The Canada Post Group of Companies is reporting a third-quarter pre-tax loss of $216 million, as increased revenue from parcel shipping failed to compensate for higher pandemic-related costs and a slowdown in its Canada Post segment.
The company said Friday the result for the quarter compared with a loss before tax of $87 million in the same quarter last year.
The company's Canada Post segment recorded a loss before tax of $265 million for its latest quarter compared with a loss before tax of $135 million in the third quarter of 2019, while its Purolator segment saw a profit before tax of $42 million, up from $41 million a year ago.
In August, Canada Post reported unprecedented growth in parcel volume and revenue during the second quarter, as the COVID-19 pandemic led more Canadians to shop online. Parcel revenue for Canada Post in the third quarter grew by 30 per cent compared with the same period last year, the postal service said Friday.
However, Canada Post's gains in parcels revenue were offset by declines in revenue for transaction mail and direct marketing, which fell by 8.8 per cent and 24.1 per cent respectively, compared with the third quarter of 2019.
Canada Post also reported higher costs associated with the pandemic, including special leaves and additional collection, processing and delivery costs.