |
United Kingdom | Quoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United Kingdom | Unquoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 916 | 1,218 |
Property | 462 | 716 |
Hedge funds | 0 | 107 |
Interest rate and inflation swaps | (971) | (900) |
Cash and other | (14) | 481 |
Total bid value of assets | 2,087 | 3,508 |
United Kingdom | Unquoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 24 | 86 |
United Kingdom | Unquoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United Kingdom | Unquoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 29 | 68 |
United Kingdom | Unquoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 289 | 557 |
United Kingdom | Unquoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 526 | 1,271 |
United Kingdom | Unquoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 826 | (215) |
United Kingdom | Unquoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 119 |
Ireland | Quoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 0 | 0 |
Property | 0 | 0 |
Hedge funds | 0 | 0 |
Interest rate and inflation swaps | 102 | 0 |
Cash and other | 5 | 7 |
Total bid value of assets | 113 | 9 |
Ireland | Quoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Ireland | Quoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Ireland | Quoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Ireland | Quoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 6 | 2 |
Ireland | Quoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Ireland | Quoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Ireland | Quoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Ireland | Unquoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 291 | 319 |
Property | 62 | 74 |
Hedge funds | 12 | 92 |
Interest rate and inflation swaps | (18) | 37 |
Cash and other | 347 | 154 |
Total bid value of assets | 1,475 | 1,637 |
Ireland | Unquoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 6 | 30 |
Ireland | Unquoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 96 | 199 |
Ireland | Unquoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 328 | 388 |
Ireland | Unquoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 186 | 200 |
Ireland | Unquoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 84 | 98 |
Ireland | Unquoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
Ireland | Unquoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 81 | 46 |
United States and Other | Quoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 64 | 70 |
Property | 0 | 0 |
Hedge funds | 0 | 0 |
Interest rate and inflation swaps | 0 | 0 |
Cash and other | 0 | 0 |
Total bid value of assets | 137 | 146 |
United States and Other | Quoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 48 | 49 |
United States and Other | Quoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 2 | 1 |
United States and Other | Quoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 21 | 25 |
United States and Other | Quoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 2 | 1 |
United States and Other | Quoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United States and Other | Quoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United States and Other | Quoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United States and Other | Unquoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equities | 98 | 105 |
Property | 1 | 1 |
Hedge funds | 5 | 5 |
Interest rate and inflation swaps | 0 | 0 |
Cash and other | 69 | 80 |
Total bid value of assets | 543 | 567 |
United States and Other | Unquoted | Fixed-interest government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 8 | 152 |
United States and Other | Unquoted | Inflation-linked government | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 2 | 1 |
United States and Other | Unquoted | Investment grade corporate | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 227 | 222 |
United States and Other | Unquoted | Non-investment grade | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 133 | 1 |
United States and Other | Unquoted | Loan securities | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United States and Other | Unquoted | Repurchase agreements | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | 0 | 0 |
United States and Other | Unquoted | Liability Driven Investment (LDI) | ||
Disclosure of fair value of plan assets [line items] | ||
Bonds | £ 0 | £ 0 |
Post employment benefits - Timi
Post employment benefits - Timing of benefit payments and average duration of defined benefit obligations and distribution of timing of benefit payments (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 0 | £ 0 |
United Kingdom | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 8,740 | £ 8,972 |
Average duration of the defined benefit obligation | 14 years | 15 years |
United Kingdom | Within one year | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 303 | £ 295 |
United Kingdom | Between 1 to 5 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 1,090 | 1,082 |
United Kingdom | Between 6 to 15 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 2,439 | 2,556 |
United Kingdom | Between 16 to 25 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 2,244 | 2,252 |
United Kingdom | Beyond 25 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 2,664 | 2,787 |
Ireland | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 2,559 | £ 2,529 |
Average duration of the defined benefit obligation | 14 years | 15 years |
Ireland | Within one year | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 73 | £ 70 |
Ireland | Between 1 to 5 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 367 | 353 |
Ireland | Between 6 to 15 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 727 | 704 |
Ireland | Between 16 to 25 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 645 | 634 |
Ireland | Beyond 25 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 747 | 768 |
United States | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 955 | £ 912 |
Average duration of the defined benefit obligation | 9 years | 9 years |
United States | Within one year | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 57 | £ 58 |
United States | Between 1 to 5 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 174 | 187 |
United States | Between 6 to 15 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 331 | 310 |
United States | Between 16 to 25 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | 206 | 183 |
United States | Beyond 25 years | ||
Disclosure of defined benefit plans [line items] | ||
Benefits expected to be paid | £ 187 | £ 174 |
Post employment benefits - Narr
Post employment benefits - Narrative (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||||||||
Jun. 30, 2024 GBP (£) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 GBP (£) | Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | Dec. 31, 2030 GBP (£) | Dec. 31, 2030 EUR (€) | Dec. 31, 2027 GBP (£) | Dec. 31, 2027 EUR (€) | Dec. 31, 2024 GBP (£) | Dec. 31, 2024 EUR (€) | Jun. 30, 2023 EUR (€) | |
Disclosure of defined benefit plans [line items] | ||||||||||||
Defined contribution plans | £ 44 | £ 33 | £ 25 | |||||||||
Cash contributions to plans on next year | £ 75 | $ 95 | ||||||||||
Inventories | £ 7,661 | £ 7,094 | ||||||||||
United Kingdom | ||||||||||||
Disclosure of defined benefit plans [line items] | ||||||||||||
Hedging instrument, interest rate | 97% | 100% | 97% | |||||||||
Hedging instrument, inflation rate | 98% | 103% | 98% | |||||||||
Percentage of UK plans of total plan liabilities | 65% | 65% | ||||||||||
Inventories | £ 732 | £ 561 | ||||||||||
One-off deficit contribution | £ 16 | |||||||||||
United Kingdom | Contingent liability arising from post-employment benefit obligations | Maximum | ||||||||||||
Disclosure of defined benefit plans [line items] | ||||||||||||
Cash contributions to plans on next year | £ 430 | |||||||||||
Ireland | ||||||||||||
Disclosure of defined benefit plans [line items] | ||||||||||||
Hedging instrument, interest rate | 92% | 70% | 92% | |||||||||
Hedging instrument, inflation rate | 112% | 76% | 112% | |||||||||
Ireland | Maximum | ||||||||||||
Disclosure of defined benefit plans [line items] | ||||||||||||
Contingent asset granted | £ 171 | € 200 | ||||||||||
Ireland | Contingent liability arising from post-employment benefit obligations | Maximum | ||||||||||||
Disclosure of defined benefit plans [line items] | ||||||||||||
Cash contributions to plans on next year | £ 33 | € 39 | £ 33 | € 39 | £ 30 | € 35 |
Working capital - Inventories (
Working capital - Inventories (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Summary Of Additional Information About Working Capital [Abstract] | ||
Raw materials and consumables | £ 543 | £ 489 |
Work in progress | 132 | 86 |
Maturing inventories | 5,794 | 5,229 |
Finished goods and goods for resale | 1,192 | 1,290 |
Inventories | £ 7,661 | £ 7,094 |
Working capital - Inventories e
Working capital - Inventories expected to be utilized after more than one year (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Summary Of Additional Information About Working Capital [Abstract] | ||
Raw materials and consumables | £ 23 | £ 15 |
Maturing inventories | 4,063 | 3,713 |
Non current inventories | £ 4,086 | £ 3,728 |
Working capital - Analysis of p
Working capital - Analysis of provisions for obsolescence of inventories (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Classes of inventory [Line Items] | |||
Balance at beginning of the year | £ 94 | £ 96 | £ 98 |
Exchange differences | (27) | 6 | (8) |
Income statement charge | 55 | 6 | 20 |
Utilised | (19) | (13) | (14) |
Sale of businesses | (1) | (1) | 0 |
Ending balance | £ 102 | £ 94 | £ 96 |
Working capital - Trade and oth
Working capital - Trade and other receivables (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of trade and other receivables [line items] | ||
Trade receivables | £ 2,011 | £ 2,155 |
Current assets | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 2,011 | 2,155 |
Interest receivable | 12 | 18 |
VAT recoverable and other prepaid taxes | 271 | 290 |
Other receivables | 163 | 158 |
Prepayments | 229 | 290 |
Accrued income | 34 | 22 |
Trade and other receivables | 2,720 | 2,933 |
Non-current assets | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 0 | 0 |
Interest receivable | 0 | 0 |
VAT recoverable and other prepaid taxes | 15 | 15 |
Other receivables | 13 | 13 |
Prepayments | 3 | 9 |
Accrued income | 0 | 0 |
Trade and other receivables | £ 31 | £ 37 |
Working capital - Aged analysis
Working capital - Aged analysis of trade receivables net of allowances (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of trade and other receivables [line items] | ||
Trade receivables | £ 2,011 | £ 2,155 |
Not overdue | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 1,967 | 2,114 |
Overdue 1 – 30 days | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 25 | 19 |
Overdue 31 – 60 days | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 7 | 8 |
Overdue 61 – 90 days | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 3 | 5 |
Overdue 91 – 180 days | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 6 | 5 |
Overdue more than 180 days | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | £ 3 | £ 4 |
Working capital - Analysis of e
Working capital - Analysis of expected credit loss allowance for doubtful debts (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary Of Additional Information About Working Capital [Abstract] | |||
Balance at beginning of the year | £ 118 | £ 112 | £ 160 |
Exchange differences | (12) | 6 | (13) |
Income statement (release)/charge | (3) | 21 | (15) |
Written off | (14) | (21) | (20) |
Ending balance | £ 89 | £ 118 | £ 112 |
Working capital - Trade and o_2
Working capital - Trade and other payables (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Current liabilities | ||
Disclosure of trade and other payables [Line Items] | ||
Trade payables | £ 2,659 | £ 2,705 |
Interest payable | 237 | 143 |
Tax and social security excluding income tax | 632 | 696 |
Other payables | 432 | 600 |
Accruals | 1,229 | 1,635 |
Deferred income | 73 | 90 |
Dividend payable to non-controlling interests | 38 | 18 |
Trade and other payables | 5,300 | 5,887 |
Non-current liabilities | ||
Disclosure of trade and other payables [Line Items] | ||
Trade payables | 0 | 0 |
Interest payable | 0 | 0 |
Tax and social security excluding income tax | 0 | 0 |
Other payables | 368 | 380 |
Accruals | 0 | 0 |
Deferred income | 0 | 0 |
Dividend payable to non-controlling interests | 0 | 0 |
Trade and other payables | £ 368 | £ 380 |
Working capital - Provisions (D
Working capital - Provisions (Details) £ in Millions | 12 Months Ended |
Jun. 30, 2023 GBP (£) | |
Disclosure of other provisions [line items] | |
30 June 2022 | £ 417 |
Exchange differences | (27) |
Disposal of businesses | (2) |
Provisions charged during the year | 31 |
Provisions utilised during the year | (75) |
Transfers from other payables | 12 |
Unwinding of discounts | 6 |
30 June 2023 | 362 |
Current liabilities | 119 |
Non-current liabilities | 243 |
Provisions | 362 |
Thalidomide | |
Disclosure of other provisions [line items] | |
30 June 2022 | 178 |
Exchange differences | (1) |
Disposal of businesses | 0 |
Provisions charged during the year | 0 |
Provisions utilised during the year | (14) |
Transfers from other payables | 0 |
Unwinding of discounts | 5 |
30 June 2023 | 168 |
Current liabilities | 13 |
Non-current liabilities | 155 |
Provisions | 168 |
Other | |
Disclosure of other provisions [line items] | |
30 June 2022 | 239 |
Exchange differences | (26) |
Disposal of businesses | (2) |
Provisions charged during the year | 31 |
Provisions utilised during the year | (61) |
Transfers from other payables | 12 |
Unwinding of discounts | 1 |
30 June 2023 | 194 |
Current liabilities | 106 |
Non-current liabilities | 88 |
Provisions | £ 194 |
Working capital - Narrative (De
Working capital - Narrative (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Summary of additional information about working capital [line items] | ||
Trade receivables | £ 2,011 | £ 2,155 |
Interest on borrowings | 217 | 141 |
Accrued Discounts Related To Sales Recognized | 561 | 613 |
Current contract liabilities | 90 | 72 |
Supply chain financing facilities accounted as trade payables | (727) | (789) |
Provision for employee deferred compensation plan | £ 51 | 49 |
United Kingdom | ||
Summary of additional information about working capital [line items] | ||
Trade receivables due from counterparties | 14% | |
United States | ||
Summary of additional information about working capital [line items] | ||
Trade receivables due from counterparties | 26% | |
India | ||
Summary of additional information about working capital [line items] | ||
Trade receivables due from counterparties | 11% | |
Non-current liabilities | Fair value | ||
Summary of additional information about working capital [line items] | ||
Non-current contingent liabilities | £ (293) | £ (353) |
Financial instruments and ris_3
Financial instruments and risk management - Currency risk - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of detailed information about financial instruments [line items] | ||
Foreign currency borrowings and financial derivatives designated in net investment hedge relationships | £ 23,276 | £ 23,551 |
US dollar | Transaction exposure hedging risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum hedging period (in months) | 24 months | |
Target hedge ratio | 75% | |
Other Currencies | Transaction exposure hedging risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum hedging period (in months) | 18 months | |
Net investment hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum total net investment value at risk to total net asset percentage | 20% | |
Value at risk, loss defining period (in years) | 1 year | |
Percentage of probability confidence level | 95% | |
Foreign currency borrowings and financial derivatives designated in net investment hedge relationships | £ 10,627 | £ 8,742 |
Financial instruments and ris_4
Financial instruments and risk management - Interest rate risk - Narrative (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings percentage | 100% | 100% |
Fair value hedges | Interest rate risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amounts | £ 3,999 | £ 4,444 |
USD LIBOR | Fair value hedges | Interest rate risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amounts | £ 2,063 | £ 2,893 |
Fixed rate | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings percentage | 77% | 78% |
Minimum | Fixed rate | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings percentage | 40% | |
Maximum | Fixed rate | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings percentage | 90% |
Financial instruments and ris_5
Financial instruments and risk management - Schedule of net borrowings interest rate profile (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of financial instruments by type of interest rate [line items] | |||
Net borrowings | £ 15,541 | £ 14,137 | £ 12,109 |
Net borrowings interest rate | 100% | 100% | |
Fixed rate | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Net borrowings | £ 11,961 | £ 11,070 | |
Net borrowings interest rate | 77% | 78% | |
Floating rate | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Net borrowings | £ 3,225 | £ 2,612 | |
Net borrowings interest rate | 21% | 19% | |
Impact of financial derivatives and fair value adjustments | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Net borrowings | £ (93) | £ (20) | |
Net borrowings interest rate | (1.00%) | 0% | |
Lease liabilities | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Net borrowings | £ 448 | £ 475 | |
Net borrowings interest rate | 3% | 3% |
Financial instruments and ris_6
Financial instruments and risk management - Schedule of average monthly net borrowings and effective interest rate (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of average monthly borrowings and effective interest rate [line items] | |||
Average monthly net borrowings | £ 15,541 | £ 14,137 | £ 12,109 |
Effective interest rate | 3.90% | 2.70% | 2.70% |
Weighted average | |||
Disclosure of average monthly borrowings and effective interest rate [line items] | |||
Average monthly net borrowings | £ 15,244 | £ 12,692 | £ 12,702 |
Financial instruments and ris_7
Financial instruments and risk management - Commodity price risk - Narrative (Details) - Commodity price risk | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Maximum commodity exposure value at risk | 0.75% |
Maximum hedging period (in months) | 24 months |
Financial instruments and ris_8
Financial instruments and risk management - Market risk sensitivity analysis - Narrative (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Interest rate risk | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | 0.50% |
Currency exchange risk | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | 10% |
Financial instruments and ris_9
Financial instruments and risk management - Schedule of fluctuations in interest and exchange rates to vary from hypothetical amounts (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact on income statement gain/(loss) | £ 3,766 | £ 3,338 | £ 2,799 |
Total comprehensive gain/(loss) | £ 2,964 | 4,820 | £ 1,934 |
Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | 0.50% | ||
Interest rate risk | 0.5% decrease in interest rates | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | (0.50%) | ||
Impact on income statement gain/(loss) | £ 16 | 13 | |
Total comprehensive gain/(loss) | £ 36 | 31 | |
Interest rate risk | 0.5% increase in interest rates | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | 0.50% | ||
Impact on income statement gain/(loss) | £ (16) | (13) | |
Total comprehensive gain/(loss) | £ (35) | (30) | |
Currency exchange risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | 10% | ||
Currency exchange risk | 10% weakening of sterling | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | (10.00%) | ||
Impact on income statement gain/(loss) | £ (45) | (33) | |
Total comprehensive gain/(loss) | £ (1,336) | (1,125) | |
Currency exchange risk | 10% strengthening of sterling | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Sensitivity analysis for types of market risk, percentage of reasonably possible change in risk variable | 10% | ||
Impact on income statement gain/(loss) | £ 36 | 28 | |
Total comprehensive gain/(loss) | £ 1,093 | £ 922 |
Financial instruments and ri_10
Financial instruments and risk management - Credit risk - Narrative (Details) £ in Millions, $ in Millions | Jun. 30, 2023 GBP (£) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) |
Disclosure of detailed information about financial instruments [abstract] | ||||
Maximum exposure to credit risk | £ 4,637 | £ 5,445 | ||
Credit support obligations | £ (15) | $ (19) | £ 19 | $ 23 |
Financial instruments and ri_11
Financial instruments and risk management - Liquidity risk - Narrative (Details) - Liquidity risk | Jun. 30, 2023 |
Disclosure of detailed information about financial instruments [line items] | |
Current borrowings to gross borrowings less money market demand deposits, percent | 50% |
Commercial paper to gross borrowings less money market demand deposits, percent | 30% |
Financial instruments and ri_12
Financial instruments and risk management - Schedule of contractual cash flows (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure about contractual cash flows [line items] | ||
Borrowings | £ (16,502) | £ (16,020) |
Interest on borrowings | (217) | (141) |
Lease capital repayments | (448) | (475) |
Lease future interest payments | 0 | 0 |
Trade and other financial liabilities | (4,782) | (5,145) |
Non-derivative financial liabilities | (21,949) | (21,781) |
Other derivative instruments (net) | ||
Derivative instruments | 134 | 22 |
Within one year | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (1,701) | (1,522) |
Due between 1 and 3 years | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (3,522) | (2,817) |
Due between 3 and 5 years | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (2,874) | (2,625) |
Due after five years | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (8,405) | (9,056) |
Cross currency swaps (gross) | ||
Disclosure about contractual cash flows [line items] | ||
Receivable | ||
Payable | ||
Undiscounted amount | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (16,954) | (16,380) |
Interest on borrowings | (3,417) | (3,235) |
Lease capital repayments | (448) | (475) |
Lease future interest payments | (102) | (93) |
Trade and other financial liabilities | (4,866) | (5,156) |
Non-derivative financial liabilities | (25,787) | (25,339) |
Other derivative instruments (net) | (202) | (352) |
Derivative instruments | 286 | 268 |
Undiscounted amount | Within one year | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (1,707) | (1,524) |
Interest on borrowings | (541) | (427) |
Lease capital repayments | (75) | (85) |
Lease future interest payments | (18) | (13) |
Trade and other financial liabilities | (4,417) | (4,765) |
Non-derivative financial liabilities | (6,758) | (6,814) |
Other derivative instruments (net) | 19 | (86) |
Derivative instruments | 34 | (18) |
Undiscounted amount | Due between 1 and 3 years | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (3,615) | (2,842) |
Interest on borrowings | (750) | (626) |
Lease capital repayments | (104) | (107) |
Lease future interest payments | (28) | (20) |
Trade and other financial liabilities | (231) | (123) |
Non-derivative financial liabilities | (4,728) | (3,718) |
Other derivative instruments (net) | (88) | (123) |
Derivative instruments | (57) | (89) |
Undiscounted amount | Due between 3 and 5 years | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (2,980) | (2,738) |
Interest on borrowings | (623) | (560) |
Lease capital repayments | (69) | (61) |
Lease future interest payments | (19) | (16) |
Trade and other financial liabilities | (122) | (142) |
Non-derivative financial liabilities | (3,813) | (3,517) |
Other derivative instruments (net) | (79) | (78) |
Derivative instruments | (48) | (44) |
Undiscounted amount | Due after five years | ||
Disclosure about contractual cash flows [line items] | ||
Borrowings | (8,652) | (9,276) |
Interest on borrowings | (1,503) | (1,622) |
Lease capital repayments | (200) | (222) |
Lease future interest payments | (37) | (44) |
Trade and other financial liabilities | (96) | (126) |
Non-derivative financial liabilities | (10,488) | (11,290) |
Other derivative instruments (net) | (54) | (65) |
Derivative instruments | 357 | 419 |
Undiscounted amount | Cross currency swaps (gross) | ||
Disclosure about contractual cash flows [line items] | ||
Receivable | 1,558 | 2,473 |
Payable | (1,070) | (1,853) |
Undiscounted amount | Cross currency swaps (gross) | Within one year | ||
Disclosure about contractual cash flows [line items] | ||
Receivable | 43 | 851 |
Payable | (28) | (783) |
Undiscounted amount | Cross currency swaps (gross) | Due between 1 and 3 years | ||
Disclosure about contractual cash flows [line items] | ||
Receivable | 87 | 90 |
Payable | (56) | (56) |
Undiscounted amount | Cross currency swaps (gross) | Due between 3 and 5 years | ||
Disclosure about contractual cash flows [line items] | ||
Receivable | 87 | 90 |
Payable | (56) | (56) |
Undiscounted amount | Cross currency swaps (gross) | Due after five years | ||
Disclosure about contractual cash flows [line items] | ||
Receivable | 1,341 | 1,442 |
Payable | £ (930) | £ (958) |
Financial instruments and ri_13
Financial instruments and risk management - Schedule of available undrawn committed bank facilities (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of information about undrawn borrowing facilities [line items] | ||
Undrawn committed bank facilities | £ 2,678 | £ 2,789 |
Expiring within one year | ||
Disclosure of information about undrawn borrowing facilities [line items] | ||
Undrawn committed bank facilities | 99 | 793 |
Expiring between one and two years | ||
Disclosure of information about undrawn borrowing facilities [line items] | ||
Undrawn committed bank facilities | 496 | 103 |
Expiring after two years | ||
Disclosure of information about undrawn borrowing facilities [line items] | ||
Undrawn committed bank facilities | £ 2,083 | £ 1,893 |
Financial instruments and ri_14
Financial instruments and risk management - Fair value measurement - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business combinations | |||
Disclosure of detailed information about financial instruments [line items] | |||
Contingent consideration payment period | 8 years | ||
Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | £ 529 | £ 587 | |
Movement in financial assets - other | 8 | 46 | |
Zacapa put option | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 218 | 216 | £ 149 |
Contingent consideration recognised on acquisition of businesses | Volume, measurement input | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) in fair value liability due to increase in observable input | £ 30 | ||
Sensitivity analysis, percentage of possible increase in unobservable input, liabilities | 10% | ||
Sensitivity analysis, percentage of possible decrease in unobservable input, liabilities | 10% | ||
Increase (decrease) in fair value liability due to decrease in observable input | £ (50) | ||
Contingent consideration recognised on acquisition of businesses | Cash flows, measurement input | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) in fair value liability due to increase in observable input | £ 25 | ||
Sensitivity analysis, percentage of possible increase in unobservable input, liabilities | 10% | ||
Sensitivity analysis, percentage of possible decrease in unobservable input, liabilities | 10% | ||
Increase (decrease) in fair value liability due to decrease in observable input | £ (25) | ||
Contingent consideration recognised on acquisition of businesses | Business combinations | Undiscounted amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 422 | ||
Contingent consideration recognised on acquisition of businesses | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 311 | 371 | £ 429 |
Contingent consideration recognised on acquisition of businesses | Level 3 | Aviation Gin and Davos Brands | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 113 | 157 | |
Contingent consideration recognised on acquisition of businesses | Level 3 | 21Seeds | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 59 | 59 | |
Contingent consideration recognised on acquisition of businesses | Level 3 | Lone River Ranch Water brand | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 18 | 57 | |
Contingent consideration recognised on acquisition of businesses | Level 3 | Don Papa rum | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | £ 70 | 0 | |
Industrias Licoreras de Guatemala | |||
Disclosure of detailed information about financial instruments [line items] | |||
Proportion of ownership interest in investment by external party | 50% | ||
Industrias Licoreras de Guatemala | Option exercised at 30 June 2025 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) in fair value liability due to increase in observable input | £ 30 | ||
Industrias Licoreras de Guatemala | Zacapa put option | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | £ 218 | £ 216 |
Financial instruments and ri_15
Financial instruments and risk management - Schedule of financial assets and liabilities measured at fair value (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Valuation techniques based on observable market input (Level 2) | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | £ 594 | £ 480 | |
Derivative liabilities | (440) | (456) | |
Financial assets/(liabilities) at fair value | 154 | 24 | |
Valuation techniques based on unobservable market input (Level 3) | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets/(liabilities) at fair value | (337) | (403) | |
Financial assets - other | 192 | 184 | |
Financial liabilities - other | (529) | (587) | |
Valuation techniques based on unobservable market input (Level 3) | Contingent consideration payable | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities - other | £ (311) | £ (371) | £ (429) |
Financial instruments and ri_16
Financial instruments and risk management - Schedule of movements in level 3 instruments measured on a recurring basis (Details) - Level 3 - GBP (£) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of fair value measurement of liabilities [line items] | ||
At the beginning of the year | £ (587) | |
At the end of the year | (529) | £ (587) |
Zacapa financial liability | ||
Disclosure of fair value measurement of liabilities [line items] | ||
At the beginning of the year | (216) | (149) |
Net (losses)/gains included in the income statement | (8) | (20) |
Net gains/(losses) included in exchange in other comprehensive income | 9 | (26) |
Net losses included in retained earnings | (16) | (34) |
Acquisitions | 0 | 0 |
Settlement of liabilities | 13 | 13 |
At the end of the year | (218) | (216) |
Contingent consideration payable | ||
Disclosure of fair value measurement of liabilities [line items] | ||
At the beginning of the year | (371) | (429) |
Net (losses)/gains included in the income statement | 117 | 62 |
Net gains/(losses) included in exchange in other comprehensive income | 11 | (39) |
Net losses included in retained earnings | 0 | 0 |
Acquisitions | (76) | (70) |
Settlement of liabilities | 8 | 105 |
At the end of the year | £ (311) | £ (371) |
Financial instruments and ri_17
Financial instruments and risk management - Schedule of notional amounts, contractual maturities and rates of hedging instruments designated in hedging relationships by main risk categories (Details) £ in Millions | Jun. 30, 2023 GBP (£) $ / bushel USD_per_Metric_Tonnes | Jun. 30, 2022 GBP (£) poundSterlingPerTherm USD_per_Metric_Tonnes |
Net investment hedges | Foreign exchange risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amounts | £ 637 | £ 11 |
Net investment hedges | Foreign exchange risk | US dollar | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 1.27 | |
Net investment hedges | Foreign exchange risk | Turkish lira | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 22.27 | |
Cash flow hedges | Foreign currency debt risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amounts | £ 873 | £ 1,694 |
Cash flow hedges | Foreign currency debt risk | US dollar | Minimum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 1.60 | 1.22 |
Cash flow hedges | Foreign currency debt risk | US dollar | Maximum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 1.88 | 1.88 |
Cash flow hedges | Foreign currency exchange risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amounts | £ 1,734 | £ 1,874 |
Cash flow hedges | Foreign currency exchange risk | US dollar | Minimum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 1.05 | 1.22 |
Cash flow hedges | Foreign currency exchange risk | US dollar | Maximum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 1.33 | 1.42 |
Cash flow hedges | Foreign currency exchange risk | Mexican peso | Minimum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 14.76 | |
Cash flow hedges | Foreign currency exchange risk | Mexican peso | Maximum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 18.38 | |
Cash flow hedges | Foreign currency exchange risk | Euro | Minimum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 1.13 | |
Cash flow hedges | Foreign currency exchange risk | Euro | Maximum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 1.17 | |
Cash flow hedges | Commodity price risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amounts | £ 217 | £ 234 |
Cash flow hedges | Commodity price risk | Minimum | Natural Gas | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | poundSterlingPerTherm | 1.67 | |
Cash flow hedges | Commodity price risk | Minimum | Aluminium | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | USD_per_Metric_Tonnes | 2,248 | 2,009 |
Cash flow hedges | Commodity price risk | Minimum | Feed Wheat | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | $ / bushel | 183.75 | |
Cash flow hedges | Commodity price risk | Maximum | Natural Gas | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | poundSterlingPerTherm | 3.57 | |
Cash flow hedges | Commodity price risk | Maximum | Aluminium | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | USD_per_Metric_Tonnes | 3,399 | 3,399 |
Cash flow hedges | Commodity price risk | Maximum | Feed Wheat | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | $ / bushel | 240 | |
Fair value hedges | Interest rate risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amounts | £ 3,999 | £ 4,444 |
Fair value hedges | Interest rate risk | Minimum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | (0.0001) | (0.0001) |
Fair value hedges | Interest rate risk | Maximum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Range of hedged rates | 0.0309 | 0.0309 |
Financial instruments and ri_18
Financial instruments and risk management - Results of hedge relationships - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Jun. 30, 2025 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |||||
Accumulated fair value change on the statement of financial position for fair value hedges that are no longer applicable | £ 0 | £ (1) | |||
Cash flow hedges | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gain (loss) on cash flow hedge instruments | 247 | 124 | £ (157) | ||
Cash flow hedges | Transaction exposure hedging risk | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gain (loss) transferred out of other comprehensive income to other operating expenses | (13) | (42) | (10) | ||
Notional amounts | 1,734 | 1,874 | |||
Cash flow hedges | Foreign currency debt risk | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gain (loss) transferred out of other comprehensive income to other finance charges | (54) | 239 | (175) | ||
Notional amounts | 873 | 1,694 | |||
Loss reported in reserves in respect of hedges of foreign currency borrowing no longer applicable | 18 | 19 | |||
Cash flow hedges | Commodity price risk | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional amounts | 217 | 234 | |||
Cash flow hedges | Forecast | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gain (loss) to income statement | £ 20 | £ 143 | |||
Cash flow hedges | Derivatives | Transaction exposure hedging risk | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gain (loss) on cash flow hedge instruments | 260 | (130) | |||
Gain (loss) transferred out of other comprehensive income to other operating expenses | (17) | (11) | |||
Cash flow hedges | Derivatives | Foreign currency debt risk | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gain (loss) on cash flow hedge instruments | 60 | (6) | |||
Gain (loss) transferred out of other comprehensive income to other finance charges | (54) | 239 | |||
Cash flow hedges | Derivatives | Commodity price risk | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gain (loss) on cash flow hedge instruments | (89) | 32 | |||
Other comprehensive income (loss) reclassified to operating profit | 33 | 46 | £ 2 | ||
Fair value hedges | Interest rate risk | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Notional amounts | £ 3,999 | £ 4,444 |
Financial instruments and ri_19
Financial instruments and risk management - Schedule of effectiveness and impacts of hedging relationships (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about hedges [line items] | |||
Net financial assets (liabilities) at the beginning of the year | £ (17,500) | ||
Net financial assets (liabilities) at the end of the year | (18,120) | £ (17,500) | |
Cash flow hedges | |||
Disclosure of detailed information about hedges [line items] | |||
Consolidated comprehensive income, cash flow hedges | 247 | 124 | £ (157) |
Cash flow hedges | Foreign currency debt risk | |||
Disclosure of detailed information about hedges [line items] | |||
Derivatives in cash flow hedge (foreign currency debt) | (54) | 239 | (175) |
Cash flow hedges | Foreign currency exchange risk | |||
Disclosure of detailed information about hedges [line items] | |||
Derivatives in cash flow hedge (foreign currency risk) | (13) | (42) | (10) |
Fair value hedges | |||
Disclosure of detailed information about hedges [line items] | |||
Fair value hedge hedged item at beginning end of the year | 276 | (65) | |
Instruments in fair value hedge relationship at the beginning of the year | (7) | (2) | |
Fair value hedge hedged item | 96 | 341 | |
Income statement, Instruments in fair value hedge relationship | 2 | (5) | |
Fair value hedge hedged item at the end of the year | 372 | 276 | (65) |
Instruments in fair value hedge relationship at the end of the year | (5) | (7) | (2) |
Derivatives | Net investment hedges | Foreign exchange risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net financial assets (liabilities) at the beginning of the year | (1) | 0 | |
Income statement, net investment hedge | 0 | 0 | |
Consolidated comprehensive income, net investment hedge | 0 | 5 | |
Other movements | 1 | (6) | |
Net financial assets (liabilities) at the end of the year | 0 | (1) | 0 |
Derivatives | Cash flow hedges | Foreign currency debt risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net financial assets (liabilities) at the beginning of the year | 367 | 154 | |
Derivatives in cash flow hedge (foreign currency debt) | (54) | 239 | |
Consolidated comprehensive income, cash flow hedges | 60 | (6) | |
Other movements | (25) | (20) | |
Net financial assets (liabilities) at the end of the year | 348 | 367 | 154 |
Derivatives | Cash flow hedges | Foreign currency exchange risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net financial assets (liabilities) at the beginning of the year | (77) | 53 | |
Derivatives in cash flow hedge (foreign currency risk) | (17) | (11) | |
Consolidated comprehensive income, cash flow hedges | 260 | (130) | |
Other movements | 17 | 11 | |
Net financial assets (liabilities) at the end of the year | 183 | (77) | 53 |
Derivatives | Cash flow hedges | Commodity price risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net financial assets (liabilities) at the beginning of the year | 50 | 16 | |
Derivatives in cash flow hedge (commodity price risk) | 33 | 46 | 2 |
Consolidated comprehensive income, cash flow hedges | (89) | 32 | |
Other movements | (19) | (44) | |
Net financial assets (liabilities) at the end of the year | (25) | 50 | 16 |
Derivatives | Fair value hedges | Interest rate risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net financial assets (liabilities) at the beginning of the year | (283) | 63 | |
Derivatives in fair value hedge (interest rate risk) | (94) | (346) | |
Net financial assets (liabilities) at the end of the year | £ (377) | £ (283) | £ 63 |
Financial instruments and ri_20
Financial instruments and risk management - Schedule of financial assets and liabilities (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | £ 5,156 | £ 6,051 |
Current assets | 4,506 | 5,469 |
Non-current assets | 650 | 582 |
Financial liabilities | (23,276) | (23,551) |
Current liabilities | (7,360) | (7,970) |
Non-current liabilities | (15,916) | (15,581) |
Total net financial assets/(liabilities) | (18,120) | (17,500) |
Total net financial assets/(liabilities) current | (2,854) | (2,501) |
Total net financial assets/(liabilities) non-current | (15,266) | (14,999) |
Borrowings | 16,502 | 16,020 |
Quoted | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings | 15,641 | 15,628 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (16,502) | (16,020) |
Current liabilities | (1,701) | (1,522) |
Non-current liabilities | (14,801) | (14,498) |
Trade and other payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (5,668) | (6,267) |
Current liabilities | (5,300) | (5,887) |
Non-current liabilities | (368) | (380) |
Other instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (245) | (388) |
Current liabilities | (245) | (388) |
Non-current liabilities | 0 | 0 |
Leases | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (448) | (475) |
Current liabilities | (75) | (85) |
Non-current liabilities | (373) | (390) |
Total other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (1,106) | (1,264) |
Current liabilities | (359) | (561) |
Non-current liabilities | (747) | (703) |
Other investments and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 225 | 200 |
Non-current assets | 225 | 200 |
Trade and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,751 | 2,970 |
Current assets | 2,720 | 2,933 |
Non-current assets | 31 | 37 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,439 | 2,285 |
Current assets | 1,439 | 2,285 |
Other instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 198 | 136 |
Current assets | 198 | 136 |
Non-current assets | 0 | 0 |
Leases | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1 | 3 |
Non-current assets | 1 | 3 |
Total other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 741 | 596 |
Current assets | 347 | 251 |
Non-current assets | 394 | 345 |
Fair value hedges | Interest rate risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (377) | (284) |
Current liabilities | (6) | (1) |
Non-current liabilities | (371) | (283) |
Fair value hedges | Interest rate risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1 | |
Current assets | 0 | |
Non-current assets | 1 | |
Cash flow hedges | Foreign currency debt risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 348 | 367 |
Current assets | 0 | 43 |
Non-current assets | 348 | 324 |
Cash flow hedges | Foreign currency exchange risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (9) | (109) |
Current liabilities | (7) | (81) |
Non-current liabilities | (2) | (28) |
Cash flow hedges | Foreign currency exchange risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 192 | 32 |
Current assets | 147 | 15 |
Non-current assets | 45 | 17 |
Cash flow hedges | Commodity price risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (27) | (7) |
Current liabilities | (26) | (5) |
Non-current liabilities | (1) | (2) |
Cash flow hedges | Commodity price risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2 | 57 |
Current assets | 2 | 57 |
Non-current assets | 0 | 0 |
Net investment hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (10,627) | (8,742) |
Net investment hedges | Foreign exchange risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (1) | |
Current liabilities | (1) | |
Fair value through income statement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (969) | (1,043) |
Fair value through income statement | Trade and other payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (311) | (371) |
Fair value through income statement | Other instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (245) | (271) |
Fair value through income statement | Total other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (658) | (672) |
Fair value through income statement | Fair value hedges | Interest rate risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (377) | (284) |
Fair value through income statement | Cash flow hedges | Foreign currency exchange risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (9) | (109) |
Fair value through income statement | Cash flow hedges | Commodity price risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (27) | (7) |
Fair value through income statement | Net investment hedges | Foreign exchange risk | Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (1) | |
Liabilities at amortised cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (21,422) | (21,386) |
Liabilities at amortised cost | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (16,502) | (16,020) |
Liabilities at amortised cost | Trade and other payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (4,472) | (4,774) |
Liabilities at amortised cost | Other instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | (117) |
Liabilities at amortised cost | Leases | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (448) | (475) |
Liabilities at amortised cost | Total other financial liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (448) | (592) |
Not categorised as a financial instrument | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (885) | (1,122) |
Not categorised as a financial instrument | Trade and other payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (885) | (1,122) |
Fair value through income statement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 932 | 773 |
Fair value through income statement | Other investments and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 192 | 180 |
Fair value through income statement | Other instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 198 | 136 |
Fair value through income statement | Total other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 740 | 593 |
Fair value through income statement | Fair value hedges | Interest rate risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1 | |
Fair value through income statement | Cash flow hedges | Foreign currency debt risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 348 | 367 |
Fair value through income statement | Cash flow hedges | Foreign currency exchange risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 192 | 32 |
Fair value through income statement | Cash flow hedges | Commodity price risk | Derivatives assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2 | 57 |
Fair value through other comprehensive income | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 4 |
Fair value through other comprehensive income | Other investments and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 4 |
Assets at amortised cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,705 | 4,668 |
Assets at amortised cost | Other investments and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 31 | 15 |
Assets at amortised cost | Trade and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,234 | 2,365 |
Assets at amortised cost | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,439 | 2,285 |
Assets at amortised cost | Leases | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1 | 3 |
Assets at amortised cost | Total other financial assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1 | 3 |
Not categorised as a financial instrument | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 519 | 606 |
Not categorised as a financial instrument | Other investments and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2 | 1 |
Not categorised as a financial instrument | Trade and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 517 | 605 |
Fair value through income statement | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total net financial assets/(liabilities) | (37) | (270) |
Fair value through other comprehensive income | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total net financial assets/(liabilities) | 0 | 4 |
Assets and liabilities at amortised cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total net financial assets/(liabilities) | (17,717) | (16,718) |
Not categorised as a financial instrument | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total net financial assets/(liabilities) | £ (366) | £ (516) |
Financial instruments and ri_21
Financial instruments and risk management - Capital management - Narrative (Details) £ in Millions | 12 Months Ended | |
Jun. 30, 2023 GBP (£) | Jun. 30, 2022 GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | ||
Adjusted net borrowings to adjusted EBITDA ratio | 2.6 | |
Adjusted net borrowings | £ 15,914 | |
Post-employment benefit liabilities before tax | 373 | £ 402 |
Adjusted EBITDA | £ 6,120 | |
Minimum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Adjusted net borrowings to adjusted EBITDA ratio | 2.5 | |
Maximum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Adjusted net borrowings to adjusted EBITDA ratio | 3 |
Net borrowings - Schedule of bo
Net borrowings - Schedule of borrowings (Details) £ in Millions | 12 Months Ended | |||||
Jun. 30, 2023 GBP (£) | Jun. 30, 2023 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 GBP (£) | |
Disclosure of detailed information about borrowings [line items] | ||||||
Bank overdrafts | £ 36 | £ 74 | £ 112 | |||
Commercial paper | 198 | 0 | ||||
Bank and other loans | 121 | 105 | ||||
Credit support obligations | 15 | $ 19,000,000 | (19) | $ (23,000,000) | ||
Fair value adjustment to borrowings | (6) | (1) | ||||
Borrowings due within one year | 1,701 | 1,522 | ||||
Bank and other loans | 296 | 293 | ||||
Fair value adjustment to borrowings | (366) | (274) | ||||
Borrowings due after one year | 14,801 | 14,498 | ||||
Total borrowings before derivative financial instruments | 16,502 | 16,020 | ||||
Fair value of cross currency interest rate swaps | (348) | (367) | ||||
Fair value of foreign currency swaps and forwards | 1 | 11 | ||||
Fair value of interest rate hedging instruments | 377 | 283 | ||||
Lease liabilities | 448 | 475 | ||||
Gross borrowings | 16,980 | 16,422 | ||||
Less: Cash and cash equivalents | (1,439) | (2,285) | (2,749) | |||
Net borrowings | £ 15,541 | £ 14,137 | £ 12,109 | |||
Interest rate | 3.90% | 3.90% | 3.90% | 2.70% | 2.70% | 2.70% |
Proportion of ownership interest in subsidiary | 100% | |||||
Unamortised finance costs | £ 81 | £ 85 | ||||
Diageo Investment Corporation | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Proportion of ownership interest in subsidiary | 100% | |||||
Diageo Capital plc | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Proportion of ownership interest in subsidiary | 100% | |||||
$ 300 million 8% bonds due 2022(1) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued short term | £ 0 | 248 | ||||
Notional amounts | $ | $ 300,000,000 | |||||
Interest rate | 8% | 8% | 8% | |||
$ 1,350 million 2.625% bonds due 2023(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued short term | £ 0 | 1,115 | ||||
Notional amounts | $ | $ 1,350,000,000 | |||||
Interest rate | 2.625% | 2.625% | 2.625% | |||
€ 600 million 0.125% bonds due 2023 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued short term | £ 513 | 0 | ||||
Bonds issued long term | £ 0 | 516 | ||||
Notional amounts | € | € 600,000,000 | |||||
Interest rate | 0.125% | 0.125% | 0.125% | |||
$ 500 million 3.5% bonds due 2023(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued short term | £ 397 | 0 | ||||
Bonds issued long term | £ 0 | 413 | ||||
Notional amounts | $ | $ 500,000,000 | |||||
Interest rate | 3.50% | 3.50% | 3.50% | |||
€ 500 million 0.5% bonds due 2024 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued short term | £ 427 | 0 | ||||
Bonds issued long term | £ 0 | 430 | ||||
Notional amounts | € | € 500,000,000 | |||||
Interest rate | 0.50% | 0.50% | 0.50% | |||
$ 600 million 2.125% bonds due 2024(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 476 | 495 | ||||
Notional amounts | $ | $ 600,000,000 | |||||
Interest rate | 2.125% | 2.125% | 2.125% | |||
€ 500 million 1.75% bonds due 2024 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 427 | 430 | ||||
Notional amounts | € | € 500,000,000 | |||||
Interest rate | 1.75% | 1.75% | 1.75% | |||
$ 500 million 5.20% bonds due 2025(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 396 | 0 | ||||
Notional amounts | $ | $ 500,000,000 | |||||
Interest rate | 5.20% | 5.20% | 5.20% | |||
$ 750 million 1.375% bonds due 2025(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 594 | 618 | ||||
Notional amounts | $ | $ 750,000,000 | |||||
Interest rate | 1.375% | 1.375% | 1.375% | |||
€ 600 million 1% bonds due 2025 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 511 | 515 | ||||
Notional amounts | € | € 600,000,000 | |||||
Interest rate | 1% | 1% | 1% | |||
€ 500 million 3.5% bonds due 2025 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 427 | 0 | ||||
Notional amounts | € | € 500,000,000 | |||||
Interest rate | 3.50% | 3.50% | 3.50% | |||
€ 850 million 2.375% bonds due 2026 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 725 | 731 | ||||
Notional amounts | € | € 850,000,000 | |||||
Interest rate | 2.375% | 2.375% | 2.375% | |||
£ 500 million 1.750% bonds due 2026 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 497 | 498 | ||||
Notional amounts | £ 500 | |||||
Interest rate | 1.75% | 1.75% | 1.75% | |||
$ 750 million 5.3% bonds due 2027(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 593 | 0 | ||||
Notional amounts | $ | $ 750,000,000 | |||||
Interest rate | 5.30% | 5.30% | 5.30% | |||
€ 750 million 1.875% bonds due 2027 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 638 | 643 | ||||
Notional amounts | € | € 750,000,000 | |||||
Interest rate | 1.875% | 1.875% | 1.875% | |||
€ 500 million 1.5% bonds due 2027 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 426 | 430 | ||||
Notional amounts | € | € 500,000,000 | |||||
Interest rate | 1.50% | 1.50% | 1.50% | |||
€ 700 million 0.125% bonds due 2028 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 595 | 600 | ||||
Notional amounts | € | € 700,000,000 | |||||
Interest rate | 0.125% | 0.125% | 0.125% | |||
$ 500 million 3.875% bonds due 2028(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 395 | 411 | ||||
Notional amounts | $ | $ 500,000,000 | |||||
Interest rate | 3.875% | 3.875% | 3.875% | |||
£ 300 million 2.375% bonds due 2028 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 298 | 298 | ||||
Notional amounts | £ 300 | |||||
Interest rate | 2.375% | 2.375% | 2.375% | |||
$ 1,000 million 2.375% bonds due 2029(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 787 | 819 | ||||
Notional amounts | $ | $ 1,000,000,000 | |||||
Interest rate | 2.375% | 2.375% | 2.375% | |||
£ 300 million 2.875% bonds due 2029 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 299 | 298 | ||||
Notional amounts | £ 300 | |||||
Interest rate | 2.875% | 2.875% | 2.875% | |||
€ 750 million 1.15% bonds due 2029 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 640 | 645 | ||||
Notional amounts | € | € 750,000,000 | |||||
Interest rate | 1.15% | 1.15% | 1.15% | |||
$ 1,000 million 2% bonds due 2030(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 789 | 821 | ||||
Notional amounts | $ | $ 1,000,000,000 | |||||
Interest rate | 2% | 2% | 2% | |||
€ 1,000 million 2.5% bonds due 2032 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 850 | 856 | ||||
Notional amounts | € | € 1,000,000,000 | |||||
Interest rate | 2.50% | 2.50% | 2.50% | |||
$ 750 million 2.125% bonds due 2032(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 590 | 614 | ||||
Notional amounts | $ | $ 750,000,000 | |||||
Interest rate | 2.125% | 2.125% | 2.125% | |||
£ 400 million 1.25% bonds due 2033 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 396 | 395 | ||||
Notional amounts | £ 400 | |||||
Interest rate | 1.25% | 1.25% | 1.25% | |||
$ 750 million 5.5% bonds due 2033(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 590 | 0 | ||||
Notional amounts | $ | $ 750,000,000 | |||||
Interest rate | 5.50% | 5.50% | 5.50% | |||
€ 900 million 1.15% bonds due 2034 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 764 | 770 | ||||
Notional amounts | € | € 900,000,000 | |||||
Interest rate | 1.15% | 1.15% | 1.15% | |||
$ 400 million 7.45% bonds due 2035(1) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 317 | 331 | ||||
Notional amounts | $ | $ 400,000,000 | |||||
Interest rate | 7.45% | 7.45% | 7.45% | |||
$ 600 million 5.875% bonds due 2036(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 472 | 491 | ||||
Notional amounts | $ | $ 600,000,000 | |||||
Interest rate | 5.875% | 5.875% | 5.875% | |||
£ 600 million 2.75% bonds due 2038 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 595 | 595 | ||||
Notional amounts | £ 600 | |||||
Interest rate | 2.75% | 2.75% | 2.75% | |||
$ 500 million 4.250% bonds due 2042(1) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 393 | 409 | ||||
Notional amounts | $ | $ 500,000,000 | |||||
Interest rate | 4.25% | 4.25% | 4.25% | |||
$ 500 million 3.875% bonds due 2043(2) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Bonds issued long term | £ 391 | £ 407 | ||||
Notional amounts | $ | $ 500,000,000 | |||||
Interest rate | 3.875% | 3.875% | 3.875% |
Net borrowings - Maturity of gr
Net borrowings - Maturity of gross borrowings before derivative financial instruments (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings before derivative financial instruments | £ 16,502 | £ 16,020 |
Within one year | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings before derivative financial instruments | 1,701 | 1,522 |
Between one and three years | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings before derivative financial instruments | 3,522 | 2,817 |
Between three and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings before derivative financial instruments | 2,874 | 2,625 |
Beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings before derivative financial instruments | £ 8,405 | £ 9,056 |
Net borrowings - Bonds issued a
Net borrowings - Bonds issued and repaid (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of bonds issued and repaid [line items] | |||
Repaid | £ (1,340) | £ (1,521) | £ (1,247) |
Bonds issued and repaid | 889 | 742 | (216) |
€ denominated | |||
Schedule of bonds issued and repaid [line items] | |||
Issued | 441 | 1,371 | 636 |
Repaid | 0 | (769) | (696) |
£ denominated | |||
Schedule of bonds issued and repaid [line items] | |||
Issued | 0 | 892 | 395 |
$ denominated | |||
Schedule of bonds issued and repaid [line items] | |||
Issued | 1,788 | 0 | 0 |
Repaid | £ (1,340) | £ (752) | £ (551) |
Net borrowings - Reconciliation
Net borrowings - Reconciliation of movement in net borrowings (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
At beginning of the year | £ 14,137 | £ 12,109 | |
Net decrease in cash and cash equivalents before exchange | 581 | 665 | £ 231 |
Net increase/(decrease) in bonds and other borrowings | 950 | 825 | |
Increase in net borrowings from cash flows | 1,531 | 1,490 | |
Exchange differences on net borrowings | (159) | 334 | |
Other non-cash items | 32 | 204 | |
Net borrowings at end of the year | 15,541 | 14,137 | £ 12,109 |
Cash outflow for derivatives designated in forward point hedges | (2) | (4) | |
Non-cash items of fair value changes of CCS and IRS | (34) | (346) | |
Non-cash items of lease liabilities | (82) | (183) | |
Non-cash items of fair value change of borrowings | £ 84 | £ 331 |
Net borrowings - Net borrowings
Net borrowings - Net borrowings by currency (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | £ 1,439 | £ 2,285 | £ 2,749 |
Gross borrowings | (16,980) | (16,422) | |
US dollar | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 542 | 1,315 | |
Gross borrowings | (5,751) | (3,260) | |
Euro | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 48 | 61 | |
Gross borrowings | (3,864) | (2,943) | |
Cash and cash equivalents in cash-pooling arrangements | 21 | ||
Sterling | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 46 | 67 | |
Gross borrowings | (6,227) | (9,214) | |
Indian rupee | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 123 | 26 | |
Gross borrowings | (31) | (74) | |
Mexican peso | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 25 | 14 | |
Gross borrowings | (286) | (264) | |
Hungarian forint | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 3 | 2 | |
Gross borrowings | (261) | (214) | |
Kenyan shilling | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 28 | 53 | |
Gross borrowings | (253) | (254) | |
Chinese yuan | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 199 | 290 | |
Gross borrowings | (63) | (75) | |
Nigerian naira | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 83 | 133 | |
Gross borrowings | 0 | 0 | |
Other | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents | 342 | 324 | |
Gross borrowings | £ (244) | (124) | |
Turkish lira and Euro | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Cash and cash equivalents in cash-pooling arrangements | £ 23 |
Equity - Schedule of allotted a
Equity - Schedule of allotted and fully paid share capital (Details) - GBP (£) £ in Millions, shares in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of reserves within equity [abstract] | |||
Number of shares (in shares) | 2,460 | 2,498 | 2,559 |
Nominal value | £ 712 | £ 723 | £ 741 |
Equity - Schedule of movements
Equity - Schedule of movements in hedging and exchange reserve (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reserves within equity [line items] | |||
Beginning balance | £ 9,514 | £ 8,431 | £ 8,440 |
Other comprehensive income/(loss) | (802) | 1,482 | (865) |
Ending balance | 9,292 | 9,514 | 8,431 |
Cost of hedging reserve | 20 | 22 | 22 |
Hedging reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | 26 | 113 | 93 |
Other comprehensive income/(loss) | 216 | (87) | 20 |
Ending balance | 242 | 26 | 113 |
Exchange reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | (1,072) | (1,694) | (1,022) |
Other comprehensive income/(loss) | (540) | 622 | (672) |
Ending balance | (1,612) | (1,072) | (1,694) |
Hedging and exchange reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | (1,046) | (1,581) | (929) |
Other comprehensive income/(loss) | (324) | 535 | (652) |
Ending balance | £ (1,370) | £ (1,046) | £ (1,581) |
Equity - Schedule of movement_2
Equity - Schedule of movements in own shares (Details) - GBP (£) £ in Millions, shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of classes of share capital [line items] | |||
Beginning balance | £ (9,514) | £ (8,431) | £ (8,440) |
Ending balance | £ (9,292) | £ (9,514) | £ (8,431) |
Own shares | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance (in shares) | 219 | 223 | 227 |
Beginning balance | £ 1,838 | £ 1,877 | £ 1,936 |
Ending balance (in shares) | 216 | 219 | 223 |
Ending balance | £ 1,814 | £ 1,838 | £ 1,877 |
Own shares | Share trust arrangements | |||
Disclosure of classes of share capital [line items] | |||
Increase (decrease) due to share based payment transactions (in shares) | (1) | (2) | (1) |
Increase (decrease) due to share based payment transactions | £ (12) | £ (23) | £ (11) |
Own shares | Shares used to satisfy options | |||
Disclosure of classes of share capital [line items] | |||
Increase (decrease) due to share based payment transactions (in shares) | (2) | (2) | (3) |
Increase (decrease) due to share based payment transactions | £ (12) | £ (16) | £ (48) |
Own shares | Share buyback programme | |||
Disclosure of classes of share capital [line items] | |||
Number of shares purchased - share buyback programme (in shares) | 38 | 61 | 3 |
Shares purchased - share buyback programme | £ 1,381 | £ 2,284 | £ 109 |
Shares cancelled (in shares) | (38) | (61) | (3) |
Shares cancelled | £ (1,381) | £ (2,284) | £ (109) |
Equity - Own shares - Narrative
Equity - Own shares - Narrative (Details) - GBP (£) £ / shares in Units, £ in Millions | 4 Months Ended | 7 Months Ended | 12 Months Ended | 42 Months Ended | ||||
Jun. 06, 2023 | Feb. 03, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 03, 2023 | Oct. 06, 2022 | Sep. 30, 2021 | |
Disclosure of reserves within equity [line items] | ||||||||
Share capital | £ 712 | £ 723 | £ 741 | |||||
Number of shares authorised to be repurchased (in shares) | 227,870,414 | |||||||
Repurchase of shares percentage of market value per share to be paid upon purchase | 105% | |||||||
Par value of shares authorised to be repurchased (in GBP per share) | £ 0.28935 | |||||||
Share buyback programme | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Stock Repurchase Program, Authorized Amount 2 | £ 500 | |||||||
Stock repurchase program, authorized amount | £ 900 | £ 4,500 | ||||||
Share buyback programme | Diageo Plc | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares purchased - share buyback programme (in shares) | 38,000,000 | 61,000,000 | 3,000,000 | |||||
Purchase of own shares percentage of issued ordinary share capital | 1.50% | 2.40% | 0.10% | |||||
Weighted average share price per share (in GBP per share) | £ 36.16 | £ 37.09 | £ 34.07 | |||||
Purchase of own shares | £ 1,381 | £ 2,284 | £ 109 | |||||
Transaction costs | £ 13 | £ 16 | £ 1 | |||||
Employee share trusts | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares outstanding (in shares) | 3,000,000 | 2,000,000 | 2,000,000 | |||||
Share capital | £ 52 | £ 25 | £ 47 | |||||
Market value of shares outstanding | £ 101 | £ 63 | £ 74 |
Equity - Schedule of monthly br
Equity - Schedule of monthly breakdown of shares purchased and the average price paid per share (Details) - Treasury shares purchased during the year - £ / shares | 1 Months Ended | 12 Months Ended | ||||||||||||
Oct. 06, 2022 | Jun. 30, 2023 | May 31, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Feb. 28, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | Oct. 31, 2022 | Sep. 30, 2022 | Aug. 31, 2022 | Jul. 31, 2022 | Jun. 30, 2023 | |
Disclosure of classes of share capital [line items] | ||||||||||||||
Average price paid pence (in GBP per share) | £ 37.02 | £ 33.48 | £ 35.34 | £ 36.72 | £ 35.41 | £ 35.77 | £ 35.58 | £ 37.10 | £ 36.79 | £ 0 | £ 37.44 | £ 38.20 | £ 35.67 | £ 36.17 |
Authorised purchases unutilised at month end (in shares) | 173,704,983 | 196,247,438 | 196,658,000 | 201,854,558 | 204,738,508 | 209,092,285 | 210,811,162 | 218,801,077 | 223,373,000 | 227,870,414 | 173,836,847 | 176,110,073 | 177,756,956 | 196,247,438 |
Share buyback programme | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares purchased under share buyback programme (in shares) | 131,864 | 410,562 | 5,196,558 | 2,883,950 | 4,353,777 | 1,718,877 | 7,989,915 | 4,571,923 | 4,497,414 | 0 | 2,273,226 | 1,646,883 | 1,660,507 | 37,335,456 |
Total number of shares purchased (in shares) | 131,864 | 410,562 | 5,196,558 | 2,883,950 | 4,353,777 | 1,718,877 | 7,989,915 | 4,571,923 | 4,497,414 | 0 | 2,273,226 | 1,646,883 | 1,660,507 | 37,335,456 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of reserves within equity [abstract] | ||||
Final dividend for the year ended 30 June 2022 46.82 pence per share (2021 - 44.59 pence; 2020 - 42.47 pence) | £ 1,066 | £ 1,040 | £ 992 | |
Interim dividend for the year ended 30 June 2023, 30.83 pence per share (2022 – 29.36 pence; 2021 – 27.96 pence) | 696 | 680 | 654 | |
Dividend paid | £ 1,762 | £ 1,720 | £ 1,646 | |
Final dividend per share (in GBP per share) | £ 0.4682 | £ 0.4459 | £ 0.4247 | |
Interim dividend per share (in GBP per share) | £ 0.3083 | £ 0.2936 | £ 0.2796 |
Equity - Dividends - Narrative
Equity - Dividends - Narrative (Details) - Major ordinary share transactions £ / shares in Units, £ in Millions | Jul. 31, 2023 GBP (£) £ / shares |
Disclosure of non-adjusting events after reporting period [line items] | |
Proposed final dividend | £ | £ 1,113 |
Proposed final dividend per share (in GBP per share) | £ / shares | £ 0.4917 |
Equity - Non-controlling intere
Equity - Non-controlling interests - Narrative (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Disclosure of reserves within equity [line items] | ||||
Proportion of ownership interest in subsidiary | 100% | |||
United Spirits Limited | ||||
Disclosure of reserves within equity [line items] | ||||
Proportion of ownership interests in subsidiary held by non-controlling interests | 42.79% | 42.73% | ||
United Spirits Limited | ||||
Disclosure of reserves within equity [line items] | ||||
Proportion of ownership interests in subsidiary held by non-controlling interests | 42.79% | |||
Proportion of ownership interest in subsidiary | 55.88% | 55.88% | ||
Ketel One | ||||
Disclosure of reserves within equity [line items] | ||||
Proportion of ownership interest in subsidiary | 50% | |||
Sichuan Shuijingfang Company Limited | ||||
Disclosure of reserves within equity [line items] | ||||
Proportion of ownership interests in subsidiary held by non-controlling interests | 36.83% |
Equity - Schedule of amounts at
Equity - Schedule of amounts attributable to non controlling interests (Details) - GBP (£) £ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 23, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 24, 2023 | Jul. 04, 2013 | |
Income statement | ||||||||||
Sales | £ 23,515 | £ 22,448 | £ 19,153 | |||||||
Net sales | 17,113 | 15,452 | 12,733 | |||||||
Profit for the year | 3,766 | 3,338 | 2,799 | |||||||
Other comprehensive (loss)/income | (802) | 1,482 | (865) | |||||||
Total comprehensive income for the year | 2,964 | 4,820 | 1,934 | |||||||
Attributable to non-controlling interests | (116) | 259 | (35) | |||||||
Balance sheet | ||||||||||
Non-current assets | £ 23,222 | £ 23,222 | £ 23,222 | 23,222 | 23,582 | |||||
Current assets | 12,399 | 12,399 | 12,399 | 12,399 | 12,934 | |||||
Non-current liabilities | (18,715) | (18,715) | (18,715) | (18,715) | (18,560) | |||||
Current liabilities | (7,614) | (7,614) | (7,614) | (7,614) | (8,442) | |||||
Net assets | 9,292 | 9,292 | 9,292 | 9,292 | 9,514 | |||||
Attributable to non-controlling interests | 1,470 | 1,470 | 1,470 | 1,470 | 1,716 | |||||
Cash flow | ||||||||||
Net cash inflow from operating activities | 3,024 | 3,935 | 3,654 | |||||||
Net cash inflow/(outflow) from investing activities | (1,197) | (1,341) | (1,091) | |||||||
Net cash outflow from financing activities | (2,408) | (3,259) | (2,794) | |||||||
Net decrease in net cash and cash equivalents | (581) | (665) | (231) | |||||||
Exchange differences | £ (227) | 239 | (285) | |||||||
Proportion of ownership interest in subsidiary | 100% | |||||||||
Ketel One distribution right | ||||||||||
Cash flow | ||||||||||
Carrying value of distribution rights | 1,428 | £ 1,428 | £ 1,428 | £ 1,428 | 1,488 | 1,295 | ||||
United Spirits Limited | ||||||||||
Cash flow | ||||||||||
Proportion of ownership interests in subsidiary held by non-controlling interests | 42.79% | 42.73% | ||||||||
United Spirits Limited | Pioneer Distilleries Limited (PDL) | ||||||||||
Cash flow | ||||||||||
Proportion of ownership interest in subsidiary | 75% | |||||||||
Proportion of ownership interests in subsidiary held by non-controlling interests | 25% | |||||||||
Diageo Kenya Limited | East African Breweries Limited | ||||||||||
Cash flow | ||||||||||
Proportion of ownership interest in subsidiary | 65% | 50.03% | ||||||||
Percentage of interest acquired | 14.97% | |||||||||
United Spirits Limited | ||||||||||
Income statement | ||||||||||
Sales | 2,713 | |||||||||
Net sales | 1,087 | |||||||||
Profit for the year | (215) | |||||||||
Other comprehensive (loss)/income | (133) | |||||||||
Total comprehensive income for the year | (348) | |||||||||
Attributable to non-controlling interests | (149) | |||||||||
Balance sheet | ||||||||||
Non-current assets | 1,074 | £ 1,074 | £ 1,074 | 1,074 | ||||||
Current assets | 790 | 790 | 790 | 790 | ||||||
Non-current liabilities | (151) | (151) | (151) | (151) | ||||||
Current liabilities | (384) | (384) | (384) | (384) | ||||||
Net assets | 1,329 | 1,329 | 1,329 | 1,329 | ||||||
Attributable to non-controlling interests | £ 568 | 568 | £ 568 | 568 | ||||||
Cash flow | ||||||||||
Net cash inflow from operating activities | 120 | |||||||||
Net cash inflow/(outflow) from investing activities | 34 | |||||||||
Net cash outflow from financing activities | (48) | |||||||||
Net decrease in net cash and cash equivalents | 106 | |||||||||
Exchange differences | (7) | |||||||||
Dividends payable to non-controlling interests | £ 0 | |||||||||
Proportion of ownership interest in subsidiary | 55.88% | 55.88% | ||||||||
Proportion of ownership interests in subsidiary held by non-controlling interests | 42.79% | |||||||||
Percentage of interest acquired | 14.98% | |||||||||
Others | ||||||||||
Income statement | ||||||||||
Sales | £ 2,628 | |||||||||
Net sales | 2,051 | |||||||||
Profit for the year | 289 | |||||||||
Other comprehensive (loss)/income | (154) | |||||||||
Total comprehensive income for the year | 135 | |||||||||
Attributable to non-controlling interests | 33 | |||||||||
Balance sheet | ||||||||||
Non-current assets | £ 3,175 | 3,175 | £ 3,175 | 3,175 | ||||||
Current assets | 1,049 | 1,049 | 1,049 | 1,049 | ||||||
Non-current liabilities | (1,164) | (1,164) | (1,164) | (1,164) | ||||||
Current liabilities | (1,035) | (1,035) | (1,035) | (1,035) | ||||||
Net assets | 2,025 | 2,025 | 2,025 | 2,025 | ||||||
Attributable to non-controlling interests | 902 | 902 | 902 | 902 | ||||||
Cash flow | ||||||||||
Net cash inflow from operating activities | 383 | |||||||||
Net cash inflow/(outflow) from investing activities | (231) | |||||||||
Net cash outflow from financing activities | (93) | |||||||||
Net decrease in net cash and cash equivalents | 59 | |||||||||
Exchange differences | (77) | |||||||||
Dividends payable to non-controlling interests | (97) | |||||||||
Entities value for subsidiaries | ||||||||||
Income statement | ||||||||||
Sales | 5,341 | 5,797 | 5,140 | |||||||
Net sales | 3,138 | 3,055 | 2,553 | |||||||
Profit for the year | 74 | 227 | 298 | |||||||
Other comprehensive (loss)/income | (287) | 333 | (434) | |||||||
Total comprehensive income for the year | (213) | 560 | (136) | |||||||
Attributable to non-controlling interests | (116) | 259 | (35) | |||||||
Balance sheet | ||||||||||
Non-current assets | 4,249 | 4,249 | 4,249 | 4,249 | 5,017 | 4,669 | ||||
Current assets | 1,839 | 1,839 | 1,839 | 1,839 | 2,002 | 1,492 | ||||
Non-current liabilities | (1,315) | (1,315) | (1,315) | (1,315) | (1,499) | (1,356) | ||||
Current liabilities | (1,419) | (1,419) | (1,419) | (1,419) | (1,646) | (1,335) | ||||
Net assets | 3,354 | 3,354 | 3,354 | 3,354 | 3,874 | 3,470 | ||||
Attributable to non-controlling interests | £ 1,470 | £ 1,470 | £ 1,470 | 1,470 | 1,716 | 1,534 | ||||
Cash flow | ||||||||||
Net cash inflow from operating activities | 503 | 690 | 661 | |||||||
Net cash inflow/(outflow) from investing activities | (197) | (289) | (137) | |||||||
Net cash outflow from financing activities | (141) | (322) | (371) | |||||||
Net decrease in net cash and cash equivalents | 165 | 79 | 153 | |||||||
Exchange differences | (84) | 52 | (19) | |||||||
Dividends payable to non-controlling interests | £ (97) | £ (72) | £ (72) |
Equity - Schedule of employee s
Equity - Schedule of employee share compensation (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of fair value measurement of equity [line items] | |||
Annual fair value charge of equity settled plans | £ 48 | £ 59 | £ 50 |
Equity-settled plans | |||
Disclosure of fair value measurement of equity [line items] | |||
Annual fair value charge of equity settled plans | 49 | 59 | 49 |
Executive share award plans | |||
Disclosure of fair value measurement of equity [line items] | |||
Annual fair value charge of equity settled plans | 41 | 51 | 41 |
Executive share option plans | |||
Disclosure of fair value measurement of equity [line items] | |||
Annual fair value charge of equity settled plans | 4 | 4 | 4 |
Savings plans | |||
Disclosure of fair value measurement of equity [line items] | |||
Annual fair value charge of equity settled plans | £ 4 | £ 4 | £ 4 |
Equity - Employee share compens
Equity - Employee share compensation - Narrative (Details) shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 shares £ / shares | Jun. 30, 2022 £ / shares | Jun. 30, 2021 £ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of executive share options exercisable (in shares) | shares | 2.5 | ||
Exercise price of executive share options exercisable (in GBP per share) | £ 24.43 | ||
Weighted average remaining contractual life of outstanding share options | 5 years | ||
Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of outstanding share options (in GBP per share) | £ 17.09 | £ 17.04 | £ 12.32 |
Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of outstanding share options (in GBP per share) | £ 38.64 | £ 40.24 | £ 34.83 |
Diageo Long Term Incentive Plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Maximum target level share options plan | 100% | ||
Diageo Long Term Incentive Plan | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting range share options plan | 20% | ||
Diageo Long Term Incentive Plan | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting range share options plan | 25% | ||
Savings plans | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Period over which savings plans are deducted from net pay | 3 years | ||
Discount of option price | 15% | ||
Savings plans | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Period over which savings plans are deducted from net pay | 5 years | ||
Discount of option price | 20% | ||
Compound annual growth in profit before exceptional items over three years | Diageo Long Term Incentive Plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weight of performance target | 40% | ||
Compound annual growth in organic net sales over three years | Diageo Long Term Incentive Plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weight of performance target | 40% | ||
Environmental, social and governance priorities | Diageo Long Term Incentive Plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weight of performance target | 20% |
Equity - Schedule of fair value
Equity - Schedule of fair value of each share award used the Monte Carlo pricing model and weighted average assumptions (Details) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 GBP (£) shares £ / shares | Jun. 30, 2022 GBP (£) shares £ / shares | Jun. 30, 2021 GBP (£) shares £ / shares | |
Disclosure of reserves within equity [abstract] | |||
Risk free interest rate | 3.10% | 0.40% | (0.10%) |
Expected life of the awards | 35 months | 40 months | 36 months |
Dividend yield | 2% | 2.10% | 2.70% |
Weighted average share price | £ 37.58 | £ 35.45 | £ 25.57 |
Weighted average fair value of awards granted in the year | £ 19.92 | £ 27.29 | £ 21.07 |
Number of awards granted in the year | shares | 1.7 | 2.1 | 2.1 |
Fair value of all awards granted in the year | £ | £ 34 | £ 57 | £ 45 |
Equity - Schedule of transactio
Equity - Schedule of transactions on the executive share award plans (Details) - Executive share award plans - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Balance outstanding at beginning of period (in shares) | 5.2 | 5.3 | 5.6 |
Granted (in shares) | 1.7 | 2.1 | 2.1 |
Awarded (in shares) | (1.1) | (1.1) | (1.2) |
Forfeited (in shares) | (0.9) | (1.1) | (1.2) |
Balance outstanding at end of period (in shares) | 4.9 | 5.2 | 5.3 |
Contingent liabilities and le_2
Contingent liabilities and legal proceedings - Acquisition of USL shares from UBHL and related proceedings in relation to the USL transaction (Details) - ₨ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 04, 2013 | Jun. 30, 2023 | |
Disclosure of contingent liabilities [line items] | |||
Proportion of ownership interest in subsidiary | 100% | ||
USL Benefit Trust | |||
Disclosure of contingent liabilities [line items] | |||
Proportion of ownership interest in subsidiary | 2.38% | ||
United Spirits Limited | |||
Disclosure of contingent liabilities [line items] | |||
Percentage of interest acquired | 14.98% | ||
Proportion of ownership interest in subsidiary | 55.88% | 55.88% | |
United Spirits Limited | USL Benefit Trust | |||
Disclosure of contingent liabilities [line items] | |||
Ownership interest in associate | 2.38% | ||
United Spirits Limited | UBHL | |||
Disclosure of contingent liabilities [line items] | |||
Percentage of interest acquired | 6.98% | ||
Acquisition price per share (in INR per share) | ₨ 1,440 |
Contingent liabilities and le_3
Contingent liabilities and legal proceedings - Continuing matters relating to Dr Vijay Mallya and affiliales (Details) £ in Millions, $ in Millions | 12 Months Ended | 60 Months Ended | |||||||
May 23, 2019 USD ($) | May 23, 2019 GBP (£) | Nov. 16, 2017 USD ($) instalment | Nov. 16, 2017 GBP (£) instalment | Feb. 25, 2016 USD ($) instalment | Feb. 25, 2016 GBP (£) instalment | Jun. 30, 2023 | Dec. 31, 2021 | Feb. 25, 2016 GBP (£) | |
25 February agreement | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Number of instalments | 5 | 5 | |||||||
Dr Mallya | 25 February agreement | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Payment relating to disengagement agreements | $ 75 | £ 60 | |||||||
Consideration payment period | 5 years | 5 years | 5 years | ||||||
Payment relating to disengagement agreements | $ 40 | £ 32 | |||||||
Amount payable in equal installments to Dr Mallya | 7 | £ 6 | |||||||
Number of disputed instalments | 2 | 2 | |||||||
Watson Limited | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Damages awarded | $ 135 | £ 107 | |||||||
Watson Limited | 25 February agreement | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Release of obligations to indemnify under guarantee of certain borrowings | $ 141 | £ 112 | |||||||
Damages related to breach of associated security documents | $ 142 | £ 113 | |||||||
Continental Administration Services Limited (CASL) | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Damages awarded, co-surety percentage | 50% |
Contingent liabilities and le_4
Contingent liabilities and legal proceedings - Other matters in relation to USL (Details) | Jun. 16, 2016 |
United Spirits Limited | |
Disclosure of contingent liabilities [line items] | |
Shares percentage of additional equivalent payments required to be made to shareholders | 0.04% |
Contingent liabilities and le_5
Contingent liabilities and legal proceedings - USL's dispute with IDBI Bank Limited (Details) ₨ in Millions, £ in Millions | Apr. 01, 2015 GBP (£) | Apr. 01, 2015 INR (₨) | Jun. 30, 2023 GBP (£) | Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | Jul. 03, 2013 GBP (£) | Jul. 03, 2013 INR (₨) |
Disclosure of contingent liabilities [line items] | |||||||
Borrowings | £ 15,541 | £ 14,137 | £ 12,109 | ||||
IDBI Bank Limited | United Spirits Limited | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Damages claimed | £ 4 | ₨ 459 | |||||
IDBI Bank Limited | IDBI Term loan | United Spirits Limited | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Borrowings | £ 60 | ₨ 6,280 |
Contingent liabilities and le_6
Contingent liabilities and legal proceedings - Tax (Details) £ in Millions | Jun. 30, 2023 GBP (£) |
Brazil | Maximum | Tax contingent liability | |
Disclosure of contingent liabilities [line items] | |
Potential liability | £ 616 |
India | |
Disclosure of contingent liabilities [line items] | |
Receivable for protest payments | 116 |
Receivable for protest payments, corporate taxes | 104 |
Receivable for protest payments, indirect taxes | 12 |
India | Maximum | Tax contingent liability | |
Disclosure of contingent liabilities [line items] | |
Potential liability | £ 90 |
Commitments - Narrative (Detail
Commitments - Narrative (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Commitments [Abstract] | |||
Capital expenditure on intangibles and property, plant and equipment | £ 599 | £ 399 | £ 263 |
Minimum lease rentals payables for short term leases and leases of low-value assets | 36 | 13 | 11 |
Total future cash outflow for leases that had not yet commenced and not recognised as lease liabilities | £ 11 | £ 11 | £ 132 |
Related party transactions - Tr
Related party transactions - Transactions between associates and joint ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income statement items | |||
Sales | £ 10 | £ 11 | £ 8 |
Purchases | 13 | 31 | 23 |
Balance sheet items | |||
Group payables | 2 | 2 | 5 |
Group receivables | 1 | 2 | 1 |
Loans payable | 0 | 0 | 9 |
Loans receivable | 197 | 175 | 108 |
Cash flow items | |||
Loans and equity contributions, net | £ 93 | £ 66 | £ 38 |
Related party transactions - Am
Related party transactions - Amounts incurred by entity for provision of key management personnel services (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of transactions between related parties [line items] | |||
Salaries and short-term employee benefits | £ 11 | £ 10 | £ 9 |
Annual incentive plan | 6 | 13 | 13 |
Non-Executive Directors’ fees | 1 | 1 | 1 |
Share-based payments | 12 | 19 | 12 |
Post employment benefits | 2 | 2 | 1 |
Termination benefits | 0 | 0 | 2 |
Key management personnel remuneration | £ 32 | £ 45 | £ 38 |
Related party transactions - Pe
Related party transactions - Pension plans (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | May 22, 2023 | Oct. 31, 2022 | |
Diageo Pension Scheme | Diageo Pension Scheme | |||||
Disclosure of transactions between related parties [line items] | |||||
Related party Transactions, Interim Credit Facility Provided | £ 350 | £ 850 | |||
Pension plans | |||||
Disclosure of transactions between related parties [line items] | |||||
Professional fees | £ 0.1 | £ 0.1 | £ 0.1 |
Related party transactions - Di
Related party transactions - Directors remuneration (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of transactions between related parties [line items] | |||
Salaries and short-term employee benefits | £ 11 | £ 10 | £ 9 |
Annual incentive plan | 6 | 13 | 13 |
Non-Executive Directors' fees | 1 | 1 | 1 |
Post employment benefits | 2 | 2 | 1 |
Directors | |||
Disclosure of transactions between related parties [line items] | |||
Salaries and short-term employee benefits | 3 | 3 | 2 |
Annual incentive plan | 2 | 4 | 4 |
Non-Executive Directors' fees | 1 | 1 | 1 |
Share option exercises | 0 | 4 | 0 |
Shares vesting | 4 | 3 | 1 |
Post employment benefits | 1 | 0 | 0 |
Directors remuneration | £ 11 | £ 15 | £ 8 |
Principal group companies - Sum
Principal group companies - Summary of subsidiaries (Details) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | |
Disclosure of subsidiaries [line items] | ||
Percentage of equity owned | 100% | |
Diageo Ireland Unlimited Company | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | Ireland | |
Country of operation | Worldwide | |
Percentage of equity owned | 100% | |
Business description | Production, marketing and distribution of premium drinks | |
Diageo Great Britain Limited | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | England | |
Country of operation | Great Britain | |
Percentage of equity owned | 100% | |
Business description | Marketing and distribution of premium drinks | |
Diageo Scotland Limited | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | Scotland | |
Country of operation | Worldwide | |
Percentage of equity owned | 100% | |
Business description | Production, marketing and distribution of premium drinks | |
Diageo Brands B.V. | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | Netherlands | |
Country of operation | Worldwide | |
Percentage of equity owned | 100% | |
Business description | Marketing and distribution of premium drinks | |
Diageo North America, Inc. | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | United States | |
Country of operation | Worldwide | |
Percentage of equity owned | 100% | |
Business description | Production, importing, marketing and distribution of premium drinks | |
United Spirits Limited | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | India | |
Country of operation | India | |
Percentage of equity owned | 55.88% | 55.88% |
Business description | Production, importing, marketing and distribution of premium drinks | |
Diageo Capital plc | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | Scotland | |
Country of operation | United Kingdom | |
Percentage of equity owned | 100% | |
Business description | Financing company for the group | |
Diageo Capital B.V. | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | Netherlands | |
Country of operation | Netherlands | |
Percentage of equity owned | 100% | |
Business description | Financing company for the group | |
Diageo Finance plc | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | England | |
Country of operation | United Kingdom | |
Percentage of equity owned | 100% | |
Business description | Financing company for the group | |
Diageo Investment Corporation | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | United States | |
Country of operation | United States | |
Percentage of equity owned | 100% | |
Business description | Financing company for the US group | |
Mey İçki Sanayi ve Ticaret A.Ş. | ||
Disclosure of subsidiaries [line items] | ||
Country of incorporation | Turkey | |
Country of operation | Turkey | |
Percentage of equity owned | 100% | |
Business description | Production, marketing and distribution of premium drinks |
Principal group companies - S_2
Principal group companies - Summary of associates (Details) - Moët Hennessy, SAS | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of associates [line items] | |
Country of incorporation | France |
Country of operation | France |
Percentage of equity owned | 34% |
Business description | Production, marketing and distribution of premium drinks |
Principal group companies - S_3
Principal group companies - Summary of subsidiaries (Parenthetical) (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100% |
USL Benefit Trust | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 2.38% |
Post balance sheet events (Deta
Post balance sheet events (Details) - Share buyback programme £ in Billions, $ in Billions | 7 Months Ended | 42 Months Ended | |
Jul. 31, 2023 USD ($) | Feb. 03, 2023 GBP (£) | Feb. 03, 2023 GBP (£) | |
Disclosure of non-adjusting events after reporting period [line items] | |||
Stock repurchase program, authorized amount | £ | £ 0.9 | £ 4.5 | |
Major ordinary share transactions | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Stock repurchase program, authorized amount | $ | $ 1 |