deo-20241231

INTRODUCTION

Diageo plc is a public limited company incorporated under the laws of England and Wales. As used herein, except as the

context otherwise requires, the term ‘company’ refers to Diageo plc and the terms ‘group’ and ‘Diageo’ refer to the company

and its consolidated subsidiaries. References used herein to ‘shares’ and ‘ordinary shares’ are, except where otherwise

specified, to Diageo plc’s ordinary shares.

PRESENTATION OF FINANCIAL INFORMATION

The unaudited condensed consolidated interim financial statements starting on page F-1 have been prepared in accordance with

UK adopted International Accounting Standard 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 2024, 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 2024, 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 3 February 2025.

The financial statements for Diageo plc for the year ending 30 June 2025 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.

The business review and financial information included in this document for the six months ended 31 December 2024 and 31

December 2023 have been derived from the Diageo interim condensed consolidated financial information.

The principal executive office of the company is located at 16 Great Marlborough Street, London W1F 7HS, England and its

telephone number is +44 (0) 20 7947 9100.

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Cautionary statement concerning forward-looking statements

This document contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only

to historical or current facts and may generally, but not always, be identified by the use of words such as “’will”, “anticipates”,

“should”, “could”, “would”, “targets”, “aims”, “may”, “expects”, “intends” or similar expressions or statements. In particular,

forward-looking statements include all statements that express forecasts, expectations, plans, outlook, objectives and projections

with respect to future matters, including the statements set forth in the 'Implications of US Tariff implementation', 'Fiscal 25

outlook' and any other statements with respect to trends in results of operations, margins, growth rates, overall market trends,

the impact of changes in interest or exchange rates, the availability or cost of financing to Diageo, anticipated cost savings or

synergies, anticipated productivity savings, expected investments, expected inventory levels, the completion of any strategic

transactions or restructuring programmes, anticipated tax rates, changes in the international tax environment, impact of tariffs,

expected cash payments, outcomes of litigation or regulatory enquiries, anticipated changes in the value of assets and liabilities

related to pension schemes and general economic conditions. By their nature, forward-looking statements involve risk and

uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of

factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-

looking statements, including factors that are outside Diageo's control.

These factors include, but are not limited to: (i) economic, political, social or other developments in countries and markets in

which Diageo operates, including geopolitical instability as a result of Russia’s invasion of Ukraine and the conflict in the

Middle East and macroeconomic events that may affect Diageo’s customers, suppliers and/or financial counterparties; (ii) the

effects of climate change, or legal, regulatory or market measures intended to address climate change; (iii) changes in consumer

preferences and tastes, including as a result of disruptive market forces, changes in demographics and evolving social trends

(including any shifts in consumer tastes towards at-home occasions, premiumisation, small-batch craft alcohol, or lower or non-

alcoholic products and/or developments in e-commerce); (iv) changes in the domestic and international tax environment that

could lead to uncertainty around the application of existing and new tax laws and unexpected tax exposures; (v) changes in the

cost of production, including as a result of increases in the cost of commodities, labour and/or energy due to inflation and/or

supply chain disruptions; (vi) any litigation or other similar proceedings (including with tax, customs, competition,

environmental, anti-corruption or other regulatory authorities); (vii) legal and regulatory developments, including changes in

regulations relating to environmental issues and/or e-commerce; (viii) the consequences of any failure of internal controls; (ix)

the consequences of any failure by Diageo or its associates to comply with anti-corruption, sanctions, trade restrictions or

similar laws and regulations, or any failure of Diageo’s related internal policies and procedures to comply with applicable law

or regulation; (x) Diageo’s ability to make sufficient progress against or achieve its ESG ambitions; (xi) cyber-attacks and IT

threats or any other disruptions to core business operations; (xii) loss, operational disruptions to or closure of a production site,

office or other key facility due to unforeseen or catastrophic events or otherwise; (xiii) contamination, counterfeiting or other

circumstances that raise consumer concerns and could harm the level of customer support for Diageo’s brands and adversely

impact its sales; (xiv) Diageo’s ability to maintain its brand image and corporate reputation or to adapt to a changing media

environment; (xv) fluctuations in exchange rates and/or interest rates; (xvi) Diageo’s ability to successfully execute its strategic

business transformation projects; (xvii) Diageo’s ability to derive the expected benefits from its business strategies, including

Diageo’s investments in e-commerce and its luxury portfolio; (xviii) increased competitive product and pricing pressures,

including as a result of introductions of new products or categories that compete with Diageo’s products and consolidations by

competitors and retailers; (xix) increased costs for, or shortages of, talent, as well as labour strikes or disputes; (xx) movements

in the value of the assets and liabilities related to Diageo’s pension plans; (xxi) Diageo’s ability to renew supply, distribution,

manufacturing or licence agreements (or related rights) and licences on favourable terms, or at all, when they expire; or (xxii)

any failure by Diageo to protect its intellectual property rights.

All oral and written forward-looking statements made on or after the date of this document and attributable to Diageo are

expressly qualified in their entirety by the above cautionary factors, by the ‘Risk Factors’ section immediately preceding those

and by the ‘Risk Factors’ included in Diageo’s Annual Report on Form 20-F for the year ended 30 June 2024 filed with the US

Securities and Exchange Commission. Any forward-looking statements made by or on behalf of Diageo speak only as of the

date they are made. Diageo does not undertake to update forward-looking statements to reflect any changes in Diageo's

expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

This document includes names of Diageo’s products, which constitute trademarks or trade names which Diageo owns, or which

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CAPITALISATION AND INDEBTEDNESS

The following table sets out on an IFRS basis the unaudited capitalisation and indebtedness and the unaudited cash and cash

equivalents of Diageo as at 31 December 2024.


	31 December 2024
	$ million
Indebtedness
Short-term borrowings and bank overdrafts	2,496
Long-term borrowings	19,224
Lease liabilities	623
Total indebtedness	22,343
Capitalisation
Share capital	887
Share premium	1,703
Capital redemption reserve	4,082
Hedging and exchange reserve	(4,546)
Own shares	(2,231)
Other retained earnings	10,389
Equity attributable to the equity shareholders of the parent company	10,284
Non-controlling interests	2,121
Total equity	12,405
Total capitalisation and indebtedness	34,748
Cash and cash equivalents	1,656

Notes

(1)At 31 December 2024, 2,432 million ordinary shares of 28101/108 pence each were issued, all of which were fully paid,

including shares issued, shares issued and held in employee share trusts and those held as treasury shares.

(2)There have been no material changes to performance guarantees or indemnities in respect of liabilities of third parties

from those reported in Diageo’s Annual Report on Form 20-F for the year ended 30 June 2024.

(3)At 31 December 2024, none of the group’s net borrowings were secured on assets of the group.

(4)An interim dividend of 40.50 cents per share will be paid to holders of ordinary shares and ADRs on the register as of 1

March 2025.

(5)Other than those disclosed above, there has been no material change since 31 December 2024 in the group’s net

borrowings, performance guarantees, indemnities and capitalisation.

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OPERATING RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2024 COMPARED WITH THE SIX

MONTHS ENDED 31 DECEMBER 2023

Financial highlights

◦Reported net sales of $10.9 billion declined 0.6% due to unfavourable foreign exchange, partially offset by an increase in

organic net sales.

◦Organic net sales returned to growth and increased $101 million or 1.0%, driven by positive price/mix of 1.2pps, partially

offset by a 0.2% volume decline.

◦Reported operating profit declined 4.9% and reported operating profit margin declined 132 bps, primarily due to

unfavourable foreign exchange and a decline in organic operating margin.

◦Organic operating profit declined by $42 million or 1.2%; organic operating margin declined 69 bps primarily due to

continued investment primarily in overheads, partially offset by reduced marketing spend and positive gross margin

expansion.

◦Diageo grew or held total market share in 65%(1) of total net sales value in measured markets, including in the US.

◦EPS pre-exceptionals declined 9.6% to 97.7 cents largely due to a significantly lower Moët Hennessy contribution and

unfavourable foreign exchange.

◦Net cash flow from operating activities increased by $0.2 billion to $2.3 billion. Free cash flow increased by $0.1 billion to

$1.7 billion.

◦Medium-term guidance has been removed due to the current macroeconomic and geopolitical uncertainty in many of our

key markets impacting the pace of recovery. We remain confident of favourable industry fundamentals and our ability to

outperform. Instead in the interim, we will provide more regular near term guidance.

◦Declared interim dividend of 40.5 cents.

◦Leverage ratio of 3.1x (net debt to EBITDA) as at 31 December 2024.

(1) Internal estimates incorporating Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, INTAGE, IRI, ISCAM, NABCA, State

Monopolies, TRAC, IPSOS and other third-party providers. All analysis of data has been applied with a tolerance of +/- 3 bps and the descriptions applied of

gaining, holding or losing share by the Company or brands are based on estimated performance within that tolerance. Percentages represent percent of markets

by total Diageo net sales contribution that have held or gained total trade share fiscal year to date. Measured markets indicate a market where we have

purchased any market share data. Market share data may include beer, wine, spirits or other elements. Measured market net sales value sums to 89% of total

Diageo net sales value for the six months ended 31 December 2024.

RECENT TRENDS

Debra Crew, Chief Executive of Diageo, commenting on the six months ended 31 December 2024 said:

Our fiscal 25 first half results marked a return to growth, delivering organic net sales growth of 1% despite a challenging

industry backdrop as consumers continue to navigate through inflationary pressures. Growth in four of our five regions was

supported by market share gains. Notably, in North America, we outperformed the market with high quality share growth and

positive organic net sales growth, driven by strong execution and momentum in Don Julio and Crown Royal. I’m also

particularly proud of the performance of our iconic Guinness brand, which delivered double-digit growth for an eighth

consecutive half, supported by brand building expertise, innovation and growing global momentum.

While the pace of recovery has been slower in several key markets, we remain confident of favourable long-term industry

fundamentals and more importantly in our ability to outperform the market. Spirits remains an attractive sector with a long

runway for growth, as we expect to continue to gain share within Total Beverage Alcohol (TBA). Additionally, our investments

in digital capabilities, supply chain, and our transformational route-to-market changes will all be supportive in driving long

term sustainable growth, and I am pleased that we are already seeing early benefits from changes in our US route-to-market

transformation. Diageo has anticipated and planned for a number of potential scenarios regarding tariffs in recent months. The

confirmation at the weekend of the implementation of tariffs in the US, whilst anticipated, could very well impact this building

momentum. It also adds further complexity in our ability to provide updated forward guidance given this is a new and dynamic

situation. We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we

will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the

US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets.

Finally, on behalf of the Board, and personally, I would like to thank Javier Ferrán for the enormous contribution he has made

as Chair at Diageo. His dedication and stewardship have left the company in a strong position for high-quality future growth. I

would also like to welcome Sir John Manzoni as his successor. I am certain that the experience he brings as new Chair will be

invaluable.

See pages 38-47 for an explanation and reconciliation of non-GAAP measures, including organic net sales, organic marketing investment, organic operating

profit, free cash flow, eps before exceptional items, adjusted net debt, adjusted EBITDA and tax rate before exceptional items. Unless otherwise stated,

movements in results are for the six months ended 31 December 2024 compared to the six months ended 31 December 2023.

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Summary financial information		F25 H1	F24 H1	Organic growth %	Reported growth %
Volume	EUm	122.8	124.6	—	(1)
Net sales	$ million	10,901	10,962	1	(1)
Marketing	$ million	1,896	1,952	(2)	(3)
Operating profit before exceptional items	$ million	3,372	3,510	(1)	(4)
Exceptional operating items(1)	$ million	(217)	(193)
Operating profit	$ million	3,155	3,317		(5)
Share of after tax results of associates and joint ventures	$ million	115	253		(55)
Non-operating exceptional items(1)	$ million	(54)	(60)
Net finance charges	$ million	(442)	(431)
Exceptional taxation credit(1)	$ million	32	42
Tax rate including exceptional items	%	25.2	23.9		5
Tax rate before exceptional items	%	24.0	23.4		3
Profit attributable to parent company’s shareholders	$ million	1,935	2,210		(12)
Basic earnings per share	cents	87.1	98.6		(12)
Basic earnings per share before exceptional items	cents	97.7	108.1		(10)
Interim dividend	cents	40.50	40.50		—

(1) For further details on exceptional items see pages 16 and F-11-F-13.

Implications of US Tariff implementation

On Saturday 1 February 2025 President Trump in one of three separate Executive Orders announced the implementation of

25% tariffs on goods imported into the US from Canada and Mexico. These tariffs, applicable from 4 February 2025, would

apply to our products made in Canada and Mexico in transit after midnight 1 February 2025. Separately, both the Prime

Minister of Canada and President of Mexico have stated that they would impose retaliatory tariffs on US products. The US

Executive Orders further stated that should any reactive tariffs be imposed by such nations, this would, in turn, attract further

retaliatory tariffs. On Monday 3 February 2025, President Trump and President Claudia Sheinbaum confirmed an immediate

pause on the anticipated Mexican tariffs for a 1-month period to allow for further negotiations.

Diageo starts from a position of strength with a broad global portfolio across categories and geographies, and has demonstrated

agility in navigating tariffs on input costs in the past. However, in the US, our largest market, the products which would be

impacted by the tariffs would mainly be our tequila portfolio, which given geographic origin requirements must be made in

Mexico, and also Canadian whisky.

We have undertaken considerable contingency planning over the last few months focused on what we can control. Given our

extensive supply chain and broad and advantaged portfolio, there are a number of possible actions to help mitigate the potential

impact including pricing and promotion management, inventory management, supply chain optimisation and re-allocation of

investments. Some of these actions can be implemented rapidly and others will take time. We will continue to be agile and

respond with speed as key details are confirmed. Announcement of these tariffs and the potential for further developments

increases the complexity in providing updated guidance given this evolving situation. In particular, while we are encouraged by

the momentum built in H1, building on this may be more challenging as we work through the disruption from these

developments. When we can more accurately assess the impact on future financial performance we will update as required and

appropriate.

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Fiscal 25 outlook

Organic net sales growth

In the second half of fiscal 25, before the impact of the tariffs, we would have expected to build on the momentum seen in the

first half and would have expected to deliver a sequential improvement in organic net sales growth compared with the first half

of fiscal 25. The confirmation at the weekend of the implementation of tariffs in the US could however impact this building

momentum. We still expect to continue to deliver strong market share performance.

Organic operating profit growth

Before taking into consideration the potential impact of tariffs we had expected a slight decline in organic operating profit in the

second half of fiscal 25 compared with the prior year, broadly in line with the decline in the first half, reflecting higher staff

costs (given lower incentive comparatives in the same period last year), and continued strategic investments including in digital

and US route-to-market. Clearly the implementation of tariffs could further impact this and when we can more accurately assess

the impact we will update as appropriate.

Taxation

We expect the tax rate before exceptional items for fiscal 25 to be in the region of 24%.

Effective interest rate

Given current market conditions and our debt maturity profile, we expect the effective interest rate for the full year fiscal 25 to

be broadly flat year on year with fiscal 24, which was 4.3%.

Capital expenditure

In fiscal 25, we expect capital expenditure for the full year to be towards the upper end of the previously guided range of

$1.3-1.5 billion.

Leverage

We expect leverage at the end of fiscal 25 to remain above the target leverage range of 2.5-3.0x (net debt to EBITDA), and

ahead of leverage at the end of the first half of fiscal 25.

Foreign exchange guidance

We are not providing specific guidance in relation to foreign exchange for fiscal 25. However, using the hedged rates we

already have in place and for all other exposures, the spot exchange rates at 31 December 2024 including $1=£0.80 and

$1=€0.96 and applying them to a representative income statement profile for fiscal 25, for the full fiscal year, we would see a

negative impact on net sales of approximately $250 million and for operating profit we would see a negative exchange impact

of approximately $200 million. The above spot rates, currency hedges and assumptions reflect a point in time. Thus, it is

reasonable to expect spot rates to fluctuate, especially emerging markets currencies.

Company updates

In the first half of fiscal 25, Diageo completed the sale of its majority shareholding in Guinness Nigeria PLC, and on 28 January

2025 Diageo announced its agreement to sell its shareholding in Guinness Ghana Breweries PLC. The Africa region is now

managed through two strategic markets, East Africa (unchanged) and South, West and Central Africa (SWC) which was

previously managed as separate markets, being Nigeria, Africa Regional Markets and South Africa.

In the first half of fiscal 25, Diageo completed the sale of Safari, a fruit flavoured liqueur brand, and the sale of Pampero.

On 23 January 2025, Diageo completed the sale of Cacique rum.

On 24 September 2024, Diageo acquired the remaining share capital of Ritual Beverage Company LLC (owner of Ritual Zero

Proof non-alcoholic spirits brand) that it did not already own.

Sir John Manzoni will be appointed as Board Chair and Chair of the Nomination Committee on 5 February 2025, when Javier

Ferrán will step down and retire from the Board.

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Operating profit ($ million)

Reported operating profit declined 4.9%

Organic operating profit declined 1.2%

Reported operating profit declined 4.9%, primarily due to unfavourable foreign exchange and a decline in organic operating

profit.

Organic operating profit declined 1.2%, primarily due to increased staff costs (incentives and wage cost inflation) and

continued investments in strategic capabilities, partially offset by reduced marketing spend and improvements in gross profit.

(1)For further details on exceptional items see pages 16 and F-11-F-13.

(2)Fair value remeasurements. For further details see page 16.

(3)See pages F-14 and 39-42 for details on hyperinflation adjustments.

Operating margin (%)

Reported operating margin declined by 132bps

Organic operating margin declined by 69bps

Reported operating margin declined by 132bps, primarily due to unfavourable foreign exchange and a decline in organic

operating margin.

Organic operating margin declined by 69bps, due to continued investment in the business, primarily in overheads particularly

staff costs (incentives and wage cost inflation) and investments in strategic capabilities, partially offset by reduced marketing

spend and positive gross margin.

Organic change

(69)bps

(1)For further details on exceptional operating items see pages 16 and F-11-F-13.

(2)Fair value remeasurements and hyperinflation adjustments. For further details on fair value remeasurements see page 16. See pages F-14 and 39-42 for

details on hyperinflation adjustments.

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Basic earnings per share (cents)

Basic eps decreased 11.7% from 98.6 cents to 87.1 cents

Basic eps before exceptional items(1) decreased 9.6% from 108.1 cents to 97.7 cents

Basic eps decreased 11.5 cents, mainly driven by a significantly lower Moët Hennessy contribution, unfavourable foreign

exchange and lower organic operating profit, partially offset by lower tax and the positive impact of prior year share buybacks.

Basic eps before exceptional items decreased 10.4 cents.

(i(

(1)See page 38-39 for an explanation of the calculation and use of non-GAAP measures.

(2)For further details on exceptional items see pages 16 and F-11-F-13.

(3)Includes finance charges net of tax.

(4) Excludes finance charges related to acquisitions, disposals, share buybacks and includes finance charges related to hyperinflation adjustments.

(5)Excludes tax related to acquisitions, disposals and share buybacks.

(6)Fair value remeasurements. For further details see page 16.

(7) Operating profit hyperinflation adjustments movement was $8 million compared to the first half of fiscal 24 (F25 H1 - $(28) million; F24 H1 - $(36)

million).

Net cash from operating activities and free cash flow(1) ($ million)

Generated $2,325 million net cash from operating activities(2) and $1,696 million free cash flow

Net cash from operating activities was $2,325 million, an increase of $179 million compared to the first half of fiscal 24. Free

cash flow grew by $125 million to $1,696 million.

Free cash flow growth was driven by strong working capital management with higher creditors and lower maturing stock

movement year on year, partially offset by unfavourable foreign exchange. The increase in capital expenditure (capex) reflected

the plans previously communicated to invest in the business for long-term sustainable growth.

(1)Definition of free cash flow has been redefined, see more details on page 44-45.

(2) Net cash from operating activities excludes net capex (F25 H1 – $(629) million; F24 H1 – $(575) million).

(3)Exchange on operating profit before exceptional items.

(4)Operating profit excludes exchange, depreciation and amortisation, post-employment charges of $5 million and other non-cash items.

(5)Working capital movement includes maturing inventory.

(6)Other items include dividends received from associates and joint ventures and other investments and post-employment payments.

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Additional financial information

Six months ended 31 December 2024


	Reported 31 December 2023	Exceptional operating items (c)	Exchange (a)	Acquisitions and disposals (b)	Organic move- ment(1)	Fair value remeasure- ment (d)	Reclassifi- cation(2)	Hyper- inflation(1)	Reported 31 December 2024
Key financials - certain line items	$ million	$ million	$ million	$ million	$ million	$ million	$ million	$ million	$ million
Sales	15,181	—	(191)	(48)	207	—	—	27	15,176
Excise duties	(4,219)	—	56	13	(106)	—	(31)	12	(4,275)
Net sales	10,962	—	(135)	(35)	101	—	(31)	39	10,901
Cost of sales	(4,241)	6	10	52	(18)	27	31	(30)	(4,163)
Gross profit	6,721	6	(125)	17	83	27	—	9	6,738
Marketing	(1,952)	—	13	10	37	—	—	(4)	(1,896)
Other operating items	(1,452)	(30)	(21)	(2)	(162)	(23)	—	3	(1,687)
Operating profit	3,317	(24)	(133)	25	(42)	4	—	8	3,155

Other line items:
Non-operating items	(60)								(54)
Taxation (e)	(737)								(699)

(1)For the definition of organic movement and hyperinflation, see pages 38-39.

(2)Reclassification between net sales and cost of goods sold to accurately reflect the impact of a route-to-market change in Africa.

(i)Reported figures in the table above have been extracted from the condensed consolidated income statement for the six months ended 31 December 2023 and

31 December 2024.

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(a) Exchange

The impact of movements in exchange rates on reported figures for operating profit was principally due to the weakening of the

Mexican peso, the Nigerian naira and the Turkish lira, partially offset by the strengthening of the Kenyan shilling against

the US dollar.

The effect of movements in exchange rates and other movements on profit before exceptional items and taxation for the six

months ended 31 December 2024 is set out in the table below.


		Gains/(losses)
		$ million
Translation impact		(22)
Transaction impact		(111)
Operating profit before exceptional items		(133)
Net finance charges – translation impact		32
Net finance charges – transaction impact		(32)
Net finance charges		—
Profit before exceptional items and taxation		(133)

	Six months ended 31 December 2024	Six months ended 31 December 2023
Exchange rates
Translation $1 =	£0.78	£0.80
Transaction $1 =	£0.81	£0.79
Translation $1 =	€0.92	€0.92

(b) Acquisitions and disposals

The acquisitions and disposals movement in the six months ended 31 December 2024 was primarily attributable to the disposal of

the Windsor business and the disposal of Guinness Nigeria PLC.

See pages 18, 38-43 and F-18-F-19 for further details.

In the six months ended 31 December 2024, exceptional operating items were a loss of $217 million (2023 – a loss of $193

million), driven by a charge of $145 million in respect of the completion of the transformation of its distribution model in France

as the company agreed with LVMH Moët Hennessy – Louis Vuitton SA (LVMH) to exit from their joint operation and to

terminate the existing distribution agreements for Diageo brands and a charge of $72 million in respect of the supply chain agility

programme.

In the six months ended 31 December 2024, exceptional non-operating items were a loss of $54 million (2023 – a loss of $60

million), mainly driven by a $114 million loss in respect of Diageo's sale of its shareholding in Guinness Nigeria PLC to Tolaram,

partially offset by the exceptional gains accounted for in respect of the disposals of the Pampero and Safari brands, $53 million

and $15 million, respectively.

See pages F-11-F-13 for further details.

(d) Fair value remeasurement

There was no adjustment to cost of sales related to the elimination of fair value changes for biological assets in respect of growing

agave plants for the six months ended 31 December 2024 (2023 – $27 million loss). There were no adjustments to marketing and

other operating expenses related to the elimination of fair value changes to contingent consideration liabilities and earn-out

arrangements in respect of prior year acquisitions for the six months ended 31 December 2024 (2023 – $23 million gain).

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(e) Taxation

The reported tax rate for the six months ended 31 December 2024 was 25.2% compared with 23.9% for the six months ended 31

December 2023.

For the six months ended 31 December 2024, 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 $699 million in the six months ended 31 December 2024 is a net exceptional tax credit of $32

million, including an exceptional tax credit of $36 million in respect of Diageo's agreement with LVMH on the termination of

their joint operation in France and an $8 million tax credit in relation to the supply chain agility program, offset partly by a

$1 million tax charge in respect of Diageo's sale of its shareholding in Guinness Nigeria PLC, a tax charge of $7 million in

respect of the disposal of the Pampero brand and a tax charge of $4 million in relation to the disposal of the Safari brand.

The tax rate before exceptional items for the six months ended 31 December 2024 was 24.0% compared with 23.4% for the six

months ended 31 December 2023.

We expect the tax rate before exceptional items for the year ending 30 June 2025 to be in the region of 24%.

(f) Dividend

The group aims to maximise its return of capital to shareholders each year. The decision in respect of the dividend is made with

reference to the dividend policy for the respective period that includes dividend cover, as well as current performance trends,

including sales and profit after tax together with cash generation. Diageo targets dividend cover (the ratio of basic earnings per

share before exceptional items to dividend per share) within the range of 1.8 - 2.2 times. For the year ended 30 June 2024,

dividend cover was 1.7 times. The group will keep future returns of capital, including dividends, under review through the year

ending 30 June 2025, to ensure Diageo’s capital is allocated in the best way to maximise value for the business and its

stakeholders.

An interim dividend of 40.50 cents per share (2023 – 40.50 cents per share) will be paid to holders of ordinary shares and US

ADRs on register as of 28 February 2025. The ex-dividend date is 27 February 2025 for holders of ordinary shares and

28 February 2025 for holders of US ADRs. The interim dividend will be paid to holders of ordinary shares and US ADRs on

24 April 2025. Holders of ordinary shares will receive their dividends in sterling unless they elect to receive their dividends in US

dollars by 21 March 2025. The dividend per share in pence to be paid to ordinary shareholders will be announced on 9 April 2025

and will be determined by the actual foreign exchange rates achieved by Diageo buying forward contracts for sterling currency,

entered into during the three days preceding the sterling equivalent announcement of the interim dividend. A dividend

reinvestment plan is available to holders of ordinary shares in respect of the interim dividend and the plan notice date is 21 March

2025.

Table of Contents

Movements in net borrowings


	2024	2023
	$ million	$ million
Net borrowings at 30 June	(21,017)	(19,582)
Free cash flow (1)	1,696	1,571
Movements in loans and other investments	(43)	(109)
Acquisitions (2)	(29)	(3)
Investment in associates (2)	(47)	(51)
Sale of businesses and brands (3)	116	18
Share buyback programme	—	(480)
Net sale of own shares for share schemes	3	5
Purchase of treasury shares in respect of subsidiaries	(4)	—
Dividend paid to non-controlling interests	(74)	(71)
Net movements in bonds (4)	948	558
Net movements in other borrowings (5)	(573)	(331)
Equity dividend paid	(1,399)	(1,348)
Net increase/(decrease) in cash and cash equivalents	594	(241)
Net increase in bonds and other borrowings	(375)	(227)
Exchange differences (6)	111	(399)
Other non-cash items	11	(34)
Net borrowings at 31 December	(20,676)	(20,483)

(1) See page 44-45 for the analysis of free cash flow.

(2) On 24 September 2024, Diageo completed the acquisition of, and paid $23 million, net of cash acquired, for, the remaining

issued share capital of Ritual Beverage Company LLC (owner of Ritual Zero Proof non-alcoholic spirits brand), that it did not

already own. In the six months ended 31 December 2023, Diageo paid $3 million in respect of prior year acquisitions.

In the six months ended 31 December 2024 and the six months ended 31 December 2023, investment in associates included

additional investments in a number of Distill Ventures associates.

(3) In the six months ended 31 December 2024, sale of businesses and brands included the disposal of Guinness Nigeria PLC

for a net cash consideration, net of disposal costs, of $55 million, the disposal of the Pampero brand for a net cash

consideration, net of disposal costs, of $56 million and the disposal of the Safari brand for a net cash consideration, net of

disposal costs, of $16 million. In the six months ended 31 December 2023, sale of businesses and brands included a net cash

consideration of $17 million for the disposal of Windsor Global Co., Ltd.

(4) See page 36-37 for the analysis of net movements in bonds.

(5) In the six months ended 31 December 2024, the net movements in other borrowings principally arose from the $479 million

repayment of commercial papers and $49 million repayment of lease liabilities. In the six months ended 31 December 2023, the

net movements in other borrowings principally arose from the decrease in commercial paper, collateral and bank loan balances,

cash outflows of foreign currency swaps and forwards, and repayment of lease liabilities.

(6) In the six months ended 31 December 2024, exchange gains arising on net borrowings of $111 million were primarily

driven by favourable exchange movements on sterling and euro denominated borrowings and unfavourable movements on cash

and cash equivalents and on foreign currency swaps and forwards. In the six months ended 31 December 2023, exchange losses

arising on net borrowings of $399 million were primarily driven by unfavourable exchange movements on sterling and euro

denominated borrowings and unfavourable exchange movements on cash and cash equivalents, foreign currency swaps and

forwards, and interest rate instruments.

Movements in equity


	2024	2023
	$ million	$ million
Equity at 30 June	12,070	11,709
Adjustment to 2023 closing equity in respect of hyperinflation in Ghana (1)	—	51
Adjusted equity at the beginning of the period	12,070	11,760
Profit for the period	2,075	2,342
Exchange adjustments (2)	(387)	(189)
Remeasurement of post-employment benefit plans net of taxation	(128)	(109)
Change in non-controlling interests from disposal of business (3)	11	—
Hyperinflation adjustments net of taxation (1)	132	192
Dividend declared to non-controlling interests	(52)	(53)
Equity dividend declared	(1,399)	(1,349)
Share buyback programme	—	(977)
Other reserve movements	83	107
Equity at 31 December	12,405	11,724

(1) See pages F-14 and 39-42 for details on hyperinflation adjustments.

(2) Exchange movements in the six months ended 31 December 2024 primarily arose from exchange losses driven by the

Mexican peso and sterling. Exchange movements in the six months ended 31 December 2023 primarily arose from exchange

losses driven by the Turkish lira, sterling and Indian rupee.

(3) See page 16 for details of sale of businesses and brands.

Post-employment benefit plans

The net surplus of the group’s post-employment benefit plans decreased by $176 million from $717 million at 30 June 2024 to

$541 million at 31 December 2024. The decrease in net surplus was predominantly attributable to the adverse change in the

market value of assets held by the post-employment benefit plans in the UK and the experience loss arising from the

preliminary results of the triennial valuation of the UK post-employment schemes that was partially offset by the favourable

change in the discount rate in the UK (from 5.1% to 5.5%).

Total cash contributions by the group to all post-employment benefit plans in the year ending 30 June 2025 are estimated to be

approximately $55 million.

Table of Contents

Analysis by reporting segments

The reported and organic movements for volume, net sales, marketing spend, operating profit and operating profit before

exceptional items by reporting segments for the six months ended 31 December 2024 were as follows:


	Volume		Net sales		Marketing		Operating profit before exceptional items		Operating profit
Reported growth by region	%	EUm	%	$ million	%	$ million	%	$ million	%	$ million
North America	(3)	(0.9)	—	11	1	8	(5)	(94)	5	74
Europe	(2)	(0.7)	3	67	5	23	—	—	(22)	(172)
Asia Pacific	2	0.8	(4)	(96)	(14)	(58)	(6)	(44)	(9)	(62)
Latin America and Caribbean	(2)	(0.3)	(2)	(19)	(10)	(18)	6	18	5	16
Africa	(4)	(0.7)	(3)	(31)	(8)	(9)	28	36	28	36
Corporate	—	—	11	7	(13)	(2)	(37)	(54)	(37)	(54)
Diageo	(1)	(1.8)	(1)	(61)	(3)	(56)	(4)	(138)	(5)	(162)


	Volume		Net sales		Marketing		Operating profit before exceptional items
Organic growth by region	%	EUm	%	$ million	%	$ million	%	$ million
North America	(3)	(0.9)	—	10	1	4	(2)	(33)
Europe	(3)	(0.8)	1	18	1	5	—	(1)
Asia Pacific	3	1.0	(3)	(55)	(10)	(40)	(6)	(41)
Latin America and Caribbean	(2)	(0.3)	5	54	(1)	(1)	11	38
Africa	5	0.7	9	68	(3)	(3)	17	23
Corporate	—	—	10	6	(14)	(2)	(18)	(28)
Diageo	—	(0.3)	1	101	(2)	(37)	(1)	(42)

See page 38-39 for an explanation and reconciliation of non-GAAP measures.

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North America

Continuing positive momentum seen through fiscal 24, with positive net sales growth and share gain of TBA in the first

half of fiscal 25.

•Diageo NAM market share grew with a slight increase in net sales in the first half of fiscal 25, despite continued softness in

the total US spirits industry over the same period. US consumers remained under pressure from cyclical macroeconomic

factors including inflation, which, despite easing in recent months, remained elevated compared with historic levels. Share

gains were primarily driven by the continued success of Don Julio and Crown Royal.

•Reported net sales were flat, in line with organic net sales.

•Organic net sales slightly increased, with flat net sales in US Spirits and Canada almost fully offsetting growth from Diageo

Beer Company (DBC USA).

•Price/mix grew 4pps, which offset volume decline.

•US Spirits net sales were flat, with price/mix growth of 4pps offset by volume decline. Overall depletion growth exceeded

net sales growth, but was within one percentage point of shipment growth, with some variations across brands. Overall

distributor inventory levels at the end of the first half of fiscal 25 remain appropriate for the current consumer environment

and in line with historical levels.

•DBC USA net sales grew 5%, driven by strong growth in Guinness variants including Guinness Draught, Guinness Extra,

and Guinness 0.0, and Captain Morgan Sliced innovation, partially offset by softer Smirnoff flavoured malt beverage

volume.

•Organic operating profit and operating margin declined 2% and decreased 90 bps, respectively, primarily due to increased

staff costs (incentives and wage cost inflation) and strategic investments including route-to-market transformation.

•Marketing investment increased 1%, and grew 6 bps as a percentage of net sales, given investment in the portfolio to drive

growth.

US Spirits highlights(1):

•Tequila net sales grew 23% driven by Don Julio, in particular strong growth in Don Julio Reposado, partially offset by a

decline in Casamigos. Don Julio net sales grew 62%, growing both spirits industry and tequila category share, driven by the

brand's cultural relevance and successful targeted activation. Don Julio shipments grew ahead of depletions growth of 48%

as distributors replenished inventory to appropriate levels to accommodate strong consumer demand. Casamigos net sales

declined 22% as a result of increased category competition driving lower demand.

•Crown Royal whisky net sales grew 3%, primarily due to continued strong consumer demand for our Crown Royal

Blackberry innovation, which was launched in the second half of fiscal 24. The success of this innovation underpinned

spirits industry share growth in the Crown Royal brand.

•Vodka net sales declined 10%, due to increased competition in the category from ready-to-drink (RTD) formats and overall

category weakness, including in Cîroc and Smirnoff, partially offset by performance in Ketel One.

•Johnnie Walker net sales declined 13%, due to scotch category weakness. The Johnnie Walker trademark gained share of

the scotch category, led by Johnnie Walker Black Label and Johnnie Walker Red Label.

•Captain Morgan net sales declined 13%, due to rum category weakness. The primary Captain Morgan variant, Captain

Morgan Original Spiced, gained share of the rum category.

•Bulleit whiskey net sales declined 9%, due to increased promotional competition in the US whiskey category. Bulleit's share

of the category and of the spirits industry declined in the first half of fiscal 25.

•Buchanan's net sales declined 41%, as the trademark lapped innovation inventory build on Buchanan’s Pineapple in the

prior year. Depletions declined 15%. Buchanan’s scotch variants gained share of the overall scotch category.

•Spirits-based cocktails(2) net sales declined 11%, lapping the successful launches of Ketel One Cocktail Collection variants

Espresso Martini and Cosmopolitan in the prior year, and partially offset by the launch of Crown Royal Black Cherry

Whisky Sour. Ketel One Espresso Martini and Cosmopolitan, as well as Crown Royal Black Cherry Whisky Sour, all

gained share of both the cocktail category and overall spirits.

(1)Spirits brands and categories excluding cocktails, which includes ready to drink, ready-to-serve and non-alcoholic variants, except where noted.

(2)Spirits-based cocktails includes ready to serve and ready to drink variants.

Table of Contents


	F24 H1	Exchange	Acquisitions and disposals	Organic movement	Other(1)	F25 H1	Reported movement
Key financials: North America	$ million	$ million	$ million	$ million	$ million	$ million	%
Net sales	4,084	(3)	4	10	—	4,095	—
Marketing	782	2	2	4	—	790	1
Operating profit before exceptional items	1,725	(29)	(9)	(33)	(23)	1,631	(5)
Exceptional operating items(2)	(182)					(14)
Operating profit	1,543					1,617	5

(1) Fair value remeasurements. For further details see page 16.

(2) For further details on exceptional operating items see pages 16 and F-11-F-13.


Markets:	Organic volume movement	Reported volume movement	Organic net sales movement	Reported net sales movement
Markets and categories:	%	%	%	%
North America(3)	(3)	(3)	—	—

US Spirits(3)	(4)	(4)	—	—
DBC USA(4)	3	3	5	5
Canada	(3)	(3)	—	(2)

Spirits(3)	(4)	(4)	—	—
Beer	7	7	9	9
Ready to drink	(2)	(2)	(9)	(9)


	Organic volume movement(6)	Organic net sales movement	Reported net sales movement
Key brands(5):
Crown Royal	5	3	3
Don Julio	62	61	61
Casamigos(7)	(22)	(22)	(22)
Smirnoff	(7)	(8)	(8)
Johnnie Walker	(11)	(13)	(12)
Captain Morgan	(11)	(12)	(13)
Guinness	16	17	17
Ketel One(8)	3	2	2
Baileys	(10)	(13)	(13)
Bulleit whiskey(9)	(9)	(9)	(9)
Buchanan's	(39)	(41)	(40)

(3)Reported volume movement includes impacts from acquisitions and/or disposals. For further details see page 43.

(4)Certain spirits-based ready to drink products in certain states are distributed through DBC USA and those net sales are captured within DBC USA.

(5)Spirits brands excluding cocktails, which includes ready to drink, ready-to-serve and non-alcoholic variants.

(6)Organic equals reported volume movement.

(7)Casamigos trademark includes both tequila and mezcal.

(8)Ketel One includes Ketel One vodka and Ketel One Botanicals.

(9)Bulleit whiskey excludes Bulleit Crafted Cocktails.

Table of Contents

Europe

Continued resilient net sales growth with further momentum in Guinness.

•Diageo Europe delivered organic net sales growth with favourable market share performance across the majority of markets,

despite the ongoing spirits market decline and continued geopolitical conflicts.

•Reported net sales grew 3% largely due to a hyperinflation adjustment(1) related to Türkiye, the impact of transferring a

portion of the business from Asia Pacific to Europe and organic net sales growth.

•Organic net sales grew 1%, driven by growth in Türkiye, Great Britain, Ireland and Eastern Europe, partially offset by

declines in Northern Europe and Southern Europe.

•Price/mix grew 4pps given favourable price/mix in Guinness within Great Britain and Ireland.

•Spirits net sales declined 3%, mainly due to a softness in the overall spirits category. Price inflation growth in raki and

double-digit growth in tequila was more than offset by weakness in gin, vodka and rum.

•Beer net sales grew 13%, largely driven by strong growth in Guinness. Double-digit volume growth and low single-digit

price/mix in Guinness were driven by successful cultural engagement activation and innovation resulting in share gains in

Great Britain and Ireland. Guinness 0.0 net sales almost doubled.

•Organic operating profit and operating margin was flat and declined 27 bps, respectively, driven by continued cost inflation

in Türkiye and marketing investments and staff costs (incentives and wage cost inflation) across the region. This was offset

by positive mix mainly driven by Guinness.

•Marketing investment grew 1%. Growth in Guinness was supported through further investment in Great Britain and Ireland,

and the initiation of the English Premier League partnership.

Market highlights:

•Great Britain net sales grew 2%, mainly driven by strong Guinness performance, despite the temporary supply constraints in

the half. This was partially offset by a 6% spirits decline in net sales due to overall category weakness. Guinness gained

category share in both the on-trade and off-trade, supported by successful brand building, the English Premier League

partnership and distribution gains on Guinness 0.0, which is now in more than 22,000 outlets (compared with around 13,000

last year).

•Southern Europe net sales declined 6%, due to performance in France which was adversely impacted by the transition to the

new distribution model. Malts and luxury brands moved from a joint venture distribution model with Moët Hennessy to

Diageo France in March 2024. The remaining Diageo brands have been distributed by Diageo France since January 2025.

•Northern Europe net sales declined 10%, due to a weak consumer environment in Germany, particularly impacting Johnnie

Walker Red Label. Despite the decline in the overall spirits category, most markets within Northern Europe gained share of

spirits, primarily driven by strong performance in rum and liqueur.

•Ireland net sales grew 5%, driven by the continued growth of Guinness. Strong share gain in the on-trade was supported by

effective brand building and the roll-out of Guinness 0.0 draught which is now in more than 2,000 on-trade outlets.

Guinness is benefitting from strong consumer take up around the football consumption occasion through the English

Premier League partnership.

•Türkiye net sales grew 20%, primarily driven by pricing adjustments in response to inflation. This, in part, led to a 4%

volume decline, primarily in raki. Tight monetary policies and minimum wages holding flat in a hyperinflationary

environment resulted in a consumption slowdown.

•Eastern Europe net sales grew 8%, primarily driven by double-digit growth in Guinness and scotch, despite a challenging

consumer environment and the impact of ongoing conflicts in Ukraine.


	F24 H1	Exchange	Reclassification (2)	Acquisitions and disposals	Organic movement	Hyperinflation(1)	F25 H1	Reported movement
Key financials: Europe	$ million	$ million	$ million	$ million	$ million	$ million	$ million	%
Net sales	2,565	(3)	22	(6)	18	36	2,632	3
Marketing	459	16	—	(2)	5	4	482	5
Operating profit before exceptional items	797	(26)	16	(1)	(1)	12	797	—
Exceptional operating items(3)	(11)						(183)
Operating profit	786						614	(22)

(1) See pages F-14 and 39-42 for details on hyperinflation adjustments.

(2)A portion of Travel Retail Asia and Middle East was transferred to Europe.

(3) For further details on exceptional items see pages 16 and F-11-F-13.

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Asia Pacific

Spirits gained share in most markets; weaker performance in South East Asia and Greater China, partially offset by

strong performance in India.

•Reported net sales declined 4%, due to organic net sales decline, the disposal of Windsor and the impact of reclassifying a

portion of the business to Europe.

•Organic net sales declined 3%, due to sales decline in Travel Retail Asia, South East Asia and Greater China, partially offset

by growth in India and North Asia.

•Price/mix declined by 5pps, due to consumer downtrading in South East Asia and the cautious consumer environment in

Greater China, partially offset by the positive impact of premiumisation in India.

•Spirits net sales declined 4%, due to weakness in scotch, notably in Johnnie Walker, which was only partially offset by

strong growth in McDowell's and Black & White. Most markets gained share in spirits, particularly in the scotch category.

•Organic operating profit and operating margin declined 6% and 113 bps, respectively, driven by market mix, especially the

decline in Travel Retail Asia.

•Marketing investment declined 10%, due to lower investment across the region, with the exception of India where

marketing investment increased.

Market highlights:

•India net sales grew 6%, due to strong growth in IMFL (Indian-Made Foreign Liquor), particularly driven by the Prestige

and Above segments. Whisky growth was driven by McDowell’s, Signature and Royal Challenge, and scotch growth was

driven by Black & White. In addition, business re-commenced in the state of Andhra Pradesh in the second half of

September after a period of almost five years.

•Greater China net sales declined 4%, primarily driven by scotch, and partially offset by a slight increase in Chinese white

spirits and strong growth in Guinness. Scotch performance, though impacted by a cautious consumer environment, saw an

improvement in whisky category share within international spirits. The performance of Chinese white spirits was impacted

by lapping strong double-digit growth due to last year's inventory restocking, with inventory levels now at appropriate levels

for the current consumer environment.

•Australia net sales declined 7%, due to declines in Johnnie Walker and the RTD category, partially offset by strong double-

digit growth in Guinness. Guinness momentum was driven by the brand's strong positioning in local culture, which

increased demand and on-trade distribution.

•South East Asia net sales declined 11%, due to double-digit decline in Vietnam, reflecting consumer downtrading across the

market.

•Travel Retail Asia net sales declined 22%, primarily due to weaker performance of Johnnie Walker. Travel Retail

performance was also impacted by the lapping of successful innovation launches (including Johnnie Walker Blue Label

Xordinaire and Don Julio 1942), and a cautious consumer environment which led to ongoing retailer inventory destocking.

•North Asia (Korea and Japan) net sales grew 10%, largely driven by targeted investments in the half, driving Johnnie

Walker and White Horse in Japan.


	F24 H1	Exchange	Reclassification(2)	Acquisitions and disposals	Organic movement	F25 H1	Reported movement
Key financials: Asia Pacific	$ million	$ million	$ million	$ million	$ million	$ million	%
Net sales	2,206	1	(22)	(20)	(55)	2,110	(4)
Marketing	406	(13)	—	(5)	(40)	348	(14)
Operating profit before exceptional items	689	20	(16)	(7)	(41)	645	(6)
Exceptional operating items(1)	—					(18)
Operating profit	689					627	(9)

(1) For further details on exceptional items see pages 16 and F-11-F-13.

(2) A portion of Travel Retail Asia and Middle East was transferred to Europe.

Table of Contents


	Organic volume movement	Reported volume movement	Organic net sales movement	Reported net sales movement
Markets and categories:	%	%	%	%
Asia Pacific(1)	3	2	(3)	(4)

India	3	3	6	5
Greater China	3	3	(4)	(4)
Australia	(7)	(7)	(7)	(6)
South East Asia	2	3	(11)	(10)
Travel Retail Asia(2)	(9)	(26)	(22)	(28)
North Asia(1)	11	5	10	(9)

Spirits(1)	3	2	(4)	(6)
Beer	11	10	25	20
Ready to drink	(3)	(3)	(7)	(6)


	Organic volume movement(3)	Organic net sales movement	Reported net sales movement
Key brands(3):	%	%	%
Johnnie Walker(4)	—	(12)	(13)
Shui Jing Fang(5)	1	—	1
McDowell's	1	5	4
The Singleton	(16)	(17)	(17)
Royal Challenge	6	7	6
Guinness(4)	12	26	21
Black & White(4)	20	19	16
Smirnoff(4)	(1)	(3)	(5)

(1) Reported volume movement includes impacts from acquisitions and/or disposals. For further details see page 43.

(2) A portion of Travel Retail Asia and Middle East was transferred to Europe.

(3)Spirits brands excluding ready to drink and non-alcoholic variants.

(4) Organic equals reported volume movement except for Johnnie Walker (2%), Smirnoff (3)%, Guinness 10% and Black & White 18%.

(5)Growth figures represent total Chinese white spirits of which Shui Jing Fang is the principal brand.


Asia Pacific contributed		Asia Pacific organic net sales declined
19% of Diageo reported net sales in first half of fiscal 25		3% in first half of fiscal 25

Table of Contents

Latin America and Caribbean

Return to growth after a challenging fiscal 24, supported by a modestly improved consumer environment.

•Diageo LAC delivered growth following double-digit decline in fiscal 24. Disciplined execution, targeted investment and

strong innovation supported improved performance. Inventory levels at the end of the first half of fiscal 25 remain at an

appropriate level for the current consumer environment.

•Reported net sales declined 2% driven by unfavourable foreign exchange, partially offset by organic net sales growth.

•Organic net sales grew 5%, driven by growth in Brazil, Andean and Caribbean and Central America (CCA), partially offset

by a decline in South LAC.

•Price/mix grew 7pps, due to lapping prior year promotional activity and consumer downtrading. Positive price/mix was also

supported by price increases in Brazil.

•Spirits net sales grew 6%, primarily driven by scotch and tequila, particularly Old Parr, Buchanan's and Don Julio.

•Organic operating profit and operating margin increased 11% and 182 bps respectively, driven by price increases in Brazil,

positive mix and reduced levels of promotional spend.

•Marketing investment was flat reflecting the early signs of stabilisation in the consumer environment.

Market highlights:

•Brazil net sales grew 12% as the consumer environment continued to stabilise, mainly driven by scotch performance,

primarily Johnnie Walker and Old Parr.

•Mexico net sales grew 2% as the consumer environment began to stabilise over the half. Growth was largely driven by Don

Julio, mainly driven by lapping significant promotional activity in the prior year and suppressed volume. This was partially

offset by a decline in whisky, mainly Buchanan's.

•CCA net sales grew 5% given favourable scotch and tequila performance.

•Andean (Colombia and Venezuela) net sales increased 11%, mainly due to Buchanan's.

•South LAC (Argentina, Bolivia, Chile, Ecuador, Paraguay, Peru and Uruguay) net sales declined 10%, driven by the

weakening consumer environment adversely impacting consumption.


	F24 H1	Exchange	Acquisitions and disposals	Organic movement	Hyperinflation(1)	Other (2)	F25 H1	Reported movement
Key financials: Latin America and Caribbean	$ million	$ million	$ million	$ million	$ million	$ million	$ million	%
Net sales	1,069	(76)	2	54	1	—	1,050	(2)
Marketing	184	(17)	—	(1)	—	—	166	(10)
Operating profit before exceptional items	316	(44)	—	38	(3)	27	334	6
Exceptional operating items(3)	—						(2)
Operating profit	316						332	5

(1) See pages F-14 and 39-42 for details on hyperinflation adjustments.

(2) Fair value remeasurements. For further details see page 16.

(3) For further details on exceptional items see pages 16 and F-11-F-13.

Table of Contents

Africa

Strong organic net sales growth despite continued macroeconomic challenges.

•Diageo Africa delivered high single-digit growth driven by positive volume growth and price, despite a challenging

macroeconomic environment.

•Reported net sales declined 3% due to unfavourable foreign exchange and a reclassification for a route-to-market change,

partially offset by strong organic net sales performance.

•Organic net sales grew 9%, with growth across all markets, most notably, double-digit growth in Ghana and Tanzania and

high single-digit growth in Kenya and South Africa.

•Price/mix grew 4pps, mainly due to price increases in East Africa, particularly Kenya.

•Spirits net sales grew 5%, driven by strong growth in rum, gin and tequila, partially offset by a decline in scotch.

•Beer net sales grew 11%, with growth in both South, West and Central (SWC) Africa and East Africa. Malta Guinness,

Guinness, Serengeti, and White Cap all delivered double-digit net sales growth.

•Organic operating profit and operating margin grew 17% and 128 bps, respectively, driven by the positive impact of pricing.

•Marketing investment declined by 3% due to marketing efficiencies, partially offset by cost inflation.

Market highlights:

In the first half of fiscal 25, Diageo completed the sale of its majority shareholding in Guinness Nigeria PLC, and on 28 January

2025 Diageo announced its agreement to sell its shareholding in Guinness Ghana Breweries PLC. The Africa region is now

managed through two strategic markets, East Africa (unchanged) and SWC Africa which was previously managed as separate

markets, being Nigeria, Africa Regional Markets and South Africa.

•East Africa net sales grew 8%, driven by strong growth in beer, rum, and scotch, partially offset by a decline in gin and

vodka. Beer performance was driven by double-digit growth in Serengeti and Guinness, in particular the innovation

Serengeti Lemon. Scotch double-digit growth was driven by volume and price increases in Johnnie Walker.

•SWC Africa net sales grew 11%, primarily driven by Guinness and Gordon's, partially offset by weakness in Johnnie

Walker, attributed to increased competitive activity. Guinness's double-digit growth was driven by increased distribution

and price increases in Ghana. Gordon's gained share of the gin category across all markets, supported in South Africa by a

change in the route-to-market.


	F24 H1	Exchange	Reclassification (1)	Acquisitions and disposals	Organic movement	Hyperinflation(2)	F25 H1	Reported movement
Key financials: Africa	$ million	$ million	$ million	$ million	$ million	$ million	$ million	%
Net sales	975	(55)	(31)	(15)	68	2	944	(3)
Marketing	106	(1)	—	(5)	(3)	—	97	(8)
Operating profit before exceptional items	130	(28)	—	42	23	(1)	166	28
Exceptional operating items(3)	—						—
Operating profit	130		—				166	28

(1)Reclassification between net sales and cost of goods sold to accurately reflect the impact of a route-to-market change in Africa.

(2) See pages F-14 and 39-42 for details on hyperinflation adjustments.

(3) For further details on exceptional items see pages 16 and F-11-F-13.

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LIQUIDITY AND CAPITAL RESOURCES

1. Sources and uses of liquidity

The primary source of the group’s liquidity over the last three financial years has been cash generated from operations. These

funds have generally been used to pay interest, taxes and dividends, and to fund capital expenditure and acquisitions, and,

together with the group’s current strong cash position, are expected to continue to fund future operating and capital needs. The

group also issues short-term commercial paper and long-term debt instruments regularly in order to finance its day-to-day

operations and any other cash outflow requirements.

The table below sets forth the group’s available undrawn committed bank facilities as at 31 December 2024.


	31 December 2024
	$ million
Expiring within one year	750
Expiring between one and two years	1,040
Expiring after two years	1,710
	3,500

The facilities can be used for general corporate purposes and, together with cash and cash equivalents, support the group’s

commercial paper programmes.

There are no financial covenants on the group’s material short- and long-term borrowings. Certain of these borrowings contain

cross default provisions and negative pledges.

The committed bank facilities are subject to a single financial covenant, being minimum interest cover ratio of two times

(defined as the ratio of operating profit before exceptional items, aggregated with share of after tax results of associates and

joint ventures, to net interest charges). They are also subject to pari passu ranking and negative pledge covenants.

Any non-compliance with covenants underlying Diageo’s financing arrangements could, if not waived, constitute an event of

default with respect to any such arrangements, and any non-compliance with covenants may, in particular circumstances, lead

to an acceleration of maturity on certain borrowings and the inability to access committed facilities. Diageo was in full

compliance with its financial, pari passu ranking and negative pledge covenants in respect of its material short- and long-term

borrowings throughout the year presented.

Management believe that it has sufficient funding for its working capital requirements.

2. Analysis of cash flows

The table below sets forth the group’s cash flows as at 31 December 2024.


	31 December 2024
	$ million
Net cash inflow from operating activities	2,325
Net cash outflow from investing activities	(632)
Net cash outflow from financing activities	(1,099)
Net increase in net cash and cash equivalents	594
Exchange differences	(68)
Reclassification to assets held for sale	4
Net cash and cash equivalents at beginning of period	1,109
Net cash and cash equivalents at end of the period	1,639

Net cash inflow from operating activities was $2,325 million, an increase of $179 million compared to the first half of fiscal 24,

primarily driven by strong working capital management and was partially offset by the decline in operating profit and increased

interest payments.

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Net cash outflow from investing activities was $632 million, a decrease of $88 million compared to the first half of fiscal 24,

mainly driven by an increased cash inflow from sale of business ($98 million), an increased capital investment ($50 million),

and a decrease in loans and other investments ($66 million).

Net cash outflow from financing activities was $1,099 million, a decrease of $568 million compared to the first half of fiscal 24.

This change was largely driven by an increase of $390 million net inflow in relation to bond issuances and repayments.

The operating, investing and financing activities described above resulted in an increase in net cash and cash equivalents of

$530 million, from $1,109 million at 30 June 2024 to $1,639 million at 31 December 2024.

3. Analysis of borrowings

The group policy with regard to the expected maturity profile of borrowings of group finance companies is to limit the

proportion of such borrowings maturing within 12 months to 50% of gross borrowings less money market demand deposits, and

the level of commercial paper to 30% of gross borrowings less money market demand deposits. In addition, it is group policy to

maintain backstop facility terms from relationship banks to support commercial paper obligations.

The group’s gross borrowings and net borrowings are measured at amortised cost with the exception of borrowings designated

in fair value hedge relationships, interest rate hedging instruments and foreign currency swaps and forwards. For borrowings

designated in fair value hedge relationships, Diageo recognises a fair value adjustment for the risk being hedged in the balance

sheet, whereas interest rate hedging instruments and foreign currency swaps and forwards are measured at fair value.

The table below sets forth the group’s gross borrowings and net borrowings as at 31 December 2024.


	31 December 2024	30 June 2024
	$ million	$ million
Overdrafts	(17)	(21)
Other borrowings due within one year	(2,479)	(2,864)
Borrowings due within one year	(2,496)	(2,885)
Borrowings due between one and three years	(4,854)	(4,873)
Borrowings due between three and five years	(3,858)	(4,222)
Borrowings due after five years	(10,512)	(9,521)
Fair value of foreign currency forwards and swaps	309	334
Fair value of interest rate hedging instruments	(298)	(376)
Lease liabilities	(623)	(604)
Gross borrowings	(22,332)	(22,147)
Offset by:
Cash and cash equivalents	1,656	1,130
Net borrowings	(20,676)	(21,017)

The table below sets forth the percentage of the group’s gross borrowings and cash and cash equivalents by currency as at 31

December 2024.


	Total $ million	US dollar %	Sterling %	Euro %	Indian rupee %	Chinese yuan %	Other %
Gross borrowings	(22,332)	44%	22%	24%	—%	4%	6%
Cash and cash equivalents	1,656	32%	2%	2%	12%	20%	32%

Based on average monthly net borrowings and net interest charge, the effective interest rate for the six months ended 31

December 2024 was 4.2%. For this calculation, net interest charge excludes fair value adjustments to derivative financial

instruments and borrowings and average monthly net borrowings include the impact of interest rate swaps that are no longer in

a hedge relationship but exclude the market value adjustment for cross currency interest rate swaps.

In the six months ended 31 December 2024, the group issued bonds of €1,900 million ($2,106 million - net of discount and fee)

consisting of €700 million ($780 million - net of discount and fee) 3.125% fixed rate notes due 2031, €700 million ($776

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million - net of discount and fee) 3.375% fixed rate notes due 2035, €500 million ($550 million - net of discount and fee) 3.75%

fixed rate notes due 2044 and repaid bonds of $600 million and €500 million ($558 million). 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 2024, the net movements in other borrowings principally arose from the $479 million

repayment of commercial papers and $49 million repayment of lease liabilities. In the six months ended 31 December 2023, the

net movements in other borrowings principally arose from the decrease in commercial paper, collateral and bank loan balances,

cash outflows of foreign currency swaps and forwards, and repayment of lease liabilities.

The group’s management is committed to enhancing shareholder value in the long-term, both by investing in the business and

brands so as to deliver continued improvement in the return from those investments and by managing the capital structure.

Diageo manages its capital structure to achieve capital efficiency, provide flexibility to invest through the economic cycle and

give efficient access to debt markets at attractive cost levels. This is achieved by targeting an adjusted net borrowings (net

borrowings aggregated with post-employment benefit liabilities) to adjusted EBITDA leverage of 2.5 - 3.0 times, this range for

Diageo being currently broadly consistent with an A-band credit rating. Diageo would consider operating outside of this range

in order to effect strategic initiatives within its stated goals, which could have an impact on its rating. If Diageo’s leverage was

to be negatively impacted by the financing of an acquisition, it would seek over time to return to the range of 2.5 - 3.0 times.

The group regularly assesses its debt and equity capital levels against its stated policy for capital structure. As at 31 December

2024, the adjusted net borrowings of $21,109 million to adjusted EBITDA ratio was 3.1 times. For this calculation, net

borrowings are adjusted by post-employment benefit liabilities before tax of $433 million whilst adjusted EBITDA of $6,796

million comprises operating profit excluding exceptional operating items and depreciation, amortisation and impairment and

includes share of after tax results of associates and joint ventures.

The group’s funding, liquidity and exposure to foreign currency, interest rate risks, financial credit risk and commodity price

risk are conducted within a framework of board approved policies and guidelines. The group purchases insurance for

commercial or, where required, for legal or contractual reasons. In addition, the group retains some insurable risk where

external insurance is not considered to be an economic means of mitigating this risk. Loan, trade and other receivables

exposures are managed locally in the operating units where they arise and credit limits are established as deemed appropriate

for the customer.

The following bonds were issued and repaid:


	31 December 2024	31 December 2023
	$ million	$ million
Issued
€ denominated	2,106	—
$ denominated	—	1,690
Repaid
€ denominated	(558)	(632)
$ denominated	(600)	(500)
	948	558

4. Capital repayments

Authorisation was given by shareholders on 26 September 2024 to purchase a maximum of 222,316,603 ordinary shares at a

minimum price of 28101/108 pence and a maximum price of higher of (a) 105% of the average market value of the company's

ordinary shares for the five business days prior to the day the purchase is made and (b) the higher of the price of the last

independent trade and the highest current independent bid on the trading venue where the purchase is carried out. The

programme expires at the conclusion of the next Annual General Meeting or 15 months from the passing of this resolution, if

earlier.

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DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES

Diageo’s strategic planning process is based on certain non-GAAP measures, including organic movements. These non-GAAP

measures are chosen for planning and reporting, and some of them are used for incentive purposes. The group’s management

believes that these measures provide valuable additional information for users of the financial statements in understanding the

group’s performance. These non-GAAP measures should be viewed as complementary to, and not replacements for, the

comparable GAAP measures and reported movements therein.

It is not possible to reconcile the forecast tax rate before exceptional items, forecast organic net sales growth and forecast

organic operating profit growth to the most comparable GAAP measure as it is not possible to predict, without unreasonable

effort, with reasonable certainty, the future impact of changes in exchange rates, acquisitions and disposals and potential

exceptional items.

Volume

Volume is a performance indicator that is measured on an equivalent units basis to nine-litre cases of spirits. An equivalent unit

represents one nine-litre case of spirits, which is approximately 272 servings. A serving comprises 33ml of spirits, 165ml of

wine, or 330ml of ready to drink or beer. Therefore, to convert volume of products other than spirits to equivalent units, the

following guide has been used: beer in hectolitres, divide by 0.9; wine in nine-litre cases, divide by five; ready to drink and

certain pre-mixed products that are classified as ready to drink in nine-litre cases, divide by ten.

Organic movements

Organic information is presented using US dollar amounts on a constant currency basis excluding the impact of exceptional

items, certain fair value remeasurements, hyperinflation and acquisitions and disposals. Organic measures enable users to focus

on the performance of the business which is common to both years and which represents those measures that local managers are

most directly able to influence.

Calculation of organic movements

The organic movement percentage is the amount in the row titled ‘Organic movement’ in the tables below, expressed as a

percentage of the relevant absolute amount in the row titled ‘Six months ended 31 December 2023 adjusted’. Organic operating

margin is calculated by dividing operating profit before exceptional items by net sales after excluding the impact of exchange

rate movements, certain fair value remeasurements, hyperinflation and acquisitions and disposals.

(a) Exchange rates

Exchange in the organic movement calculation reflects the adjustment to recalculate the reported results as if they had been

generated at the prior period weighted average exchange rates.

Exchange impacts in respect of the external hedging of intergroup sales by the markets in a currency other than their functional

currency and the intergroup recharging of services are also translated at prior period weighted average exchange rates and are

allocated to the geographical segment to which they relate. Residual exchange impacts are reported as part of the Corporate

segment. Results from hyperinflationary economies are translated at forward-looking rates.

(b) Acquisitions and disposals

For acquisitions in the current period, the post-acquisition results are excluded from the organic movement calculations. For

acquisitions in the prior period, post-acquisition results are included in full in the prior period but are included in the organic

movement calculation from the anniversary of the acquisition date in the current period. The acquisition row also eliminates the

impact of transaction costs that have been charged to operating profit in the current or prior period in respect of acquisitions

that, in management’s judgement, are expected to be completed.

Where a business, brand, brand distribution right or agency agreement was disposed of or terminated in the reporting period, the

group, in the organic movement calculations, excludes the results for that business from the current and prior period. In the

calculation of operating profit, the overheads included in disposals are only those directly attributable to the businesses disposed

of, and do not result from subjective judgements of management.

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Exceptional items are those that in management’s judgement need to be disclosed separately. Such items are included in the

income statement caption to which they relate, and form part of the segmental reporting, and are excluded from the organic

movement calculations. Management believes that separate disclosure of exceptional items and the classification between

operating and non-operating items further helps investors to understand the 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.

(d) Fair value remeasurement

Fair value remeasurements in the organic movement calculation reflect an adjustment to eliminate the impact of fair value

changes in biological assets, earn-out arrangements that are accounted for as remuneration and fair value changes relating to

contingent consideration liabilities and equity options that arose on acquisitions recognised in the income statement.

Adjustment in respect of hyperinflation

The group's experience is that hyperinflationary conditions result in price increases that include both normal pricing actions

reflecting changes in demand, commodity and other input costs or considerations to drive commercial competitiveness, as well

as hyperinflationary elements and that for the calculation of organic movements, the distortion from hyperinflationary elements

should be excluded.

Cumulative inflation over 100% (2% per month compounded) over three years is one of the key indicators within IAS 29 to

assess whether an economy is deemed to be hyperinflationary. As a result, the definition of 'Organic movements' includes price

growth in markets deemed to be hyperinflationary economies, up to a maximum of 2% per month while also being on a

constant currency basis. Corresponding adjustments have been made to all income statement related lines in the organic

movement calculations.

In the tables presenting the calculation of organic movements, 'hyperinflation' is included as a reconciling item between

reported and organic movements and that also includes the relevant IAS 29 adjustments.

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Organic movement calculations for the six months ended 31 December 2024 were as follows:


	North America million	Europe million	Asia Pacific million	Latin America and Caribbean million	Africa million	Corporate million	Total million
Volume (equivalent units)
Six months ended 31 December 2023 reported	26.3	28.3	40.2	12.8	17.0	—	124.6
Reclassification(1)	—	0.2	(0.2)	—	—	—	—
Disposals(2)	—	(0.2)	(0.1)	—	(3.0)	—	(3.3)
Six months ended 31 December 2023 adjusted	26.3	28.3	39.9	12.8	14.0	—	121.3
Organic movement	(0.9)	(0.8)	1.0	(0.3)	0.7	—	(0.3)
Acquisitions and disposals(2)	—	0.1	0.1	—	1.6	—	1.8
Six months ended 31 December 2024 reported	25.4	27.6	41.0	12.5	16.3	—	122.8
Organic movement %	(3)	(3)	3	(2)	5	—	—

	North America $ million	Europe $ million	Asia Pacific $ million	Latin America and Caribbean $ million	Africa $ million	Corporate $ million	Total $ million
Sales
Six months ended 31 December 2023 reported	4,411	4,349	3,564	1,442	1,352	63	15,181
Exchange	—	(209)	(7)	2	(48)	—	(262)
Reclassification(1)	—	22	(22)	—	—	—	—
Disposals(2)	(1)	(19)	(30)	(1)	(139)	—	(190)
Hyperinflation	—	(73)	—	(4)	(3)	—	(80)
Six months ended 31 December 2023 adjusted	4,410	4,070	3,505	1,439	1,162	63	14,649
Organic movement	(9)	91	(25)	37	107	6	207
Acquisitions and disposals(2)	5	9	4	3	121	—	142
Exchange	(3)	173	(4)	(112)	16	1	71
Hyperinflation	—	97	—	4	6	—	107
Six months ended 31 December 2024 reported	4,403	4,440	3,480	1,371	1,412	70	15,176
Organic movement %	—	2	(1)	3	9	10	1

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	North America $ million	Europe $ million	Asia Pacific $ million	Latin America and Caribbean $ million	Africa $ million	Corporate $ million	Total $ million
Net sales
Six months ended 31 December 2023 reported	4,084	2,565	2,206	1,069	975	63	10,962
Exchange	—	(81)	(5)	4	(47)	—	(129)
Reclassification(1)	—	22	(22)	—	(31)	—	(31)
Disposals(2)	(1)	(12)	(24)	(1)	(132)	—	(170)
Hyperinflation	—	(30)	—	(2)	(3)	—	(35)
Six months ended 31 December 2023 adjusted	4,083	2,464	2,155	1,070	762	63	10,597
Organic movement	10	18	(55)	54	68	6	101
Acquisitions and disposals(2)	5	6	4	3	117	—	135
Exchange	(3)	78	6	(80)	(8)	1	(6)
Hyperinflation	—	66	—	3	5	—	74
Six months ended 31 December 2024 reported	4,095	2,632	2,110	1,050	944	70	10,901
Organic movement %	—	1	(3)	5	9	10	1

	North America $ million	Europe $ million	Asia Pacific $ million	Latin America and Caribbean $ million	Africa $ million	Corporate $ million	Total $ million
Marketing
Six months ended 31 December 2023 reported	782	459	406	184	106	15	1,952
Exchange	3	6	(13)	(4)	(3)	(1)	(12)
Disposals(2)	—	(2)	(5)	—	(10)	—	(17)
Hyperinflation	—	(4)	—	—	—	—	(4)
Six months ended 31 December 2023 adjusted	785	459	388	180	93	14	1,919
Organic movement	4	5	(40)	(1)	(3)	(2)	(37)
Acquisitions and disposals(2)	2	—	—	—	5	—	7
Exchange	(1)	10	—	(13)	2	1	(1)
Hyperinflation	—	8	—	—	—	—	8
Six months ended 31 December 2024 reported	790	482	348	166	97	13	1,896
Organic movement %	1	1	(10)	(1)	(3)	(14)	(2)

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	North America $ million	Europe $ million	Asia Pacific $ million	Latin America and Caribbean $ million	Africa $ million	Corporate $ million	Total $ million
Operating profit before exceptional items
Six months ended 31 December 2023 reported	1,725	797	689	316	130	(147)	3,510
Exchange(3)	(106)	(61)	13	—	(7)	(6)	(167)
Reclassification(1)	—	16	(16)	—	—	—	—
Fair value remeasurement of contingent considerations, equity option and earn-out arrangements	(23)	—	—	—	—	—	(23)
Fair value remeasurement of biological assets	—	—	—	27	—	—	27
Acquisitions and disposals(2)	—	(4)	(8)	(1)	8	—	(5)
Hyperinflation	—	22	—	6	8	—	36
Six months ended 31 December 2023 adjusted	1,596	770	678	348	139	(153)	3,378
Organic movement	(33)	(1)	(41)	38	23	(28)	(42)
Acquisitions and disposals(2)	(9)	3	1	1	34	—	30
Exchange(3)	77	35	7	(44)	(21)	(20)	34
Hyperinflation	—	(10)	—	(9)	(9)	—	(28)
Six months ended 31 December 2024 reported	1,631	797	645	334	166	(201)	3,372
Organic movement %	(2)	—	(6)	11	17	(18)	(1)
Organic operating margin % (4)
Six months ended 31 December 2024	38.2	31.0	30.3	34.3	19.5	n/a	31.2
Six months ended 31 December 2023	39.1	31.3	31.5	32.5	18.2	n/a	31.9
Organic operating margin movement (bps)	(90)	(27)	(113)	182	128	n/a	(69)

(1)A portion of Travel Retail Asia was reclassified to Europe. $31 million reclassification between net sales and cost of goods sold to accurately reflect the

impact of a route-to-market change in Africa.

(2)Acquisitions and disposals that had an effect on organic volume, sales, net sales, marketing and operating profit growth in the six months ended 31

December 2024, are detailed on page 43.

(3)The impact of movements in exchange rates on reported figures for operating profit was principally due to the weakening of the Mexican peso, the

Nigerian naira and the Turkish lira, partially offset by the strengthening of the Kenyan shilling against the US dollar.

(4)Organic operating margin calculated by dividing Operating profit before exceptional items by net sales.

(i)For the reconciliation of sales to net sales, see page 15.

(ii)Percentages and margin movements are calculated on rounded figures.

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Earnings per share before exceptional items

Earnings per share before exceptional items is calculated by dividing profit attributable to equity shareholders of the parent

company before exceptional items by the weighted average number of shares in issue.

Earnings per share before exceptional items for the six months ended 31 December 2024 and 31 December 2023 are set out in

the table below:


	2024	2023
	$ million	$ million
Profit attributable to equity shareholders of the parent company	1,935	2,210
Exceptional operating and non-operating items	271	253
Exceptional tax items and tax in respect of exceptional operating and non-operating items	(32)	(42)
Exceptional items attributable to non-controlling interests	(4)	2
Profit attributable to equity shareholders of the parent company before exceptional items	2,170	2,423

Weighted average number of shares	million	million
Shares in issue excluding own shares	2,221	2,242
Dilutive potential ordinary shares	7	5
Diluted shares in issue excluding own shares	2,228	2,247
	cents	cents
Basic earnings per share before exceptional items	97.7	108.1
Diluted earnings per share before exceptional items	97.4	107.8

Free cash flow

Free cash flow comprises the net cash flow from operating activities aggregated with the net cash expenditure paid for property,

plant and equipment and computer software that are included in net cash flow from investing activities.

The remaining components of net cash flow from investing activities that do not form part of free cash flow, as defined by the

group’s management, are in respect of the acquisition and sale of businesses and loans to associates and other investments that

do not meet the definition of cash and cash equivalents.

The group’s management regards a portion of the purchase and disposal of property, plant and equipment and computer

software as ultimately non-discretionary since ongoing investment in plant, machinery and technology is required to support the

day-to-day operations, whereas acquisition and sale of businesses are discretionary.

Where appropriate, separate explanations are given for the impacts of acquisition and sale of businesses, dividends paid and the

purchase of own shares, each of which arises from decisions that are independent from the running of the ongoing underlying

business.

In the year ended 30 June 2024, the definition of free cash flow was amended to exclude the adjustment for cash paid or

received in respect of loans and other investments. The group believes the redefined free cash flow definition is a more

appropriate measure of the ongoing cash generation of the group. The presentation of free cash flow for the six months ended

31 December 2023 has been aligned to free cash flow for the six months ended 31 December 2024.

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Free cash flow reconciliations for the six months ended 31 December 2024 and 31 December 2023 are set out in the table

below:


	2024	2023
	$ million	$ million
Net cash inflow from operating activities	2,325	2,146
Disposal of property, plant and equipment and computer software	3	7
Purchase of property, plant and equipment and computer software	(632)	(582)
Free cash flow	1,696	1,571

Adjusted net borrowings to adjusted EBITDA

Diageo manages its capital structure with the aim of achieving capital efficiency, providing flexibility to invest through the

economic cycle and giving efficient access to debt markets at attractive cost levels. The group regularly assesses its debt and

equity capital levels to enhance its capital structure by reviewing the ratio of adjusted net borrowings (net borrowings plus post-

employment benefit liabilities before tax) to adjusted EBITDA (earnings before exceptional operating items, non-operating

items, interest, tax, depreciation, amortisation and impairment).

Calculations for the ratio of adjusted net borrowings to adjusted EBITDA for the six months ended 31 December 2024 and 31

December 2023 are set out in the table below:


	2024	2023
	$ million	$ million
Borrowings due within one year	2,496	2,004
Borrowings due after one year	19,224	19,476
Fair value of foreign currency derivatives and interest rate hedging instruments	(11)	(40)
Lease liabilities	623	572
Less: Cash and cash equivalents	(1,656)	(1,529)
Net borrowings	20,676	20,483
Post-employment benefit liabilities before tax	433	471
Adjusted net borrowings	21,109	20,954

Profit for the year	3,899	3,980
Taxation	1,256	1,134
Net finance charges	896	798
Depreciation, amortisation and impairment (excluding exceptional accelerated depreciation and impairment)	713	648
Exceptional accelerated depreciation and impairment	(242)	728
EBITDA(1)	6,522	7,288
Exceptional operating items (excluding accelerated depreciation and impairment)	210	192
Non-operating items	64	(285)
Adjusted EBITDA(1)	6,796	7,195
Adjusted net borrowings to adjusted EBITDA	3.1	2.9

(1) EBITDA and adjusted EBITDA are calculated based on the last 12 months.

1) EBITDA and adjusted EBITDA are calculated based on the last 12 month

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Tax rate before exceptional items

Tax rate before exceptional items is calculated by dividing the total tax charge before tax charges and credits in respect of

exceptional items, by profit before taxation adjusted to exclude the impact of exceptional operating and non-operating items,

expressed as a percentage. The measure is used by management to assess the rate of tax applied to the group’s operations before

tax on exceptional items.

The tax rates from operations before exceptional and after exceptional items for the six months ended 31 December 2024 and

31 December 2023 are set out in the table below:


	2024	2023
	$ million	$ million
Taxation on profit (a)	699	737
Tax in respect of exceptional items	32	42
Tax before exceptional items (b)	731	779

Profit before taxation (c)	2,774	3,079
Non-operating items	54	60
Exceptional operating items	217	193
Profit before taxation and exceptional items (d)	3,045	3,332

Tax rate after exceptional items (a/c)	25.2%	23.9%
Tax rate before exceptional items (b/d)	24.0%	23.4%

Other definitions

Volume share is a brand’s retail volume expressed as a percentage of the retail volume of all brands in its segment. Value share

is a brand’s retail sales value expressed as a percentage of the retail sales value of all brands in its segment. Unless otherwise

stated, share refers to value share.

Net sales are sales less excise duties. Diageo incurs excise duties throughout the world. In the majority of countries, excise

duties are effectively a production tax which becomes payable when the product is removed from bonded premises and is not

directly related to the value of sales. It is generally not included as a separate item on external invoices; increases in excise

duties are not always passed on to the customer and where a customer fails to pay for a product received, the group cannot

reclaim the excise duty. The group therefore recognises excise duty as a cost to the group.

Price/mix is the number of percentage points difference between the organic movement in net sales and the organic movement

in volume. The difference arises because of changes in the composition of sales between higher and lower priced variants/

markets or as price changes are implemented.

Shipments comprise the volume of products sold to Diageo’s immediate (first tier) customers. Depletions are the estimated

volume of the onward sales made by Diageo's immediate customers. Both shipments and depletions are measured on an

equivalent units basis.

References to emerging markets include Poland, Eastern Europe, Türkiye, Latin America and Caribbean, Africa and Asia

Pacific (excluding Australia, Korea and Japan).

References to ready to drink also include ready to serve products, such as pre-mixed cans in some markets.

References to beer include cider, flavoured malt beverages and some non-alcoholic products such as Guinness 0.0 and Malta

Guinness. The results of Hop House 13 Lager are included in the Guinness figures.

There is no industry-agreed definition for price tiers and for data providers such as IWSR, definitions can vary by market.

Diageo bases price tier definitions on a methodology that uses external metrics (including market pricing data from Nielsen, IRI

etc., as well as the IWSR segmentation) for benchmarking and internal pricing metrics for a consistent segmentation.

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


	Six months ended 31 December 2024	Six months ended 31 December 2023
	$ million	$ million
Other comprehensive income
Items that will not be recycled subsequently to the income statement
Net remeasurement of post-employment benefit plans
Group	(184)	(138)
Associates and joint ventures	4	(2)
Non-controlling interests	—	(1)
Tax on post-employment benefit plans	52	32
	(128)	(109)
Items that may be recycled subsequently to the income statement
Exchange differences on translation of foreign operations
Group	(694)	(18)
Associates and joint ventures	(85)	106
Non-controlling interests	(15)	(8)
Net investment hedges	232	(295)
Exchange loss recycled to the income statement
On disposal of foreign operations	175	26
Tax on exchange differences – group	17	36
Effective portion of changes in fair value of cash flow hedges
Hedge of foreign currency debt of the group	(16)	39
Transaction exposure hedging of the group	(86)	90
Hedges by associates and joint ventures	(11)	1
Commodity price risk hedging of the group	1	(11)
Recycled to income statement – hedge of foreign currency debt of the group	83	52
Recycled to income statement – transaction exposure hedging of the group	(18)	(125)
Recycled to income statement – commodity price risk hedging of the group	11	20
Cost of hedging	20	(48)
Recycled to income statement – cost of hedging	(11)	(12)
Tax on effective portion of changes in fair value of cash flow hedges	9	(29)
Hyperinflation adjustments	181	290
Tax on hyperinflation adjustments	(49)	(98)
	(256)	16
Other comprehensive loss net of tax, for the period	(384)	(93)
Profit for the period	2,075	2,342
Total comprehensive income for the period	1,691	2,249

Attributable to:
Equity shareholders of the parent company	1,565	2,126
Non-controlling interests	126	123
Total comprehensive income for the period	1,691	2,249

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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET


		31 December 2024		30 June 2024		31 December 2023
	Notes	$ million	$ million	$ million	$ million	$ million	$ million
Non-current assets
Intangible assets		14,764		14,814		14,496
Property, plant and equipment		8,533		8,509		8,212
Biological assets		173		199		194
Investments in associates and joint ventures		5,076		5,032		5,229
Other investments		102		94		96
Other receivables		37		38		32
Other financial assets		392		373		430
Deferred tax assets		131		143		171
Post-employment benefit assets		974		1,146		1,118
			30,182		30,348		29,978
Current assets
Inventories	6	9,699		9,720		9,840
Trade and other receivables		4,532		3,487		4,580
Assets held for sale	13	302		130		—
Corporate tax receivables	5	235		304		274
Other financial assets		340		355		564
Cash and cash equivalents	7	1,656		1,130		1,529
			16,764		15,126		16,787
Total assets			46,946		45,474		46,765
Current liabilities
Borrowings and bank overdrafts	7	(2,496)		(2,885)		(2,004)
Other financial liabilities		(470)		(348)		(371)
Share buyback liability		—		—		(497)
Trade and other payables		(7,094)		(6,354)		(7,292)
Liabilities held for sale	13	(81)		(48)		—
Corporate tax payables	5	(191)		(136)		(253)
Provisions		(139)		(97)		(213)
			(10,471)		(9,868)		(10,630)
Non-current liabilities
Borrowings	7	(19,224)		(18,616)		(19,476)
Other financial liabilities		(873)		(940)		(865)
Other payables		(285)		(304)		(447)
Provisions		(318)		(300)		(313)
Deferred tax liabilities		(2,937)		(2,947)		(2,839)
Post-employment benefit liabilities		(433)		(429)		(471)
			(24,070)		(23,536)		(24,411)
Total liabilities			(34,541)		(33,404)		(35,041)
Net assets			12,405		12,070		11,724

Equity
Share capital		887		887		893
Share premium		1,703		1,703		1,703
Other reserves		(464)		(91)		502
Retained earnings		8,158		7,533		6,693
Equity attributable to equity shareholders of the parent company			10,284		10,032		9,791
Non-controlling interests			2,121		2,038		1,933
Total equity			12,405		12,070		11,724

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


				Retained earnings/(deficit)			Equity attributable to parent company shareholders $ million
	Share capital $ million	Share premium $ million	Other reserves $ million	Own shares $ million	Other retained earnings $ million	Total $ million		Non- controlling interests $ million	Total equity $ million
At 30 June 2023	898	1,703	665	(2,286)	8,876	6,590	9,856	1,853	11,709
Adjustment to 2023 closing equity in respect of hyperinflation in Ghana	—	—	—	—	41	41	41	10	51
Adjusted opening balance	898	1,703	665	(2,286)	8,917	6,631	9,897	1,863	11,760
Profit for the period	—	—	—	—	2,210	2,210	2,210	132	2,342
Other comprehensive (loss)/income	—	—	(168)	—	84	84	(84)	(9)	(93)
Total comprehensive (loss)/income for the period	—	—	(168)	—	2,294	2,294	2,126	123	2,249
Employee share schemes	—	—	—	30	4	34	34	—	34
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)
Unclaimed dividend	—	—	—	—	1	1	1	—	1
Change in fair value of put option	—	—	—	—	40	40	40	—	40
Share buyback programme	(5)	—	5	—	(977)	(977)	(977)	—	(977)
Dividend declared for the period	—	—	—	—	(1,349)	(1,349)	(1,349)	(53)	(1,402)
At 31 December 2023	893	1,703	502	(2,256)	8,949	6,693	9,791	1,933	11,724

At 30 June 2024	887	1,703	(91)	(2,250)	9,783	7,533	10,032	2,038	12,070
Profit for the period	—	—	—	—	1,935	1,935	1,935	140	2,075
Other comprehensive (loss)/income	—	—	(373)	—	3	3	(370)	(14)	(384)
Total comprehensive (loss)/income for the period	—	—	(373)	—	1,938	1,938	1,565	126	1,691
Employee share schemes	—	—	—	19	3	22	22	—	22
Share-based incentive plans	—	—	—	—	33	33	33	—	33
Share-based incentive plans in respect of associates	—	—	—	—	2	2	2	—	2
Share-based payments and purchase of own shares in respect of subsidiaries	—	—	—	—	(3)	(3)	(3)	(2)	(5)
Change in non-controlling interests from disposal of business	—	—	—	—	—	—	—	11	11
Change in fair value of put option	—	—	—	—	11	11	11	—	11
Tax on share buyback	—	—	—	—	21	21	21	—	21
Dividend declared for the period	—	—	—	—	(1,399)	(1,399)	(1,399)	(52)	(1,451)
At 31 December 2024	887	1,703	(464)	(2,231)	10,389	8,158	10,284	2,121	12,405

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


	Six months ended 31 December 2024		Six months ended 31 December 2023
	$ million	$ million	$ million	$ million
Cash flows from operating activities
Profit for the period	2,075		2,342
Taxation	699		737
Share of after tax results of associates and joint ventures	(115)		(253)
Net finance charges	442		431
Non-operating items	54		60
Operating profit		3,155		3,317
Increase in inventories	(175)		(82)
Increase in trade and other receivables	(1,181)		(1,106)
Increase in trade and other payables and provisions	942		469
Net increase in working capital		(414)		(719)
Depreciation, amortisation and impairment	389		411
Dividends received	5		5
Post-employment payments less amounts included in operating profit	5		(24)
Other items	75		59
		474		451
Cash generated from operations		3,215		3,049
Interest received	112		91
Interest paid	(496)		(443)
Taxation paid	(506)		(551)
		(890)		(903)
Net cash inflow from operating activities		2,325		2,146
Cash flows from investing activities
Disposal of property, plant and equipment and computer software	3		7
Purchase of property, plant and equipment and computer software	(632)		(582)
Movements in loans and other investments	(43)		(109)
Sale of businesses and brands	116		18
Acquisition of subsidiaries	(29)		(3)
Investments in associates and joint ventures	(47)		(51)
Net cash outflow from investing activities		(632)		(720)
Cash flows from financing activities
Share buyback programme	—		(480)
Net sale of own shares for share schemes	3		5
Purchase of treasury shares in respect of subsidiaries	(4)		—
Dividends paid to non-controlling interests	(74)		(71)
Proceeds from bonds	2,106		1,690
Repayment of bonds	(1,158)		(1,132)
Cash inflow from other borrowings	77		470
Cash outflow from other borrowings	(650)		(801)
Equity dividends paid	(1,399)		(1,348)
Net cash outflow from financing activities		(1,099)		(1,667)
Net increase/(decrease) in net cash and cash equivalents		594		(241)
Exchange differences		(68)		(45)
Movement of cash and cash equivalents in assets held for sale		4		—
Net cash and cash equivalents at beginning of the period		1,109		1,768
Net cash and cash equivalents at end of the period		1,639		1,482

Net cash and cash equivalents consist of:
Cash and cash equivalents		1,656		1,529
Bank overdrafts		(17)		(47)
		1,639		1,482

F- 7

Table of Contents

NOTES

1. Basis of preparation

These unaudited condensed consolidated interim financial statements have been prepared in accordance with UK adopted

International Accounting Standard 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 2024, 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 condensed 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 2024, with the exception of changes in estimates

disclosed in note 3 Exceptional items and note 14 Contingent liabilities and legal proceedings. These condensed consolidated

interim financial statements were approved for issue on 3 February 2025.

The financial statements for Diageo plc for the year ending 30 June 2025 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 18 month cash flow forecasts which reflect severe but plausible downside scenarios taking into

consideration the group's principal risks. After consideration of the principal risks, they were consistent with the severe but

plausible scenarios from those used at last year end. 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, lower level of marketing spend and investment in maturing

stock, as well as a temporary suspension or reduction in its dividend to shareholders 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.

Exchange rates

Weighted average exchange rates used in the translation of income statements were sterling – $1 = £0.78 (2023 – $1 = £0.80)

and euro – $1 = €0.92 (2023 – $1 = €0.92). Exchange rates used to translate assets and liabilities at the balance sheet date were

sterling – $1 = £0.80 (31 December 2023 – $1 = £0.79; 30 June 2024 – $1 = £0.79) and euro – $1 = €0.96 (31 December 2023 –

$1 = €0.90; 30 June 2024 – $1 = €0.93). The group uses foreign exchange transaction hedges to mitigate the effect of exchange

rate movements.

F- 8

Table of Contents

New accounting standards and interpretations

The following amendments to the Accounting Standards, issued by the IASB and endorsed by the UK, were adopted by the

group from 1 July 2024 with no material impact on the group’s consolidated results, financial position or disclosures:

–Amendments to IAS 1 – Classification of Liabilities and Non-current Liabilities with Covenants

–Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback

–Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements.

The following amendments issued by the IASB have been endorsed by the UK and have not yet been adopted by the group,

which are not expected to have material impact on the group's consolidated results or financial position:

–Amendments to IAS 21 – Lack of exchangeability (effective from the year ending 30 June 2026).

There are a number of other standards, 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.

2. 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, Mexico, Italy,

and Guatemala, 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 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.

F- 9

Table of Contents

(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 2024	$ million	$ million	$ million	$ million	$ million	$ million	$ million	$ million	$ million	$ million
Sales	4,403	4,440	3,480	1,371	1,412	2,032	(2,032)	15,106	70	15,176
Net sales
At budgeted exchange rates(1)	4,088	2,455	2,095	1,117	828	2,167	(2,121)	10,629	69	10,698
Acquisitions and disposals	5	6	4	3	117	—	—	135	—	135
SC&P allocation	5	27	5	7	2	(46)	—	—	—	—
Retranslation to actual exchange rates	(3)	78	6	(80)	(8)	(89)	89	(7)	1	(6)
Hyperinflation	—	66	—	3	5	—	—	74	—	74
Net sales	4,095	2,632	2,110	1,050	944	2,032	(2,032)	10,831	70	10,901
Operating profit/(loss)
At budgeted exchange rates(1)	1,547	762	639	385	162	22	—	3,517	(181)	3,336
Acquisitions and disposals	(9)	3	1	1	34	—	—	30	—	30
SC&P allocation	16	7	(2)	1	—	(22)	—	—	—	—
Retranslation to actual exchange rates	77	35	7	(44)	(21)	—	—	54	(20)	34
Hyperinflation	—	(10)	—	(9)	(9)	—	—	(28)	—	(28)
Operating profit/(loss) before exceptional items	1,631	797	645	334	166	—	—	3,573	(201)	3,372
Exceptional operating items(2)	(14)	(183)	(18)	(2)	—	—	—	(217)	—	(217)
Operating profit/(loss)	1,617	614	627	332	166	—	—	3,356	(201)	3,155
Non-operating items										(54)
Net finance charges										(442)
Share of after tax results of associates and joint ventures										115
Profit before taxation										2,774

F- 10

Table of Contents


	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(2)	(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

(1)These items represent the IFRS 8 performance measures for the geographical and SC&P segments.

(2)For definition and details of exceptional items, see pages F-11-F-13.

(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 38% of calendar year net sales occurred in the last four months of 2024.

(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 2024
Sales(1)	12,318	2,234	493	131	15,176	4,171	1,744	1,622	7,639	15,176
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

(1)The geographical analysis of sales is based on the location of third-party sales.

F- 11

Table of Contents

3. Exceptional items