DEO
Diageo plc
Is DEO Halal?
Alcohol production is a direct business-activity failure under the retained Sharia screen.
What You Should Know
Diageo's June 30, 2025 Form 20-F reports alcohol as the core product category, with 48.15% interest-bearing debt/assets and 1.33% interest revenue/revenue. The direct alcohol business fails independently of purification or any market-cap method.
⚠️ Concerns
- •Core business is alcoholic beverage production
- •Interest-bearing debt/assets is 48.15%
- •No purification can cure a direct core-business failure
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2025-06-30; calculated 2026-07-14.
23,748 / 49,322
2,724 / 49,322
5,704 / 49,322
373 / 27,964
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.15%, liquidity/assets is 5.52%, receivables plus cash/assets is 11.55% and interest revenue/revenue is 1.33%; debt and the core business fail.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.15%, above the examined limit, and the alcohol business fails. This is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.15%, above the examined limit, and alcohol is a direct business failure; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
Market-cap methods are not calculated; the core alcohol business independently fails.
Business-activity disclosure
Diageo produces and markets spirits, beer and other alcoholic beverages. Alcohol production and sale are a direct business-activity failure under the retained screening framework.
Limitation: The filing contains multiple product and geographic categories, but no halal carve-out exists that would change the core business conclusion.
Purification
Interest revenue of 373 million is disclosed, but purification does not make a direct alcohol producer permissible.
Inputs, assumptions and primary sources
- Amounts are USD millions from Diageo's June 30, 2025 Form 20-F.
- Borrowings are current borrowings of 2,928 plus long-term borrowings of 20,820.
- Cash is 2,200, other current financial assets are 524, and current trade and other receivables are 3,504.
- Annual revenue is 27,964 and reported interest revenue is 373.
- Alcoholic beverages are the core business; total revenue is used as a conservative upper-bound prohibited-revenue proxy.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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