Allied Domecq says strong trading in three of its core regions have helped it absorb the impact of a triple blow to profits.
The Bristol-based company warned in February that its results would be affected by higher pension costs, unhelpful currency movements and the impact of destocking of inventories by Spanish wholesalers.
Despite the problems, half-year figures from Allied showed pre-tax profits before one-off items rose 2 per cent to £256 million sterling in the six months to February 28th.
Stripping out the three negative factors, Allied - best known for Beefeater Gin and Tia Maria - said underlying earnings grew 20 per cent during the period.
Allied said it was also benefiting from changes at the group after deals added winemaker Montana and coconut rum Malibu to the company's drinks collection.
In Britain, the company said it had performed well as a strong Christmas and demand for Tia Maria and Teacher's boosted sales.
However, the overall performance for the European division was weaker, with trading profits down 51 per cent because of higher advertising and marketing costs and the changing buying patterns of Spanish wholesalers.
PA