Canada Post segment reports $254-million loss before tax in the second quarter
by CM staff
Parcels business sees increased volumes while revenue declines in an increasingly competitive market.
OTTAWA — Canada Post recorded a loss before tax of $254 million in the second quarter of 2023 as revenue fell across all lines of business.
The Canada Post segment’s revenue in the second quarter declined by $78 million, or 6.0 per cent, compared to the same period in 2022. The segment’s loss before tax in the second quarter widened by $94 million, from a loss before tax of $160 million in the second quarter of 2022. For the first half of 2023, Canada Post’s revenue fell by $110 million, or 3.3 per cent, compared to the same period of the prior year. The segment’s loss before tax was $361 million compared to a loss before tax of $289 million in the first half of 2022.
An increasingly competitive parcel delivery market continued to impact Parcels revenue in both the first and second quarter of 2023. Transaction Mail volume continued to erode, while Direct Marketing revenue declined as businesses’ marketing budgets remained under pressure.
For the first half of the year, total operating costs were relatively flat, decreasing by 0.1 per cent, or $3 million, compared to the first half of 2022. In the second quarter, the cost of operations rose by 1.7 per cent, or $31 million, compared to the same period a year earlier. These changes in costs were mainly due to lower total labour and employee benefit costs, partly offset by higher non-capital investments in technology and operations.
With Parcels representing approximately half of Canada Post’s revenue, the corporation is transforming to better position itself in a competitive market and ensure the postal service continues to be a vital economic link for all Canadians. The corporation is making investments to improve service and tracking, boost capacity and enhance the customer experience.
