The group attributed the decrease to volume erosion, specifically in Canada Post’s transaction mail business and higher employee benefit expenses.
Canada Post Group posted a loss before tax of $4 million for the second quarter of 2015 in comparison to a profit before tax of $86 million for the second quarter of 2014. The group, which includes its Canada Post segment and three non-wholly owned principal subsidiaries – Purolator Holdings Ltd., SCI Group Inc. and Innovapost Inc. – reported a profit before tax of $18 million for the first two quarters of 2015 compared to a profit before tax of $49 million for the first two quarters last year.
The Canada Post segment reported a loss before tax of $31 million for the second quarter in comparison to the second quarter of 2014, in which the company posted a profit before tax of $53 million. The group attributed the decline to a decrease in transaction mail volumes, which posted a year over-year drop of 6.5 percent for the second quarter; and increased employee benefit expenses, which grew $59 million in the second quarter compared to the previous year’s second quarter. However, growth in the parcels business, which reported a year-over-year volume increase of 6.5 percent for the second quarter, partially offset the decline.
Transaction mail revenue for the Canada Post segment for the second quarter fell 5.4 percent year-over-year to $779 million, while parcel revenues for the segment grew 4.8 percent to $17 million compared to the second quarter of 2014.
Canada Post Group Q2 profits decline sharply
