Canada Post records $315-million loss before tax in third quarter
Canada Post has released its third-quarter 2024 results. The Corporation recorded a loss before tax of $315 million in the quarter, compared to a loss before tax of $290 million in the same period a year earlier.
An increasingly crowded and highly competitive ecommerce delivery market continued to impact Parcels results in the third quarter. While Transaction Mail volume continued to erode, revenue rose due to an increase in regulated stamp rates. Direct Marketing revenue and volume experienced robust growth.
Highlights
- For the first nine months of 2024, the Corporation recorded a loss from operations of $803 million, compared to $662 million in the same period of the previous year. The loss from operations excludes any income received from the divestitures of SCI Group Inc. and Innovapost Inc.
- Canada Post will record another significant loss in 2024, the seventh consecutive annual loss for the Corporation.
- Revenue in the third quarter fell by $15 million, or 1.0 per cent, compared to the same period a year earlier.
- Parcels results continued to be impacted by a highly competitive and demanding parcel delivery market. In the third quarter, Parcels revenue fell by $46 million, or 5.8 per cent, as volumes declined by 6 million pieces, or 9.6 per cent, compared to the same period of 2023.
- While Transaction Mail volume continued to erode in the third quarter, revenue increased compared to the same quarter of 2023 due to a regulated postage rate increase that took effect in May 2024. Transaction Mail revenue increased by $7 million, or 1.3 per cent, as volumes declined by 33 million pieces, or 6.6 per cent, compared to the same period a year earlier.
- Direct Marketing results benefitted from new business and higher sales for the Canada Post Neighbourhood Mail service. In the third quarter, Direct Marketing revenue rose by $21 million, or 9.0 per cent, as volumes increased by 201 million pieces, or 22.1 per cent, compared to the same period of the previous year.
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2024/11/22
Operating loss of $269 million in second quarter offset by divestitures of SCI and Innovapost
Canada Post has released its second-quarter 2024 results. The Corporation recorded a profit before tax of $46 million in the second quarter of 2024, as income from the divestitures of Innovapost Inc. and SCI Group Inc. offset a loss from operations of $269 million.
Intense competition continued to impact all aspects of the Parcels business in the second quarter of 2024. Transaction Mail volume continued to erode, while Direct Marketing revenue and volumes picked up.
Highlights
- Canada Post’s revenue in the second quarter was relatively flat compared to the same period a year earlier.
- The Corporation recorded a loss from operations of $269 million in the second quarter, compared to a loss from operations of $259 million in the same period of the prior year. In the first six months of 2024, the loss from operations was $490 million, compared to $371 million in the same period of 2023. The loss from operations excludes any income from the divestitures.
- Parcels results continued to be impacted by a crowded and competitive delivery market. In the second quarter, Parcels revenue fell by $28 million, or 5.0 per cent, as volumes declined by 4 million pieces, or 7.2 per cent, compared to the same period of 2023.
- While Transaction Mail continued to erode, an increase in regulated postage rates in May 2024 helped soften the impact of declining volumes. Transaction Mail revenue increased by $13 million, or 0.6 per cent, as volumes declined by 14 million pieces, or 3.9 per cent, compared to the same period a year earlier.
- Direct Marketing results benefitted from new business and higher sales for the Canada Post Neighbourhood Mail™ service. In the second quarter, Direct Marketing revenue rose by $19 million, or 6.2 per cent, as volumes increased by 175 million pieces, or 15.2 per cent, compared to the same period of the previous year.
- The strategic divestitures of SCI, a leading Canadian third-party logistics provider, and Innovapost, our IT shared-services provider, allow us to focus the business on our core mandate of providing a modern postal service to Canadians.
More information
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2024/08/23
Canada Post reports $76-million loss before tax in first quarter
Canada Post has released its first-quarter 2024 results. The Corporation’s loss before tax of $76 million improved compared to the same period of the prior year due to the receipt of non-recurring dividends partly related to the divestiture of SCI Group Inc.
Without these dividends, Canada Post’s loss before tax would have been approximately $224 million, compared to a loss before tax of $107 million in the first quarter of 2023.
Highlights
- • In the first quarter, Canada Post’s revenue declined by $56 million, or 1.5 per cent, compared to the same quarter of the prior year.
- • Parcels results continued to be negatively impacted by a crowded and competitive delivery market, as well as a decline in fuel surcharges linked to market rates. Parcels revenue declined by $59 million, or 5.4 per cent, while volumes fell by 2 million pieces, or 1.1 per cent, compared to the same period in 2023.
- • Transaction Mail revenue and volumes continued to erode. Revenue fell by $20 million, or 1.3 per cent, as volumes declined by 16 million pieces, or 1.1 per cent, compared to the same period a year earlier.
- • Direct Marketing results benefited from strong sales and new business in Neighbourhood Mail. Direct Marketing revenue grew by $23 million, or 12.2 per cent, as volumes increased by 180 million pieces, or 22.4 per cent, compared to the same period in 2023.
- • In January 2024, we announced the strategic divestiture of SCI Group Inc., a leading Canadian third-party logistics provider, and Innovapost Inc., our IT shared-services provider. These strategic divestitures will allow us to focus the business on our core mandate of providing a modern postal service to Canadians. Financial information about the Innovapost sale will be included in the second-quarter report.
More information
2024/05/24
Canada Post reports $290-million loss before tax in the third quarter
Canada Post has released its third quarter 2023 financial results. The Corporation recorded a loss before tax of $290 million as revenue fell across most lines of business.
While Parcels volumes increased, Parcels revenue continued to be impacted by an increasingly competitive parcel delivery market. Transaction Mail volumes and revenue continued to decline, while Direct Marketing volumes and revenue increased in the third quarter.
Highlights
- The Canada Post segment’s loss before tax in the third quarter widened by $63 million from the same period of 2022.
- Revenue fell by $154 million, or 3.5 per cent, in the first three quarters of 2023 compared to the same period of 2022.
- In the third quarter, Direct Marketing revenue increased by $7 million, or 3.3 per cent as volumes increased by 43 million pieces, or 4.9 per cent, while Transaction Mail revenue continued to erode with a decline of 7.7 per cent, compared to the same period a year earlier.
- Parcels revenue remained relatively flat in the third quarter, falling by $3 million, or 0.3 per cent, as volumes rose by 7 million pieces, or 12.1 per cent, compared to the same period of 2022. Growth in the ecommerce market, along with improved service performance contributed to the volume increase. Meanwhile, Parcels revenue continued to be negatively impacted by rate-shopping platforms, a crowded and competitive market, and a decrease in fuel surcharges which are tied to market rates.
- With Parcels representing approximately half of Canada Post’s revenue, the Corporation is transforming to better position itself in a competitive market and ensure the postal service continues to be a vital economic link for all Canadians.
Click here to read the full news release.
2023/11/24
Canada Post reports $254-million loss before tax in the second quarter
Canada Post has released its second quarter 2023 financial results. The Corporation recorded a loss before tax of $254 million as revenue fell across all lines of business.
The Parcels line of business saw increased volumes while revenue declined in what continues to be an increasingly competitive market. Transaction Mail volume and revenue continued to erode, while Direct Marketing revenue declined as businesses’ marketing budgets remained under pressure.
Highlights
- The Canada Post segment’s loss before tax of $254 million in the second quarter was $94 million, or 58.8 per cent larger than the same period of 2022.
- Revenue fell by $78 million, or 6.0 per cent, compared to the same period of 2022.
- Direct Marketing revenue fell by 3.7 per cent as businesses’ marketing budgets remained under pressure, and Transaction Mail revenue continued to erode with a decline of 5.2 per cent, compared to the same period a year earlier.
- Parcels revenue fell by 7.0 per cent compared to the same period of 2022. Revenues were impacted by the growing use of rate shopping platforms by customers, increased competition and a drop in fuel surcharges tied to market rates. At the same time, parcel volumes increased by 2.6 per cent due to ongoing strategic efforts to secure new accounts and additional volumes.
- With Parcels representing approximately half of Canada Post’s revenue, the Corporation is transforming to better position itself in a competitive market and ensure the postal service continues to be a vital economic link for all Canadians.
- We continue to make strategic investments to improve service and tracking, boost capacity and enhance the customer experience.
Click here to read the news release.
2023/08/25