XML 173 R48.htm IDEA: XBRL DOCUMENT v3.23.2
Net borrowings (Tables)
 12 Months Ended
Jun. 30, 2023
Disclosure of detailed information about borrowings [abstract]  
Schedule of borrowings
 
2023
£ million
2022
£ million
Bank overdrafts
36 74 
Commercial paper
198 — 
Bank and other loans
121 105 
Credit support obligations
15 (19)
$ 300 million 8% bonds due 2022(1)
— 248 
$ 1,350 million 2.625% bonds due 2023(2)
— 1,115 
€ 600 million 0.125% bonds due 2023
513 — 
$ 500 million 3.5% bonds due 2023(2)
397 — 
€ 500 million 0.5% bonds due 2024
427 — 
Fair value adjustment to borrowings(6)(1)
Borrowings due within one year
1,701 1,522 
€ 600 million 0.125% bonds due 2023
— 516 
$ 500 million 3.5% bonds due 2023(2)
— 413 
€ 500 million 0.5% bonds due 2024
— 430 
$ 600 million 2.125% bonds due 2024(2)
476 495 
€ 500 million 1.75% bonds due 2024
427 430 
$ 500 million 5.20% bonds due 2025(2)
396 — 
$ 750 million 1.375% bonds due 2025(2)
594 618 
€ 600 million 1% bonds due 2025
511 515 
€ 500 million 3.5% bonds due 2025
427 — 
€ 850 million 2.375% bonds due 2026
725 731 
£ 500 million 1.750% bonds due 2026
497 498 
$ 750 million 5.3% bonds due 2027(2)
593 — 
€ 750 million 1.875% bonds due 2027
638 643 
€ 500 million 1.5% bonds due 2027
426 430 
€ 700 million 0.125% bonds due 2028
595 600 
$ 500 million 3.875% bonds due 2028(2)
395 411 
£ 300 million 2.375% bonds due 2028
298 298 
$ 1,000 million 2.375% bonds due 2029(2)
787 819 
£ 300 million 2.875% bonds due 2029
299 298 
€ 750 million 1.15% bonds due 2029
640 645 
$ 1,000 million 2% bonds due 2030(2)
789 821 
€ 1,000 million 2.5% bonds due 2032
850 856 
$ 750 million 2.125% bonds due 2032(2)
590 614 
£ 400 million 1.25% bonds due 2033
396 395 
$ 750 million 5.5% bonds due 2033(2)
590 — 
€ 900 million 1.15% bonds due 2034
764 770 
$ 400 million 7.45% bonds due 2035(1)
317 331 
$ 600 million 5.875% bonds due 2036(2)
472 491 
£ 600 million 2.75% bonds due 2038
595 595 
$ 500 million 4.250% bonds due 2042(1)
393 409 
$ 500 million 3.875% bonds due 2043(2)
391 407 
Bank and other loans296 293 
Fair value adjustment to borrowings
(366)(274)
Borrowings due after one year
14,80114,498
Total borrowings before derivative financial instruments16,50216,020
Fair value of cross currency interest rate swaps
(348)(367)
Fair value of foreign currency swaps and forwards
1 11 
Fair value of interest rate hedging instruments
377 283 
Lease liabilities
448 475 
Gross borrowings
16,98016,422
Less: Cash and cash equivalents
(1,439)(2,285)
Net borrowings
15,54114,137
(1)    SEC-registered debt issued on an unsecured basis by Diageo Investment Corporation, a 100% owned finance subsidiary of Diageo plc and fully and unconditionally guaranteed by Diageo plc. No other subsidiary of Diageo plc guarantees the security.
(2)    SEC-registered debt issued on an unsecured basis by Diageo Capital plc, a 100% owned finance subsidiary of Diageo plc and fully and unconditionally guaranteed by Diageo plc. No other subsidiary of Diageo plc guarantees the security.
(i)     The interest rates shown are those contracted on the underlying borrowings before taking into account any interest rate hedges (see note 16).
(ii)     Bonds are stated net of unamortised finance costs of £81 million (2022 – £85 million).
(iii)     All bonds, medium-term notes and commercial paper issued on an unsecured basis by the group’s 100% owned subsidiaries are fully and unconditionally guaranteed on an unsecured basis by Diageo plc and no other subsidiary of Diageo plc guarantees such securities.
Schedule of maturity of gross borrowings before derivative financial instruments
Gross borrowings before derivative financial instruments are expected to mature as follows:
 
2023
£ million
2022
£ million
Within one year
1,701 1,522 
Between one and three years
3,522 2,817 
Between three and five years
2,874 2,625 
Beyond five years
8,405 9,056 
16,502 16,020 
Schedule of bonds issued and repaid
During the year, the following bonds were issued and repaid:
 
2023
£ million
2022
£ million
2021
£ million
Issued
€ denominated
441 1,371 636 
£ denominated
— 892 395 
$ denominated
1,788 — — 
Repaid
€ denominated
— (769)(696)
$ denominated
(1,340)(752)(551)
889742(216)
Schedule of movement in net borrowings
(a) Reconciliation of movement in net borrowings
 
2023
£ million
2022
£ million
At beginning of the year
14,137 12,109 
Net decrease in cash and cash equivalents before exchange581 665 
Net increase in bonds and other borrowings(1)
950 825 
Increase in net borrowings from cash flows
1,531 1,490 
Exchange differences on net borrowings
(159)334 
Other non-cash items(2)
32 204 
Net borrowings at end of the year
15,541 14,137 
(1)    In the year ended 30 June 2023, net increase in bonds and other borrowings excludes £2 million cash outflow in respect of derivatives designated in forward point hedges (2022 – £4 million).
(2)    In the year ended 30 June 2023, other non-cash items are principally in respect of fair value changes of cross currency interest rate swaps and interest rate swaps of £(34) million and lease liabilities of £(82) million, partially offset by the £84 million fair value change of borrowings. In the year ended 30 June 2022, other non-cash items are principally in respect of fair value changes of cross currency interest rate swaps and interest rate swaps of £(346) million and lease liabilities of £(183) million, partially offset by the £331 million fair value change of borrowings.
Schedule of net borrowings by currency
(b) Analysis of net borrowings by currency
 20232022
 Cash and cash
equivalents
£ million
Gross
borrowings(1)
£ million
Cash and cash
equivalents
£ million
Gross
borrowings(1)
£ million
US dollar
542 (5,751)1,315 (3,260)
Euro(2)
48 (3,864)61 (2,943)
Sterling
46 (6,227)67 (9,214)
Indian rupee
123 (31)26 (74)
Mexican peso25 (286)14 (264)
Hungarian forint3 (261)2 (214)
Kenyan shilling28 (253)53 (254)
Chinese yuan199 (63)290 (75)
Nigerian naira83 — 133 — 
Other(2)
342 (244)324 (124)
Total
1,439 (16,980)2,285 (16,422)

(1)    Includes foreign currency forwards and swaps and leases.
(2)    Includes £21 million (Euro) cash and cash equivalents in cash-pooling arrangements (2022 – £23 million (Turkish lira and Euro)).