2021/08/20
Canada Post recorded a loss before tax of $151 million in the second quarter of 2021, an improvement of $227 million from the $378-million loss before tax in the same quarter a year earlier.
While this improvement was significant, it resulted mainly from the unique unfavourable effects of COVID-19 on the business as well as one-time charges in 2020.
Revenue increased by $188 million, or 11.5 per cent, in the second quarter and by $464 million, or 12.2 per cent, in the first six months of the year, compared to the same periods a year earlier. Continued parcel revenue growth, increased Transaction Mail volume linked to the 2021 Census and stronger Direct Marketing volumes helped drive this revenue growth. Year-over-year growth rates in each product line reflect the impact of COVID-19 in 2020, which included significant declines in Transaction Mail and Direct Marketing but also soaring parcel volumes.
Costs of operations decreased by $44 million, or 2.2 per cent, in the second quarter of 2021 and increased by $243 million, or 4.1 per cent, for the year-to-date of 2021, compared to the previous year. The accelerated shift in our business from mail to parcels continues to put pressure on our capacity, processing and delivery costs.
Below are some key results for Q2 compared to the same period last year:
Parcels:
- • Volumes declined by 5 million pieces, or 5.4 per cent.
- • Revenue grew by $52 million, or 6.1 per cent.
- • Revenue results were positively affected by proactively managing use of available capacity through our commercial customer and product mix.
- • Compared to a year earlier when online shopping surged, results in Q2 2021 began to reflect the return to in-person shopping.
Transaction Mail:
- • The 2021 Census mailing contributed to revenue growth for the business line.
- • Transaction Mail revenue increased by $43 million, or 7.5 per cent.
- • Volumes increased by 25 million pieces, or 4.1 per cent.
- • Overall, Transaction Mail revenue continues to erode as consumers and mailers migrate to digital alternatives.
Direct Marketing:
- • Direct Mail started to recover in Q2, following significant declines in Personalized Mail and Neighbourhood Mail in 2020 as customers postponed or cancelled marketing campaigns due to COVID-19.
- • Revenue increased by $72 million, or 49.1 per cent.
- • Volumes increased by 375 million pieces, or 66.1 per cent.
For more details, see the news release.