Global alcoholic drinks conglomerate Diageo has released its financial figures for the first half of the fiscal year, which ended on 31 December 2017.

Reported net sales increased by 1.7% to £6.5 billion and its operating profit was £2.2 billion, which represents a 6.1% increase.

Cash flow remained strong with net cash flow from operating activities at £1.2 billion and free cash flow at £1 billion.

Diageo’s gin and tequila brands saw the greatest increase in terms of sales. Don Julio tequila recorded a 39% growth and Tanqueray saw 8% growth. Gordons gin also did well as a result of the launch of its new pink product.

Vodka sales were down by 8% overall. Ketel One saw the largest decline in sales at 13%, closely followed by Cîroc at 11%. Smirnoff saw a more modest decrease at 2%.

All regions contributed to Diageo’s organic net sales growth, however, Latin America and Asia Pacific saw the most growth at 7%. Net sales in Europe and Turkey grew by 4% and in North America and Africa by 2%.

There was double-digit growth for Diageo’s rum brands, such as Captain Morgan, in Latin America. Johnnie Walker whiskey also grew in popularity most notably in Brazil, Mexico and Colombia. Gin drove growth in Europe, but the Russian markets’ increasing interest in Scotch brands supported this European growth.

Diageo CEO Ivan Menezes said: “These results demonstrate continued positive momentum from the consistent and rigorous execution of our strategy. We have delivered broad-based improvement in both organic volume and net sales growth. We have increased investment behind our brands and expanded organic operating margin through our sustained focus on driving efficiency and effectiveness across the business.”

The conglomerate attributes some of its strategic success to its ‘productivity programme.’ This was formulated in 2016 with the aim of making £500 million in savings by the end of the fiscal year 2019, at least partly by reducing staff numbers at the conglomerate’s central London offices.

Menezes continued: “By consistently delivering on our six strategic priorities, Diageo continues to get stronger: we have better consumer insight through superior analytics, improved execution on brand and commercial plans and have embedded everyday efficiency across the business through our productivity initiatives. This has enabled continued growth, improved agility, and consistent cash flow generation.”

Menezes said Diageo remains ‘confident’ in its ability to ‘deliver consistent mid-single digit top line growth.’ However, it also expects exchange fluctuations to reduce net sales by £460 million and operating profits by £60 million by the end of the fiscal year on 30 June 2018.