Canada Post reports $107 million loss before tax in the first quarter
Canada Post recorded a loss before tax of $107 million in the first quarter of 2023 as Parcels revenue was relatively flat and Transaction Mail and Direct Marketing revenue declined.
The Canada Post segment’s loss before tax in the first quarter improved by $22 million compared to a loss before tax of $129 million in the same period of 2022. Revenue fell by $32 million, or 1.7 per cent, compared to the same period of 2022.
Parcels revenue was relatively flat as volumes declined by 7.6% from the same period of the prior year and revenue increased by only 0.2%, or $1 million.
According to Canada Post: “The competitive landscape continued to have an impact on the Parcels business as low-cost new entrants and rate-shopping platforms have disrupted the package delivery sector. A softer ecommerce market related to lower consumer spending also affected volumes.”
Direct Marketing revenue and volumes fell by 4.5% and 5.5% respectively as businesses continued to pull back on marketing.
Transaction Mail revenue and volumes fell by 2.7% and 3.4% respectively compared to the first quarter of 2022, as consumers and mailers continued to shift to digital channels.
Overall, the Canada Post Group of Companies recorded a loss before tax of $58 million in the first quarter of 2023, compared to a loss before tax of $100 million in the same period a year earlier. Purolator’s profit before tax of $46 million in the quarter increased from $28 million in the same quarter of the prior year. SCI’s first-quarter profit before tax of $3 million rose from $2 million compared to the same period of the previous year.