The group, which includes Abbot Ale, IPA and Old Speckled Hen among its brews, said takings at its 753 managed pubs and 39 restaurants fell by 2.8% in May and June due to declining consumer confidence, the English smoking ban and raw material cost increases.

The latest sales figures followed “exceptional” results for the year to May 4 – as pre-tax profits rose by 2% to £142m on revenues up by 5% to £960.5m.

Total operating profits were 8% ahead at £236.2m while profits before acquisitions rose by 4.5%. Shareholders get a dividend 14% higher at 26p a share.

The results included contributions from two major acquisitions during the period. Greene King bought Loch Fyne Restaurants for £64.2m in August, 2007, and paid £32.8m for New Century Inns last November.

During the year, the number of Loch Fyne outlets was increased from 36 to 41 while New Century Inns provided an additional 49 pubs, mainly in the north-east.

Among other operations, Greene King’s brewing business increased volumes by 6% while Belhaven notched up an 18% rise in operating profits and a 31% rise in food sales.

Chief executive Rooney Anand said: “The year brought an unprecedented set of challenges for the industry and I am pleased to report exceptional performance across the business.”