Canada Post swings to Q1 loss despite 10 per cent growth in parcels revenues

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OTTAWA — Canada Post swung to a $66-million loss before taxes in the first quarter despite a surge in parcel volumes near the start of the COVID-19 lockdown.

The segment’s net loss from the period ended March 28, compared with a $23-million profit a year earlier.

Revenue increased two per cent to $1.68 billion with mail down 0.6 per cent to $729 million and parcels up 10.4 per cent to $666 million.

Canada Post noted that the parcels growth rate was higher than a year ago but lower than the first quarter of 2018.

Direct mail revenues fell 8.6 per cent to $230 million amid continued erosion from digital substitution as well as delays or cancellations of marketing campaigns due to COVID-19.

The cost of operations in the Canada Post segment increased by $93 million while the Canada Post Group of Companies posted a net loss of $39 million compared with a net profit of $29 million in the first quarter of 2019.

4 COMMENTS

  1. If your shipping something send it regular mail don’t pay extra for Express Post it won’t get there any faster.

  2. Postage costs are way too high in Canada and always increasing – higher prices for lower service. That service is often slow – it has taken up to two weeks for correctly addressed & stamped lettermail to get from central locations in Toronto to the Sault. And of course, the mail isn’t delivered when the weather isn’t great. Postal workers have great salaries, benefits, and pensions though – we can’t fault them for that – but we need service to match.

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