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Higher costs and mail declines surpassed significant growth in Parcels business
OTTAWA, ON, May 21, 2021 /CNW/ - Canada Post recorded a loss before tax of $77 million in the first quarter of 2021, as higher operating costs and revenue declines in Transaction Mail and Direct Marketing exceeded the significant growth in Parcels revenue.
COVID-19 continued to have a significant impact on the postal service in the first quarter while we provided an essential service and kept employees safe. Canada Post s operating expenses increased by $287 million in the quarter, compared to 2020, due to higher costs. These costs included special leaves for employees during COVID-19 to enable child and elder care, additional health and safety supplies, increased overtime expenses, wage increases, and additional collection, processing and delivery costs from growing parcel volumes. An additional three paid days during the first quarter of 2021, which ended April 3, also contributed
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