Drinks company Diageo said sales growth improved in Europe and Asia-Pacific but held its annual operating profit growth target at 8 per cent due to higher marketing costs.
The company said today the increase in sales growth in early 2007 would see the group's underlying sales for its full year to the end of June rise higher than the 6 per cent increase in the first half.
Analysts said there would be little need to change forecasts, since the company made no change in its profit outlook in the trading statement near its financial year end of June 30th.
Its shares were down 1.3 per cent at £10.51 earlier in a slightly firmer London market.
The group said it expects exchange rates, mainly the weaker dollar, will trim £90 million off operating profits in the current year, and slice £40 million off operating profits in its next year to end-June 2008.
Diageo also reiterated that it has returned £1.4 billion to shareholders via a share buyback programme in the year to end-June 2007. It expects to publish its full-year results on August 30th.