Canada Post Group reports Q3 profits of $10m

Canada Post Group reported an overall profit of C$10 million in Q3, despite posting massive losses in its transactional mail. There was strong growth in its parcels and direct mail businesses.

The transactional mail business saw losses of C$13 million on a turnover of $742 million. Excepting the election mail, volumes fell by 5.5% nationally in Q3. Employee benefits were cited as being a major issue in the costs for Canada Post, which were offset some by strong performance in their pension scheme.

A statement from Canada Post on the situation said, “Employee benefit expenses for the Canada Post segment rose by $44m in the quarter and by $173m in the first three quarters of 2015 compared to the same periods a year ago.”

As transactional mail followed general global trends for the Canadian mail operator, so parcels seem to be good business in the same light. Parcel volumes increased by 11.3% to $380 million. As other postal operators have found with the massive growth of e-commerce, so parcels are going to be the profit making side of the business that offset the losses generated by declining mail volumes.

There have been some questions as to the way the figures have been presented given that Canada Post was in the process of ceasing to deliver to every doorstep in the country and rather moving to a community mailbox scheme until the election of the Liberal government not long ago. The Canadian Union of Postal Workers released a statement that said the Q3 report was, “highly misleading, continuing its record of downplaying financial success in order to impose unnecessary cost-cutting measures”

National President of the CUPW Mike Palecek said, “Looking at the report, for the first three quarters, we see an overall profit of almost $30m ($28m). Once again, in 2015, Canada Post is on track to surpass its projections.”