2023/11/24
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.