Canada Post reported a $50-million before-tax loss for the second quarter (Q2) of 2019 as the continued decline in mail volumes was only partially offset by modest parcels volumes, this compared to last year’s “significant growth rates.”
The Q2 financial report adds parcels growth rates “were significantly less … as a result of a softer economy, the continued impact from the 2018 labour disruption and competitive offerings such as late cutoff for orders and weekend delivery.”
Parcels revenue increased by $31 million (6.7 per cent) while volumes increased by six million pieces (8.8 per cent) in Q2 2019 compared to the same period last year.
Volumes of transaction mail, which includes letters, bills and statements, fell by 55 million pieces (5.7 per cent) in Q2 2019 while revenue fell by $16 million (0.8 per cent) compared to the same period last year.
“While its impact in the first two quarters was partially offset by a regulated rate increase for lettermail, the ongoing decline in mail volumes remains a significant financial challenge,” reads the report, which adds this quarter’s before-tax loss was also affected by “significant one-time costs related to pay equity for Rural and Suburban Mail Carriers.”
Canada Post estimated the pay equity ruling cost the Crown corporation $550 million by the end of 2018 and about $130 million annually going forward.
To read the full Q2 financial report, click here.