BRAMPTON, Ont. — Loblaw Companies Ltd. reported its third-quarter profit fell compared with a year ago as it was hit by a one-time charge related to a tax court ruling that it plans to appeal.
The retailer says it earned a profit attributable to common shareholders of $106 million or 28 cents per share for the quarter ended Oct. 6.
The quarter included a $367-million charge related to its former Barbadian banking subsidiary Glenhuron Bank Ltd. after a tax court ruling regarding Canada Revenue Agency’s reassessments. Loblaw has said it will appeal the decision.
The result for the quarter compared with a profit of $883 million or $2.24 per share a year ago when its results were boosted by a gain of $432 million on the sale of its gas bar operations.
Revenue totalled $14.45 billion, up from $14.19 billion.
On an adjusted basis, Loblaw says it earned $562 million or $1.49 per share for its most recent quarter, up from an adjusted profit of $549 million or $1.39 per share a year ago. Analysts on average had expected a profit of $1.44 per share, according to Thomson Reuters Eikon.
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The Canadian Press
