Canada Post segment reports $44-million profit before tax in first quarter on the strength of continued growth in parcels Français
Mail volumes and revenue continue to decline
OTTAWA, May 29, 2017 /CNW/ - Canada Post's focus on innovative, convenient delivery and returns experiences is helping Canadian businesses grow through e-commerce – and maintaining Canada Post's position as the country's No. 1 parcel company.
The growth in Parcels volumes – which were 12.5 per cent higher in the first quarter of 2017 than in the first quarter a year earlier – continues the positive momentum Canada Post achieved by competing to win business and deliver record-breaking parcel volumes in 2016, particularly during the peak holiday season. The Canada Post segment's $44-million profit before tax for the first quarter, ended April 1, 2017, is consistent with the $44-million profit before tax in the first quarter of 2016.
Parcels results
Parcels revenue increased by $45 million or 10.8 per cent in the first quarter, while volumes increased by more than six million pieces or 12.5 per cent compared to the same period in 2016. Domestic Parcels, the largest product category, continued to grow strongly, as revenue increased by $36 million or 12.1 per cent, and volumes grew by more than four million pieces or 10.7 per cent.
Transaction Mail results
Transaction Mail is mostly letters, bills and statements. These volumes for the Canada Post segment decreased by 56 million pieces or 5.9 per cent in the first quarter, compared to the same period in 2016, while revenue decreased by $32 million or 3.8 per cent. The ongoing decline in mail volumes is due to the growing use of digital alternatives by consumers and businesses. The decline in mail is one of the significant challenges facing the Corporation, together with its pension obligations, labour costs and the need to invest in its network and customer service.
Direct Marketing results
Direct Marketing volumes fell by three million pieces or 0.3 per cent, compared to the same period in 2016, while revenue decreased by $10 million or 3.4 per cent. However, the largest product category by volume, Neighbourhood MailTM, saw revenue grow by $1 million or 0.4 per cent and volumes grow by 12 million pieces or 1.5 per cent compared to the same period in 2016.
Group of Companies results
The Canada Post Group of Companies1 reported a profit before tax of $65 million, compared to a profit before tax of $35 million in the same period in 2016. The $30 million increase in the Group of Companies' 2017 first-quarter results was primarily driven by positive results in the Purolator segment, which reported a profit before tax of $17 million in the first quarter of 2017, due to business growth, compared to a loss before tax of $12 million in the same period in 2016.
To read the full report in PDF, visit canadapost.ca/aboutus and select "Financial Reports" from the Corporate menu.
Background
The operations of the Canada Post Group of Companies are funded by the revenue generated by the sale of its products and services, not taxpayer dollars.
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The Canada Post Group of Companies consists of the core Canada Post segment and its three non-wholly owned subsidiaries, Purolator Holdings Ltd., SCI Group Inc. and Innovapost Inc. |
SOURCE Canada Post
Media Relations, 613-734-8888, [email protected]
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