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Net borrowings | 12 Months Ended
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Jun. 30, 2024
Disclosure of detailed information about borrowings [abstract] |
Net borrowings | 17. Net borrowings Accounting policies Borrowings are initially recognised at fair value net of transaction costs and are subsequently reported at amortised cost. Certain bonds are designated in fair value hedge relationship. In these cases, the amortised cost is adjusted for the fair value of the risk being hedged, with changes in value recognised in the income statement. The fair value adjustment is calculated using a discounted cash flow technique based on unadjusted market data. Bank overdrafts form an integral part of the group’s cash management and are included as a component of net cash and cash equivalents in the consolidated statement of cash flows. Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and have an original maturity of three months or less, including money market deposits, commercial paper and investments. Net borrowings are defined as gross borrowings (short-term borrowings and long-term borrowings plus lease liabilities plus interest rate hedging instruments, cross currency interest rate swaps and foreign currency forwards and swaps used to manage borrowings) less cash and cash equivalents.
| 2024 $ million | 2023 re-presented $ million
Bank overdrafts | 21 | 45
Commercial paper | 479 | 250
Bank and other loans | 76 | 153
Credit support obligations | 14 | 19
€ 600 million 0.125% bonds due 2023 | — | 646
$ 500 million 3.5% bonds due 2023(2) | — | 500
€ 500 million 0.5% bonds due 2024 | — | 537
$ 600 million 2.125% bonds due 2024(2) | 600 | —
€ 500 million 1.75% bonds due 2024 | 535 | —
€ 600 million 1% bonds due 2025 | 641 | —
€ 500 million 3.5% bonds due 2025 | 534 | —
Fair value adjustment to borrowings | (15) | (8)
Borrowings due within one year | 2,885 | 2,142
$ 600 million 2.125% bonds due 2024(2) | — | 600
€ 500 million 1.75% bonds due 2024 | — | 538
€ 600 million 1% bonds due 2025 | — | 644
€ 500 million 3.5% bonds due 2025 | — | 537
$ 500 million 5.2% bonds due 2025(2) | 499 | 499
$ 750 million 1.375% bonds due 2025(2) | 749 | 748
€ 850 million 2.375% bonds due 2026 | 908 | 913
€ 500 million floating bonds due 2026 | 535 | —
£ 500 million 1.75% bonds due 2026 | 630 | 627
$ 800 million 5.375% bonds due 2026(2) | 797 | —
$ 750 million 5.3% bonds due 2027(2) | 748 | 748
€ 750 million 1.875% bonds due 2027 | 800 | 805
€ 500 million 1.5% bonds due 2027 | 534 | 537
€ 700 million 0.125% bonds due 2028 | 746 | 750
$ 500 million 3.875% bonds due 2028(2) | 498 | 498
£ 300 million 2.375% bonds due 2028 | 377 | 375
$ 1,000 million 2.375% bonds due 2029(2) | 993 | 992
£ 300 million 2.875% bonds due 2029 | 377 | 376
€ 750 million 1.5% bonds due 2029 | 801 | 806
$ 1,000 million 2% bonds due 2030(2) | 995 | 994
€ 1,000 million 2.5% bonds due 2032 | 1,066 | 1,072
$ 750 million 2.125% bonds due 2032(2) | 744 | 743
£ 400 million 1.25% bonds due 2033 | 500 | 499
$ 750 million 5.5% bonds due 2033(2) | 744 | 744
$ 900 million 5.625% bonds due 2033(2) | 894 | —
€ 900 million 1.875% bonds due 2034 | 957 | 962
$ 400 million 7.45% bonds due 2035(1) | 400 | 400
$ 600 million 5.875% bonds due 2036(2) | 594 | 594
£ 600 million 2.75% bonds due 2038 | 752 | 750
$ 500 million 4.25% bonds due 2042(1) | 495 | 495
$ 500 million 3.875% bonds due 2043(2) | 492 | 492
Bank and other loans | 344 | 372
Fair value adjustment to borrowings | (353) | (461)
Borrowings due after one year | 18,616 | 18,649
Total borrowings before leases and derivative financial instruments | 21,501 | 20,791
Fair value of cross currency interest rate swaps | (323) | (438)
Fair value of foreign currency swaps and forwards | (11) | 2
Fair value of interest rate hedging instruments | 376 | 476
Lease liabilities | 604 | 564
Gross borrowings | 22,147 | 21,395
Less: Cash and cash equivalents | (1,130) | (1,813)
Net borrowings | 21,017 | 19,582
(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 $95 million (2023 – $102 million). (iii) All bonds, medium-term notes and commercial paper issued on an unsecured basis by the group’s 100% owned subsidiaries are fully and unconditionally guaranteed on an unsecured basis by Diageo plc and no other subsidiary of Diageo plc guarantees such securities. Gross borrowings before leases and derivative financial instruments are expected to mature as follows:
| 2024 $ million | 2023 re-presented $ million
Within one year | 2,885 | 2,142
Between one and three years | 4,873 | 4,437
Between three and five years | 4,222 | 3,620
Beyond five years | 9,521 | 10,592
| 21,501 | 20,791
During the year, the following bonds were issued and repaid:
| 2024 $ million | 2023 re-presented $ million | 2022 re-presented $ million
Issued |  |  |
€ denominated | 535 | 548 | 1,800
£ denominated | — | — | 1,171
$ denominated | 1,690 | 1,989 | —
Repaid |  |  |
€ denominated | (1,167) | — | (1,060)
$ denominated | (500) | (1,650) | (1,000)
| 558 | 887 | 911
(a) Reconciliation of movement in net borrowings
| 2024 $ million | 2023 re-presented $ million
At beginning of the year | 19,582 | 17,107
Net decrease in cash and cash equivalents before exchange | 596 | 831
Net increase in bonds and other borrowings(1) | 453 | 958
Increase in net borrowings from cash flows | 1,049 | 1,789
Exchange differences on net borrowings | 199 | 646
Other non-cash items(2) | 187 | 40
Net borrowings at end of the year | 21,017 | 19,582
(1)In the year ended 30 June 2024, net increase in bonds and other borrowings excludes $1 million cash outflow in respect of derivatives designated in forward point hedges (2023 – $2 million). (2)In the year ended 30 June 2024, other non-cash items are principally in respect of fair value gains of cross currency interest rate swaps and interest rate swaps of $111 million, offsetting an increase in lease liabilities of $152 million, and fair value losses on borrowings of $116 million, and $30 million reclassification of cash to assets held for sale. In the year ended 30 June 2023, other non-cash items are principally in respect of fair value gains of cross currency interest rate swaps and interest rate swaps of $42 million, and an increase in lease liabilities of $99 million, partially offset by the $101 million fair value loss on borrowings. (b) Analysis of gross borrowings by currency
| 2024 | 2023
| Cash and cash equivalents $ million | Gross borrowings(1) $ million | Cash and cash equivalents re-presented $ million | Gross borrowings(1) re-presented $ million
US dollar | 130 | (9,590) | 682 | (7,247)
Euro(2) | 59 | (5,820) | 60 | (4,870)
Sterling | 29 | (4,767) | 59 | (7,846)
Indian rupee | 170 | (57) | 155 | (39)
Mexican peso | 34 | (261) | 31 | (361)
Hungarian forint | 3 | (21) | 4 | (329)
Kenyan shilling | 55 | (295) | 36 | (318)
Chinese yuan | 258 | (964) | 251 | (79)
Nigerian naira | — | — | 105 | —
Other(2) | 392 | (372) | 430 | (306)
Total | 1,130 | (22,147) | 1,813 | (21,395)
(1)Includes foreign currency forwards and swaps and leases. (2)Includes $11 million (euro) cash and cash equivalents in cash-pooling arrangements (2023 – $26 million (euro)).

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