Canada Post reports Q2 profit
Strong growth in parcel volumes helped Canada Post segment achieve a $31m profit before tax in the second quarter (Q2), but the steady decline in mail volumes and revenues continued. Parcel volumes grew by 10m pieces or 23.0% compared to Q2 2016, and revenues increased by $83m or 20.5%.
Volumes for Domestic Parcels specifically – the largest product category – grew by 7m pieces or 19.6% and revenues were up $62m or 21.2%.
The Canada Post segment’s $31m profit before tax was up significantly on the $1m it reported for Q2 2016. For the half year (H2) as a whole, Canada Post reported a profit before tax of $75m, up from $45m in in 2016.
Canada Post commented: “The growth in parcels is encouraging, but structural challenges – such as Lettermail decline and the pension funding obligation – remain significant long-term threats to financial self-sustainability.”
Transaction mail volumes fell by 95m pieces or 10.9% in Q2 and revenue decreased by $63m or 8.0%.
Click here to see the full text of a statement issued by Canada Post.
