Parcel volume fell 7.6% year-on-year! Canada Post lost $107 million in the first quarter!

It is learned that according to foreign media reports, Canada Post recorded a pre-tax loss of US$107 million in the first quarter of 2023 due to a decline in parcel, mail and marketing revenue.

Canada Post's pre-tax loss increased by $22 million in the first quarter of 2023, compared to a pre-tax loss of $129 million in the same period last year. However, the company's revenue decreased by $32 million, a 1.7% decrease compared to the same period last year.

Parcel revenues were relatively flat this year compared to the same period last year, but volumes were down slightly. Canada Post saw both marketing revenues and volumes decline as businesses continue to pull back on marketing spending. In addition, mail revenues and volumes also continued to decline.

The company's operating expenses fell $34 million, or 1.7%, year over year in the first quarter of 2023 as lower employee benefits offset higher non-capital investment costs.

Package income

In the first quarter of 2023, Canada Post's parcel revenue increased by 0.2%, or $1 million, compared with the same period last year, but parcel volume decreased by 7.6%, or 5 million pieces. The reason is that the market competition has intensified and low-cost new players have disrupted the parcel delivery industry. In addition, weak consumer spending has also affected the number of parcel shipments.

Mail Income

Canada Post's mail revenue fell 2.7%, or $18 million, and volume fell 3.4%, or 23 million pieces, in the first three months of the year compared to the same period last year, as consumers and mailers continued to shift to digital channels. Canada Post maintained regulated stamp prices at 2020 levels, which also negatively impacted revenue in the quarter.

Marketing revenue

Canada Post's marketing revenue fell 4.5%, or $11 million, in the first quarter of 2023 compared with the same period last year, and its transaction volume fell 5.5%, or 52 million pieces. With economic uncertainty, companies have significantly reduced marketing spending.

Editor ✎ Nicole/

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