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Metro profits rise in Q3 as same-store sales surge

Grocery and drug store retailer's sales also increased in the quarter

Metro Inc. says earnings surged in its latest quarter, fuelled by higher same-store sales.

In the quarter ended July 1, the grocery and drug store retailer says net earnings rose 26% to $346.7 million from $275 million a year earlier.

The gains are due in part to a tax benefit after the Canada Revenue Agency granted capital losses to the company that had previously been disallowed.

Adjusted net earnings rose 11% to $314.8 million last quarter from $283.8 million the year before, while adjusted fully diluted net earnings leaped 14% to $1.35 per share from $1.18 per share.

Analysts had expected adjusted net earnings of $1.29 per share, according to financial markets data firm Refinitiv.

The Montreal-based company says sales increased by 10% to $6.43 billion from $5.87 billion a year prior, boosted by same-store sales growth of 9%.

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