Canada Post -- Credit to CHAT News

By Connor Gunn

Canada Post reports $265-million loss in third quarter

Nov 20, 2020 | 11:27 AM

OTTAWA, ON – Canada Post recorded a loss before tax of $265 million in the third quarter of 2020.

Transaction mail and direct marketing revenue and higher costs had a major impact on earnings.

Parcels revenue, however, continued to grow in the quarter, but it was not enough to even out the balance.

With Canadians shopping online more during COVID-19, the Parcels grew significantly in the third quarter but, the postal service gave significantly higher costs related to providing an essential service during the pandemic.

For the first three quarters, which ended on September 26, 2020, Canada Post recorded a loss before tax of $709 million on revenue of $4.9 billion.

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Canada Post is saying they estimate that COVID-19 had a net negative impact of $188 million on its before-tax results for the first three quarters of 2020.

Given from a release, the following are the statistics from parcels, transaction mail, and Direct Marketing losses.

Parcels results

Parcels revenue grew by $186 million, or 30 per cent, in the third quarter and by $465 million, or 25.5 per cent, for the first three quarters of 2020, compared to the same periods in 2019. Volumes grew by 31.1 per cent in the third quarter, and by 24.5 per cent in the first three quarters, compared to the same periods in 2019.

Transaction Mail results

Transaction Mail volumes fell by 11.5 per cent and revenue decreased by 8.8 per cent, compared to the same period in 2019. Over the first three quarters of 2020, Transaction Mail volumes fell by 9.2 per cent, and revenue fell by $172 million or 8.1 per cent, compared to the first three quarters of 2019.

Direct Marketing results

Direct Marketing revenue declined by $60 million or 24.1 per cent in the third quarter and by $212 million or 26.9 per cent for the first three quarters of 2020, compared to the prior year. Volumes fell by 25.3 per cent in the third quarter and by 1 billion pieces or 31.0 per cent in the first three quarters, compared to the same period last year.