The share of the Irish cigarette market held by Gallaher, the Benson & Hedges and Silk Cut group, slipped to 47.8 per cent from 48 in the first six months of the year.

Total volumes were down 1.4 per cent, mainly due to the abolition of intra-EU duty free business in July last year. But domestic volume rose by more than 2 per cent.

Gallaher's first-half profits declined £30 million sterling to £155 million on sales barely changed at £2.18 billion. But comparisons between the two half years are distorted by changes in the timing of duty and price increases in Britain.

Underlying profitability benefited from last year's completion of the group's rationalisation programme, that saw production concentrated concentration at the group's Lisnafillan plant in Northern Ireland employing 1,500 people.