Drinks giant Diageo has posted a 7% rise in full year net profits to £1.6bn.

Sales were up 15% to £9.3bn thanks to strong growth in its vodka, rum, tequila and beer categories.

The company's UK arm reported 2% sales growth and continued to outperform the declining alcohol market in Europe overall.

"While the economic downturn has affected all markets, the response of customers and consumers has not been uniform and therefore the impact on our business has been varied," said chief executive Paul Walsh.

"Smirnoff, Captain Morgan, Jose Cuervo and Guinness, two of our three largest local priority brands, Buchanan's and Windsor, and category brands, Cîroc, Cacique and Harp, all grew supported by innovation and effective marketing." He added: "We benefited from the addition of Ketel One vodka, Zacapa rum and Rosenblum Cellars wine, all of which have broadened our brand range in important categories."