Canada Post has released its financial results for Q2 2020, recording a loss before tax of $378m primarily due to the significant impact COVID-19, combined with the added costs stemming from the June 2020 arbitrator’s ruling.
In terms of segments, Transaction Mail and Direct Marketing recorded a loss before tax of $444m on revenue of $3.3bn for the first two quarters of 2020. That compares to a loss before tax of $27m, also on revenue of $3.3bn, for the first two quarters of 2019.
Transaction Mail volumes fell by 102m pieces or 14.7% and revenue decreased by $104m or 15.4%, compared to the same period in 2019. Over the first two quarters of 2020, Transaction Mail volumes fell by 132m pieces or 8.2%, and revenue fell by $120m or 7.7%, compared to the first two quarters of 2019.
Direct Marketing revenue declined by $126m or 46.4% in the second quarter, compared to the prior year. Volumes fell by 652m pieces or 53.4% in the second quarter and by 778m pieces or 33.7% in the first two quarters, compared to the same period last year.
Parcels revenue grew by $226m, or 35.4%, in the second quarter and by $279m, compared to the same period in 2019. Volumes grew by 26m pieces or 35.5% in the second quarter compared to the same period in 2019.
The Canada Post Group of Companies reported a loss before tax of $333m in the second quarter of 2020, which was a $344m change from a profit before tax of $11m for the same quarter in 2019. This loss was due to the Canada Post segment. For the first two quarters of 2020, the Group of Companies recorded a loss before tax of $386m, a decrease in profitability of $436m, compared to the same period in 2019. It is estimated that COVID-19 contributed $194m to this loss.
The Purolator segment recorded a profit before tax of $39m in Q2 2020, a decrease of $13m compared to the same period last year. For the first two quarters of 2020, Purolator recorded a profit before tax of $49m, a decrease of $15m compared to the same period last year.
Source: Canada Post
