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London - Imperial Tobacco Group reported declines in full-year revenue and profit on Tuesday, hurt by currency exchange rates and a reduction of inventories in several markets.
Like all tobacco companies, Imperial has been grappling with declining sales in a number of markets as more people cut back or quit smoking.
It has tackled this by cutting costs, including closing factories, resulting in over £60m of savings in the year to September 30. It said it was on track to save £300m each year by 2018.
The world's fourth-largest international tobacco company said net revenue in its tobacco business fell 6% to £6.58bn in the fiscal year.
As of October 10, analysts on average were expecting 6.97 billion, according to a company-compiled consensus.
Excluding foreign exchange rates and the impact of a stock optimisation programme that intentionally reduced inventories in several markets, underlying revenue rose 2%.
Volume, which measures the amount of tobacco sold, rose 7% on an underlying basis for the company's growth brands, which include Davidoff, Gauloises Blondes and JPS.
Adjusted earnings per share fell 3% to 203.4 pence on a reported basis in the year, also missing analysts' estimates of 214.2 pence per share, according to the consensus. On an underlying basis, earnings rose 7%, helped by cost cuts.
"Trading conditions remain tough in many territories but the actions we've taken to enhance the quality and sustainability of the business have put us in a stronger position to drive growth and create sustainable value for our shareholders," said chief executive Alison Cooper in a statement.
The company said it was committed to raising its dividend by at least 10% in the next fiscal year.
