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Working capital | 12 Months Ended
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Jun. 30, 2024
Summary Of Additional Information About Working Capital [Abstract] |
Working capital | 15. Working capital Accounting policies Inventories are stated at the lower of cost and net realisable value. Cost includes raw materials, direct labour and expenses, an appropriate proportion of production and other overheads, but not borrowing costs. Cost is calculated at the weighted average cost incurred in acquiring inventories. All maturing inventories and raw materials are classified as current assets, as they are expected to be realised in the normal operating cycle which can be a period of several years. Trade and other receivables are initially recognised at fair value less transaction costs and subsequently carried at amortised cost less any allowance for discounts and doubtful debts. Trade receivables arise from contracts with customers, and are recognised when performance obligations are satisfied, and the consideration due is unconditional as only the passage of time is required before the payment is received. Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk. Trade and other payables are initially recognised at fair value including transaction costs and subsequently carried at amortised costs. Contingent considerations recognised in business combinations are subsequently measured at fair value through income statement. The group evaluates supplier arrangements against a number of indicators to assess if the liability has the characteristics of a trade payable or should be classified as borrowings. This assessment considers the commercial purpose of the facility, whether payment terms are similar to customary payment terms, whether the group is legally discharged from its obligation towards suppliers before the end of the original payment term, and the group’s involvement in agreeing terms between banks and suppliers. Provisions are liabilities of uncertain timing or amount. A provision is recognised if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are calculated on a discounted basis. The carrying amounts of provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. (a) Inventories
| 2024 $ million | 2023 re-presented $ million
Raw materials and consumables | 639 | 684
Work in progress | 118 | 166
Maturing inventories | 7,832 | 7,300
Finished goods and goods for resale | 1,131 | 1,503
| 9,720 | 9,653
Maturing inventories include whisk(e)y, rum, tequila and Chinese white spirits. The following amounts of inventories can be utilised after more than one year:
| 2024 $ million | 2023 re-presented $ million
Raw materials and consumables | 19 | 29
Maturing inventories | 5,885 | 5,119
| 5,904 | 5,148
Inventories are disclosed net of provisions for obsolescence, an analysis of which is as follows:
| 2024 $ million | 2023 re-presented $ million | 2022 re-presented $ million
Balance at beginning of the year | 128 | 113 | 133
Exchange differences | (3) | (27) | (8)
Income statement charge | 51 | 66 | 8
Utilised | (47) | (23) | (18)
Sale of businesses | (5) | (1) | (2)
| 124 | 128 | 113
(b) Trade and other receivables
| 2024 | 2023 (re-presented)
| Current assets $ million | Non-current assets $ million | Current assets $ million | Non-current assets $ million
Trade receivables | 2,674 | — | 2,534 | —
Interest receivable | 31 | — | 15 | —
VAT recoverable and other prepaid taxes | 227 | 17 | 342 | 19
Other receivables | 240 | 14 | 205 | 16
Prepayments | 274 | 7 | 288 | 4
Accrued income | 41 | — | 43 | —
| 3,487 | 38 | 3,427 | 39
At 30 June 2024, approximately 21%, 16% and 9% of the group’s trade receivables of $2,674 million are due from counterparties based in the United States, India and United Kingdom, respectively. Accrued income primarily represents amounts receivable from customers in respect of performance obligations satisfied but not yet invoiced. The aged analysis of trade receivables, net of expected credit loss allowance, is as follows:
| 2024 $ million | 2023 re-presented $ million
Not overdue | 2,490 | 2,479
Overdue 1 – 30 days | 43 | 32
Overdue 31 – 60 days | 31 | 8
Overdue 61 – 90 days | 27 | 4
Overdue 91 – 180 days | 71 | 7
Overdue more than 180 days | 12 | 4
| 2,674 | 2,534
Increase in overdue balances in the year ended 30 June 2024 was driven by receivables against institutional customers with low credit risk in certain countries. Trade and other receivables are disclosed net of expected credit loss allowance for doubtful debts, an analysis of which is as follows:
| 2024 $ million | 2023 re-presented $ million | 2022 re-presented $ million
Balance at beginning of the year | 112 | 143 | 154
Exchange differences | (3) | (10) | (12)
Income statement (release)/charge | 8 | (4) | 28
Written off | (22) | (17) | (27)
| 95 | 112 | 143
(c) Trade and other payables
| 2024 | 2023 (re-presented)
| Current liabilities $ million | Non-current liabilities $ million | Current liabilities $ million | Non-current liabilities $ million
Trade payables | 3,071 | — | 3,351 | —
Interest payable | 358 | — | 299 | —
Tax and social security excluding income tax | 724 | — | 796 | —
Other payables | 499 | 304 | 544 | 463
Accruals | 1,564 | — | 1,549 | —
Deferred income | 84 | — | 92 | —
Dividend payable | 31 | — | 29 | —
Dividend payable to non-controlling interests | 23 | — | 18 | —
| 6,354 | 304 | 6,678 | 463
Interest payable at 30 June 2024 includes interest on non-derivative financial instruments of $291 million (2023 – $274 million). Accruals at 30 June 2024 include $764 million (2023 – $707 million) accrued discounts attributed to sales recognised. Deferred income represents amounts paid by customers in respect of performance obligations not yet satisfied. The amount of contract liabilities recognised as revenue in the current year is $92 million (2023 – $109 million). Non-current liabilities include the net present value of contingent consideration in respect of prior acquisitions of $231 million (2023 – $369 million). For further information on contingent consideration, please refer to note 16 (g). Together with the group’s partner banks, supply chain financing (SCF) facilities are provided to suppliers in certain countries. These arrangements enable suppliers to receive funding earlier than the invoice due date at their discretion and at their own cost. Payment terms continue to be agreed directly between the group and suppliers, independently from the availability of SCF facilities. Liabilities are settled in accordance with the original due date of invoices. The group does not incur any fees or receive any rebates where the suppliers choose to utilise these facilities. The group has determined that it is appropriate to present amounts outstanding subject to SCF arrangements as trade payables. Consistent with this classification, cash flows are presented either as operating cash flows or cash flows from investing activities, when related to the acquisition of non-current assets. At 30 June 2024, the amount that has been subject to SCF and accounted for as trade payables was $847 million (2023 – $916 million).(d) Provisions
| Thalidomide $ million | Other $ million | Total $ million
At 30 June 2023 (re-presented) | 212 | 244 | 456
Exchange differences | — | (3) | (3)
Provisions charged during the year | — | 61 | 61
Provisions utilised during the year | (17) | (103) | (120)
Transfers from other payables | — | (5) | (5)
Unwinding of discounts | 6 | 2 | 8
At 30 June 2024 | 201 | 196 | 397
Current liabilities | 17 | 80 | 97
Non-current liabilities | 184 | 116 | 300
| 201 | 196 | 397
Provisions have been established in respect of the discounted value of the group’s commitment to the UK and Australian Thalidomide Trusts. These provisions will be utilised over the period of the commitments up to 2037. The largest item in other provisions at 30 June 2024 is $54 million (2023 – $64 million) in respect of deferred employee compensation plans which will be utilised when employees leave the group.

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