Canada Post reports US$9.8m loss in Q3 2015

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Continued growth in the parcels business helped ease the impact of falling transaction mail volumes and employee benefit expenses as Canada Post reported a loss before tax of C$13m (US$9.8m) in the third quarter (Q3) of 2015.

The third-quarter loss before tax of C$13m (US$9.8m) compares with a profit before tax of C$13m (US$9.8m) in Q3 of 2014. In the first three quarters of 2015, the Canada Post segment reported a loss before tax of C$20m (US$15m) compared to a profit before tax of C$39m (US$29m) for the same period the year before.

Transaction mail volumes continued to fall, but less than in previous quarters due to the federal election. Without these additional mailings, transaction mail volumes would have fallen by 5.5% in Q3 2015 compared with the same period in 2014. Election mailings also helped to boost direct marketing volumes and revenue.

Third-quarter parcels revenue for the Canada Post segment rose by C$43m (US$32m) or 11.3% to C$380m (US$285m), while volumes rose by over four million pieces or 10.4% compared to the same period a year ago. Revenue for domestic parcels, the largest product category, grew in Q3 by C$36m (US$27m) or 13.2% compared with a year ago. In the first three quarters of 2015, parcels revenue for Canada Post increased by C$99m (US$74m) or 7.4%, and volumes increased by 11 million pieces or 7.8% compared with the same period a year ago.

Direct marketing revenue also increased by C$14m (US$10.5m) or 3.5% to C$294m (US$220m) in Q3 2015, while volumes increased by 81 million pieces or 5.6% compared with the same period a year ago. In the first three quarters of 2015, revenue fell by 0.6% and volume increased by 0.9% compared to the same period a year ago.

November 25, 2015

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Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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