British tobacco company Gallaher said trading in 2003 was in line with expectations and that its business remained in a strong position.
Gallaher's trading performance in the Republic remains resilient, it said in a statement this morning, with market share steady at around 49 per cent. The company closed its Dublin plant earlier this year.
However, total market volumes declined following the substantial increase in excise tax last December, and have stayed at reduced levels when compared with 2002.
The company has said it expects the duty increase in this year's Budget and the smoking ban will have an effect on sales.
Its shares gained 2.1 per cent to 594-1/2 pence (sterling) by 10 a.m.to be one of the top three gainers in the FTSE 100 index.
The trading update came ahead of its financial year-end at the end of this month.
Gallaher, along with fellow British cigarette manufacturers Imperial Tobacco Group and British American Tobacco, is included in an ongoing investigation by Britain's Office of Fair Trading into price-fixing in the British cigarette trade between manufacturers.
Additional reporting Reuters