Canada Post recorded a loss before tax of $129 million in the first quarter of 2022 as revenue declined more than costs.
Revenue fell by $120 million, or 6.1 per cent, in the first quarter of 2022 compared to the same period in 2021. The largest component of this decline is from lower Parcels volumes in the first quarter of 2022, compared to high Parcels volumes in the first quarter of 2021, when many physical stores were closed due to COVID-19.
Transaction Mail revenue and volumes also decreased from the prior year. Direct Marketing continued to recover from the impact of customers postponing or cancelling marketing campaigns, which had begun early in the pandemic, and so revenue and volumes increased.
Cost of operations decreased by $77 million, or 2.3 per cent, in the first quarter of 2022 compared to the same period in 2021. Labour costs decreased by $34 million in 2022 due to a drop in parcel volumes and one less paid day compared to 2021, while employee benefits costs decreased by $85 million due to an increase in discount rates. These were partly offset by higher transportation and facilities costs, as well as increased spending to sustain the network and improve its capacity.
Below are some key results for Q1 compared to the same period last year:
- Volumes fell by 23 million pieces, or 23.1 per cent (compared to Q1 of 2021, when volumes were high because stores were closed due to COVID-19).
- Revenue declined by $92 million, or 9.6 per cent.
- Volumes declined by 65 million pieces, or 9.1 per cent.
- Revenue fell by $36 million, or 5 per cent.
- Volumes increased by 66 million pieces, or 7.6 per cent.
- Revenue grew by $18 million, or 8 per cent.