Supermarket chain Morrisons has seen a drop in sales and profit for the first six months of 2012.
For the half-year ending July 29 the fourth biggest grocer saw profit dip to £440m, from £449m previously.
Like-for-like sales until the end of July, excluding VAT and fuel, were also down 0.9%.
The firm said its net debt now sits at £1.68bn.
However, turnover was up 2.3% to £8.9bn while underlying profit was lifted 1% to £445m, allowing an interim dividend rise of 10% to 3.49p per share.
It continued the push of its own-label brand, with sales of M up 40%.
It said the rollout of the Fresh formats had now reached 45 stores with the total expected to reach more than 100 this year.
The chain also said its fresh meat facility in Winsford was on track while its fresh seafood site in Grimsby was now operational.
It also confirmed plans to take on its competitors in the urban convenience store sector by launching the smaller store format in London, supported by a new distribution centre.
Morrisons said: "We expect the challenging economic environment and consumer pressures to continue through the second half of this year and into 2013 and we have developed our financial and operational plans accordingly."
Non-executive chairman Sir Ian Gibson added: "With ongoinog commodity inflation continuing to weigh on already fragile consumer confidence and market conditions becoming ever more challenging, we have had to work even harder for our customers during the first half.
"Against this backdrop, Morrisons has increased sales and underlying earning and delivered good dividend growth."
