DRINKS group Diageo reported a four per cent rise in sales of its top brands despite tough conditions in Europe caused by higher taxes and regulation.

The group saw volumes rise by two per cent in the UK during the six months to December 31 on the back of a six per cent rise for Baileys and a return to growth by Guinness.

Guinness volumes were two per cent higher than a year ago, despite a price rise in April.

In contrast, volumes of whisky and Smirnoff products declined.

Pre-tax profits before exceptional items were £1.24bn, which was in line with market expectations.