Sainsbury's shares suffer after dividend cut

Company reported lower profit but still managed to beat analyst expectations

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(Image credit: 2012 Getty Images)

Sainsbury's had managed to avoid the sort of share sell-offs seen elsewhere in the supermarket sector in recent months, but its stock has slumped today in the wake of its first-half results.

These revealed that the firm had posted an 18 per cent call in profit to £308m, the BBC reports. This was on the back of a fall in like-for-like sales – a measure of actual sales revenues in stores that have been open at least one year – of 1.6 per cent. Food sales declined by one per cent and sales at larger supermarkets fell by two per cent.

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