Johnnie Walker whisky producer Diageo announced it was on track to meet profit forecasts after reporting sales growth of 7% over the nine months to the end of March.

Chief executive Paul Walsh said: "Trading in the third quarter continued in line with the first half and we are therefore maintaining our guidance for 9% organic operating profit growth for the current fiscal year."

It is thought to be doing particularly well in the United States, a particularly profitable market for the company, and a key importer of whisky.

This is helping to offset headwinds, such as rising input costs particularly from items such as wheat, which Diageo, like other drinks companies, is facing.

Diageo added that the payment of dividends and is ongoing share buy-back programme had cut its net assets from £4.2bn at June 30, 2007, to £3.9bn at March 31, 2008.

One possible source of extra cash for the company would be the sale of all or part of its Guinness brewery site in Dublin. The company is nearing the end of a 12-month review of its Irish brewing operations.

Shares in the company fell 14p, or 1.3%, to 1028p yesterday as InBev, the world's largest drinks company, reported a drop in first quarter profit.