(Montreal) Canada Post’s revenues in the first quarter of 2023 continue to be affected by the heavy trends of the decline in transaction mail and direct marketing.
Thus, Canada Post’s revenues fell by $32 million or 1.7% in the first quarter of 2023 compared to the corresponding quarter of 2022.
It was the parcels sector that performed best, with revenues almost stable, a slight increase of 0.2% or 1 million, while volumes decreased by 7.6% or 5 million items.
The parcels business now accounts for half of Canada Post’s revenue.
“Competition has continued to impact this industry as fare shopping platforms and new low-cost companies have disrupted the parcel delivery market. The slowdown in the e-commerce market stemming from lower consumer spending has also affected volumes,” says Canada Post.
Meanwhile, direct marketing revenue plummeted as “companies continued to curb their marketing activities,” says Canada Post.
Transaction mail revenues continued to decline.
For the first quarter of fiscal 2023, Canada Post recorded a pre-tax loss of $107 million.
The Canada Post Group of Companies—which includes the core Canada Post segment, as well as three non-wholly owned subsidiaries: Purolator Investments, SCI Group and Innovapost—had a pre-tax loss of $58 million. in the first quarter of 2023, compared to a pre-tax loss of 100 million for the corresponding period a year earlier.