Global drinks group Diageo has reported operating profit for the full year of €2.15 billion, which was up 8.7% on the previous year, and ahead of forecasts.
Diageo reported earnings per share of 55.4 pence, a 13% increase year on year, in line with the average analyst forecast of 55.5p.
Diageo said sales of its Guinness brand in Ireland fell 7% in the last 12 months compared to a 3% decline globally.
The drinks group also says the growth of off licence sales at the expense of the pub trade continues in Ireland.
Sales of Bailey's across the globe have increased by 10%, with the world's supply of Bailey's made in Ireland.
The London-based maker of Johnnie Walker whisky, Smirnoff vodka, and Guinness beer said it aimed to increase underlying operating profit 9% in the current year, after beating its 8% target in the year to June 2007 with a 9% increase.
Chief executive Paul Walsh said in a results statement that the investments it had made behind its drinks brands and in its markets had created an even stronger platform for future growth.
'Therefore we currently expect increased organic operating profits growth in 2008 of 9%', he said.
In Europe overall volume sales were down 2%, and net sales and operating profits were flat.
There was strong growth in Continental Europe and Russia from Baileys, Johnnie Walker and Smirnoff vodka, which the company said partially offset the first half net sales decline in Great Britain, Ireland and Spain.
Diageo said in the second half, all three of these markets delivered net sales growth: in the UK Smirnoff vodka and Baileys both grew net sales over 10%; in Ireland the improved performance of the lager brands drove growth and in Spain Johnnie Walker grew net sales 19%.
The drinks giant benefited from strong growth in the United States, which accounts for 40% of group profits, and emerging markets such as Russia, China and Latin America, while it is spending heavily to revive depressed European sales.
The company added that underlying sales grew 7%, compared with forecasts for an above 6% rise.
The group raised its year dividend 5% to 32.7p.
