26 Vodafone Group Plc Annual Report 2025 Our financial performance continued Current liabilities Current liabilities increased by €0.4 billion between 31 March 2024 and 31 March 2025 to €22.8 billion, primarily due to an increase of €0.7 billion in Trade and other payables, an increase of €0.2 billion in Provisions and an increase of €0.2 billion in Taxation liabilities, partially offset by a decrease in borrowings of €0.7 billion. Inflation The Group continues to apply hyperinflationary accounting, as specified in IAS 29, at its Turkish operations where the functional currency is the Turkish lira and to Safaricom’s operations in Ethiopia where the Ethiopian birr is the functional currency. See note 1 ‘Basis of preparation’ in the consolidated financial statements for more information and for a summary of the impact on the financial results of the Group for the year ended 31 March 2025.
Strategic report
Governance
Financials
Other information
Cash inflow from operating activities decreased to €15,373 million, primarily due to lower inflows from discontinued operations. Inflow from investing activities increased by €10,881 million to €4,759 million, primarily driven by the disposals of Vodafone Spain and Vodafone Italy and the proceeds received from the disposal of 10% of Oak Holdings 1 GmBH (€1,336 million) and the disposal of 18% of Indus Towers Limited (€1,684 million). The Group disposed of Vodafone Spain to Zegona Communications plc (‘Zegona’) for total cash consideration of €4,069 million (subject to closing accounts adjustments), of which €3,669 million is included in this line, and Vodafone Italy to Swisscom AG (‘Swisscom’) for total cash consideration of €7,885 million (after closing accounts adjustments), of which €7,707 million is included in this line. The remaining €400 million and €178 million respectively relates to the future use of the Vodafone brand by Zegona and Swisscom, and to certain procurement services to be provided by the Group to Zegona and is included in Inflow from operating activities. This was offset by a higher outflow in relation to the purchase of investments. Outflows from financing activities decreased by €577 million to €15,278 million, as lower net cash outflows in respect of borrowings, dividends and discontinued operations were partly offset by higher interest paid arising from the repayment of borrowings secured against Indian assets and higher payments in respect of the purchase of treasury shares.
Reported change %
FY25 €m
FY24 €m
Adjusted EBITDAaL 1 Capital additions 2 Working capital 3
10,932 11,019
(0.8)
(6,862)
(6,331) (309) 14 (81) (254) (454) (1,279) (724) 442 (260)
53
Disposal of property, plant and equipment and intangible assets Restructuring costs including working capital movements 4 Integration capital additions
9
(31) (246) (421) (1,147) (728) 530 (249)
Licences and spectrum Interest received and paid 5
Taxation
Dividends received from associates and joint ventures Dividends paid to non-controlling shareholders in subsidiaries
Other
10
–
Free cash flow 1 Acquisitions and disposals Equity dividends paid Share buybacks Foreign exchange (loss)/gain Other movements in net debt 6,7 Net debt decrease/(increase) 1
1,850 1,783 (1,787) (2,430) (346)
3.8
13,917 (1,868) (182) (1,085) 10,845
–
(64)
1,065
Cash flow and funding Analysis of cash flow
8
Opening net debt 1 Closing net debt 1
(33,242) (33,250) (22,397) (33,242) (22,397) (33,349) – (107) 1,850 1,783
Reported change %
32.6 32.8
FY25 €m
FY24 €m
Net debt of Vodafone Spain and Vodafone Italy 1 Closing net debt incl. Vodafone Spain and Vodafone Italy 1
Inflow from operating activities Inflow/(outflow) from investing activities Outflow from financing activities Net cash inflow/ (outflow) Cash and cash equivalents at the beginning of the financial year Exchange loss on cash and cash equivalents Cash and cash equivalents at the end of the financial year
15,373 16,557
(7.2)
Free cash flow 1 Adjustments: – Licences and spectrum – Integration capital additions – Other adjustments Adjusted free cash flow 1
4,759 (6,122) 177.7
421 246 31
454 254 81 28
– Restructuring costs including working capital movements 4
(15,278) (15,855)
3.6
–
4,854 (5,420) 189.6
2,548 2,600
Notes: 1. Adjusted EBITDAaL, Free cash flow, Adjusted free cash flow and Net debt are non-GAAP measures. See page 213 for more information. 2. See page 222 for an analysis of tangible and intangible additions in the year. 3. Includes the impact of €148 million of Trade payables for which the Group has extended payment terms from 30 to 90 days through the use of reverse factoring at 31 March 2025 (31 March 2024: €nil). 4. Includes working capital in respect of integration capital additions. 5. Interest received and paid excludes €451 million outflow (FY24: €406 million) in relation to the cash portion of interest on lease liabilities included within Adjusted EBITDAaL. 6. Other movements in net debt for FY25 includes a net outflow from discontinued operations of €120 million (FY24: €455 million inflow) and the repayment of borrowings secured against Indian assets of €1,794 million (including €547 million of accrued interest) following the disposal of the Group’s interest in Indus Towers, offset by payments from Swisscom and Zegona in respect of the future use of the Vodafone brand of €491 million and €328 million in respect of proceeds from the disposal of the Group’s residual 3% interest in Indus Towers, which was classified as an Other investment. The amount for FY24 includes mark-to-market losses recognised in the income statement of €97 million and €185 million for the repayment of debt in relation to licences and spectrum.
6,114 11,628
(75)
(94)
10,893 6,114
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