Diageo (DEO) 6-K 30 Jan 24 2024 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Dec. 31, 2023
Cover [Abstract]
Document Type	6-K
Entity Registrant Name	DIAGEO plc
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000835403
Current Fiscal Year End Date	--06-30

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Income Statement - USD ($) shares in Millions, $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	[1]
Profit or loss [abstract]
Sales	$ 15,181	$ 15,611
Excise duties	(4,219)	(4,491)
Net sales	10,962	11,120
Cost of sales	(4,241)	(4,279)
Gross profit	6,721	6,841
Marketing	(1,952)	(1,861)
Other operating items	(1,452)	(1,249)
Operating profit/(loss)	3,317	3,731	[2]
Non-operating items	(60)	19	[2]
Finance income	287	303
Finance charges	(718)	(648)
Share of after tax results of associates and joint ventures	253	202	[2]
Profit before taxation	3,079	3,607
Taxation	(737)	(766)	[2]
Profit for the period	2,342	2,841	[2],[3]
Attributable to:
Equity shareholders of the parent company	2,210	2,709
Non-controlling interests	132	132
Profit for the period	$ 2,342	$ 2,841	[2],[3]
Weighted average number of shares
Shares in issue excluding own shares (in shares)	2,242	2,274
Dilutive potential ordinary shares (in shares)	5	7
Weighted average number of shares (in shares)	2,247	2,281
Basic earnings per share (in USD per share)	$ 0.986	$ 1.191
Diluted earnings per share (in USD per share)	$ 0.984	$ 1.188
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (2) See page F-7 for an explanation under Basis of preparation.

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions		6 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	[1]
Net remeasurement of post employment benefit plans
Group		$ (138)	$ (622)
Associates and joint ventures		(2)	12
Non-controlling interests		(1)	0
Tax on post employment benefit plans		32	159
Changes in the fair value of equity investments at fair value through other comprehensive income		0	(4)
Other comprehensive income that will not be reclassified to profit or loss, net of tax, Total		(109)	(455)
Exchange differences on translation of foreign operations
Group		(18)	(244)
Associates and joint ventures		106	75
Non-controlling interests		(8)	(61)
Net investment hedges		(295)	(21)
On disposal of foreign operations		26	0
On step acquisitions		0	2
Tax on exchange differences - group		36	(2)
Effective portion of changes in fair value of cash flow hedges
Hedge of foreign currency debt of the group		39	72
Transaction exposure hedging of the group		90	176
Hedges by associates and joint ventures		1	16
Commodity price risk hedging of the group		(11)	(8)
Recycled to income statement - hedge of foreign currency debt of the group		52	(35)
Recycled to income statement - transaction exposure hedging of the group		(125)	(77)
Recycled to income statement - commodity price risk hedging of the group		20	(41)
Cost of hedging		(48)	0
Recycled to income statement - cost of hedging		(12)	0
Tax on effective portion of changes in fair value of cash flow hedges		(29)	(20)
Hyperinflation adjustments		290	129
Tax on hyperinflation adjustments(1)	[2]	(98)	(26)
Other comprehensive income that may be reclassified to profit or loss, net of tax, Total		16	(65)
Other comprehensive (loss) net of tax, for the period		(93)	(520)
Profit for the period		2,342	2,841	[3],[4]
Total comprehensive (loss)/income for the period		2,249	2,321
Attributable to:
Equity shareholders of the parent company		2,126	2,250
Non-controlling interests		123	71
Total comprehensive (loss)/income for the period		$ 2,249	$ 2,321
[1] (2) See page F-7 for an explanation under Basis of preparation. (1) Tax on hyperinflation adjustments $(64) million and tax rate change on hyperinflation adjustments $(34) million . (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2023	Jun. 30, 2023	[1]	Dec. 31, 2022
Non-current assets
Intangible assets	$ 14,496	$ 14,506		$ 14,556	[1]
Property, plant and equipment	8,212	7,738		7,168	[1]
Biological assets	194	197		143	[1]
Investments in associates and joint ventures	5,229	4,825		4,710	[1]
Other investments	96	71		50	[1]
Other receivables	32	39		33	[1]
Other financial assets	430	497		479	[1]
Deferred tax assets	171	178		127	[1]
Post employment benefit assets	1,118	1,210		1,272	[1]
Non-current assets	29,978	29,261		28,538	[1]
Current assets
Inventories	9,840	9,653		9,062	[1]
Trade and other receivables	4,580	3,427		4,648	[1]
Assets held for sale	0	0		220	[1]
Corporate tax receivables	274	292		199	[1]
Other financial assets	564	437		479	[1]
Cash and cash equivalents	1,529	1,813		3,319	[1],[2]
Current assets	16,787	15,622		17,927	[1]
Total assets	46,765	44,883		46,465	[1]
Current liabilities
Borrowings and bank overdrafts	(2,004)	(2,142)		(2,767)	[1]
Other financial liabilities	(371)	(453)		(524)	[1]
Share buyback liability	(497)	0		(259)	[1]
Trade and other payables	(7,292)	(6,678)		(7,332)	[1]
Liabilities held for sale	0	0		(92)	[1]
Corporate tax payables	(253)	(170)		(319)	[1]
Provisions	(213)	(150)		(135)	[1]
Current liabilities	(10,630)	(9,593)		(11,428)	[1]
Non-current liabilities
Borrowings	(19,476)	(18,649)		(18,365)	[1]
Other financial liabilities	(865)	(941)		(925)	[1]
Other payables	(447)	(463)		(424)	[1]
Provisions	(313)	(306)		(319)	[1]
Deferred tax liabilities	(2,839)	(2,751)		(2,708)	[1]
Post employment benefit liabilities	(471)	(471)		(457)	[1]
Non-current liabilities	(24,411)	(23,581)		(23,198)	[1]
Total liabilities	(35,041)	(33,174)		(34,626)	[1]
Net assets	11,724	11,709		11,839	[1]
Equity
Share capital	893	898		863	[1]
Share premium	1,703	1,703		1,621	[1]
Other reserves	502	665		560	[1]
Retained earnings	6,693	6,590		6,722	[1]
Equity attributable to equity shareholders of the parent company	9,791	9,856		9,766	[1]
Non-controlling interests	1,933	1,853		2,073	[1]
Total equity	$ 11,724	$ 11,709		$ 11,839	[3]
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statement of Changes in Equity - USD ($) $ in Millions		Total		Adjustment to closing equity in respect of hyperinflation	Adjusted balance	Equity attributable to parent company shareholders		Equity attributable to parent company shareholders Adjustment to closing equity in respect of hyperinflation	Equity attributable to parent company shareholders Adjusted balance	Share capital		Share capital Adjusted balance	Share premium		Share premium Adjusted balance	Other reserves		Other reserves Adjusted balance	Total retained earnings		Total retained earnings Adjustment to closing equity in respect of hyperinflation	Total retained earnings Adjusted balance	Own shares		Own shares Adjusted balance	Other retained earnings		Other retained earnings Adjustment to closing equity in respect of hyperinflation	Other retained earnings Adjusted balance	Non-controlling interests		Non-controlling interests Adjustment to closing equity in respect of hyperinflation	Non-controlling interests Adjusted balance
Beginning balance at Jun. 30, 2022	[1]	$ 11,511				$ 9,435				$ 875			$ 1,635			$ 658			$ 6,267				$ (2,223)			$ 8,490				$ 2,076
Other(2)	[2]	0				0				(7)			(14)			4			17				17			0				0
Profit for the period		2,841	[3],[4],[5]			2,709													2,709							2,709				132
Other comprehensive loss		(520)	[4]			(459)										(107)			(352)							(352)				(61)
Total comprehensive (loss)/income for the period		2,321	[4]			2,250										(107)			2,357							2,357				71
Employee share schemes		39				39													39				22			17
Share-based incentive plans		31				31													31							31
Share-based incentive plans in respect of associates		3				3													3							3
Share-based payments and purchase of own shares in respect of subsidiaries		2				1													1							1				1
Associates' transactions with non-controlling interests		(14)				(14)													(14)							(14)
Unclaimed dividend		1				1													1							1				0
Change in fair value of put option		(5)				(5)													(5)							(5)
Share buyback programme		(775)				(775)				(5)						5			(775)							(775)
Dividend declared in the period		(1,275)				(1,200)													(1,200)							(1,200)				(75)
Ending balance at Dec. 31, 2022	[1]	11,839				9,766				863			1,621			560			6,722				(2,184)			8,906				2,073
Beginning balance at Jun. 30, 2023		11,709	[6]	$ 51	$ 11,760	9,856	[1]	$ 41	$ 9,897	898	[1]	$ 898	1,703	[1]	$ 1,703	665	[1]	$ 665	6,590	[1]	$ 41	$ 6,631	(2,286)	[1]	$ (2,286)	8,876	[1]	$ 41	$ 8,917	1,853	[1]	$ 10	$ 1,863
Profit for the period		2,342				2,210													2,210							2,210				132
Other comprehensive loss		(93)				(84)										(168)			84							84				(9)
Total comprehensive (loss)/income for the period		2,249				2,126										(168)			2,294							2,294				123
Employee share schemes		34				34													34				30			4
Share-based incentive plans		24				24													24							24
Share-based incentive plans in respect of associates		2				2													2							2
Tax on share-based incentive plans		(7)				(7)													(7)							(7)				0
Unclaimed dividend		1				1													1							1				0
Change in fair value of put option		40				40													40							40
Share buyback programme		(977)				(977)				(5)						5			(977)							(977)
Dividend declared in the period		(1,402)				(1,349)													(1,349)							(1,349)				(53)
Ending balance at Dec. 31, 2023		$ 11,724				$ 9,791				$ 893			$ 1,703			$ 502			$ 6,693				$ (2,256)			$ 8,949				$ 1,933
[1] (1) See page F-7 for an explanation under Basis of preparation. (2) Includes amounts relating to foreign translation differences arising from the retranslation of reserves due to the change in the group’s presentation currency. (1) See page F-7 for an explanation under Basis of preparation. (2) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	[1]
Cash flows from operating activities
Profit for the period	$ 2,342	$ 2,841	[2],[3]
Taxation	737	766	[3]
Share of after tax results of associates and joint ventures	(253)	(202)	[3]
Net finance charges	431	345
Non-operating items	60	(19)	[3]
Operating profit	3,317	3,731	[3]
Increase in inventories	(82)	(552)
Increase in trade and other receivables	(1,106)	(1,191)
Increase in trade and other payables and provisions	469	131
Net increase in working capital	(719)	(1,612)
Depreciation, amortisation and impairment	411	332
Dividends received	5	5
Post employment payments less amounts included in operating profit	(24)	(27)
Other items	59	9
Adjustments to reconcile profit (loss), Total	451	319
Cash generated from operations	3,049	2,438
Interest received	91	78
Interest paid	(443)	(293)
Taxation paid	(551)	(751)
Interest and income taxes paid (received), classified as operating activities	(903)	(966)
Net cash inflow from operating activities	2,146	1,472
Cash flows from investing activities
Disposal of property, plant and equipment and computer software	7	8
Purchase of property, plant and equipment and computer software	582	514
Movements in loans and other investments	(109)	(2)
Sale of businesses and brands	18	111
Acquisition of subsidiaries	(3)	(129)
Investment in associates and joint ventures	(51)	(38)
Net cash outflow from investing activities	(720)	(564)
Cash flows from financing activities
Share buyback programme	(480)	(655)
Net sale of own shares for share schemes	5	12
Dividends paid to non-controlling interests	(71)	(94)
Proceeds from bonds	1,690	1,989
Repayment of bonds	(1,132)	(300)
Cash inflow from other borrowings	470	173
Cash outflow from other borrowings	(801)	(206)
Equity dividend paid	(1,348)	(1,194)
Net cash outflow from financing activities	(1,667)	(275)
Net (decrease)/increase in net cash and cash equivalents	(241)	633
Exchange differences	(45)	(25)
Reclassification to assets held for sale	0	(57)
Net cash and cash equivalents at beginning of the period	1,768	2,675
Net cash and cash equivalents at end of the period	1,482	3,226
Net cash and cash equivalents consist of:
Cash and cash equivalents	1,529	3,319	[4]
Bank overdrafts	(47)	(93)
Net cash and cash equivalents	$ 1,482	$ 3,226
[1] (1) See page F-7 for an explanation under Basis of preparation. (2) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Unaudited Condensed Consolida_6

Unaudited Condensed Consolidated Statement Of Comprehensive Income (Parenthetical) $ in Millions	6 Months Ended
	Dec. 31, 2023 USD ($)
Statement of comprehensive income [abstract]
Tax rate change on hyperinflation adjustments	$ (34)
Tax on hyperinflation adjustments	$ (64)

Basis of preparation

Basis of preparation	6 Months Ended
	Dec. 31, 2023
Basis Of Preparation [Abstract]
Basis of preparation	Basis of preparation These unaudited condensed consolidated interim financial statements have been prepared in accordance with UK adopted IAS 34 ‘Interim Financial Reporting’, IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (‘IASB’) and The Disclosure Guidance and Transparency Rules sourcebook of the UK’s Financial Conduct Authority. These financial statements should be read in conjunction with the company’s published consolidated financial statements for the year ended 30 June 2023, which were prepared in accordance with IFRS ® Accounting Standards adopted by the UK and IFRS Accounting Standards issued by IASB, including interpretations issued by the IFRS Interpretations Committee. IFRS Accounting Standards as adopted by the UK differs in certain respects from IFRS Accounting Standards as issued by the IASB, but the differences have no impact on the group’s consolidated financial statements for the periods presented. The consolidated financial statements are prepared on a going concern basis under the historical cost convention, unless stated otherwise. In preparing these condensed consolidated interim financial statements, the significant judgements made by management when applying the group’s accounting policies and the significant areas where estimates were required were the same as those that applied to the consolidated financial statements for the year ended 30 June 2023, with the exception of changes in estimates disclosed in note 3 Exceptional items and note 12 Contingent liabilities and legal proceedings. These condensed consolidated interim financial statements were approved for issue on 29 January 2024. The financial statements for Diageo plc for the year ending 30 June 2024 will be prepared in accordance with IFRS Accounting Standards as adopted by the UK and IFRS Accounting Standards as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. 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, flat operating margin 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 . 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 condensed consolidated interim financial statements. Foreign currencies Starting 1 July 2023, in line with reporting requirements, the functional currency of Diageo plc changed from sterling to US dollars 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 also decided to change its presentation currency to US dollars 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. The comparative financial information included in these condensed consolidated interim financial statements of Diageo as of and for the six months ended 31 December 2023 was re-presented in US dollars following the translation methodology in IAS 21 - The Effects of Changes in Foreign Exchange Rates: – assets and liabilities were translated into US dollars at the closing exchange rate prevailing at the relevant balance sheet date; – the consolidated income statement and the consolidated statement of cash flows of non US dollar entities were translated into US dollars at weighted average exchange rates for the relevant period, which is consistent with the requirements of IAS21; except for subsidiaries in hyperinflationary economies that were translated with the closing rate at the end of the relevant period and for substantial transactions that are translated at the rate on the date of the transaction (including acquisitions, disposals, impairment write off, dividends received and paid); – share capital, share premium, capital redemption reserve included in other reserves and own shares in the statement of changes in equity were translated into US dollars at the closing exchange rate at the relevant balance sheet date; exchange differences arising on the retranslation to closing rates were taken to the exchange reserve; and – the cumulative foreign exchange translation reserve was set to zero on 1 July 2004, the date of transition to IFRS and this reserve was re-presented as if the group reported in US dollars since that date. As results of the functional and presentation currency change, the group has rebalanced its net investment hedging portfolio in line with the shifted currency exposure. Diageo has re-designated its buy US dollar sell sterling cross currency interest swaps in net investment hedge relationships previously used in cash flow hedging foreign currency debt of the group. Weighted average exchange rates used in the translation of income statements were sterling – $ 1 = £0.80 (2022 – $ 1 = £0.85 ) and euro – $ 1 = €0.92 (2022 – $ 1 = €0.98 ). Exchange rates used to translate assets and liabilities at the balance sheet date were sterling – $ 1 = £0.79 ( 31 December 2022 – $ 1 = £0.83 ; 30 June 2023 – $1 = £0.79 ) and euro – $ 1 = €0.90 ( 31 December 2022 – $ 1 = €0.94 ; 30 June 2023 – $1 = €0.93 ). The group uses foreign exchange transaction hedges to mitigate the effect of exchange rate movements. New accounting standards and interpretations The following standard amendments to the Accounting Standards, issued by the IASB and endorsed by the UK, were adopted by the group from 1 July 2023 with no material impact on the group’s consolidated results, financial position or disclosures: – IFRS 17 – Insurance Contracts – Amendments to IAS 12 Income Taxes – Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 1, 8 – Definition of Accounting Estimates – Amendments to IAS 1 Disclosure Initiative – Accounting Policies. The following amendments issued by the IASB have been endorsed by the UK and have not been adopted by the group: – Amendments to IAS 1 – Classification of Liabilities and Non-current Liabilities with Covenants (effective from the year ending 30 June 2025) – Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback (effective from the year ending 30 June 2025) – Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements (effective from the year ending 30 June 2025). There are a number of other amendments and clarifications to IFRS Accounting Standards effective in future years, which are not expected to significantly impact the group’s consolidated results or financial position.

Segmental information

Segmental information	6 Months Ended
	Dec. 31, 2023
Disclosure of operating segments [abstract]
Segmental information	Segmental information 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 production sites in the United Kingdom, Ireland, Italy, Guatemala and Mexico, and 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 Pacific Latin America and Caribbean Africa SC&P Eliminate inter- segment sales Total operating segments Corporate and other Total Six months ended 31 December 2023 $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million Sales 4,411 4,349 3,564 1,442 1,352 1,842 (1,842) 15,118 63 15,181 Net sales At budgeted exchange rates (1) 4,077 2,356 2,226 1,004 1,115 1,797 (1,742) 10,833 61 10,894 Acquisitions and disposals 2 25 24 — 65 — — 116 — 116 SC&P allocation 7 34 6 6 2 (55) — — — — Retranslation to actual exchange rates (2) 11 (50) 59 (211) 100 (100) (193) 2 (191) Hyperinflation — 139 — — 4 — — 143 — 143 Net sales 4,084 2,565 2,206 1,069 975 1,842 (1,842) 10,899 63 10,962 Operating profit/(loss) At budgeted exchange rates (1) 1,672 784 729 337 245 (14) — 3,753 (144) 3,609 Acquisitions and disposals (12) (6) 7 — 15 — — 4 — 4 SC&P allocation (7) (4) (1) (2) — 14 — — — — Fair value remeasurements 23 — — (24) — — — (1) — (1) Retranslation to actual exchange rates 49 25 (46) 5 (120) — — (87) (3) (90) Hyperinflation — (2) — — (10) — — (12) — (12) Operating profit/(loss) before exceptional items 1,725 797 689 316 130 — — 3,657 (147) 3,510 Exceptional operating items (182) (11) — — — — — (193) — (193) Operating profit/(loss) 1,543 786 689 316 130 — — 3,464 (147) 3,317 Non-operating items (60) Net finance charges (431) Share of after tax results of associates and joint ventures 253 Profit before taxation 3,079 North America Europe Asia Pacific Latin America and Caribbean Africa SC&P Eliminate inter- segment sales Total operating segments Corporate and other Total Six months ended 31 December 2022 Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Sales 4,540 4,055 3,741 1,646 1,578 1,939 (1,939) 15,560 51 15,611 Net sales At budgeted exchange rates (1) 4,144 2,432 2,310 1,332 1,228 2,125 (2,086) 11,485 58 11,543 Acquisitions and disposals 17 9 47 4 — — — 77 — 77 SC&P allocation 4 25 4 5 1 (39) — — — — Retranslation to actual exchange rates (16) (241) (192) (42) (116) (147) 147 (607) (7) (614) Hyperinflation — 114 — — — — — 114 — 114 Net sales 4,149 2,339 2,169 1,299 1,113 1,939 (1,939) 11,069 51 11,120 Operating profit/(loss) At budgeted exchange rates (1) 1,687 845 747 545 284 52 — 4,160 (211) 3,949 Acquisitions and disposals (9) 3 7 — — — — 1 — 1 SC&P allocation 12 29 3 7 1 (52) — — — — Fair value remeasurements 18 (1) — — — — — 17 — 17 Retranslation to actual exchange rates (18) (83) (53) (14) (70) — — (238) 14 (224) Hyperinflation — 27 — — — — — 27 — 27 Operating profit/(loss) before exceptional items 1,690 820 704 538 215 — — 3,967 (197) 3,770 Exceptional operating items (31) 17 (25) — — — — (39) — (39) Operating profit/(loss) 1,659 837 679 538 215 — — 3,928 (197) 3,731 Non-operating items 19 Net finance charges (345) Share of after tax results of associates and joint ventures 202 Profit before taxation 3,607 (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 geographical segments, inter-segment sales are not material. (ii) Approximately 36% of calendar year net sales occurred in the last four months of 2023. (b) Category and geographical analysis Category analysis Geographical analysis Spirits $ million Beer $ million Ready to drink $ million Other $ million Total $ million United States $ million India $ million Great Britain $ million Rest of world $ million Total $ million Six months ended 31 December 2023 Sales (1) 12,409 2,063 496 213 15,181 4,158 1,687 1,571 7,765 15,181 Six months ended 31 December 2022 Sales (1) (re-presented) 12,904 2,008 564 135 15,611 4,268 1,886 1,373 8,084 15,611 (1) The geographical analysis of sales is based on the location of third-party sales.

Exceptional items

Exceptional items	6 Months Ended
	Dec. 31, 2023
Exceptional Items [Abstract]
Exceptional items	Exceptional items 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 that separate disclosure of exceptional items and the classification between operating and non-oper ating items further helps investors to understand t he 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. 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. 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. 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. Six months ended 31 December 2023 Six months ended 31 December 2022 $ million Re-presented $ million Exceptional operating items Brand impairment (1) (54) — Supply chain agility programme (2) (31) (56) Various dispute and litigation matters (3) (108) — Winding down Russian operations (4) — 17 (193) (39) Non-operating items Sale of businesses and brands Windsor business (5) (53) — Guinness Cameroun S.A. (6) (11) (2) USL Popular brands (7) 4 5 Archers brand (8) — 23 United National Breweries (9) — 3 Step acquisition - Mr Black (10) — (10) (60) 19 Exceptional items before taxation (253) (20) Items included in taxation Tax on exceptional operating items 43 14 Tax on exceptional non-operating items (1) 2 Exceptional taxation (11) — 68 42 84 Total exceptional items (211) 64 Attributable to: Equity shareholders of the parent company (213) 63 Non-controlling interests 2 1 Total exceptional items (211) 64 (1) In the six months ended 31 December 2023, an impairment charge of $54 million in respect of certain brands in the US ready to drink portfolio was recognised in exceptional operating items. The charge is mainly driven by the reduction in forecast cash flow assumptions due to the reprioritisation of the portfolio and the more challenging macroeconomic environment. A pre- tax discount rate of 10% (2022 – 9% ) for North America has been used to calculate the net present value of the future cash flows expected to be generated by these brands. The brand impairment reduced the deferred tax liability by $13 million resulting in a net exceptional loss of $41 million . (2) In the six months ended 31 December 2023, an exceptional charge of $31 million was accounted for in respect of the supply chain agility programme ( 2022 – $56 million ). With this five -year spanning programme launched in July 2022, 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 $600 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 six months ended 31 December 2023 was primarily in respect of accelerated depreciation in North America, being additional depreciation of assets in the period directly attributable to the programme. Restructuring cash expenditure was $11 million in the six months ended 31 December 2023 (2022 – $nil ). (3) In the six months ended 31 December 2023, $108 million was recorded as an exceptional operating item in respect of various dispute and litigation matters in North America and Europe, including certain costs and expenses associated therewith. (4) In the six months ended 31 December 2022, Diageo released unutilised provisions of $17 million from the $64 million e xceptional charge taken in the year ended 30 June 2022 in respect of winding down its operations in Russia . (5) On 27 October 2023, Diageo completed the sale of Windsor Global Co., Ltd. to PT W Co., Ltd., a Korean company sponsored by Pine Tree Investment & Management Co., Ltd. for a total consideration of KRW 206 billion ( $152 million ). The transaction resulted in a loss of $53 million in the six months ended 31 December 2023, which was recognised as a non- operating item attributable to the sale, including cumulative translation losses of $26 million recycled to the income statement. (6) On 26 May 2023, Diageo completed the sale of its wholly owned subsidiary, Guinness Cameroun S.A., its brewery in Cameroon, to Castel Group. In the six months ended 31 December 2023, $11 million charges directly attributable to the disposal have been accounted for. Transaction costs relating to the prospective sale in the six months ended 31 December 2022 amounted to $2 million . (7) On 30 September 2022, Diageo completed the sale of the Popular brands of its USL business. The aggregate consideration for the disposal was $97 million , the disposed net assets included $34 million net working capital and $23 million brand, and $19 million goodwill was derecognised. In the six months ended 31 December 2022, the transaction resulted in an exceptional gain of $5 million . $4 million of the purchase price, that was subject to administrative actions within 12 months and considered uncertain at the time of the transaction, was paid to Diageo in the six months ended 31 December 2023 and recognised as exceptional gain. (8) On 8 September 2022, Diageo announced the sale of its Archers brand. The transaction resulted in an exceptional gain of $23 million . (9) In the six months ended 31 December 2022, ZAR 46 million ( $3 million ) of deferred consideration was paid to Diageo in respect of the sale of United National Breweries, the full amount of which represented a non-operating gain. (10) On 29 September 2022, the group acquired the part of the entire issued share capital of Mr Black Spirits Pty Ltd, owner of the Mr Black 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 six months ended 31 December 2022, a loss of $10 million arose, being the difference between the book value of the associate prior to the transaction and its fair value plus transaction costs. (11) Exceptional tax credits of $84 million in the six months ended 31 December 2022 include tax credits of $68 million in respect of the deductibility of fees paid to Diageo plc for guaranteeing externally issued debt of US group entities.

Finance income and charges

Finance income and charges	6 Months Ended
	Dec. 31, 2023
Analysis of income and expense [abstract]
Finance income and charges	Finance income and charges Six months ended 31 December 2023 Six months ended 31 December 2022 $ million Re-presented $ million Interest income 106 101 Fair value gain on financial instruments 110 167 Total interest income 216 268 Interest charge on bonds, commercial paper, bank loans and overdrafts (324) (277) Interest charge on finance leases (10) (9) Other interest charges (223) (148) Fair value loss on financial instruments (113) (167) Total interest charges (670) (601) Net interest charges (454) (333) Net finance income in respect of post employment plans in surplus 28 35 Hyperinflation adjustment in respect of Turkey (1) 22 — Hyperinflation adjustment in respect of Ghana (1) 6 — Hyperinflation adjustment in respect of Venezuela (1) 4 — Interest income in respect of direct and indirect tax 3 — Change in financial liability (Level 3) 8 — Total other finance income 71 35 Net finance charge in respect of post employment plans in deficit (10) (9) Hyperinflation adjustment in respect of Turkey (1) — (7) Interest charge in respect of direct and indirect tax (17) (20) Unwinding of discounts (11) (7) Other finance charges (10) (4) Total other finance charges (48) (47) Net other finance income/(charges) 23 (12) (1) Hyperinflationary adjustments The group applied hyperinflationary accounting for its operations in Turkey, Ghana and Venezuela . The group applies hyperinflationary accounting for its operations in Ghana starting from 1 July 2023. Hyperinflationary accounting needs to be applied as if Ghana had always been a hyperinflationary economy, hence, as per Diageo’s accounting policy choice, the differences between equity at 30 June 2023 as reported and the equity after the restatement of the non- monetary items to the measuring unit current at 30 June 2023 were recognised in retained earnings. The group’s consolidated financial statements include the results and financial position of its operations in hyperinflationary economies 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. 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 movement in the publicly available official price index for the six months ended 31 December 2023 was 38% (2022 – 15% ) in Turkey and 9% in Ghana. The inflation rate used by the group in the case of Venezuela is provided by an independent valuer because no reliable, officially published rate is available. Movement in the price index for the six months ended 31 December 2023 was 54% ( 2022 – 105% ) in Venezuela. Recent developments in Venezuela led management to change its estimate for the exchange rate of VES/$ to be the official exchange rate published by Bloomberg. Figures for the six months ended 31 December 2023 show the results of the Venezuelan operation consolidated at the official closing exchange rate.

Taxation

Taxation	6 Months Ended
	Dec. 31, 2023
Income Taxes [Abstract]
Taxation	Taxation For the six months ended 31 December 2023 , the tax charge of $737 million ( 2022 – $766 million ) comprises a UK tax charge of $116 million ( 2022 – $144 million ) and a foreign tax charge of $621 million ( 2022 – $622 million ). For the six months ended 31 December 2023 , income tax expense was recognised based on management’s best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period in line with the relevant accounting standard. Included in the tax charge of $737 million in the six months ended 31 December 2023 is a net exceptional tax credit of $42 million , including an exceptional tax credit of $23 million in respect of various dispute and litigation matters in North America and Europe and $13 million in respect of brand impairments in the US ready to drink portfolio. The group has a number of ongoing tax audits worldwide for which provisions are recognised in line with the relevant international accounting standard, taking into account best estimates and management’s judgements concerning the ultimate outcome of the tax audits. For the six months ended 31 December 2023 , ongoing audits that are provided for individually are not expected to result in a material tax liability. The current tax asset of $274 million ( 30 June 2023 – $292 million ) and tax liability of $253 million ( 30 June 2023 – $170 million ) include $213 million ( 30 June 2023 – $218 million ) of provisions for tax uncertainties. 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. The tax rate before exceptional items for the six months ended 31 December 2023 was 23.4% compared with 23.4% for the six months ended 31 December 2022 .

Inventories

Inventories	6 Months Ended
	Dec. 31, 2023
Inventories [Abstract]
Inventories	Inventories 31 December 2023 30 June 2023 31 December 2022 $ million Re-presented $ million Re-presented $ million Raw materials and consumables 730 684 718 Work in progress 156 166 200 Maturing inventories 7,697 7,300 6,572 Finished goods and goods for resale 1,257 1,503 1,572 9,840 9,653 9,062

Net borrowings

Net borrowings	6 Months Ended
	Dec. 31, 2023
Borrowings [abstract]
Net borrowings	Net borrowings 31 December 2023 30 June 2023 31 December 2022 $ million Re-presented $ million Re-presented $ million Borrowings due within one year and bank overdrafts (2,004) (2,142) (2,767) Borrowings due after one year (19,476) (18,649) (18,365) Fair value of foreign currency forwards and swaps 406 436 643 Fair value of interest rate hedging instruments (366) (476) (507) Lease liabilities (572) (564) (526) (22,012) (21,395) (21,522) Cash and cash equivalents 1,529 1,813 3,319 (20,483) (19,582) (18,203)

Reconciliation of movement in n

Reconciliation of movement in net borrowings	6 Months Ended
	Dec. 31, 2023
Borrowings [abstract]
Reconciliation of movement in net borrowings	Reconciliation of movement in net borrowings Six months ended 31 December 2023 Six months ended 31 December 2022 $ million Re-presented $ million Net (decrease)/increase in cash and cash equivalents before exchange (241) 633 Net increase in bonds and other borrowings (1) (227) (1,658) Net increase in net borrowings from cash flows (468) (1,025) Exchange differences on net borrowings (399) 4 Other non-cash items (2) (34) (75) Net borrowings at beginning of the period (19,582) (17,107) Net borrowings at end of the period (20,483) (18,203) (1) In the six months ended 31 December 2023, net increase in bonds and other borrowings excludes $nil cash outflow in respect of derivatives designated in forward point hedges (2022 – $(2) million ). (2) In the six months ended 31 December 2023, other non-cash items were principally in respect of additional leases entered into during the period partially offset by fair value movements of interest rate hedging instruments. In the six months ended 31 December 2022, other non-cash items were principally in respect of the reclassification of cash and cash equivalents in Guinness Cameroun S.A. to assets and liabilities held for sale. In the six months ended 31 December 2023 , the group issued bonds of $1,700 million ( $1,690 million - net of discount and fee) consisting of $800 million 5.375% fixed rate notes due 2026 and $900 million 5.625% fixed rate notes due 2033, and repaid bonds of $500 million and €600 million ( $632 million ) . In the six months ended 31 December 2022 , the group issued bonds of $2,000 million ( $1,989 million - net of discount and fee) consisting of $500 million 5.2% fixed rate notes due 2025, $750 million 5.3% fixed rate notes due 2027 and $750 million 5.5% fixed rate notes due 2033, and repaid bonds of $300 million . All bonds and commercial paper issued by Diageo plc's wholly owned subsidiaries are fully and unconditionally guaranteed by Diageo plc.

Financial instruments

Financial instruments	6 Months Ended
	Dec. 31, 2023
Disclosure of detailed information about financial instruments [abstract]
Financial instruments	Financial instruments 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 31 December 2023 , an amount of $224 million ( 30 June 2023 – $274 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 31 December 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 current 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 decrease by approximately $37 million . Included in other financial liabilities, the contingent consideration on acquisition of businesses represents the present value of payments up to $507 million , which are expected to be paid over the next eight years . Contingent considerations linked to certain volume targets at 31 December 2023 included $144 million in respect of the acquisition of Aviation American Gin and Davos Brands ( 30 June 2023 – $142 million ) and $76 million in respect of the acquisition of 21Seeds ( 30 June 2023 – $75 million ). Contingent consideration of $93 million in respect of the acquisition of Don Papa Rum ( 30 June 2023 – $89 million ) is linked to certain financial performance targets. Contingent considerations are fair valued based on a 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 $40 million , 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 $30 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 six months ended 31 December 2023 . The group’s financial assets and liabilities measured at fair value are categorised as follows: 31 December 2023 30 June 2023 31 December 2022 $ million Re-presented $ million Re-presented $ million Derivative assets 703 748 820 Derivative liabilities (440) (556) (663) Valuation techniques based on observable market input (Level 2) 263 192 157 Financial assets - other 281 249 208 Financial liabilities - other (599) (665) (690) Valuation techniques based on unobservable market input (Level 3) (318) (416) (482) In the six months ended 31 December 2023 and 31 December 2022 , the increase in financial assets - other of $32 million ( 2022 – the decrease in financial asset - other of $17 million ) is principally in respect of acquisitions. The movements in level 3 instruments, measured on a recurring basis, are as follows: Zacapa financial liability Contingent consideration recognised on acquisition of businesses Zacapa financial liability Contingent consideration recognised on acquisition of businesses Six months ended 31 December 2023 Six months ended 31 December 2023 Six months ended 31 December 2022 Six months ended 31 December 2022 $ million $ million Re-presented $ million Re-presented $ million At the beginning of the period (274) (391) (261) (449) Net gains included in the income statement 8 15 — 15 Net losses included in exchange in other comprehensive income — — (1) — Net gains/(losses) included in retained earnings 40 — (5) — Acquisitions — — — (5) Settlement of liabilities 2 1 7 9 At the end of the period (224) (375) (260) (430) The carrying amount of the group’s financial assets and liabilities is generally the same as their fair value apart from borrowings. At 31 December 2023 , the fair value of gross borrowings (excluding lease liabilities and the fair value of derivative instruments) was $21,001 million and the carrying value was $21,480 million ( 30 June 2023 – $19,707 million and $20,791 million , respectively).

Dividends and other reserves

Dividends and other reserves	6 Months Ended
	Dec. 31, 2023
Share Capital, Reserves And Other Equity Interest [Abstract]
Dividends and other reserves	Dividends and other reserves Six months ended 31 December 2023 Six months ended 31 December 2022 Amounts recognised as distributions to equity shareholders $ million Re-presented $ million Final dividend for the year ended 30 June 2023 of 59.98 cents per share ( 2022 - 52.71 cents) (1) 1,349 1,200 (1) Re-presented at declaration date's rate . An interim dividend of 40.50 cents per share (2022 – 38.57 cents) was approved by a duly authorised committee of the Board of Directors on 29 January 2024 . As the approval was after the balance sheet date, it was not included as a liability. The change in functional currency from sterling to US dollars does not significantly impact Diageo plc's retained earnings that are available for the payment of dividends or purchases of own shares. Other reserve s of $502 million at 31 December 2023 ( 2022 – $560 million ) include a capital redemption reserve of $4,076 million ( 2022 – $3,869 million ), a hedging reserve surplus of $270 million ( 2022 – $115 million surplus) and an exchange reserve deficit of $3,844 million ( 2022 – $3,424 million deficit). Out of the total hedging reserves $60 million represents the cost of hedging arising from cross currency interest rate swaps in net investment hedges.

Sale of businesses

Sale of businesses	6 Months Ended
	Dec. 31, 2023
Disclosure of business disposal [abstract]
Sale of businesses	Sale of businesses and brands Cash consideration received and net assets disposed of in respect of sale of businesses and brands in the six months ended 31 December 2023 were as follows: Windsor business $ million Other $ million Total $ million Sale consideration Cash received in the period 37 4 41 Cash disposed of (20) — (20) Transaction and other directly attributable costs paid — (3) (3) Net cash received 17 1 18 Deferred consideration receivable 107 — 107 Transaction and other directly attributable costs payable (12) (8) (20) 112 (7) 105 Net assets disposed of Brands (167) — (167) Other non-current assets (3) — (3) Inventories (11) — (11) Other working capital 3 — 3 Corporate tax 2 — 2 Deferred tax 37 — 37 (139) — (139) Exchange recycled from other comprehensive income (26) — (26) Loss on disposal before taxation (53) (7) (60) Taxation (1) — (1) Loss on disposal after taxation (54) (7) (61) On 30 September 2022, Diageo announced the completion of the sale of Popular brands of its USL business. Payment of $4 million of the purchase price that was subject to administrative actions within 12 months and considered uncertain at the time of the transaction, was made to Diageo in the six months ended 31 December 2023. On 26 May 2023, Diageo completed the sale of Guinness Cameroun S.A., its brewery in Cameroon, to Castel Group. In the six months ended 31 December 2023, $11 million costs directly attributable to the disposal have been accounted for. On 27 October 2023, Diageo completed the sale of Windsor Global Co., Ltd. to PT W Co., Ltd., a Korean company sponsored by Pine Tree Investment & Management Co., Ltd. for a total consideration of KRW 206 billion ( $152 million ). The transaction resulted in a loss of $53 million in the six months ended 31 December 2023, which was recognised as a non-operating item attributable to the sale, including cumulative translation losses in the amount of $26 million recycled to the income statement. Deferred consideration of KRW 102 billion ( $75 million ) was received after balance sheet closing date, on 25 January 2024.

Contingent liabilities and lega

Contingent liabilities and legal proceedings	6 Months Ended
	Dec. 31, 2023
Disclosure of contingent liabilities [abstract]
Contingent liabilities and legal proceedings	Contingent liabilities and legal proceedings (a) Guarantees and related matters As of 31 December 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 31 December 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 to Dr Mallya over a five -year period of which $40 million was paid on signing of the February 2016 Agreement with the balance being payable in equal instalments of $7 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 ) 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 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 (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 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 is not expected to be heard until April 2024. Accordingly, the Court has rescheduled the trial of Diageo’s claim for March 2025. 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 parties 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 has filed an appeal against SAT’s order before the Supreme Court of India. However, 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 ( $76 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 ( $6 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 ( $6 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 interpreta tion. In th e 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 $934 million for Brazil and up to approximately $115 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 31 December 2023 is $149 million (corporate tax payments of $137 million and indirect tax payments of $12 million ). (g) 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.

Related party transactions

Related party transactions	6 Months Ended
	Dec. 31, 2023
Disclosure of transactions between related parties [abstract]
Related party transactions	Related party transactions The group’s significant related parties are its associates, joint ventures, key management personnel and post employment benefit plans. There were no transactions with these related parties during the six mo nths ended 31 December 2023 on terms other than those that prevail in arm’s length transactions.

Post balance sheet events

Post balance sheet events	6 Months Ended
	Dec. 31, 2023
Disclosure of non-adjusting events after reporting period [abstract]
Post balance sheet events	Post balance sheet events On 16 January 2024 , Diageo agreed with Combs Wine and Spirits LLC to purchase the 50% of the share capital of DeLeon Holdco LLC that Diageo North America, Inc did not already own, for a total consideration of approximately $200 million . In connection with this acquisition, the previously outstanding disputes between the shareholders were resolved and Diageo is now the 100% owner of the DeLeón brand.

Basis of preparation (Policies)

Basis of preparation (Policies)	6 Months Ended
	Dec. 31, 2023
Basis Of Preparation [Abstract]
Basis of preparation	These unaudited condensed consolidated interim financial statements have been prepared in accordance with UK adopted IAS 34 ‘Interim Financial Reporting’, IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (‘IASB’) and The Disclosure Guidance and Transparency Rules sourcebook of the UK’s Financial Conduct Authority. These financial statements should be read in conjunction with the company’s published consolidated financial statements for the year ended 30 June 2023, which were prepared in accordance with IFRS ® Accounting Standards adopted by the UK and IFRS Accounting Standards issued by IASB, including interpretations issued by the IFRS Interpretations Committee. IFRS Accounting Standards as adopted by the UK differs in certain respects from IFRS Accounting Standards as issued by the IASB, but the differences have no impact on the group’s consolidated financial statements for the periods presented. The consolidated financial statements are prepared on a going concern basis under the historical cost convention, unless stated otherwise. In preparing these condensed consolidated interim financial statements, the significant judgements made by management when applying the group’s accounting policies and the significant areas where estimates were required were the same as those that applied to the consolidated financial statements for the year ended 30 June 2023, with the exception of changes in estimates disclosed in note 3 Exceptional items and note 12 Contingent liabilities and legal proceedings. These condensed consolidated interim financial statements were approved for issue on 29 January 2024. The financial statements for Diageo plc for the year ending 30 June 2024 will be prepared in accordance with IFRS Accounting Standards as adopted by the UK and IFRS Accounting Standards as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. 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, flat operating margin 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 . 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 condensed consolidated interim financial statements. Foreign currencies Starting 1 July 2023, in line with reporting requirements, the functional currency of Diageo plc changed from sterling to US dollars 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 also decided to change its presentation currency to US dollars 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. The comparative financial information included in these condensed consolidated interim financial statements of Diageo as of and for the six months ended 31 December 2023 was re-presented in US dollars following the translation methodology in IAS 21 - The Effects of Changes in Foreign Exchange Rates: – assets and liabilities were translated into US dollars at the closing exchange rate prevailing at the relevant balance sheet date; – the consolidated income statement and the consolidated statement of cash flows of non US dollar entities were translated into US dollars at weighted average exchange rates for the relevant period, which is consistent with the requirements of IAS21; except for subsidiaries in hyperinflationary economies that were translated with the closing rate at the end of the relevant period and for substantial transactions that are translated at the rate on the date of the transaction (including acquisitions, disposals, impairment write off, dividends received and paid); – share capital, share premium, capital redemption reserve included in other reserves and own shares in the statement of changes in equity were translated into US dollars at the closing exchange rate at the relevant balance sheet date; exchange differences arising on the retranslation to closing rates were taken to the exchange reserve; and – the cumulative foreign exchange translation reserve was set to zero on 1 July 2004, the date of transition to IFRS and this reserve was re-presented as if the group reported in US dollars since that date. As results of the functional and presentation currency change, the group has rebalanced its net investment hedging portfolio in line with the shifted currency exposure. Diageo has re-designated its buy US dollar sell sterling cross currency interest swaps in net investment hedge relationships previously used in cash flow hedging foreign currency debt of the group. Weighted average exchange rates used in the translation of income statements were sterling – $ 1 = £0.80 (2022 – $ 1 = £0.85 ) and euro – $ 1 = €0.92 (2022 – $ 1 = €0.98 ). Exchange rates used to translate assets and liabilities at the balance sheet date were sterling – $ 1 = £0.79 ( 31 December 2022 – $ 1 = £0.83 ; 30 June 2023 – $1 = £0.79 ) and euro – $ 1 = €0.90 ( 31 December 2022 – $ 1 = €0.94 ; 30 June 2023 – $1 = €0.93 ). The group uses foreign exchange transaction hedges to mitigate the effect of exchange rate movements.
New accounting standards and interpretations	New accounting standards and interpretations The following standard amendments to the Accounting Standards, issued by the IASB and endorsed by the UK, were adopted by the group from 1 July 2023 with no material impact on the group’s consolidated results, financial position or disclosures: – IFRS 17 – Insurance Contracts – Amendments to IAS 12 Income Taxes – Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 1, 8 – Definition of Accounting Estimates – Amendments to IAS 1 Disclosure Initiative – Accounting Policies.
Expected impact of initial application of new standards or interpretations that have not been adopted by the group	The following amendments issued by the IASB have been endorsed by the UK and have not been adopted by the group: – Amendments to IAS 1 – Classification of Liabilities and Non-current Liabilities with Covenants (effective from the year ending 30 June 2025) – Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback (effective from the year ending 30 June 2025) – Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements (effective from the year ending 30 June 2025). There are a number of other amendments and clarifications to IFRS Accounting Standards effective in future years, which are not expected to significantly impact the group’s consolidated results or financial position.

Segmental information (Tables)

Segmental information (Tables)	6 Months Ended
	Dec. 31, 2023
Disclosure of operating segments [abstract]
Schedule of segmental information	(a) Segmental information for the consolidated income statement North America Europe Asia Pacific Latin America and Caribbean Africa SC&P Eliminate inter- segment sales Total operating segments Corporate and other Total Six months ended 31 December 2023 $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million Sales 4,411 4,349 3,564 1,442 1,352 1,842 (1,842) 15,118 63 15,181 Net sales At budgeted exchange rates (1) 4,077 2,356 2,226 1,004 1,115 1,797 (1,742) 10,833 61 10,894 Acquisitions and disposals 2 25 24 — 65 — — 116 — 116 SC&P allocation 7 34 6 6 2 (55) — — — — Retranslation to actual exchange rates (2) 11 (50) 59 (211) 100 (100) (193) 2 (191) Hyperinflation — 139 — — 4 — — 143 — 143 Net sales 4,084 2,565 2,206 1,069 975 1,842 (1,842) 10,899 63 10,962 Operating profit/(loss) At budgeted exchange rates (1) 1,672 784 729 337 245 (14) — 3,753 (144) 3,609 Acquisitions and disposals (12) (6) 7 — 15 — — 4 — 4 SC&P allocation (7) (4) (1) (2) — 14 — — — — Fair value remeasurements 23 — — (24) — — — (1) — (1) Retranslation to actual exchange rates 49 25 (46) 5 (120) — — (87) (3) (90) Hyperinflation — (2) — — (10) — — (12) — (12) Operating profit/(loss) before exceptional items 1,725 797 689 316 130 — — 3,657 (147) 3,510 Exceptional operating items (182) (11) — — — — — (193) — (193) Operating profit/(loss) 1,543 786 689 316 130 — — 3,464 (147) 3,317 Non-operating items (60) Net finance charges (431) Share of after tax results of associates and joint ventures 253 Profit before taxation 3,079 North America Europe Asia Pacific Latin America and Caribbean Africa SC&P Eliminate inter- segment sales Total operating segments Corporate and other Total Six months ended 31 December 2022 Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Re- presented $ million Sales 4,540 4,055 3,741 1,646 1,578 1,939 (1,939) 15,560 51 15,611 Net sales At budgeted exchange rates (1) 4,144 2,432 2,310 1,332 1,228 2,125 (2,086) 11,485 58 11,543 Acquisitions and disposals 17 9 47 4 — — — 77 — 77 SC&P allocation 4 25 4 5 1 (39) — — — — Retranslation to actual exchange rates (16) (241) (192) (42) (116) (147) 147 (607) (7) (614) Hyperinflation — 114 — — — — — 114 — 114 Net sales 4,149 2,339 2,169 1,299 1,113 1,939 (1,939) 11,069 51 11,120 Operating profit/(loss) At budgeted exchange rates (1) 1,687 845 747 545 284 52 — 4,160 (211) 3,949 Acquisitions and disposals (9) 3 7 — — — — 1 — 1 SC&P allocation 12 29 3 7 1 (52) — — — — Fair value remeasurements 18 (1) — — — — — 17 — 17 Retranslation to actual exchange rates (18) (83) (53) (14) (70) — — (238) 14 (224) Hyperinflation — 27 — — — — — 27 — 27 Operating profit/(loss) before exceptional items 1,690 820 704 538 215 — — 3,967 (197) 3,770 Exceptional operating items (31) 17 (25) — — — — (39) — (39) Operating profit/(loss) 1,659 837 679 538 215 — — 3,928 (197) 3,731 Non-operating items 19 Net finance charges (345) Share of after tax results of associates and joint ventures 202 Profit before taxation 3,607 (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 geographical segments, inter-segment sales are not material. (ii) Approximately 36% of calendar year net sales occurred in the last four months of 2023.
Schedule Of Category And Geographical Analysis	(b) Category and geographical analysis Category analysis Geographical analysis Spirits $ million Beer $ million Ready to drink $ million Other $ million Total $ million United States $ million India $ million Great Britain $ million Rest of world $ million Total $ million Six months ended 31 December 2023 Sales (1) 12,409 2,063 496 213 15,181 4,158 1,687 1,571 7,765 15,181 Six months ended 31 December 2022 Sales (1) (re-presented) 12,904 2,008 564 135 15,611 4,268 1,886 1,373 8,084 15,611 (1) The geographical analysis of sales is based on the location of third-party sales.

Exceptional items (Tables)

Exceptional items (Tables)	6 Months Ended
	Dec. 31, 2023
Exceptional Items [Abstract]
Schedule of exceptional items	Six months ended 31 December 2023 Six months ended 31 December 2022 $ million Re-presented $ million Exceptional operating items Brand impairment (1) (54) — Supply chain agility programme (2) (31) (56) Various dispute and litigation matters (3) (108) — Winding down Russian operations (4) — 17 (193) (39) Non-operating items Sale of businesses and brands Windsor business (5) (53) — Guinness Cameroun S.A. (6) (11) (2) USL Popular brands (7) 4 5 Archers brand (8) — 23 United National Breweries (9) — 3 Step acquisition - Mr Black (10) — (10) (60) 19 Exceptional items before taxation (253) (20) Items included in taxation Tax on exceptional operating items 43 14 Tax on exceptional non-operating items (1) 2 Exceptional taxation (11) — 68 42 84 Total exceptional items (211) 64 Attributable to: Equity shareholders of the parent company (213) 63 Non-controlling interests 2 1 Total exceptional items (211) 64

Finance income and charges (Tab

Finance income and charges (Tables)	6 Months Ended
	Dec. 31, 2023
Analysis of income and expense [abstract]
Schedule of finance income and charges	Six months ended 31 December 2023 Six months ended 31 December 2022 $ million Re-presented $ million Interest income 106 101 Fair value gain on financial instruments 110 167 Total interest income 216 268 Interest charge on bonds, commercial paper, bank loans and overdrafts (324) (277) Interest charge on finance leases (10) (9) Other interest charges (223) (148) Fair value loss on financial instruments (113) (167) Total interest charges (670) (601) Net interest charges (454) (333) Net finance income in respect of post employment plans in surplus 28 35 Hyperinflation adjustment in respect of Turkey (1) 22 — Hyperinflation adjustment in respect of Ghana (1) 6 — Hyperinflation adjustment in respect of Venezuela (1) 4 — Interest income in respect of direct and indirect tax 3 — Change in financial liability (Level 3) 8 — Total other finance income 71 35 Net finance charge in respect of post employment plans in deficit (10) (9) Hyperinflation adjustment in respect of Turkey (1) — (7) Interest charge in respect of direct and indirect tax (17) (20) Unwinding of discounts (11) (7) Other finance charges (10) (4) Total other finance charges (48) (47) Net other finance income/(charges) 23 (12)

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Dec. 31, 2023
Inventories [Abstract]
Schedule of inventories	31 December 2023 30 June 2023 31 December 2022 $ million Re-presented $ million Re-presented $ million Raw materials and consumables 730 684 718 Work in progress 156 166 200 Maturing inventories 7,697 7,300 6,572 Finished goods and goods for resale 1,257 1,503 1,572 9,840 9,653 9,062

Net borrowings (Tables)

Net borrowings (Tables)	6 Months Ended
	Dec. 31, 2023
Borrowings [abstract]
Schedule of net borrowings	31 December 2023 30 June 2023 31 December 2022 $ million Re-presented $ million Re-presented $ million Borrowings due within one year and bank overdrafts (2,004) (2,142) (2,767) Borrowings due after one year (19,476) (18,649) (18,365) Fair value of foreign currency forwards and swaps 406 436 643 Fair value of interest rate hedging instruments (366) (476) (507) Lease liabilities (572) (564) (526) (22,012) (21,395) (21,522) Cash and cash equivalents 1,529 1,813 3,319 (20,483) (19,582) (18,203)

Reconciliation of movement in_2

Reconciliation of movement in net borrowings (Tables)	6 Months Ended
	Dec. 31, 2023
Borrowings [abstract]
Schedule of movement in net borrowings	Six months ended 31 December 2023 Six months ended 31 December 2022 $ million Re-presented $ million Net (decrease)/increase in cash and cash equivalents before exchange (241) 633 Net increase in bonds and other borrowings (1) (227) (1,658) Net increase in net borrowings from cash flows (468) (1,025) Exchange differences on net borrowings (399) 4 Other non-cash items (2) (34) (75) Net borrowings at beginning of the period (19,582) (17,107) Net borrowings at end of the period (20,483) (18,203) (1) In the six months ended 31 December 2023, net increase in bonds and other borrowings excludes $nil cash outflow in respect of derivatives designated in forward point hedges (2022 – $(2) million ). (2) In the six months ended 31 December 2023, other non-cash items were principally in respect of additional leases entered into during the period partially offset by fair value movements of interest rate hedging instruments. In the six months ended 31 December 2022, other non-cash items were principally in respect of the reclassification of cash and cash equivalents in Guinness Cameroun S.A. to assets and liabilities held for sale.

Financial instruments (Tables)

Financial instruments (Tables)	6 Months Ended
	Dec. 31, 2023
Disclosure of detailed information about financial instruments [abstract]
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: 31 December 2023 30 June 2023 31 December 2022 $ million Re-presented $ million Re-presented $ million Derivative assets 703 748 820 Derivative liabilities (440) (556) (663) Valuation techniques based on observable market input (Level 2) 263 192 157 Financial assets - other 281 249 208 Financial liabilities - other (599) (665) (690) Valuation techniques based on unobservable market input (Level 3) (318) (416) (482)
Schedule of movements in level 3 instruments	The movements in level 3 instruments, measured on a recurring basis, are as follows: Zacapa financial liability Contingent consideration recognised on acquisition of businesses Zacapa financial liability Contingent consideration recognised on acquisition of businesses Six months ended 31 December 2023 Six months ended 31 December 2023 Six months ended 31 December 2022 Six months ended 31 December 2022 $ million $ million Re-presented $ million Re-presented $ million At the beginning of the period (274) (391) (261) (449) Net gains included in the income statement 8 15 — 15 Net losses included in exchange in other comprehensive income — — (1) — Net gains/(losses) included in retained earnings 40 — (5) — Acquisitions — — — (5) Settlement of liabilities 2 1 7 9 At the end of the period (224) (375) (260) (430)

Dividends and other reserves (T

Dividends and other reserves (Tables)	6 Months Ended
	Dec. 31, 2023
Share Capital, Reserves And Other Equity Interest [Abstract]
Schedule of dividends	Six months ended 31 December 2023 Six months ended 31 December 2022 Amounts recognised as distributions to equity shareholders $ million Re-presented $ million Final dividend for the year ended 30 June 2023 of 59.98 cents per share ( 2022 - 52.71 cents) (1) 1,349 1,200 (1) Re-presented at declaration date's rate

Sale of businesses (Tables)

Sale of businesses (Tables)	6 Months Ended
	Dec. 31, 2023
Business Combination [Abstract]
Schedule Of Cash Consideration Received And Net Assets Disposed Of In Sale Of Businesses And Brands	Cash consideration received and net assets disposed of in respect of sale of businesses and brands in the six months ended 31 December 2023 were as follows: Windsor business $ million Other $ million Total $ million Sale consideration Cash received in the period 37 4 41 Cash disposed of (20) — (20) Transaction and other directly attributable costs paid — (3) (3) Net cash received 17 1 18 Deferred consideration receivable 107 — 107 Transaction and other directly attributable costs payable (12) (8) (20) 112 (7) 105 Net assets disposed of Brands (167) — (167) Other non-current assets (3) — (3) Inventories (11) — (11) Other working capital 3 — 3 Corporate tax 2 — 2 Deferred tax 37 — 37 (139) — (139) Exchange recycled from other comprehensive income (26) — (26) Loss on disposal before taxation (53) (7) (60) Taxation (1) — (1) Loss on disposal after taxation (54) (7) (61)

Basis of preparation - Narrativ

Basis of preparation - Narrative (Details)	6 Months Ended
	Dec. 31, 2023 £ / $ € / $	Dec. 31, 2022 € / $ £ / $	Jun. 30, 2023 € / $ £ / $
Euro
Disclosure of foreign exchange rates [Line Items]
Weighted average exchange rate used in the translation of income statements | € / $	0.92	0.98
Exchange rates used to translate assets and liabilities | € / $	0.90	0.94	0.93
Pound Sterling
Disclosure of foreign exchange rates [Line Items]
Weighted average exchange rate used in the translation of income statements | £ / $	0.80	0.85
Exchange rates used to translate assets and liabilities | £ / $	0.79	0.83	0.79

Segmental information - Consoli

Segmental information - Consolidated income statement (Details) - USD ($) $ in Millions	4 Months Ended	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Disclosure of operating segments [line items]
Sales		$ 15,181	$ 15,611	[1]
Net sales
At budgeted exchange rates(1)		10,894	11,543
Acquisitions and disposals		116	77
SC&P allocation		0	0
Retranslation to actual exchange rates		(191)	(614)
Hyperinflation		143	114
Net sales		10,962	11,120	[1]
Operating profit/(loss)
At budgeted exchange rates(1)		3,609	3,949
Acquisitions and disposals		4	1
SC&P allocation		0	0
Fair value remeasurements		(1)	17
Retranslation to actual exchange rates		(90)	(224)
Hyperinflation		(12)	27
Operating profit/(loss) before exceptional items		3,510	3,770
Exceptional operating items		(193)	(39)
Operating profit/(loss)		3,317	3,731	[1],[2]
Non-operating items		(60)	19	[1],[2]
Net finance charges		(431)	(345)
Share of after tax results of associates and joint ventures		253	202	[1],[2]
Profit before taxation		3,079	3,607	[1]
Percentage of calendar year net sales that occur in the last four months	36%
Operating segments
Disclosure of operating segments [line items]
Sales		15,118	15,560
Net sales
At budgeted exchange rates(1)		10,833	11,485
Acquisitions and disposals		116	77
SC&P allocation		0	0
Retranslation to actual exchange rates		(193)	(607)
Hyperinflation		143	114
Net sales		10,899	11,069
Operating profit/(loss)
At budgeted exchange rates(1)		3,753	4,160
Acquisitions and disposals		4	1
SC&P allocation		0	0
Fair value remeasurements		(1)	17
Retranslation to actual exchange rates		(87)	(238)
Hyperinflation		(12)	27
Operating profit/(loss) before exceptional items		3,657	3,967
Exceptional operating items		(193)	(39)
Operating profit/(loss)		3,464	3,928
Eliminate intersegment sales
Disclosure of operating segments [line items]
Sales		(1,842)	(1,939)
Net sales
At budgeted exchange rates(1)		(1,742)	(2,086)
Acquisitions and disposals		0	0
SC&P allocation		0	0
Retranslation to actual exchange rates		(100)	147
Hyperinflation		0	0
Net sales		(1,842)	(1,939)
Corporate and other
Disclosure of operating segments [line items]
Sales		63	51
Net sales
At budgeted exchange rates(1)		61	58
Acquisitions and disposals		0	0
SC&P allocation		0	0
Retranslation to actual exchange rates		2	(7)
Hyperinflation		0	0
Net sales		63	51
Operating profit/(loss)
At budgeted exchange rates(1)		(144)	(211)
Acquisitions and disposals		0	0
SC&P allocation		0	0
Fair value remeasurements		0	0
Retranslation to actual exchange rates		(3)	14
Hyperinflation		0	0
Operating profit/(loss) before exceptional items		(147)	(197)
Exceptional operating items		0	0
Operating profit/(loss)		(147)	(197)
North America | Operating segments
Disclosure of operating segments [line items]
Sales		4,411	4,540
Net sales
At budgeted exchange rates(1)		4,077	4,144
Acquisitions and disposals		2	17
SC&P allocation		7	4
Retranslation to actual exchange rates		(2)	(16)
Hyperinflation		0	0
Net sales		4,084	4,149
Operating profit/(loss)
At budgeted exchange rates(1)		1,672	1,687
Acquisitions and disposals		(12)	(9)
SC&P allocation		(7)	12
Fair value remeasurements		23	18
Retranslation to actual exchange rates		49	(18)
Hyperinflation		0	0
Operating profit/(loss) before exceptional items		1,725	1,690
Exceptional operating items		(182)	(31)
Operating profit/(loss)		1,543	1,659
Europe | Operating segments
Disclosure of operating segments [line items]
Sales		4,349	4,055
Net sales
At budgeted exchange rates(1)		2,356	2,432
Acquisitions and disposals		25	9
SC&P allocation		34	25
Retranslation to actual exchange rates		11	(241)
Hyperinflation		139	114
Net sales		2,565	2,339
Operating profit/(loss)
At budgeted exchange rates(1)		784	845
Acquisitions and disposals		(6)	3
SC&P allocation		(4)	29
Fair value remeasurements		0	(1)
Retranslation to actual exchange rates		25	(83)
Hyperinflation		(2)	27
Operating profit/(loss) before exceptional items		797	820
Exceptional operating items		(11)	17
Operating profit/(loss)		786	837
Asia Pacific | Operating segments
Disclosure of operating segments [line items]
Sales		3,564	3,741
Net sales
At budgeted exchange rates(1)		2,226	2,310
Acquisitions and disposals		24	47
SC&P allocation		6	4
Retranslation to actual exchange rates		(50)	(192)
Hyperinflation		0	0
Net sales		2,206	2,169
Operating profit/(loss)
At budgeted exchange rates(1)		729	747
Acquisitions and disposals		7	7
SC&P allocation		(1)	3
Fair value remeasurements		0	0
Retranslation to actual exchange rates		(46)	(53)
Hyperinflation		0	0
Operating profit/(loss) before exceptional items		689	704
Exceptional operating items		0	(25)
Operating profit/(loss)		689	679
Latin America and Caribbean | Operating segments
Disclosure of operating segments [line items]
Sales		1,442	1,646
Net sales
At budgeted exchange rates(1)		1,004	1,332
Acquisitions and disposals		0	4
SC&P allocation		6	5
Retranslation to actual exchange rates		59	(42)
Hyperinflation		0	0
Net sales		1,069	1,299
Operating profit/(loss)
At budgeted exchange rates(1)		337	545
Acquisitions and disposals		0	0
SC&P allocation		(2)	7
Fair value remeasurements		(24)	0
Retranslation to actual exchange rates		5	(14)
Hyperinflation		0	0
Operating profit/(loss) before exceptional items		316	538
Exceptional operating items		0	0
Operating profit/(loss)		316	538
Africa | Operating segments
Disclosure of operating segments [line items]
Sales		1,352	1,578
Net sales
At budgeted exchange rates(1)		1,115	1,228
Acquisitions and disposals		65	0
SC&P allocation		2	1
Retranslation to actual exchange rates		(211)	(116)
Hyperinflation		4	0
Net sales		975	1,113
Operating profit/(loss)
At budgeted exchange rates(1)		245	284
Acquisitions and disposals		15	0
SC&P allocation		0	1
Fair value remeasurements		0	0
Retranslation to actual exchange rates		(120)	(70)
Hyperinflation		(10)	0
Operating profit/(loss) before exceptional items		130	215
Exceptional operating items		0	0
Operating profit/(loss)		130	215
SC&P | Operating segments
Disclosure of operating segments [line items]
Sales		1,842	1,939
Net sales
At budgeted exchange rates(1)		1,797	2,125
Acquisitions and disposals		0	0
SC&P allocation		(55)	(39)
Retranslation to actual exchange rates		100	(147)
Hyperinflation		0	0
Net sales		1,842	1,939
Operating profit/(loss)
At budgeted exchange rates(1)		(14)	52
Acquisitions and disposals		0	0
SC&P allocation		14	(52)
Fair value remeasurements		0	0
Retranslation to actual exchange rates		0	0
Hyperinflation		0	0
Operating profit/(loss) before exceptional items		0	0
Exceptional operating items		0	0
Operating profit/(loss)		$ 0	$ 0
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Segmental information - Categor

Segmental information - Category analysis (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of products and services [line items]
Sales	$ 15,181	$ 15,611	[1]
Spirits
Disclosure of products and services [line items]
Sales	12,409	12,904
Beer
Disclosure of products and services [line items]
Sales	2,063	2,008
Ready To Drink
Disclosure of products and services [line items]
Sales	496	564
Other
Disclosure of products and services [line items]
Sales	$ 213	$ 135
[1] (1) See page F-7 for an explanation under Basis of preparation.

Segmental information - Geograp

Segmental information - Geographical analysis (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of geographical areas [line items]
Sales	$ 15,181	$ 15,611	[1]
United States
Disclosure of geographical areas [line items]
Sales	4,158	4,268
India
Disclosure of geographical areas [line items]
Sales	1,687	1,886
Great Britain
Disclosure of geographical areas [line items]
Sales	1,571	1,373
Rest of World
Disclosure of geographical areas [line items]
Sales	$ 7,765	$ 8,084
[1] (1) See page F-7 for an explanation under Basis of preparation.

Exceptional items (Details)

Exceptional items (Details) R in Millions, $ in Millions, ₩ in Billions		6 Months Ended					12 Months Ended
	Sep. 30, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 KRW (₩)	Dec. 31, 2022 USD ($)		Dec. 31, 2022 ZAR (R)	Jun. 30, 2022 USD ($)
Disclosure Of Exceptional Items [Line Items]
Operating profit		$ 3,317		$ 3,731	[1],[2]
Non-operating items		60		(19)	[1],[2]
Exceptional items before taxation		3,079		3,607	[2]
Taxation		(737)		(766)	[1],[2]
Profit for the period		2,342		2,841	[1],[2],[3]
Attributable to:
Equity shareholders of the parent company		2,210		2,709	[2]
Non-controlling interests		132		132	[2]
Profit for the period		2,342		2,841	[1],[2],[3]
Decrease in working capital		$ (719)		$ (1,612)	[1]
North America
Attributable to:
Pre-tax discount rate %		10%	10%	9%		9%
USL Popular brands (7)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		$ (4)		$ (5)
Attributable to:
Consideration Paid /(Received) Sale Of Businesses And Intangible Assets				97
Windsor business (5)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		53
Attributable to:
Consideration received		152	₩ 206
Exchange recycled from other comprehensive income		26
Total exceptional items
Disclosure Of Exceptional Items [Line Items]
Operating profit		(193)		(39)
Non-operating items		60		(19)
Exceptional items before taxation		(253)		(20)
Taxation		42		84
Profit for the period		(211)		64
Attributable to:
Equity shareholders of the parent company		(213)		63
Non-controlling interests		2		1
Profit for the period		(211)		64
Brand impairment (1)
Disclosure Of Exceptional Items [Line Items]
Brand impairment (1)		54		0
Taxation		13
Brand impairment (1) | North America
Disclosure Of Exceptional Items [Line Items]
Profit for the period		(41)
Attributable to:
Profit for the period		(41)
Deferred tax expense (income) recognised in profit or loss		13
Supply chain agility programme (2)
Disclosure Of Exceptional Items [Line Items]
Other expenses		$ (31)		(56)
Attributable to:
Spanning programme, period		5 years	5 years
Restructuring cash expenditure		$ 11		0
Supply chain agility programme (2) | Maximum
Attributable to:
Implementation cost, total		600
Various dispute and litigation matters (3)
Disclosure Of Exceptional Items [Line Items]
Other expenses		(108)		0
Taxation		23
Winding down Russian operations (4)
Disclosure Of Exceptional Items [Line Items]
Other expenses							$ (64)
Winding down Russian operations (4)		0		17
Windsor business (5)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		53		0
Guinness Cameroun S.A. (6)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		11		2
Attributable to:
Non-Operating Gains (Losses)		11		2
USL Popular brands (7)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		(4)		(5)
USL Popular brands (7) | USL Popular brands (7)
Attributable to:
Decrease in working capital	$ 34
USL Popular brands (7) | USL Popular brands (7) | Goodwill [member]
Attributable to:
Decrease through loss of control of subsidiary, intangible assets and goodwill	19
USL Popular brands (7) | USL Popular brands (7) | Other intangible assets [member]
Attributable to:
Decrease through loss of control of subsidiary, intangible assets and goodwill	$ 23
Archers brand (8)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		0		(23)
United National Breweries (9)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		0		(3)
Step acquisition - Mr Black (10)
Disclosure Of Exceptional Items [Line Items]
Non-operating items		0		10
Tax on exceptional operating items
Disclosure Of Exceptional Items [Line Items]
Taxation		43		14
Tax on exceptional non-operating items
Disclosure Of Exceptional Items [Line Items]
Taxation		(1)		2
Exceptional taxation (11)
Disclosure Of Exceptional Items [Line Items]
Taxation		$ 0		68
Other non-operating exceptional items
Disclosure Of Exceptional Items [Line Items]
Non-operating items | R						R (46)
US MAP
Disclosure Of Exceptional Items [Line Items]
Taxation				$ 68
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (2) See page F-7 for an explanation under Basis of preparation.

Finance income and charges - Sc

Finance income and charges - Schedule of finance income and charges (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure Of Finance Income And Charges [Line Items]
Interest income	$ 106	$ 101
Fair value gain on financial instruments	110	167
Total interest income	216	268
Interest charge on bonds, commercial paper, bank loans and overdrafts	(324)	(277)
Interest charge on finance leases	(10)	(9)
Other interest charges	(223)	(148)
Fair value loss on financial instruments	(113)	(167)
Total interest charges	(670)	(601)
Net interest charges	(454)	(333)
Net finance income in respect of post employment plans in surplus	28	35
Hyperinflation adjustment in respect of Turkey (1)	22	0
Hyperinflation adjustment in respect of Ghana (1)	6	0
Hyperinflation adjustment in respect of Venezuela (1)	4	0
Interest income in respect of direct and indirect tax	3	0
Change in financial liability (Level 3)	8	0
Total other finance income	71	35
Net finance charge in respect of post employment plans in deficit	(10)	(9)
Hyperinflation adjustment in respect of Turkey (1)	0	(7)
Interest charge in respect of direct and indirect tax	(17)	(20)
Unwinding of discounts	(11)	(7)
Other finance charges	(10)	(4)
Total other finance charges	(48)	(47)
Net other finance income/(charges)	$ 23	$ (12)

Finance income and charges - Na

Finance income and charges - Narrative (Details)	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
TURKEY
Disclosure of geographical areas [line items]
Movement in Price Index in hyperinflationary economy	38%	15%
Venezuela
Disclosure of geographical areas [line items]
Movement in Price Index in hyperinflationary economy	54%	105%
GHANA
Disclosure of geographical areas [line items]
Movement in Price Index in hyperinflationary economy	9%

Taxation (Details)

Taxation (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022		Jun. 30, 2023
Disclosure of geographical areas [line items]
Tax charge	$ 737	$ 766	[1],[2]
Current tax assets	274	199	[3]	$ 292	[3]
Corporate tax	253	$ 319	[3]	170	[3]
Provision for tax uncertainties	$ 213			$ 218
The tax rate before exceptional items	23.40%	23.40%
Total exceptional items
Disclosure of geographical areas [line items]
Tax charge	$ (42)	$ (84)
Brand impairment (1)
Disclosure of geographical areas [line items]
Tax charge	(13)
Various dispute and litigation matters (3)
Disclosure of geographical areas [line items]
Tax charge	(23)
Great Britain
Disclosure of geographical areas [line items]
Tax charge	116	144
Foreign
Disclosure of geographical areas [line items]
Tax charge	$ 621	$ 622
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2023	Jun. 30, 2023		Dec. 31, 2022
Inventories [Abstract]
Raw materials and consumables	$ 730	$ 684		$ 718
Work in progress	156	166		200
Maturing inventories	7,697	7,300		6,572
Finished goods and goods for resale	1,257	1,503		1,572
Inventories	$ 9,840	$ 9,653	[1]	$ 9,062	[1]
[1] (1) See page F-7 for an explanation under Basis of preparation.

Net borrowings - Schedule of ne

Net borrowings - Schedule of net borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2023	Jun. 30, 2023		Dec. 31, 2022		Jun. 30, 2022
Borrowings [abstract]
Borrowings due within one year and bank overdrafts	$ (2,004)	$ (2,142)		$ (2,767)
Borrowings due after one year	(19,476)	(18,649)	[1]	(18,365)	[1]
Fair value of foreign currency forwards and swaps	406	436		643
Fair value of interest rate hedging instruments	(366)	(476)		(507)
Lease liabilities	(572)	(564)		(526)
Gross borrowings	(22,012)	(21,395)		(21,522)
Cash and cash equivalents	1,529	1,813	[1]	3,319	[1],[2]
Net borrowings	$ (20,483)	$ (19,582)		$ (18,203)		$ (17,107)
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Reconciliation of movement in_3

Reconciliation of movement in net borrowings - Movement in net borrowings (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Borrowings [abstract]
Net (decrease)/increase in cash and cash equivalents before exchange	$ (241)	$ 633	[1]
Net increase in bonds and other borrowings(1)	(227)	(1,658)
Net increase in net borrowings from cash flows	(468)	(1,025)
Exchange differences on net borrowings	(399)	4
Other non-cash items(2)	(34)	(75)
Net borrowings at beginning of the period	(19,582)	(17,107)
Net borrowings at end of the period	(20,483)	(18,203)
Payments For Derivatives Designated In Forward Point Hedges	$ 0	$ (2)
[1] (1) See page F-7 for an explanation under Basis of preparation.

Reconciliation of movement in_4

Reconciliation of movement in net borrowings - Narrative (Details) € in Millions, $ in Millions	6 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Bonds issued	$ 1,700		$ 2,000
Bond issued net of discount and fee	1,690		1,989
Repayment of bonds	1,132		300	[1]
800 million dollars 5.375% bonds due 2026
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Notional amount bonds	$ 800
Borrowings, interest rate	5.375%
900 million dollars 5.625% bonds due 2033
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Notional amount bonds	$ 900
Borrowings, interest rate	5.625%
500 million dollars, 5.2% bonds, due 2025
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Notional amount bonds			$ 500
Borrowings, interest rate			5.20%
750 million dollars, 5.3% bonds, due 2027
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Notional amount bonds			$ 750
Borrowings, interest rate			5.30%
750 million dollars, 5.5% bonds, due 2033
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Notional amount bonds			$ 750
Borrowings, interest rate			5.50%
600 million euro 0.125% bonds due 2023
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Repayment of bonds	$ 632	€ 600
500 million dollars 3.5% bonds due 2023
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Repayment of bonds	$ 500
300 million dollars 8% bonds due 2022
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Repayment of bonds			$ 300
[1] (1) See page F-7 for an explanation under Basis of preparation.

Financial instruments - Narrati

Financial instruments - Narrative (Details) - USD ($) $ in Millions	6 Months Ended			12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022		Jun. 30, 2025	Jun. 30, 2023		Jun. 30, 2022
Disclosure of detailed information about financial instruments [line items]
Financial liability including put option	$ 371	$ 524	[1]		$ 453	[1]
Fair value of gross borrowings	21,480				20,791
Level 3
Disclosure of detailed information about financial instruments [line items]
Contingent consideration included in other financial liabilities	599	690			665
Increase (Decrease) in financial assets	(32)	17
Level 1 | Fair value
Disclosure of detailed information about financial instruments [line items]
Fair value of gross borrowings	21,001				19,707
Contingent consideration | Volume, Measurement Input
Disclosure of detailed information about financial instruments [line items]
Increase in fair value of liability	40
Decrease in fair value of liability	$ 40
Percentage of reasonably possible decrease in unobservable input, liabilities	10%
Percentage of reasonably possible increase in unobservable input, liabilities	10%
Contingent consideration | Cash Flows, Measurement Input
Disclosure of detailed information about financial instruments [line items]
Increase in fair value of liability	$ 30
Decrease in fair value of liability	$ 30
Percentage of reasonably possible decrease in unobservable input, liabilities	10%
Percentage of reasonably possible increase in unobservable input, liabilities	10%
Contingent consideration | Level 3
Disclosure of detailed information about financial instruments [line items]
Contingent consideration included in other financial liabilities	$ 375	$ 430			391		$ 449
Business combinations
Disclosure of detailed information about financial instruments [line items]
Contingent consideration payment period	8 years
Business combinations | Contingent consideration | Undiscounted amount
Disclosure of detailed information about financial instruments [line items]
Contingent consideration included in other financial liabilities	$ 507
Aviation Gin and Davos Brands | Contingent consideration | Level 3
Disclosure of detailed information about financial instruments [line items]
Contingent consideration included in other financial liabilities	144				142
21 Seed | Contingent consideration | Level 3
Disclosure of detailed information about financial instruments [line items]
Contingent consideration included in other financial liabilities	76				75
Don Papa Rum | Contingent consideration | Level 3
Disclosure of detailed information about financial instruments [line items]
Contingent consideration included in other financial liabilities	$ 93				89
Industrias Licoreras de Guatemala
Disclosure of detailed information about financial instruments [line items]
Equity stake held by external party	50%
Industrias Licoreras de Guatemala | Level 3
Disclosure of detailed information about financial instruments [line items]
Financial liability including put option	$ 224				$ 274
Industrias Licoreras de Guatemala | Option exercised two years later
Disclosure of detailed information about financial instruments [line items]
Increase in fair value of liability				$ 37
[1] (1) See page F-7 for an explanation under Basis of preparation.

Financial instruments - Schedul

Financial instruments - Schedule of financial assets and liabilities measured at fair value (Details) - USD ($) $ in Millions	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Valuation techniques based on observable market input (Level 2)
Disclosure of detailed information about financial instruments [line items]
Derivative assets	$ 703	$ 748	$ 820
Derivative liabilities	(440)	(556)	(663)
Financial assets/(liabilities)	263	192	157
Valuation techniques based on unobservable market input (Level 3)
Disclosure of detailed information about financial instruments [line items]
Financial assets/(liabilities)	(318)	(416)	(482)
Financial assets - other	281	249	208
Financial liabilities - other	$ (599)	$ (665)	$ (690)

Financial instruments - Movemen

Financial instruments - Movements in level 3 instruments measured on a recurring basis (Details) - Level 3 - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of fair value measurement of liabilities [line items]
At the beginning of the period	$ (665)
At the end of the period	(599)	$ (690)
Zacapa financial liability
Disclosure of fair value measurement of liabilities [line items]
At the beginning of the period	(274)	(261)
Net gains included in the income statement	8	0
Net losses included in exchange in other comprehensive income	0	(1)
Net gains/(losses) included in retained earnings	40	(5)
Acquisitions	0	0
Settlement of liabilities	2	7
At the end of the period	(224)	(260)
Contingent consideration recognised on acquisition of businesses
Disclosure of fair value measurement of liabilities [line items]
At the beginning of the period	(391)	(449)
Net gains included in the income statement	15	15
Net losses included in exchange in other comprehensive income	0	0
Net gains/(losses) included in retained earnings	0	0
Acquisitions	0	(5)
Settlement of liabilities	1	9
At the end of the period	$ (375)	$ (430)

Dividends and other reserves -

Dividends and other reserves - Schedule of dividends (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Capital, Reserves And Other Equity Interest [Abstract]
Final dividend for the year ended 30 June 2023 of 59.98 cents per share (2022 - 52.71 cents)(1)	$ 1,349	$ 1,200
Final dividend per share (in USD per share)			$ 0.5998	$ 0.5271

Dividends and other reserves _2

Dividends and other reserves - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		6 Months Ended
	Jan. 29, 2024	Dec. 31, 2022		Dec. 31, 2023	Jun. 30, 2023	[1]
Disclosure of reserves within equity [line items]
Interim dividend per share (in USD per share)		$ 0.3857
Other reserves		$ 560	[1]	$ 502	$ 665
Capital redemption reserve		3,869		4,076
Hedging reserve surplus		115		270
Exchange reserve deficit		$ (3,424)		(3,844)
Interest rate risk [member] | Hedges of net investment in foreign operations [member]
Disclosure of reserves within equity [line items]
Hedging reserve surplus				$ 60
Major ordinary share transactions
Disclosure of reserves within equity [line items]
Interim dividend per share (in USD per share)	$ 0.4050
[1] (1) See page F-7 for an explanation under Basis of preparation.

Sale of businesses - Narrative

Sale of businesses - Narrative (Details) $ in Millions, ₩ in Billions					6 Months Ended
	Jan. 25, 2024 USD ($)	Jan. 25, 2024 KRW (₩)	Oct. 27, 2023 USD ($)	Oct. 27, 2023 KRW (₩)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Disclosure of business disposal [line items]
Non-operating items					$ (60)	$ 19	[1],[2]
Windsor Business
Disclosure of business disposal [line items]
Consideration received			$ 152	₩ 206
Non-Operating Gains (Losses)					(53)
Exchange recycled from other comprehensive income					(26)
Windsor Business | Major disposal
Disclosure of business disposal [line items]
Cash received in the period	$ 75	₩ 102
USL Popular brands (7)
Disclosure of business disposal [line items]
Non-operating items					4	$ 5
Guinness Cameroon S.A.
Disclosure of business disposal [line items]
Non-operating items					$ (11)
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation.

Sale of businesses (Details)

Sale of businesses (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022		Jun. 30, 2023	[1]
Disclosure of business disposal [line items]
Corporate tax	$ 253	$ 319	[1]	$ 170
Net assets disposed of	(11,724)	(11,839)	[1]	$ (11,709)
Loss on disposal before taxation	3,079	3,607	[2]
Taxation	(737)	(766)	[2],[3]
Loss on disposal after taxation	2,342	$ 2,841	[2],[3],[4]
Disposal group, disposed of by sale, not discontinued operations
Disclosure of business disposal [line items]
Cash received in the period	41
Cash disposed of	(20)
Transaction and other directly attributable costs paid	(3)
Net cash received	18
Deferred consideration receivable	107
Transaction and other directly attributable costs payable	(20)
Consideration Paid /(Received) Sale Of Businesses And Intangible Assets	105
Brands	(167)
Other non-current assets	(3)
Inventories	(11)
Other working capital	3
Corporate tax	2
Deferred tax	37
Net assets disposed of	(139)
Exchange recycled from other comprehensive income	(26)
Loss on disposal before taxation	(60)
Taxation	(1)
Loss on disposal after taxation	(61)
Windsor Business | Disposal group, disposed of by sale, not discontinued operations
Disclosure of business disposal [line items]
Cash received in the period	37
Cash disposed of	(20)
Transaction and other directly attributable costs paid	0
Net cash received	17
Deferred consideration receivable	107
Transaction and other directly attributable costs payable	(12)
Consideration Paid /(Received) Sale Of Businesses And Intangible Assets	112
Brands	(167)
Other non-current assets	(3)
Inventories	(11)
Other working capital	3
Corporate tax	2
Deferred tax	37
Net assets disposed of	(139)
Exchange recycled from other comprehensive income	(26)
Loss on disposal before taxation	(53)
Taxation	(1)
Loss on disposal after taxation	(54)
Other Individually Immaterial Business Disposed | Disposal group, disposed of by sale, not discontinued operations
Disclosure of business disposal [line items]
Cash received in the period	4
Cash disposed of	0
Transaction and other directly attributable costs paid	(3)
Net cash received	1
Deferred consideration receivable	0
Transaction and other directly attributable costs payable	(8)
Consideration Paid /(Received) Sale Of Businesses And Intangible Assets	(7)
Brands	0
Other non-current assets	0
Inventories	0
Other working capital	0
Corporate tax	0
Deferred tax	0
Net assets disposed of	0
Exchange recycled from other comprehensive income	0
Loss on disposal before taxation	(7)
Taxation	0
Loss on disposal after taxation	$ (7)
[1] (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (1) See page F-7 for an explanation under Basis of preparation. (2) See page F-7 for an explanation under Basis of preparation.

Contingent liabilities and le_2

Contingent liabilities and legal proceedings - Acquisition of USL shares from UBHL, winding-up petitions against UBHL and other proceedings in relation to the USL transaction (Details) - United Spirits Limited - ₨ / shares	Dec. 31, 2020	Jul. 04, 2013
Disclosure of contingent liabilities [line items]
Percentage of interest acquired		14.98%
Proportion of ownership interest in subsidiary	55.88%
USL Benefit Trust
Disclosure of contingent liabilities [line items]
Ownership interest held by external party	2.38%
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 the resignation of Dr Vijay Mallya from USL and USL internal inquiries (Details) $ in Millions	May 23, 2019 USD ($)	Mar. 12, 2018 instalment	Nov. 16, 2017 USD ($)	Feb. 25, 2016 USD ($)	Nov. 09, 2012 Petition
SPA | UBHL
Disclosure of contingent liabilities [line items]
Number of pending winding-up petitions | Petition					5
Dr Mallya | 25 February agreement
Disclosure of contingent liabilities [line items]
Committed payment relating to disengagement agreements				$ 75
Consideration payment period				5 years
Amount paid relating to disengagement agreements				$ 40
Amount payable relating to disengagement agreements in equal installments				7
Repayment demanded of original amount paid				40
Number Of Disputed Instalments | instalment		2
Watson Limited
Disclosure of contingent liabilities [line items]
Damages awarded	$ 135
Watson Limited | 25 February agreement
Disclosure of contingent liabilities [line items]
Release of obligations to indemnify under guarantee of certain borrowings				$ 141
Damages related to breach of associated security documents			$ 142
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)	6 Months Ended
	Dec. 31, 2023
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 USD ($)	Apr. 01, 2015 INR (₨)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jul. 03, 2013 USD ($)	Jul. 03, 2013 INR (₨)
Disclosure of contingent liabilities [line items]
Borrowings			$ 20,483	$ 19,582	$ 18,203	$ 17,107
IDBI Bank Limited | United Spirits Limited
Disclosure of contingent liabilities [line items]
Damages claimed	$ 6	₨ 459
IDBI Bank Limited | IDBI term loan | United Spirits Limited
Disclosure of contingent liabilities [line items]
Borrowings							$ 76	₨ 6,280

Contingent liabilities and le_6

Contingent liabilities and legal proceedings - Tax (Details) $ in Millions	Dec. 31, 2023 USD ($)
Brazil | Maximum | Tax contingent liability
Disclosure of contingent liabilities [line items]
Potential liability	$ 934
India
Disclosure of contingent liabilities [line items]
Receivable for protest payments	149
Receivable for protest payments, corporate taxes	137
Receivable for protest payments, indirect taxes	12
India | Maximum | Tax contingent liability
Disclosure of contingent liabilities [line items]
Potential liability	$ 115

Post balance sheet events (Deta

Post balance sheet events (Details) - Major business combination $ in Millions	Jan. 16, 2024 USD ($)
DeLeon Holdco LLC
Disclosure of non-adjusting events after reporting period [line items]
Proportion of voting rights held in subsidiary	100%
DeLeon Holdco LLC
Disclosure of non-adjusting events after reporting period [line items]
Percentage of voting equity interests acquired	50%
Consideration paid (received)	$ 200