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Borrowings
 12 Months Ended
Dec. 31, 2024
Disclosure of detailed information about borrowings [abstract]  
Borrowings 23 Borrowings
Currency
Maturity dates
Interest rates
2024
£m
2023
£m
Eurobonds
Euro
2025 to 2045
1.3% to 5.4%
5,236
5,569
UK sterling
2025 to 2055
2.1% to 6.0%
2,291
3,097
Swiss franc
2026
1.4%
221
234
Bonds issued pursuant to Rules under
the U.S. Securities Act (as amended)
US dollar
2025 to 2053
1.7% to 8.1%
28,268
29,913
Bonds and notes
36,016
38,813
Commercial paper
—
—
Other loans
—
100
Bank loans
211
216
Bank overdrafts
138
103
Lease liabilities
585
498
36,950
39,730
Perpetual hybrid bonds issued by the Group have been classified as equity (note 22(d)) and are therefore excluded from borrowings.
Other loans comprise £nil million (2023: £100 million) relating to a bilateral facility. Commercial paper is issued at competitive rates to
meet short-term borrowing requirements as and when needed.
Current borrowings per the balance sheet include interest payable of £565 million at 31 December 2024 (2023: £573 million). Included
within borrowings are £8,750 million (2023: £5,935 million) of borrowings subject to fair value hedges where their amortised cost has
been decreased by £215 million (2023: £110 million decrease).
The fair value of borrowings is estimated to be £34,596 million (2023: £36,000 million) of which £33,663 million (2023: £35,083 million)
has been calculated using quoted market prices and is within level 1 of the fair value hierarchy and £933 million (2023: £917 million)
has been calculated based on discounted cash flow analysis and is within level 3 of the fair value hierarchy.
Amounts secured on Group assets including property, plant and equipment, inventory and receivables as at 31 December 2024 are
£nil million (2023: £nil million). The majority of lease liabilities are secured against the associated assets.
Borrowings are repayable as follows:
Per balance sheet
Contractual gross maturities
2024
£m
2023
£m
2024
£m
2023
£m
Within one year
4,312
4,324
5,276
5,359
Between one and two years
2,644
3,319
4,084
4,784
Between two and three years
3,012
2,558
4,522
3,920
Between three and four years
3,435
2,947
4,695
4,393
Between four and five years
1,725
3,410
2,899
4,600
Beyond five years
21,822
23,172
32,232
35,163
36,950
39,730
53,708
58,219
The contractual gross maturities in each year include the borrowings maturing in that year together with forecast interest payments
on all borrowings which are outstanding for all or part of that year.
Borrowings are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below:
Functional
currency
£m
US
dollar
£m
UK
sterling
£m
Euro
£m
Other
currencies
£m
Total
£m
31 December 2024
Total borrowings
28,830
3,754
302
3,800
264
36,950
Effect of derivative financial instruments
– cross-currency swaps
609
(148)
—
(533)
—
(72)
– forward foreign currency contracts
68
(901)
—
435
395
(3)
29,507
2,705
302
3,702
659
36,875
31 December 2023
Total borrowings
32,215
3,656
302
3,301
256
39,730
Effect of derivative financial instruments
– cross-currency swaps
1,214
(451)
(300)
(559)
—
(96)
– forward foreign currency contracts
(57)
(892)
—
537
414
2
33,372
2,313
2
3,279
670
39,636
The exposure to interest rate changes when borrowings are re-priced is as follows:
Within
1 year
£m
Between
1-2 years
£m
Between
2-3 years
£m
Between
3-4 years
£m
Between
4-5 years
£m
Beyond
5 years
£m
Total
£m
31 December 2024
Total borrowings
4,312
2,644
3,012
3,435
1,725
21,822
36,950
Effect of derivative financial instruments
– interest rate swaps
6,494
—
(1,815)
—
—
(4,679)
—
– cross-currency swaps
459
—
(72)
—
(459)
—
(72)
11,265
2,644
1,125
3,435
1,266
17,143
36,878
31 December 2023
Total borrowings
4,324
3,319
2,558
2,947
3,410
23,172
39,730
Effect of derivative financial instruments
– interest rate swaps
2,798
(229)
(786)
—
(1,783)
—
—
– cross-currency swaps
448
—
6
—
(98)
(452)
(96)
7,570
3,090
1,778
2,947
1,529
22,720
39,634
Lease liabilities are repayable as follows:
Per balance sheet
Contractual gross maturities
2024
£m
2023
£m
2024
£m
2023
£m
Within one year
141
131
171
155
Between one and two years
133
103
165
122
Between two and three years
87
77
103
91
Between three and four years
49
59
61
70
Between four and five years
38
29
47
38
Beyond five years
137
99
176
140
585
498
723
616
For more information on leasing arrangements, refer to note 13.
As at 31 December 2024, the Group’s undrawn committed borrowing facilities (note 26) amount to £7,748 million (2023: £7,923 million)
with £5,056 million maturing within one year (2023: £5,077 million maturing within one year), £154 million maturing between one and two
years (2023: £154 million maturing between one and two years), £2,538 million maturing between two and three years (2023: £154 million
maturing between two and three years), £nil million maturing between three and four years (2023: £2,538 million maturing between
three and four years) and £nil million maturing between four and five years (2023: £nil million maturing between four and five years).
The Group’s composition and movements in net debt are presented below along with a reconciliation to the financing activities in the
Group Cash Flow Statement:
2024
£m
Notes
Opening
balance
Cash flow
Foreign
exchange
Fair value,
accrued
interest and
other
Held for Sale
Closing
balance
Borrowings (excluding lease liabilities)*
39,232
(2,387)
231
(711)
—
36,365
Lease liabilities
498
(165)
(27)
279
—
585
Derivatives in respect of net debt
19
170
(133)
106
(30)
—
113
Cash and cash equivalents
21
(4,659)
(907)
323
(54)
—
(5,297)
Current investments held at fair value
18
(601)
99
41
(52)
—
(513)
34,640
(3,493)
674
(568)
—
31,253
2023
£m
Notes
Opening
balance
Cash flow
Foreign
exchange
Fair value,
accrued
interest and
other
Held for Sale
Closing
balance
Borrowings (excluding lease liabilities)*
42,622
(1,638)
(1,956)
204
—
39,232
Lease liabilities
517
(162)
(25)
168
—
498
Derivatives in respect of net debt
19
167
(238)
564
(323)
—
170
Cash and cash equivalents
21
(3,446)
(1,101)
30
226
(368)
(4,659)
Current investments held at fair value
18
(579)
(22)
49
(49)
—
(601)
39,281
(3,161)
(1,338)
226
(368)
34,640
Note:
*Borrowings as at 31 December 2024 include £670 million (2023: £700 million) in respect of the purchase price adjustments relating to the acquisition of Reynolds American.
In the table above, movements in accrued interest relate to the net movement year-on-year and cash flows related to interest payments
are not included.
Fair value, accrued interest and other’ movements in lease liabilities in 2024 mainly comprise additions of £279 million (2023: £168 million)
(net of reassessments, modifications and terminations), see note 13(a). Included within the £279 million (2023: £168 million) are new lease
liabilities of £12 million (2023: £nil million) mainly arising from sale and leaseback transactions. The movement of £52 million
(2023: £49 million) in current investments held at fair value represents the fair value gains for these investments.
2024
£m
2023
£m
Cash flows per net debt statement
(3,493)
(3,161)
Non-financing cash flows included in net debt
773
1,126
Interest paid
(1,703)
(1,682)
Interest element of lease liabilities
(37)
(30)
Remaining cash flows relating to derivative financial instruments
5
(242)
Purchases of own shares held in employee share ownership trusts
(94)
(110)
Purchase of own shares
(698)
—
Coupon paid on perpetual hybrid bonds
(56)
(59)
Dividends paid to owners of the parent
(5,213)
(5,055)
Dividends paid to non-controlling interests
(121)
(105)
Other
5
4
Net cash used in financing activities per cash flow statement
(10,632)
(9,314)