Canada Post Group has reported growth in first quarter revenues of 1.6% year-over-year to C*$2,048m. This contributed to a before tax profit for the group of C$65m, up by C$35m from the same period 2016.
Strong profitability was mainly caused by positive results at Purolator, Canada Post’s integrated freight and parcel solutions provider. Its revenues grew 10.4% year-over-year to C$386m and profit before tax grew to C$17m. In the same period in 2016, Purolator had produced a pre-tax loss of C$12m. The group said the strong results in the quarter were due to increased volumes from new business.
The Canada Post segment meanwhile saw a mixed quarter. Revenues fell by 0.4% to C$1,620m and profit before tax fell by 0.6%. However, overall net profit grew by 2.2%. The results highlighted the contrasting fortunes of the mail and parcels sectors. Parcel volumes grew 12.5% year-over-year, with revenues growing by 10.8%. Transactional mail on the other hand saw a 5.9% decline, with a 3.8% decrease in revenues.
The Logistics segment of the Canada Post group, including the results of SCI group, contributed C$66m to overall revenues. This represented an increase of 3.6% and was as a result of volume growth from current clients and new services. Profitability was unchanged.
Source: Canada Post