Drinks company Diageo has said it is on track to meet its full-year target of 7 per cent growth in underlying profits after the first quarter of its fiscal year.
The announcement comes despite slow sales of Guinness in both Ireland and Britain and a weak market in Spain.
The company said it had gained marked share in the North American market in the July-September period and had a double-digit percentage rise in Russian sales that helped to offset the weaker results elsewhere in Europe.
Diageo chief executive Paul Walsh said he expected operating profits to continue to grow in 2007.
Diageo shares were up 0.6 per cent today at 958.5p, valuing the business at around £26 billion. Diageo shares have outperformed the DJ Stoxx European food and drinks index by around 5 per cent since the start of the year.
The company is holding its AGM today in London.
Additional reporting: Reuters