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Canada Post Reports $315 Million Q3 Loss

Ottawa, Canada – Canada Post recorded a loss before tax of $315 million in the third quarter of 2024 as strong revenue growth in Direct Marketing did not make up for a decline in Parcels results. Meanwhile, Canada Post is considering its options to move negotiations forward as talks with the Canadian Union of Postal Workers (CUPW) have ground to a halt on key issues critical to the Corporation’s future.

An increasingly crowded and highly competitive ecommerce delivery market continued to impact Parcels results in the third quarter of 2024. While Transaction Mail volumes continued to erode, revenue rose due to a regulated stamp rate increase. Direct Marketing revenue and volumes experienced robust growth.

The Corporation’s $315-million loss before tax in the third quarter widened by $25 million compared to a loss before tax of $290 million in the third quarter of 2023. In the first nine months of 2024, Canada Post recorded a loss before tax of $345 million, compared to a loss before tax of $651 million in the same period of the prior year. The nine-month results improved compared to the previous year due to dividend income received from the divestitures of SCI Group Inc. (SCI) and Innovapost Inc. (Innovapost) in the first and second quarters, respectively, of 2024. Canada Post will record another significant loss in 2024, the seventh consecutive annual loss for the Corporation.

Canada Post’s revenue in the third quarter declined by $15 million, or 1.0 per cent, compared to the same period a year earlier. For the first nine months of 2024, revenue fell by $63 million, or 1.3 per cent, compared to the same period of the prior year.

In the third quarter and the first nine months of 2024, total cost of operations increased by 0.4 per cent and 1.4 per cent, respectively, compared to the same periods of 2023. The increase was mainly due to higher employee benefit costs driven by lower discount rates, which was partly offset by a decline in non-capital investments.

The Corporation recorded a loss from operations of $313 million in the third quarter, compared to a loss from operations of $291 million in the same quarter a year earlier. For the first nine months of 2024, Canada Post’s loss from operations was $803 million, compared to $662 million in the same period of the previous year. The loss from operations excludes any dividends or income from the divestitures. 

DETAILED FINANCIAL BREAKDOWN

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