Loblaw second-quarter profit drops on charges

Company says bottom line impacted in part by real estate acquisition

Loblaw Companies Ltd. says its net profit for the second quarter was down 86.1% from the same time last year, dropping to $50 million or 13 cents per share.

The grocery and pharmacy retail company said its net earnings available to common shareholders were negatively affected by adjustments to the fair value of a liability and costs related to an acquisition by Choice Properties.

Excluding those items, Loblaw's adjusted net earnings were down a less dramatic 5.6% to $421 million, or $1.11 per share.

Overall revenue was $10.92 billion for the 12 weeks ended June 16, down $157 million or 1.4% from the second quarter of 2017--reflecting the sale of the company's gas bar operations last year.

Same-store sales growth at the food retail division was 0.8%, excluding gas bar operations, while drug retail same-store sales growth at Shoppers Drug Mart was 1.7%.

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