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Metro Inc. reported surging profits Wednesday in its latest quarterly results, as the company faces an ongoing strike at 27 of its Greater Toronto Area stores.

In the quarter ended July 1, the grocery and drugstore retailer said net earnings increased more than 26 per cent to $346.7 million from $275 million a year earlier.

Metro said the massive gains in its third quarter are due in part to a tax benefit after the Canada Revenue Agency granted capital losses to the company that had previously been disallowed.

Nonetheless, adjusted net earnings rose roughly 11 per cent to $314.8 million last quarter from $283.8 million the year before.

The adjusted profits come as 3,700 Metro workers are on strike as they push for higher pay and other improvements. Kyle Benning reports.

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