DIAGEO chief executive Paul Walsh said the rapid growth in Scotch whisky sales which helped it achieve "corking" results could continue indefinitely, and the company might have to ramp up investment in Scotland even faster.
Hailing dramatic rises in sales of Scotch in places such as south-east Asia and Latin America, Mr Walsh stressed the drinks giant also achieved growth in some European markets in the year to June.
Underlying operating profits increased 11% to £3.2 billion, from £2.9bn last time.
Diageo increased the full-year dividend by 8%, underlining directors' confidence in its prospects.
Mr Walsh said the success of the company bodes well for Scotland, where Diageo is investing £1bn to boost output of Scotch.
He confirmed the company's plans will not be affected by the outcome of the proposed referendum on independence for Scotland in 2014, saying Diageo will work with whomever is responsible for governing the country.
However, the drinks trade veteran reiterated his condemnation of the Scottish Government's decision to introduce a minimum price for alcohol, which he has said will penalise responsible drinkers and could hamper efforts to grow exports of Scotch. Diageo belongs to the Scotch Whisky Association, which is leading attempts to have the policy overturned.
Diageo's results announcement included more evidence of the transformation of the whisky market that is being driven by the emergence of a class of affluent consumers in emerging countries around the world.
Many drink Scotch to show they have arrived, and the company has used its huge marketing budget to encourage members of this group to drink Scotch and opt for premium brands such as Johnnie Walker Double Black.
Net sales increased by 16% in China in the year to June. Diageo said: "Reserve brands net sales increased over 60% in China with continued strong performance from Johnnie Walker super deluxe variants and The Singleton."
More than 60% of sales growth in the rapidly expanding markets of Brazil, Uruguay and Paraguay, was driven by Scotch, primarily Johnnie Walker and Old Parr.
The success of Johnnie Walker will be regarded with mixed feelings in Kilmarnock following Diageo's decision in 2009 to close a whisky-bottling plant, based in the town and which employed about 700 people. Mr Walsh said the closure was required to boost efficiency and free up funds to invest in growth.
Asked how long growth rates could be maintained in emerging markets yesterday, Mr Walsh told The Herald: "Indefinitely."
He noted emerging markets feature rapidly expanding populations of people of drinking age whose incomes are rising.
Highlighting the positive implications of the growth in whisky markets for Scotland, Mr Walsh said Diageo will focus on delivering the plan to invest £1bn increasing Scotch production over five years, unveiled in June.
This will involve building at least one new malt distillery. He added: "I can see a situation where we may have to look for further expansion in due course."
Diageo will consider using acquisitions to increase Scotch production, but Mr Walsh said it would be hard to find suitable candidates for sale.
He also confirmed Diageo would like to have more equity participation in the Jose Cuervo tequila business owned by Mexico's Beckmann family.
Mr Walsh highlighted the fact Diageo increased sales in parts of western Europe including Germany against a tough backdrop, helped by effective marketing.
While some may feel the eurozone crisis poses insurmountable challenges, he said: "You have to have strategies to orchestrate some kind of growth."
However, net sales in Great Britain fell by 2% in the year to June. In Iberia, Greece and Italy they fell 9%.
Mr Walsh said the group delivered "a corking set of numbers" for the year. The group achieved 6% organic growth in net sales, in line with targets set last year.It recommended a full year dividend of 43.5p per share, up from 40.4p. Shares in Diageo closed up 17.5p at 1698p.
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