Double digit parcel volume growth aids Canada Post Q1 results

As the rapid escalation in demand for parcel delivery and online shopping is expected to continue into the holiday season Canada Post announced its plans to handle a busy Christmas season.

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



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