Canada Post recorded a loss before tax of $160 million in the second quarter of 2022 as Canadians’ online shopping slowed and revenue declined for Parcels and Transaction Mail.

The Canada Post segment’s loss widened from a loss before tax of $151 million in the second quarter of last year. Revenue fell by $98 million, or 3.9 per cent, from a year earlier.

For the first half of 2022, the segment recorded a loss before tax of $289 million, compared to $228 million in the same period a year earlier. Revenue fell by $218 million, or 5.0 per cent, compared to the first half of 2021.

Parcels revenue declined for both the second quarter and first half of 2022, as Canadians’ online shopping slowed from elevated levels a year earlier. Transaction Mail volumes and revenue continued to erode. Direct Marketing continued to recover compared to the previous year, even as consumers and businesses pulled back on spending due to uncertainty about the economic outlook.

Cost of operations improved by $84 million, or 4.3 per cent, for the second quarter compared to the same period a year earlier. For the first half of 2022, costs improved by $161 million, or 3.3 per cent, from the prior year period.

Below are some key results for Q2 compared to the same quarter of the prior year:

Parcels

  • Volumes fell by 27 million pieces, or 27.9 per cent.
  • Revenue declined by $79 million, or 7.3 per cent.

Transaction Mail

  • Volumes declined by 59 million pieces, or 8.1 per cent.
  • Revenue fell by $28 million, or 2.9 per cent.

Direct Marketing

  • Volumes increased by 140 million pieces, or 16.7 per cent.
  • Revenue rose by $24 million, or 13.2 per cent.

 

2022/08/26

Canada Post recorded a loss before tax of $129 million in the first quarter of 2022 as revenue declined more than costs.

Revenue fell by $120 million, or 6.1 per cent, in the first quarter of 2022 compared to the same period in 2021. The largest component of this decline is from lower Parcels volumes in the first quarter of 2022, compared to high Parcels volumes in the first quarter of 2021, when many physical stores were closed due to COVID-19.

Transaction Mail revenue and volumes also decreased from the prior year. Direct Marketing continued to recover from the impact of customers postponing or cancelling marketing campaigns, which had begun early in the pandemic, and so revenue and volumes increased.

Cost of operations decreased by $77 million, or 2.3 per cent, in the first quarter of 2022 compared to the same period in 2021. Labour costs decreased by $34 million in 2022 due to a drop in parcel volumes and one less paid day compared to 2021, while employee benefits costs decreased by $85 million due to an increase in discount rates. These were partly offset by higher transportation and facilities costs, as well as increased spending to sustain the network and improve its capacity.

Below are some key results for Q1 compared to the same period last year:

Parcels:

  • Volumes fell by 23 million pieces, or 23.1 per cent (compared to Q1 of 2021, when volumes were high because stores were closed due to COVID-19).
  • Revenue declined by $92 million, or 9.6 per cent.

Transaction Mail:

  • Volumes declined by 65 million pieces, or 9.1 per cent.
  • Revenue fell by $36 million, or 5 per cent.

Direct Marketing:

  • Volumes increased by 66 million pieces, or 7.6 per cent.
  • Revenue grew by $18 million, or 8 per cent.

2022/05/27

Canada Post’s 2021 results have been released. Canada Post recorded a loss before tax in 2021 as revenue growth across all lines of business were partially offset by increased costs.

The full story of 2021 includes how we made strong early progress in fulfilling our purpose, A Stronger Canada – Delivered, and is in our 2021 Annual Report on canadapost.ca. Here you will also find a message from Doug Ettinger, President and CEO on our plans to deliver a stronger Canada.

The Canada Post segment’s loss before tax was $490 million in 2021. That’s an improvement from a loss before tax of $779 million in the prior year.

Revenue for the Canada Post segment increased by $407 million, or 6.3 per cent, in 2021 compared to the prior year. Compared to 2020, Parcels revenue grew, Transaction Mail revenue increased slightly, and Direct Marketing revenue and volumes started to recover toward pre-pandemic levels. Year-over-year comparisons are affected by COVID-19: in 2020, Direct Marketing and Transaction Mail volumes had declined substantially while Parcels volumes had increased significantly.

Cost of operations increased by $127 million, or 2.0 per cent, in 2021 compared to the prior year.

With sustained and elevated demand for parcel delivery across the country, we’re responding by investing to expand capacity, improve service and innovate operations. Financial self-sustainability remains our medium- to long-term goal, while our immediate focus must be on the critical investments and improvements needed to meet the changing needs of Canadians and support businesses of all sizes.

In this video, our Chief Financial Officer, Jan C. Faryaszewski, speaks about our 2021 financial results.

 

 

Here are the detailed results, compared to 2020:

Parcels

  • In 2021, Parcels revenue increased by $238 million, or 7.4 per cent.
  • Volumes fell by 28 million pieces, or 7.0 per cent, compared to a year when volumes had surged.
  • Revenue results were positively affected by proactively managing use of available capacity through our commercial customer and product mix.

Transaction Mail

  • Transaction Mail revenue grew by $10 million, or 0.8 per cent, partly due to federal election and census mailings in 2021.
  • Volumes fell by 62 million pieces, or 2.0 per cent.
  • Despite revenue growth from these mailings, erosion in Transaction Mail continues as consumers and mailers migrate to digital alternatives.

Direct Marketing

  • Revenue grew by $113 million, or 14.4 per cent, and volumes increased by 595 million pieces, or 18.4 per cent.
  • This was a partial recovery, following significant declines in the prior year, when customers had postponed or cancelled marketing campaigns due to COVID-19.

For more details, see the news release.

 

 

2022/05/04

Canada Post recorded a loss before tax of $264 million in the third quarter, a slight improvement compared to the same period a year earlier.

While the first half of 2021 showed strong revenue growth from all lines of business, it slowed slightly in the third quarter as consumers returned to shop in stores.

Revenue increased by $37 million, or 0.8 per cent, in the third quarter and by $501 million, or 8.5 per cent, in the first three quarters of the year, compared to the same periods a year earlier. Year-over-year comparisons are affected by the impacts of COVID-19. In the third quarter of 2020, Direct Marketing and Transaction Mail volumes declined substantially, while significant and unsustainable parcel volume growth was constrained by available capacity.

Costs of operations increased by $32 million, or 1.8 per cent, in the third quarter of 2021 and by $275 million, or 3.3 per cent, for the first three quarters, compared to the same periods a year earlier. These increases were driven by annual wage increases and higher costs of processing and delivering parcels compared to mail. The Corporation also invested in operations and capacity.

Below are some key results for Q3 compared to the same period last year:

Parcels:

  • • Volumes fell by 20 million pieces, or 22.1 per cent.
  • • Revenue declined by $31 million, or a more modest 5.3 per cent, due in part to our strategies to manage customer and product mix within our available capacity.
  • • The reopening of stores for in-person shopping negatively impacted demand, while global supply chain issues affected inbound volumes.

Transaction Mail:

  • • Revenue grew by $21 million, or 2.4 per cent, and volumes rose by 8 million pieces. .
  • • This was partly due to federal election mailings.
  • • Despite these mailings, erosion in Transaction Mail continues as consumers and mailers migrate to digital alternatives.

Direct Marketing:

  • • Direct Marketing revenue grew $42 million, or 20.3 per cent, and volumes rose by 184 million pieces, or 21.1 per cent.
  • • This partial recovery followed significant declines in 2020, when customers mailed less due to COVID-19.

 

For more details, see the news release.

2021/11/19

Canada Post recorded a loss before tax of $151 million in the second quarter of 2021, an improvement of $227 million from the $378-million loss before tax in the same quarter a year earlier.

While this improvement was significant, it resulted mainly from the unique unfavourable effects of COVID-19 on the business as well as one-time charges in 2020.

Revenue increased by $188 million, or 11.5 per cent, in the second quarter and by $464 million, or 12.2 per cent, in the first six months of the year, compared to the same periods a year earlier. Continued parcel revenue growth, increased Transaction Mail volume linked to the 2021 Census and stronger Direct Marketing volumes helped drive this revenue growth. Year-over-year growth rates in each product line reflect the impact of COVID-19 in 2020, which included significant declines in Transaction Mail and Direct Marketing but also soaring parcel volumes.

Costs of operations decreased by $44 million, or 2.2 per cent, in the second quarter of 2021 and increased by $243 million, or 4.1 per cent, for the year-to-date of 2021, compared to the previous year. The accelerated shift in our business from mail to parcels continues to put pressure on our capacity, processing and delivery costs.

Below are some key results for Q2 compared to the same period last year:

Parcels:

  • • Volumes declined by 5 million pieces, or 5.4 per cent.
  • • Revenue grew by $52 million, or 6.1 per cent.
  • • Revenue results were positively affected by proactively managing use of available capacity through our commercial customer and product mix.
  • • Compared to a year earlier when online shopping surged, results in Q2 2021 began to reflect the return to in-person shopping.

Transaction Mail:

  • • The 2021 Census mailing contributed to revenue growth for the business line.
  • • Transaction Mail revenue increased by $43 million, or 7.5 per cent.
  • • Volumes increased by 25 million pieces, or 4.1 per cent.
  • • Overall, Transaction Mail revenue continues to erode as consumers and mailers migrate to digital alternatives.

Direct Marketing:

  • • Direct Mail started to recover in Q2, following significant declines in Personalized Mail and Neighbourhood Mail in 2020 as customers postponed or cancelled marketing campaigns due to COVID-19.
  • • Revenue increased by $72 million, or 49.1 per cent.
  • • Volumes increased by 375 million pieces, or 66.1 per cent.

 

For more details, see the news release.

2021/08/20

Next page »

Email updates

@