2024/08/23
Canada Post has released its second-quarter 2024 results. The Corporation recorded a profit before tax of $46 million in the second quarter of 2024, as income from the divestitures of Innovapost Inc. and SCI Group Inc. offset a loss from operations of $269 million.
Intense competition continued to impact all aspects of the Parcels business in the second quarter of 2024. Transaction Mail volume continued to erode, while Direct Marketing revenue and volumes picked up.
Highlights
- Canada Post’s revenue in the second quarter was relatively flat compared to the same period a year earlier.
- The Corporation recorded a loss from operations of $269 million in the second quarter, compared to a loss from operations of $259 million in the same period of the prior year. In the first six months of 2024, the loss from operations was $490 million, compared to $371 million in the same period of 2023. The loss from operations excludes any income from the divestitures.
- Parcels results continued to be impacted by a crowded and competitive delivery market. In the second quarter, Parcels revenue fell by $28 million, or 5.0 per cent, as volumes declined by 4 million pieces, or 7.2 per cent, compared to the same period of 2023.
- While Transaction Mail continued to erode, an increase in regulated postage rates in May 2024 helped soften the impact of declining volumes. Transaction Mail revenue increased by $13 million, or 0.6 per cent, as volumes declined by 14 million pieces, or 3.9 per cent, compared to the same period a year earlier.
- Direct Marketing results benefitted from new business and higher sales for the Canada Post Neighbourhood Mail™ service. In the second quarter, Direct Marketing revenue rose by $19 million, or 6.2 per cent, as volumes increased by 175 million pieces, or 15.2 per cent, compared to the same period of the previous year.
- The strategic divestitures of SCI, a leading Canadian third-party logistics provider, and Innovapost, our IT shared-services provider, allow us to focus the business on our core mandate of providing a modern postal service to Canadians.
More information
Read the news release.