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Canada Post has reported $23 million profit before tax in the first quarter, which ended March 30 – a $45 million decline compared to the same period a year earlier.

The company put it down to the “continued impact from major customers making other delivery arrangements last fall and into 2019.”

Canada Post revenues totalled almost $1.7 billion in the first quarter of 2019 – a decrease of $26 million or 1.5 % from the first quarter of 2018.

Parcels results

Revenue increased by $20 million or 3.4 % and volumes increased by about 1 million pieces or 2.6%, compared to the same period in 2018.

Domestic Parcels, the largest product category, drove growth in this line of business, as revenue increased by $40 million or 9.4 % and volumes grew by 6 million pieces or 14.4 %, compared to the first quarter of 2018. The increases in revenue and volumes were driven by major commercial customers as well as the continued growth in e-commerce.

Transaction Mail results

In the first quarter of 2019, Transaction Mail volumes decreased by 68 million pieces or 8.1 % and revenue decreased by $31 million or 4 %, compared to the first quarter of 2018. For domestic LettermailTM, the largest product category, volumes decreased by 61 million pieces or 7.6 %, while revenue decreased by $22 million or 3.1 % compared to the same period a year earlier. This was despite a regulated increase in the postage rate for domestic Lettermail.

The company said: “The ongoing decline in mail volumes in the digital era remains a significant challenge.”

 Group of Companies results

The Canada Post Group of Companies reported a profit before tax of $39 million for the first quarter of 2019, compared to a profit before tax of $94 million for the same period in 2018.

The company said: “The $55 million decrease in profit was largely due to the results of the Canada Post segment. Purolator’s profit before tax was $12 million in the first quarter, compared to a profit before tax of $20 million for the same period in 2018. Results for the Group of Companies can also be attributed in part to a softening of the Canadian economy in late 2018 and in early 2019.”

Visit Financial Reports for the full report.