US supermarket firm Great Atlantic & Pacific Tea Company (A&P) has reported a second-quarter profit, boosted by a gain on the sale of A&P Canada.
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Net income for the quarter to 10 September was $592m, or $14.40 per share, compared to a loss of $1.67 per share in the year-ago period. The current quarter’s results include a gain of $919m that relates to the sale of A&P Canada less charges totalling $152m for certain non-operating items.
Sales for the second quarter were $2.2bn, compared with $2.5bn in the second quarter of fiscal 2004. Comparable store sales in the US declined 1.1% versus a year earlier. Because of the impact of Hurricane Katrina, comparable store sales exclude the sales of the New Orleans business.
“We made major progress during the quarter in restructuring the company and forming the basis for a new and sustainable A&P. Proceeds from the sale of A&P Canada completed during the quarter are being utilized to strengthen our balance sheet and improve our stores; and our investment position and relationship with Metro in Canada is generating income and other benefits that we believe have significant upside potential going forward,” said executive chairman Christian Haub.
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