Operating loss offset by income from the sale of SCI and Innovapost
OTTAWA, ON, Aug. 23, 2024 /CNW/ - Canada Post recorded a profit before tax of $46 million in the second quarter of 2024, as the divestiture of SCI Group Inc. and Innovapost Inc. contributed to the segment's bottom line and offset a loss from operations of $269 million.
A crowded and highly competitive ecommerce delivery market continued to impact Parcels revenue in the first and second quarters of 2024. Transaction Mail volume continued to erode, while Direct Marketing revenue and volumes picked up.
The Corporation's profit before tax in the second quarter improved by $300 million compared to a loss before tax of $254 million in the second quarter of 2023, largely due to dividend income from the sale of SCI and Innovapost. As a result of the divestitures of SCI and Innovapost, the segment's loss before tax in the first two quarters was $30 million, compared to a loss before tax of $361 million in the first half of 2023.
Canada Post's revenue in the second quarter was relatively flat compared to the same period a year earlier. For the first half of 2024, Canada Post's revenue fell slightly by $48 million, or 1.4 per cent,1 compared to the same period of the prior year.
In the second quarter and the first six months of 2024, total operating costs increased by 0.9 per cent and 1.9 per cent, respectively, compared to the same periods of the prior year. This was mainly due to higher employee benefit costs driven by lower discount rates. The increase in costs was partly offset by lower non-capital investments.
The Corporation recorded a loss from operations of $269 million in the second quarter, compared to a loss from operations of $259 million in the same period of the prior year. In the first six months of 2024, the loss from operations was $490 million, compared to $371 million in the same period of 2023. The loss from operations excludes any dividends from ...
