The company behind the brands Guinness, Smirnoff and Baileys added that increased marketing had paid off in Europe, with sales for the region showing an improved trend over the past six months.
Chief executive Paul Walsh added that the group's strong trading performance meant Diageo would meet guidance for eight per cent organic operating profit growth for the financial year. He added: "Strong growth of the global spirits brands, and in particular the growth of Diageo's Scotch brands across the world, remains they key driver of top line performance."
Diageo's best known Scotch whisky brand is J&B, which is the market leader in Europe and number two in the world.
The company also said it delivered growth in beer, through the "continued success" of Guinness and its lager brands in Africa. The upbeat comment about Guinness contrasts with earlier this year when Diageo said volumes of the product fell seven per cent in Europe in the second half of 2006.
The drinks manufacturer put the black stuff's previous decline - which accelerated from a five per cent volume fall - down to exceptionally warm weather in the UK and Ireland, which accounts for 90 per cent of Guinness sales. Despite the disappointing Guinness sales last year, Diageo - which also makes Captain Morgan rum and Jose Cuervo tequila - recently pushed profits up four per cent to £1.29bn for the six months to December 31.
Shares dipped two per cent amid disappointment that Diageo's update did not go further.
Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, said: "With growth in full year operating profit only expected to match prior management forecasts, the share price appears to be reflecting some disappointment.
"However, short term expectations aside, underlying sentiment is likely to remain favourable. The important North American market is making progress, whilst the push into emerging markets continues to build momentum.
"Furthermore, the shares are supported via both a share buy-back scheme and the defensive nature of the drinks industry."
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