The Canada Post segment recorded a profit before tax of $23 million in the first quarter of 2019 (January, February and March), mainly due to modest growth in its Parcels business.
However, increases in Parcels revenue and volumes were significantly lower than in the same period last year, in part because major customers made other delivery arrangements during the labour disruption last fall and into 2019.
The $23-million profit before tax in the quarter compares to a profit before tax of $68 million in the same period last year.
Key results for the Canada Post segment in Q1 2019 compared to Q1 2018
- Parcels revenue increased by $20 million or 3.4 per cent.
- Volumes increased by about 1 million pieces or 2.6 per cent.
- Domestic Parcels revenue and volume increased by $40 million (9.4 per cent) and 6 million pieces or 14.4 per cent, respectively.
- Increases were driven by major commercial customers, as well as continued growth in e-commerce.
Transaction Mail results
- In Q1 2019, volumes decreased by 68 million pieces or 8.1 per cent.
- Revenue decreased by $31 million or 4 per cent.
- Domestic Lettermail volumes decreased by 61 million pieces (7.6 per cent) and revenue by $22 million (3.1 per cent).
- The ongoing decline in mail volumes remains a significant business challenge.
- Direct Marketing revenue decreased by $17 million (6.3 per cent).
- Volumes decreased by 70 million pieces (6.2 per cent).
- Neighbourhood Mail revenue decreased by $6 million (6.2 per cent), while volumes decreased by 50 million pieces (6 per cent).
- Personalized Mail and Publications Mail revenue declined by $8 million and $3 million, respectively; volumes decreased by 14 million pieces and 6 million pieces, respectively.