In its core estate of 2,946 pubs, like-for-like net income fell 2.9% (28 weeks to 3 March: -2.1%).
The figure was “impacted by softer trading after Christmas, with weaker beer volumes in the months of January and February”.
In the 1,844-strong non-core estate, the decline was 10.2% (28 weeks to 3 March: -9.7%).
Punch said the “vast majority” of the core estate “continues to perform strongly, with pubs on full substantive agreements showing growth in net income over the half year period”.
“Within this, trading in the south of England remains robust and continues to outperform the rest of the UK.
“The decline in net income continues to be driven by pubs which have been returned to us after failing and are currently under temporary management.
The level of pub failures remains in line with last year and the majority of these pubs will receive investment to reposition their offering in their local marketplace and are currently in the process of being re-let on full substantive agreements.”
Punch sold 214 pubs in the first half of the financial year, generating £62, slightly ahead of book value.
The company said it remains “on track” to dispose of between 400 and 500 non-core pubs over the full year.
Roger Whiteside, chief executive of Punch, said: “Punch has a clear operational plan to return the core estate to growth in the medium-term and extract maximum value from our non-core assets.
“Profitability in the first 28 weeks of the financial year has been broadly in line with management expectations.
While we remain cautious on the near-term consumer environment, we have strong plans in place and expect to benefit from the Queen’s Diamond Jubilee, the UEFA European football championship and the Olympic Games in the second half of the year.
“In the current difficult climate we have worked hard to contain costs and as a result we remain on track to meet our full year profit expectations.”