Canada Post recorded a loss before tax of $265 million in the third quarter of 2020, mainly due to declines in revenue from Transaction Mail and Direct Marketing and to higher costs. While Parcels revenue continued to grow in the quarter, it was not enough to offset these other contributing factors.
For the first three quarters, which ended September 26, 2020, the Canada Post segment recorded a loss before tax of $709 million on revenue of $4.9 billion. That compares to a loss before tax of $162 million, on revenue of $4.8 billion, for the first three quarters of 2019.
COVID-19 is estimated to have had a net negative impact of $188 million on before-tax results for the first three quarters of 2020. However, the segment would have posted a loss even without the impact of COVID-19 and the added costs from the June 2020 arbitrator’s ruling that resulted in new collective agreements with the Canadian Union of Postal Workers.
Key results for the Canada Post segment in Q3 2020, compared to Q3 2019
- Parcels revenue grew by $186 million, or 30 per cent.
- Volumes grew by 22 million pieces or 31.1 per cent.
- Over the first three quarters of 2020, Parcels revenue increased by $465 million, or 25.5 per cent, and volumes by 52 million pieces, or 24.5 per cent.
- Transaction Mail revenue dropped $52 million, or 8.8 per cent.
- Transaction Mail volumes fell by 72 million pieces, or 11.5 per cent.
- Over the first three quarters of 2020, revenue fell by $172 million, or 8.1 per cent, and volumes fell by 204 million pieces, or 9.2 per cent.
- Direct Marketing revenue declined by $60 million, or 24.1 per cent.
- Volumes fell by 269 million pieces, or 25.3 per cent.
- Over the first three quarters of 2020, revenue dropped by $212 million, or 26.9 per cent, and volumes by one billion pieces, or 31.0 per cent.
For more details, read the news release.