By Daniel Hunter
Tesco has slashed £1 billion off its full-year profit forecasts, adding to the supermarket's woes.
The supermarket giant said profits "will not exceed £1.4 billion". Initial forecasts were £2.4bn and market expectations were for the new estimate to be cut to £2bn.
It adds to a year of troubles for Tesco. In addition to losing market share, and falling sales and profits, Tesco admitted that it had overstated profits by £263m.
An internal investigation was ordered, before the Serious Fraud Office announced it would conduct a criminal investigation.
New policies and procedures have since been put in place to ensure long-term growth.
"While the steps we are taking to achieve this are impacting short-term profitability they are essential to restoring the health of our business," said Tesco chief executive Dave Lewis.
Tesco shares were down 16% to 160p in early trading. The supermarket's troubles have led to more than half of its value being wiped off this year.
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