Spirits group Diageo (LON:DGE) boosted its half-year dividend but said overall sales and profits fell as some markets stayed tough.
Diageo, which makes Guinness, Johnnie Walker whisky and Smirnoff vodka, said it was increasing its interim dividend by 5% to 22.6p per share.
It said underlying sales and operating profit had risen by 1.8% and 2.4% respectively in the six months to December 31.
But the group said adverse exchange rates and the impact of the disposal of non-core assets reduced net sales and operating profit before one-off items by 5% to £5.6bn and by 7% to £1.72bn respectively.
It added that earnings per share before one-offs fell 4% to 51.3p, although total earnings per share lifted 7% to 56.1p.
Chief executive Ivan Menezes said Diageo expected full-year volume growth to drive stronger top-line performance, margins to improve slightly and strong cash conversion to continue.
He said that would set the company up to achieve better momentum in 2017, with productivity gains supporting margin expansion and investment in growth.
The group was still confident of meeting its objective of mid-single digit top-line growth and 100 basis points of organic operating margin improvement in the three years to the end of the 2019 tax year.
Menezes added: "While trading conditions remain challenging in some markets, Diageo's brands, capabilities in marketing and innovation and our route to consumer have proved resilient. I am confident Diageo can achieve improved, sustained performance."