Diageo returns to sales growth in line with estimates

(Adds CFO comments on Brexit)

LONDON, July 28 (Reuters) - Alcoholic drinks maker Diageo (Euronext: DGE.NX - news) reported higher sales for its just-ended financial year, returning to growth after two flat years marred by an emerging market slowdown and a shift in U.S (Other OTC: UBGXF - news) . consumer tastes from vodka to bourbon.

The maker of Johnnie Walker Scotch whisky and Smirnoff vodka on Thursday said net sales grew 2.8 percent on a like-for-like basis in the year ended 30 June, with volume up 1.3 percent.

Earnings per share, excluding one-time items, were 89.4 pence.

Analysts on average were expecting sales growth of 2.8 percent and earnings of 88 pence per share, according to a company-supplied consensus.

On a reported basis, full-year sales fell 3 percent, hurt by international currency devaluations and the loss of disposed assets such as Diageo (LSE: DGE.L - news) 's wine business.

Looking ahead, Diageo stood by its prior forecast for sales to grow at a mid-single-digit rate over the next three years with operating margins set to expand by 1 percentage point.

Diageo generates a large portion of its profit in the United States, where its market-leading Smirnoff vodka had suffered from discounting as trendy drinkers flocked to "brown spirits" like bourbon.

Meanwhile its international businesses were hammered, by a government crackdown on gift-giving in China, an economic slowdown in Brazil and volatility in Africa.

Diageo had flagged 2016 as a "transition year," during which it shook up its business, focusing for example more on what wholesalers sell to retailers, rather than what it sells to wholesalers.

After being range-bound for two years, Diageo's stock has soared 17 percent since Britain's vote last month to leave the European Union, fueled by the steep drop in the pound that will boost the UK company's earnings and make its Scotch more competitive.

Yet as the world's largest maker of Scotch whisky -- the vast majority of which is exported -- Diageo had supported Britain staying in the union.

"It (Other OTC: ITGL - news) 's really important for us that the UK continues to benefit from open access to the EU as well as favourable international trade agreements," Chief Financial Officer Kathryn Mikells told reporters.

Aside from the drop in sterling, Mikells said Diageo "really hasn't seen any impact to our business at this point".

"It's too early to comment on whether there would be any impact on the overall economic environment," she added.

At current rates, Diageo said weak sterling will lift full-year net sales by about 1.1 billion pounds and operating profit by 370 million pounds.

(Reporting by Martinne Geller in London; editing by Adrian Croft)