Canada Post loses $129 million in first quarter as package volume drops 9.1%

It is learned that according to foreign media reports, Canada Post recently announced its first quarter results for 2022, with a pre-tax loss of US$129 million, an increase of 67.7% (US$52 million) year-on-year. The report shows that the revenue of the parcel business and mail department has declined sharply.

Canada Post reportedly saw a $120 million (6.1%) drop in revenue in the first quarter of 2022 compared to the same period in 2021, primarily due to a sharp drop in parcel volumes.

As the epidemic eased, consumption returned to physical stores and the online shopping craze subsided. In the first quarter, Canada Post's parcel transaction volume decreased by 9.1% year-on-year (65 million pieces), and parcel revenue decreased by 5.0% (US$36 million). At the same time, limited cross-border air transport capacity and global supply chain issues also had a negative impact on parcel volume and revenue in the first quarter.

With the decline in parcel volume, labor costs in the first quarter decreased by $34 million, and employee benefit costs decreased by $85 million. In addition, Canada Post's operating costs decreased by $77 million (2.3%) in the first quarter of 2022.

It is learned that due to the increase in marketing activities by enterprises and the resumption of promotional activities by customers, direct mail revenue in the first quarter increased by 8% year-on-year (US$18 million) and transaction volume increased by 8% year-on-year (66 million pieces).

Canada Post reported a pre-tax loss of $100 million in the first quarter of 2022, compared with a loss of $19 million in the same period last year; pre-tax profit was $28 million, down 45.9% ($23 million) from $51 million in the same period last year.

Purolator, a subsidiary of Canada Post, had a pre-tax profit of $28 million this quarter, down 45.9% from $51 million in the same period last year; another subsidiary, SCI, had a pre-tax profit of $2 million in the first quarter, down 70.3% from $6 million in the same period last year.

Editor ✎ Nicole/

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