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Operating costs | 12 Months Ended
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Jun. 30, 2023
Analysis of income and expense [abstract] |
Operating costs | 3. Operating costs
| 2023 £ million | 2022 £ million | 2021 £ million
Excise duties | 6,402 |  | 6,996 |  | 6,420 |
Cost of sales | 6,899 |  | 5,973 |  | 5,038 |
Marketing | 3,051 |  | 2,721 |  | 2,163 |
Other operating items | 2,531 |  | 2,349 |  | 1,801 |
| 18,883 |  | 18,039 |  | 15,422 |
Comprising: |  |  |
Excise duties |  |  |
India | 1,625 |  | 2,182 |  | 2,127 |
Great Britain | 1,095 |  | 1,172 |  | 1,018 |
United States | 687 |  | 614 |  | 589 |
Other | 2,995 |  | 3,028 |  | 2,686 |
Increase in inventories | (513) |  | (909) |  | (293) |
Raw materials and consumables | 4,328 |  | 4,017 |  | 3,126 |
Marketing | 3,051 |  | 2,721 |  | 2,163 |
Other external charges | 2,747 |  | 2,597 |  | 1,978 |
Staff costs | 1,830 |  | 1,795 |  | 1,586 |
Depreciation, amortisation and impairment | 1,066 |  | 828 |  | 447 |
Gains on disposal of properties | (4) |  | (2) |  | (1) |
Net foreign exchange losses | 10 |  | 10 |  | 22 |
Other operating income | (34) |  | (14) |  | (26) |
| 18,883 |  | 18,039 |  | 15,422 |
(a) Other external charges Other external charges include research and development expenditure in respect of new drinks products and package design of £53 million (2022 – £43 million; 2021 – £40 million) and maintenance and repairs of £143 million (2022 – £136 million; 2021 – £107 million). (b) Auditors fees Other external charges include the fees of the principal auditors of the group, PricewaterhouseCoopers LLP and its affiliates (PwC) and are analysed below.
| 2023 £ million | 2022 £ million | 2021 £ million
Audit of these financial statements | 5.2 |  | 4.2 |  | 3.8 |
Audit of financial statements of subsidiaries | 5.7 |  | 6.1 |  | 4.4 |
Audit related assurance services(1) | 2.7 |  | 2.5 |  | 2.6 |
Total audit fees (Audit fees) | 13.6 |  | 12.8 |  | 10.8 |
Other assurance services (Audit related fees)(2) | 1.2 |  | 0.7 |  | 0.8 |
| 14.8 |  | 13.5 |  | 11.6 |
(1) Audit related assurance services are in respect of reporting under section 404 of the US Sarbanes-Oxley Act and the review of the interim financial information. (2) Other assurance services comprise the aggregate fees for assurance and related services that are not reported under ‘total audit fees’. (i) Disclosure requirements for auditors fees in the United States are different from those required in the United Kingdom. The terminology by category required in the United States is disclosed in brackets in the above table. Audit services provided by firms other than PwC for the year ended 30 June 2023 were £0.1 million (2022 – £0.1 million; 2021 – £0.1 million). Further PwC fees for audit services in respect of post employment plans were £0.3 million for the year ended 30 June 2023 (2022 – £0.2 million; 2021 – £0.2 million). (c) Staff costs and average number of employees
| 2023 £ million | 2022 £ million | 2021 £ million
Aggregate remuneration |  |  |
Wages and salaries | 1,548 |  | 1,557 |  | 1,336 |
Share-based incentive plans | 48 |  | 59 |  | 50 |
Employer’s social security | 115 |  | 107 |  | 83 |
Employer’s pension |  |  |
Defined benefit plans | 67 |  | 36 |  | 82 |
Defined contribution plans | 44 |  | 33 |  | 25 |
Other post employment plans | 8 |  | 3 |  | 10 |
| 1,830 |  | 1,795 |  | 1,586 |
The average number of employees on a full-time equivalent basis (excluding employees of associates and joint ventures) was as follows:
| 2023 | 2022 | 2021
North America | 2,884 |  | 2,811 |  | 2,562 |
Europe | 2,789 |  | 3,014 |  | 3,237 |
Asia Pacific | 6,856 |  | 6,500 |  | 6,474 |
Latin America and Caribbean | 1,495 |  | 1,500 |  | 1,505 |
Africa | 3,526 |  | 4,061 |  | 4,016 |
SC&P | 6,934 |  | 5,025 |  | 5,085 |
Corporate and other | 5,753 |  | 5,076 |  | 4,687 |
| 30,237 |  | 27,987 |  | 27,566 |
At 30 June 2023 on a full-time equivalent basis, the group had 30,269 (2022 – 28,558; 2021 – 27,783) employees. The average number of employees of the group, including part-time employees, for the year was 30,419 (2022 – 28,137; 2021 – 28,025). (d) Exceptional operating items Included in the table above are exceptional operating items as follows:
| 2023 £ million | 2022 £ million | 2021 £ million
Depreciation, amortisation and impairment |  |  |
Brand and goodwill impairment | 498 |  | 336 |  | — |
Tangible asset impairment and accelerated depreciation | 72 |  | — |  | — |
Staff costs | 10 |  | — |  | 5 |
Other external charges | 60 |  | 52 |  | 13 |
Other operating income | (18) |  | — |  | (3) |
Total exceptional operating items (note 4) | 622 |  | 388 |  | 15 |
Cost of sales | 67 |  | — |  | — |
Other operating expenses | 555 |  | 388 |  | 15 |

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