Imperial said it was continuing to build on its market leading position in the UK, although it estimated that the total UK cigarette market was down 2% to 47.9 billion.
Strong growth in value and economy cigarettes was continuing, Imperial said, with the sector now accounting for 44% of the total market.
But sales were hit by the new bans on smoking in public places introduced in England, Wales and Northern Ireland.
Imperial said: “Following a buoyant first half, the cigarette market declined in the second half following the introduction of bans on smoking in public places and the poor weather.”
It added: “As anticipated, and in line with our experiences in other markets with similar legislation, these have resulted in an initial decline in cigarette market volumes. Once the initial impact of public smoking bans has dissipated, we expect annual cigarette market declines of 3% to 4% in line with the long-term trend.”
Imperial said its share of the UK cigarette market share had climbed to 46.4%, up from 45.5% in 2006.
Lambert & Butler, the UK’s best-selling cigarette brand, was up to 16.6%, from 16.2% last year.
Richmond, the number-two brand, was up at 15.7%, from 15.5%.
In fine-cut tobacco, Imperial’s market share dipped to 63.6% (2006: 65.3%) but Golden Virginia continued to lead the market.
Gold Leaf, launched in June 2007 in the value segment, had grown to 1.6% market share, Imperial said.
Worldwide, the company reported a 6% increase in pre-tax profit to £1.24bn, on net sales up 4% at £3.28bn.
