2024/05/24
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.