Canada Post recorded a loss before tax of $264 million in the third quarter, a slight improvement compared to the same period a year earlier.
While the first half of 2021 showed strong revenue growth from all lines of business, it slowed slightly in the third quarter as consumers returned to shop in stores.
Revenue increased by $37 million, or 0.8 per cent, in the third quarter and by $501 million, or 8.5 per cent, in the first three quarters of the year, compared to the same periods a year earlier. Year-over-year comparisons are affected by the impacts of COVID-19. In the third quarter of 2020, Direct Marketing and Transaction Mail volumes declined substantially, while significant and unsustainable parcel volume growth was constrained by available capacity.
Costs of operations increased by $32 million, or 1.8 per cent, in the third quarter of 2021 and by $275 million, or 3.3 per cent, for the first three quarters, compared to the same periods a year earlier. These increases were driven by annual wage increases and higher costs of processing and delivering parcels compared to mail. The Corporation also invested in operations and capacity.
Below are some key results for Q3 compared to the same period last year:
- • Volumes fell by 20 million pieces, or 22.1 per cent.
- • Revenue declined by $31 million, or a more modest 5.3 per cent, due in part to our strategies to manage customer and product mix within our available capacity.
- • The reopening of stores for in-person shopping negatively impacted demand, while global supply chain issues affected inbound volumes.
- • Revenue grew by $21 million, or 2.4 per cent, and volumes rose by 8 million pieces. .
- • This was partly due to federal election mailings.
- • Despite these mailings, erosion in Transaction Mail continues as consumers and mailers migrate to digital alternatives.
- • Direct Marketing revenue grew $42 million, or 20.3 per cent, and volumes rose by 184 million pieces, or 21.1 per cent.
- • This partial recovery followed significant declines in 2020, when customers mailed less due to COVID-19.
For more details, see the news release.