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.
- 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.