Canada Post’s first quarter results show the impact of strike action

Canada Post’s first quarter results show the impact of strike action

Canada Post has reported $23 million profit before tax in the first quarter, which ended March 30 – a $45 million decline compared to the same period a year earlier.

The company put it down to the “continued impact from major customers making other delivery arrangements last fall and into 2019.”

Canada Post revenues totalled almost $1.7 billion in the first quarter of 2019 – a decrease of $26 million or 1.5 % from the first quarter of 2018.

Parcels results

Revenue increased by $20 million or 3.4 % and volumes increased by about 1 million pieces or 2.6%, compared to the same period in 2018.

Domestic Parcels, the largest product category, drove growth in this line of business, as revenue increased by $40 million or 9.4 % and volumes grew by 6 million pieces or 14.4 %, compared to the first quarter of 2018. The increases in revenue and volumes were driven by major commercial customers as well as the continued growth in e-commerce.

Transaction Mail results

In the first quarter of 2019, Transaction Mail volumes decreased by 68 million pieces or 8.1 % and revenue decreased by $31 million or 4 %, compared to the first quarter of 2018. For domestic LettermailTM, the largest product category, volumes decreased by 61 million pieces or 7.6 %, while revenue decreased by $22 million or 3.1 % compared to the same period a year earlier. This was despite a regulated increase in the postage rate for domestic Lettermail.

The company said: “The ongoing decline in mail volumes in the digital era remains a significant challenge.”

 Group of Companies results

The Canada Post Group of Companies reported a profit before tax of $39 million for the first quarter of 2019, compared to a profit before tax of $94 million for the same period in 2018.

The company said: “The $55 million decrease in profit was largely due to the results of the Canada Post segment. Purolator’s profit before tax was $12 million in the first quarter, compared to a profit before tax of $20 million for the same period in 2018. Results for the Group of Companies can also be attributed in part to a softening of the Canadian economy in late 2018 and in early 2019.”

Visit Financial Reports for the full report.

Relevant Directory Listings

Listing image

Spectos GmbH

The Spectos Group, headquartered in Dresden, Germany, is an independent and internationally acknowledged company in the fields of market research, data analytics, technology, digitization and operations. Spectos supports its customers with tailor-made B2B solutions for the monitoring, management and design of their service quality in […]

Find out more

Other Directory Listings

Leave a comment

Your email address will not be published. Required fields are marked *

News Archive

Advertisement

MER Magazine


The Mail & Express Review (MER) Magazine is our quarterly print publication. Packed with original content and thought-provoking features, MER is a a must-read for those who want the inside track on the industry.

 

P&P Poll

Loading

Which stories do you most like reading about on Post & Parcel?

Thank you for voting
You have already voted on this poll!
Please select an option!






Pin It on Pinterest

Share This