Canada Post: $ 264 million pre-tax loss in third quarter

The Canada Post recorded a pre-tax loss of $ 264 million in the third quarter of 2021, slightly improving over the same period in 2020.

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“Although the results of the first half of 2021 showed strong revenue growth in all types of businesses, this growth slowed slightly in the third quarter as consumers resumed shopping in stores,” the Postal Service said. By a press release on Friday.

The Canada Post reported $ 492 million in pre-tax losses in the first three quarters of the year, an increase of 30.5% over the same period in 2020.

The increase in revenue in the transaction mail sector was due to the federal elections held last September and the revival of the direct marketing sector.

These results made it possible to balance the observed decline in revenue in the parcel sector.

“The reopening of physical stores has hurt demand for parcel services. Global supply chain issues have begun to affect inbound volumes, especially from China,” Canada Post explained of the decline in packages.

The company’s operating expenses were also $ 32 million in the third quarter and $ 275 million from the beginning of 2021 compared to the same periods of the previous year.

“These increases are attributed to the annual salary increase and higher parcel handling and delivery costs than mail,” he said.