Canada Post Group reported a 1.6% year-over-year increase in Q1 revenue, reaching C$2,048 million, thanks to surging parcel volumes. This contributed to a pre-tax profit of C$65 million, a notable C$35 million improvement from the same period in 2016.

Purolator Drives Profitability:
The strong financial performance was largely attributed to the success of Purolator, Canada Post’s integrated freight and parcel solutions provider. Purolator’s revenue grew 10.4% YoY to C$386 million, and it achieved a C$17 million pre-tax profit, a stark contrast to the C$12 million loss in the same period in 2016. The company attributed this turnaround to increased volumes from new business acquisitions.

Mixed Results for Canada Post Segment:
While the Canada Post segment saw a 0.4% decline in revenue to C$1,620 million and a 0.6% drop in pre-tax profit, overall net profit still grew by 2.2%. This mixed performance highlights the divergent trends in the mail and parcel sectors:

• Parcels: Parcel volumes surged 12.5% YoY, with revenues increasing 10.8%.
• Transactional Mail: Transactional mail volumes declined 5.9%, resulting in a 3.8% decrease in revenue.

Logistics Segment Maintains Steady Growth:
The Logistics segment, encompassing the results of the SCI group, contributed C$66 million to overall revenue, a 3.6% increase driven by volume growth from existing clients and the introduction of new services. Profitability in this segment remained unchanged.

Source: Canada Post