Profit after tax climbed 21 per cent to 2.7 billion pounds ($3.5 billion, 3.0 billion euros) in the group's financial year to the end of June, compared with 2015/2016, Diageo announced in a results statement.
Sales rose 15 per cent to 12.1 billion pounds, helped by favourable exchange rate moves.
"We delivered a strong set of results," chief executive Ivan Menezes said in the earnings release.
"Our performance demonstrates the effective delivery of our strategy. We have delivered consistent strong performance improvement across all regions and I am pleased with progress in our focus areas of US spirits, scotch and India."
Last month, the London-listed drinks giant snapped up Casamigos, an upscale tequila brand co-founded by Hollywood star George Clooney, in a deal potentially worth $1 billion.
Casamigos is the fastest-growing so-called "super- premium" tequila brand in the United States, according to the company.