Shares in Diageo were up on the FTSE 100 after the drinks company reported organic net sales growth of 12 per cent in the third quarter.

The group, which owns brands such as Smirnoff, Guinness and Baileys, said it still expected low single digit operating profit for the full year ended 30 June 2010.

Diageo said that net sales were up two per cent on an organic basis in the nine months to 31 March.

Net sales on a reported basis were up nine per cent in the third quarter ended 31 March, and were up four per cent in the nine months to the 31 March.

The company said that its net assets had fallen slightly from nearly £4.6 billion as of 31 December, to £4.4 billion as of 31 March 2010.

Paul Walsh, Chief Executive of Diageo, said, "As we had anticipated we delivered strong organic net sales growth for this third quarter. While we have seen some signs of recovery, albeit fragile in the mature markets and stronger in the emerging markets, our performance in the quarter benefited from comparison against a weak third quarter last year, from the earlier Easter this year and in some markets sales were brought forward in advance of excise duty increases.

"Consumer trends remain difficult to predict, especially in the mature markets. Our guidance for low single digit organic operating profit growth for the full year is unchanged and reflects our successful management of a tough environment in the first half and our continued ability to build on our strengths and increase marketing investment behind our brands."

By 11:36 shares in Diageo were up 1.30 per cent on the FTSE 100 to 1,095.00 pence per share.