Shares in drinks maker Diageo (LON:DGE) jumped nearly 7 percent in early trading on Thursday, after the company reported better-than-expected earnings for the year.

Operating profit, excluding one-time items, rose 20 percent over the 12 months to hit £3.6 billion, with per-share earnings before one-time items up to to £1.09 from 89.4 pence. Net sales were up 4 percent to £12.05 billion, from £10.49 billion last year.

The stronger results come after the alcohol maker, who owns the Johnny Walker scotch and Smirnoff vodka brands, announced a cost-cutting programme last year. The improved earnings for the year and raised its target for profit margin growth

The company also announced a 1.5 billion pound share buyback, to be paid to investors over fiscal 2018.

 

Shares in the company are currently up 5.96 percent at 2,408.00 (0955GMT).