Diageo, the world's biggest drinks maker, saw pre-tax profits increase by 12% to £2.24bn in the year to the end of June.

The firm, whose brands include Guinness, Smirnoff and Johnnie Walker, said developing markets had offset weakness in western Europe and the US.

Exposure to a wide range of markets left it confident for future growth, it added.

Diageo's overall sales grew 5% to £9.9bn.

Like other brewers, the group's shares have been hit by significant rises in the price of wheat and barley.

But chief executive Paul Walsh told the BBC that Diageo had already fixed the prices it paid for many of its raw materials, so did not expect this to have a significant impact on profits, or to lead to price rises.

Job cuts

Diageo had been through a "year of challenges" where "the impact of the global economic crisis varied by market and the strength of the recovery appears to be equally variable," Mr Walsh said.

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