Canada Post profits up strongly

Canada Post had a C$31 million profit before tax in Q2 of the financial year. This was led by strong growth in parcel volumes, though offset by the continuing decline in mail volumes and revenues.

Parcel volumes grew by 23% by comparison to Q2 of 2016, amounting to 10 million pieces by volume. Revenues in the segment increased by C$83 million (20.5%). Domestic Parcels saw volume growth of 7 million (19.6%) and revenues for those were up by C$462 million (21.2%).

Profit before tax for Canada Post, at C$31 million was up significantly from the C$1 million in Q2, 2016. Canada Post’s Half Year (H1) as a whole, its profit before tax was C$75 million, up from C$45 million in the same period of 2016.

Canada Post commented: “The growth in parcels is encouraging, but structural challenges – such as Lettermail decline and the pension funding obligation – remain significant long-term threats to financial self-sustainability.”

Transaction mail volumes fell by 95m pieces or 10.9% in Q2 and revenue decreased by $63m or 8.0%.
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