GREENE King will draw on its experience of dealing with the smoking ban as it seeks to mitigate the impact of the lower legal drink drive limit in Scotland, chief executive Rooney Anand has said.

The Belhaven owner, which has about 300 pubs north of the Border, admitted the reduction in the legal limit will affect like for like sales for at least a year following its introduction in December

But the change, which is believed to have dramatically altered drinking habits, has not curbed the pub and brewing giant's appetite for the Scottish market.

Mr Anand was speaking as Greene King reported that sales in its retail arm had exceeded £1 billion for the first time - three years after it reached that milestone for group operations in their entirety.

Group revenue rose by three per cent to £1.3 billion in the 52 weeks ended May 3, with pre-tax profits narrowing by 0.8 per cent to £168.5 million.

Commenting on the effect of the drink-drive limit, Mr Anand said: "The first thing you have to do is accept that it is here to stay. It's a bit like the smoking ban when it first came - it was a severe influence on trade of a negative nature, but in time there were things we were able to do.

"I think you've probably had to go about it the same way."

Asked how the company could mitigate the effects of the change, which reduced the legal limit to 50mg per 100ml of blood, Mr Anand said it could involve treating designated drivers more "advantageously".

The company intends to explore offering a broader range of non-alcoholic options beyond traditional soft drinks and coffee, he said, while continuing to "emphasise prioritise food" in its outlets.

Longer term, Mr Anand said the company would continually evaluate its estate to see which outlets are more or less exposed to the effects of drink-driving regulations, and to ensure it "invests in the right ones".

In spite of the challenges, Mr Anand said Greene King remains confident about Scotland, where it has held a major presence since acquiring Belhaven in 2005.

He said: "We're investing in Hungry Horse and Farmhouse Inns in Scotland and they are going very well. I don't change my attitude or view to Scotland in that regard at all - we still think it's a really good place to have pubs, and a really good market for us."

Mr Anand said 2014 had been a "milestone" year, beginning with its biggest ever disposal - the sale of the 275 pubs to Hawthorn Leisure - and closed with the biggest acquisition of its history. Its purchase of Spirit Pub Company increased its portfolio to more than 3000 outlets around the UK, adding Spirit's 1207 managed and leased pubs to its 1,900-plus portfolio.

Asked how the deal will benefit Greene King in Scotland, where 85 pubs have been added as a result of the acquisition, Mr Anand said: "What it means is that we can pick the best of both businesses and build a stronger business in Scotland."

He also noted that the year had seen the culmination of a five-year strategy, which saw it meet the core objectives and deliver growth in earnings and dividends for shareholders.

Greene King yesterday recommended a final dividend of 21.8p per share, up 4.8 per cent on last year. This takes its total dividend for the year to 29.75p, 4.8 per cent ahead of the year before.

Shares in Greene King closed up 7.5p, or 0.89 per cent, at 852p.