LONDON (AP) — Diageo PLC, the world’s largest producer and distributor of alcoholic drinks, reported a 23-percent drop in first-half profit on yesterday, but raised its full-year guidance for profit growth from existing operations.The London-based company also unveiled a $100 million ($195.6 million) expansion of its Scotch whisky operations in anticipation of continued long-term demand in emerging markets.

Diageo said its profit fell to $895 million ($1.75 billion) in the six months ending December 31, from $1.17 billion in the same period a year earlier.

The company said operating profit — stripping out acquisitions, disposals and currency fluctuations — was up 4 percent to $1.31 billion. It also noted that profit in the first half of last year was boosted by the sale of its stake in General Mills Inc. and a lower tax rate.

“Excellent performances in North America and International and unchanged profits in Europe delivered double-digit underlying earnings growth,” said chief executive Paul Walsh. “As a result of this strong start we are increasing our guidance for organic operating profit growth to 8 percent for the full year.”

The company, which does not report quarterly earnings, had previously forecast growth of 7 percent.

Rob Mann, an analyst at Collins Stewart, said the increase was modest but shows “confidence in the trading prospects for the second half.”

Diageo said a new malt distillery will be built in Scotland and the existing grain distillery in the region will be expanded to meet anticipated long-term demand for the company’s brands in growing markets such as Brazil, Russia, India, China and Mexico.

The company said it will spend $80 million ($156.5 million) expanding its capacity in malt and grain distilling, with another $20 million ($39.1 million) to be spent on packaging and warehousing. In its first half, net sales of Diageo’s Scotch whisky brands grew 10 percent. The strong sales of scotch in particular contributed to a 17 percent rise in operating profit in the company’s international division, which encompassed emerging markets in Latin America, Africa and Asia.

Diageo shares rose 2.35 percent to close at 1,045 pence ($20.40) on the London Stock Exchange.