2022/08/26
Canada Post recorded a loss before tax of $160 million in the second quarter of 2022 as Canadians’ online shopping slowed and revenue declined for Parcels and Transaction Mail.
The Canada Post segment’s loss widened from a loss before tax of $151 million in the second quarter of last year. Revenue fell by $98 million, or 3.9 per cent, from a year earlier.
For the first half of 2022, the segment recorded a loss before tax of $289 million, compared to $228 million in the same period a year earlier. Revenue fell by $218 million, or 5.0 per cent, compared to the first half of 2021.
Parcels revenue declined for both the second quarter and first half of 2022, as Canadians’ online shopping slowed from elevated levels a year earlier. Transaction Mail volumes and revenue continued to erode. Direct Marketing continued to recover compared to the previous year, even as consumers and businesses pulled back on spending due to uncertainty about the economic outlook.
Cost of operations improved by $84 million, or 4.3 per cent, for the second quarter compared to the same period a year earlier. For the first half of 2022, costs improved by $161 million, or 3.3 per cent, from the prior year period.
Below are some key results for Q2 compared to the same quarter of the prior year:
Parcels
- Volumes fell by 27 million pieces, or 27.9 per cent.
- Revenue declined by $79 million, or 7.3 per cent.
Transaction Mail
- Volumes declined by 59 million pieces, or 8.1 per cent.
- Revenue fell by $28 million, or 2.9 per cent.
Direct Marketing
- Volumes increased by 140 million pieces, or 16.7 per cent.
- Revenue rose by $24 million, or 13.2 per cent.