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UK beverage company Diageo has reported a 15 per cent increase in earnings for the first half of 2007 on higher sales across the world.

Diageo reported earnings per share of 37.6 pence in the six months to December 31st.

The strong first-half performance means Diageo is on track to deliver full year guidance, the company said, with volume up four per cent, net sales up seven per cent and operating profit up nine per cent.

Diageo - which markets Guinness, Smirnoff, Johnnie Walker and Captain Morgan among others - said operating profit in North America was particularly strong, driven by growth in premium brands, rising seven per cent.

The drinks giant added profit was offset by higher interest charges relating to borrowing and higher post-employment costs.

In Europe, an increased marketing spend paid off with a four per cent increase in sales and a two per cent increase in operating profit.

However, overall performance in Asia-Pacific fell as a result of the loss of an import licence to Korea, and operating profit dropped 12 per cent for the region.

Paul Walsh, chief executive of Diageo, said: "This first-half performance demonstrates that our brands are well supported and our routes to market remain strong and therefore, while we continue to watch for any impact recent financial market volatility may have on broader trading conditions, we are maintaining our guidance for nine per cent organic operating profit growth for the current fiscal year."

The interim dividend was raised 5.2 per cent to 13.2 pence.