OTTAWA — Canada Post swung to a $66-million loss before taxes in the first quarter despite a surge in parcel volumes near the start of the COVID-19 lockdown.
The segment’s net loss from the period ended March 28, compared with a $23-million profit a year earlier.
Revenue increased two per cent to $1.68 billion with mail down 0.6 per cent to $729 million and parcels up 10.4 per cent to $666 million.
Canada Post noted that the parcels growth rate was higher than a year ago but lower than the first quarter of 2018.
Direct mail revenues fell 8.6 per cent to $230 million amid continued erosion from digital substitution as well as delays or cancellations of marketing campaigns due to COVID-19.
The cost of operations in the Canada Post segment increased by $93 million while the Canada Post Group of Companies posted a net loss of $39 million compared with a net profit of $29 million in the first quarter of 2019.
This report by The Canadian Press was first published May 25, 2020.
The Canadian Press