Johnnie Walker whisky and Smirnoff vodka maker Diageo plc (LON:DGE) forecast a stronger performance in 2016/17 but said costs would affect profits.
Diageo said the financial year had begun well and improvements in marketing and innovation last year were paying off.
The group is focusing on scotch, US spirits and its Indian business, which was one of the drivers of a 2% rise in net sales in Asia Pacific during the last financial year.
Its US spirits business benefited during 2015/16 from growth in North American whiskey, scotch and tequila, with whiskey brands such as Crown Royal and Bulleit gaining market share.
Reserve brands performance also improved, driven by Johnnie Walker variants, Bulleit, Don Julio and Ketel One vodka.
Diageo said it had made a strong start to productivity improvements but the cost of those would hit operating profit in the first half of 2016/17.
However, in the second half, productivity-related costs would fall and be offset by higher savings as well as the benefits from targeted reinvestment of those gains, fuelling organic margin expansion in the full year.
Chief executive Ivan Menezes said: "Our top line momentum and progress in implementing productivity changes, gives us continued confidence in achieving our objective of mid-single digit top-line growth."