SA Brain, the Welsh brewer and pub operator, saw pre-tax profits rise 77% to £10.4m following the sale of its freetrade business to Heineken UK.
However, turnover for the year to 30 September dipped 9% and operating profits slid by 36% to £4.7m due to the costs and disruption of the sale of its freetrade business.
The group, which operates 250 pubs across Wales, the Midlands and the South West, revealed a 1.3% dip in like-for-like sales at its managed pub arm but it had however seen managed house food and accommodation sales increase by 10% and 42% respectively.
The company added that beer volumes across its tenanted and leased pubs were down by 6.8%
However its national sales volumes grew 1.5%, take-home volumes were up 63% and overall ale volumes rose 1.2 %. Brains' cask ale volumes grew 6%,
"Profit was boosted considerably by the sale of the free trade business," said chief executive Scott Waddington.
"However, this also contributed to a reduction in turnover, as the Company no longer wholesales third party products to free trade accounts.
"The sale of the free trade business has enabled us to fully focus on and invest in our brewing and pubs business whilst making our beer brands more widely available through Heineken UK's comprehensive distribution network."
He added: "The recent 5% increase in beer duty on top of the 20% increase experienced over the past two years is unhelpful to the brewing and pubs industry and will put further jobs at risk across the sector."