DIAGEO has highlighted its Scotch whisky brands as a key driver of growth as its current financial year started well, with one analyst noting that the depreciation of sterling since the Brexit vote has brought a sales boost to the world’s biggest drinks company.

The Johnnie Walker and Guinness maker also hailed “improved top line growth” in the US, its most profitable market, and India ahead of its annual meeting yesterday, declaring that the momentum it built up last year has set it up for a stronger showing this year.

Diageo said it has seen a significant turnaround in its Scotch business, which contributes 25 per cent of its net sales, and expects its whisky brands to perform even better in the current year.

It underlined its improving fortunes across the Atlantic just days after the Scotch Whisky Association (SWA) reported that the value of exports to the US – the industry’s biggest market by far – surged by nine per cent to £375.4 million in the first half of the year.

The company's upbeat assessment on India, which accounts for nearly one-tenth of its sales, was also reflective of the SWA figures, which found that exports to the country grew by 28 per cent to £42.6m in the six months to June.

George Salmon, equity analyst at Hargreaves Lansdown, noted that, after several years of enduring headwinds in emerging markets such as Brazil due to slowing economic growth, Diageo had received a significant boost in export markets because of the collapse in sterling following the Brexit vote.

The pound hit a five-week low against the dollar on Tuesday as the political and economic risks from the UK’s exit from the European Union continued to weight on the currency.

Mr Salmon said Diageo is “now expecting in the region of a 10 to 13 per cent uplift in net sales, just because of the pound weakening, raising the value of their sales.” He said: “If you look at a share price graph you will see a big jump after the Brexit vote.”

Diageo chief executive Ivan Menezes said: “The 2017 fiscal year has started well. As expected, the momentum we created last year, strengthening our business through improved marketing, innovation, and commercial execution, has set us up to deliver a stronger performance.

“Key drivers of improved top line growth are our fiscal 2017 priorities: Scotch, US spirits and India.”

The update from Diageo came hard on the heels of speculation which suggested the drinks giant was preparing to slash jobs across the globe, including at its Park Royal office in London.

Diageo made no comment on that speculation yesterday, but has previously said that it is targeting savings of £500m by a three-year productivity drive unveiled in July 2015.

Mr Salmon said: “They have been driving costs down with efficiency savings and trying to get productivity savings through, and that has been a big part of the focus on the story today.”

Mr Menezes highlighted a “strong start to its productivity work” in Diageo’s current year, stating: “We have made a strong start to our productivity work and are moving at pace.”

He added: “In the second half productivity related costs will decline and be offset by higher savings as well as the benefits from our targeted reinvestment of those gains. “

Shares in Diageo closed up 2.5p at 2,183.5p.