DEO

Diageo plc

HARAM — SCREEN DOES NOT PASSstock

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.

USD · millions
Interest-bearing debt / assets
48.15%Above limit
Below 33.333% under FTSE Yasaar

23,748 / 49,322

Cash + interest-bearing securities / assets
5.52%Within limit
Below 33.333% under FTSE Yasaar

2,724 / 49,322

Receivables + cash / assets
11.56%Within limit
Below 50% under FTSE Yasaar

5,704 / 49,322

Non-compliant income / revenue
1.33%Within limit
No more than 5% under FTSE Yasaar

373 / 27,964

FTSE Yasaar
v4.6, February 2026
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.

MSCI Islamic (total-assets series)
October 2024 methodology
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.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
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.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
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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