Drinks giant Diageo has toasted a better-than-expected performance in the first half of the year.
The global company, which employs 1,000 people in Fife, reported a 1.8% rise in organic net sales, and volumes were up 1%.
Adverse foreign exchange and the impact of the disposal of non-core assets reduced net sales by £400 million to £5,606m and operating profit by £156 to £1,717m.
Chief executive Ivan Menezes said: “Diageo has become a stronger, more competitive business.
“We have delivered volume growth, a stronger top line, improved the performance of our key brands, driven cost productivity and continued to generate strong cash flow.”
Trading conditions remained challenging but he was confident that Diageo can deliver improved, sustained performance with better momentum next year.
Diageo Great Britain delivered a good first half of the year with net sales up 3%, marking continuous growth over 30 months.
Beer net sales were up 3%, with Guinness net sales up 4% driven by the Rugby World Cup and the continued success of Brewers Project launches.
Guinness rugby kits were provided to 10,000 outlets across the UK and the Gareth Thomas advert “Never Alone” was viewed by more than 22 million people online.
Diageo’s portfolio of single malts performed beyond expectations, with total malts growing at 40%, driven by the launches of Talisker Skye, Talisker Storm, Dalwhinnie Winters Gold and Singleton Spey Cascade.
Diageo is a major employer in Fife at its Cameronbridge Distillery in Windygates, Cluny Warehouse at Kirkcaldy and bottling plant at Leven.
It produces its single malt portfolio and a number of Scotch brands including Old Parr and some variants of Johnnie Walker.
Leven bottles Smirnoff, Gordons, Tanqueray and Captain Morgan, and is home to its luxury packaging for Scotch, whose premium brands performed well.
In net sales Baileys was up 14%, Captain Morgan was up 2% and Smirnoff volume was up 1%, holding its share in a highly competitive market.