Total sales also fell by 3.6%, but retailer says long-term plans such as moving packing operations to UK yet to benefit sales.
Morrisons like-for-like sales fell 6.3% in the third quarter of the year, with total sales excluding fuel down by 3.6%.
But the UK’s fourth largest retailer insisted that the results, for the 13 weeks to 2 November, showed “continued progress” on a three-year plan.
A company statement said it will take time for initiatives such as the launch of its Match & More card, which compares prices with discounters Aldi and Lidl, to fully benefit sales performance.
And it said that a proposed closure of its Netherlands-based produce packing facility Bos Brothers BV is expected to transfer operations to growers or existing Morrisons produce facilities in the UK during 2015.
An improved IT platform, simplifying the range and restructuring teams were also listed as ways in which the retailer is cutting costs.
During the last quarter, Morrisons opened 12 new M local stores and three new core stores, and said it is on schedule to open between 60-70 further M local stores by the end of the year.
“Morrisons is meeting the challenges created by a period of intense industry competition and structural change with quick and decisive action,” said chief executive, Dalton Philips. “I am encouraged by the further progress we have made, especially on a number of key operational measures, cash flow and costs.
“The launch of the Match & More card was another big move for Morrisons. We are the only supermarket that is price matching the discounters and the successful launch last month was a testament to the positive way our 120,000 colleagues are delivering innovation and embracing the changes at Morrisons,” he said.
Morrisons said it now expects underlying profit before tax to be in the narrower range of £335m to £365m (previously £325m-£375m), after £65m of new business development costs and £70m of one-off costs.