Canada Post Group first quarter revenues grew marginally by 0.1% year-over-year to C$*2,164. Revenues were maintained by growth in the Purolator and Logistics segments but mostly offset by declines in the Canada Post segment. This also led to profit before tax shrinking by 58.8% to C$39m.
The Canada Post segment revenues shrunk by 1.5% year-over-year to C$1,672m. This led to a 66.2% reduction in profit before tax which amounted to C$23m in the quarter, down from C$68m in the same period of 2018. The decline was primarily due to ongoing mail erosion, as well as the continued impact and slow recovery of the 2018 labour disruption which resulted in customers making alternate delivery arrangements.
Within the Canada Post segment, Parcels revenues still grew by 3.4% to C$613m and volumes increased by 2.6% to 71m pieces. Domestic Parcels solely maintained Parcels growth with a 9.4% increase in revenues to C$466, and a 14.4% increase in volumes to 51m pieces.
Purolator segment revenues grew by 5.4% year-over-year to C$441m due to increase in volumes. However, profit before tax decreased by 39.6% to C$12m. Similarly, the logistics segment (SCI) revenues grew by 13.6% to C$80m but profit before tax decreased by 64.9% to only C$2m.
Source: Canada Post
*C$=$0.75/C$=€0.66
