Diageo cuts growth target as earnings rise

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He added that with the positive impact of exchange rates on its results and its share buyback programme he expected to deliver double-digit percentage earnings growth this year.

The group cut its share buyback programme to 750 million pounds in the current year from 1 billion pounds to reflect the near 600 million pounds it spent last year on acquisitions.

The weakness of the pound and recent strength of the dollar will mean the group will benefit from currency effects to the tune of 60 million pounds this year after a loss on translation of 5 million pounds in the year to June 2008.

Diageo's Rose said input costs such as oil, grains, glass and packaging rose 90 million pounds, or 3 percent of its cost base in the reported year, and he expected a bigger increase of 150 million pounds or 5 percent of its costs in the coming year.

The group raised its full-year dividend 5 percent to 34.35p.

(Reporting by David Jones, editing by Will Waterman)

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