Canada Post reports Q1 profit before tax of $44m

The Canada Post segment has reported a $44m profit before tax for the first quarter (Q1), driven by a 12.5% increase in parcel volumes. In a statement issued yesterday (29 May), Canada Post said that the revenue from parcels increased by $45m or 10.8%. Domestic parcels, the largest product category, continued to grow strongly, as revenue increased by $36m or 12.1%, and volumes grew by more than four million pieces or 10.7%.

Transaction mail volumes fell by 56m pieces or 5.9%, while revenue decreased by $32m or 3.8%.

Direct Marketing volumes fell by three million pieces or 0.3%, while revenue decreased by $10m or 3.4%. However, the largest product category by volume, Neighbourhood Mail, saw revenue grow by $1m or 0.4% and volumes grow by 12m pieces or 1.5%.

The Canada Post Group of Companies – which includes Purolator Holdings, SCI Group and Innovapost as well as the Canada Post segment – reported a profit before tax of $65m, up from $35m in Q1 2016. Canada Post said that increase was “primarily driven by positive results in the Purolator segment, which reported a profit before tax of $17m in the first quarter of 2017, due to business growth, compared to a loss before tax of $12m in the same period in 2016.