BUSINESS
03/02/2018 08:20 EST | Updated 03/02/2018 08:24 EST

George Weston, Loblaw Parent Company, Sees Profit Plunge Amid Price-FIxing Scandal

THE CANADIAN PRESS/Ryan Remiorz
A Loblaws store is seen Monday, March 9, 2015 in Montreal. Parent company George Weston Ltd.'s profit in the fourth quarter was cut by two-thirds as a result of special items including the cost of a $25 Loblaw Card program launched in compensation for the company's involvement in a price-fixing scheme.

TORONTO — George Weston Ltd.'s profit in the fourth quarter was cut by two-thirds as a result of special items including the cost of a $25 Loblaw Card program launched in compensation for the company's involvement in a price-fixing scheme.

The Toronto-based food processing and grocery company says net income attributable to common shareholders of the company dropped to $28 million or 22 cents per share.

Watch: Loblaws' $25 gift cards have started to arrive

That was down 65.9 per cent from $82 million or 64 cents per share in the fourth quarter of 2016.

Excluding certain items, George Weston's adjusted net earnings available to common shareholders were up by $24 million to $228 million, or $1.78 per common share.

Earlier on HuffPost Canada:


Last year's fourth quarter included issuing $25 Loblaw Cards to consumers to compensate for manipulating the cost of bread contrary to the Competition Act. The cards reduced fourth-quarter profit by $39 million or 30 cents per share.

The quarter also included a number of other one-time items, both positive and negative, including $75 million or 58 cents per share related to a merging of the Loblaw and Shoppers Drug Mart loyalty points programs.

Sales were down one per cent to $11.4 billion from $11.5 billion.

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