Canada Post segment reports $66-million loss before tax in first quarter

Canada Post recorded a loss before tax of $66 million in the first quarter of 2020, as continued growth in Parcels revenue and volumes was not enough to offset increased costs. Ongoing declines in Transaction Mail and Direct Marketing also contributed to the loss.

The increase in costs was mainly due to higher labour and employee benefits, and increased collection, processing and delivery costs from Parcels growth.

The first quarter ended on March 28, 2020, before COVID-19 had a significant impact on our Parcels business. With parcel volumes rapidly increasing and Transaction Mail and Direct Marketing volumes quickly decreasing, COVID-19 is expected to have a larger impact on the business in the second quarter.

Key results for the Canada Post segment in Q1 2020 compared to Q1 2019

Parcels results

• In Q1, when the impact of COVID-19 on the Parcels business was minimal, volumes increased by 4 million pieces or 6.1 per cent and revenue increased by $53 million or 10.4 per cent.

Transaction Mail results

• Volumes fell by 30 million pieces or 2.2 per cent and revenue decreased by $16 million or 0.6 per cent. Ongoing erosion accelerated toward the end of Q1 as many businesses began operating on an online-only basis due to COVID-19.

Direct Marketing results

• Volumes decreased by 126 million pieces or 10.5 per cent and revenue decreased by $26 million or 8.6 per cent.
• Declines in Direct Marketing revenue and volumes were larger than in the first quarter of 2019 due to COVID-19, as marketing campaigns were delayed or cancelled near the end of the quarter.

2020/05/25

Canada Post segment posts $153 million loss for 2019

Canada Post recorded a loss before tax of $153 million for 2019. This loss can be attributed to four key factors:

• Canada Post’s Parcels business continued to grow but at a slower pace than 2018, as competition in e-commerce delivery intensified.
• The shift from mail to parcels is having a significant impact on our operating model. Processing and delivering parcels is significantly more expensive than letters.
• Transaction Mail and Direct Marketing continued to decline as Canadians communicate, transact and advertise more by digital means.
• Costs increased as the number of addresses continued to rise. In 2019, we served 168,000 more addresses.

Canada Post has a long-standing mandate to serve all Canadians while remaining financially self-sufficient. Fulfilling this dual mandate is a challenge that the company is addressing, as it invests and evolves to meet the changing needs and expectations of Canadians.

Key results for the Canada Post segment in 2019 compared to 2018:

Parcels

• Parcels revenue surpassed Transaction Mail revenue for the first time, and Canada Post remained the country’s leader in e-commerce delivery.
• Total Parcels revenue increased by $232 million compared to 2018, exceeding $2.7 billion.
• Revenue for Domestic Parcels increased by $204 million or 11.0 per cent over 2018, while volumes increased by 26 million pieces or 13.2 per cent compared to 2018.
• During the 2019 peak season, we set records by delivering more than 2 million parcels in a single day three times, and 1.1 million parcels on a single weekend.

Transaction Mail

• Transaction Mail revenue decreased by $69 million or 2.5 per cent, and volumes fell by 192 million pieces or 6.4 per cent.
• Transaction Mail generated more than $2.7 billion in 2019, or 40 per cent of the Canada Post segment’s revenue (it was 55 per cent in 2006, the peak year for Transaction Mail volumes).

Direct Marketing

• Direct Marketing revenue decreased by $32 million or 3.0 per cent, and volumes fell by 75 million pieces or 1.6 per cent.
• The Direct Marketing line of business generated $1.1 billion or 16 per cent of the segment’s revenue in 2019.

2020/05/20

Canada Post segment reports $135-million loss before tax in third quarter

The Canada Post segment recorded a loss before tax of $135 million in the third quarter, which is traditionally our softest quarter. Growth in parcels volumes only partially offset declines in mail volumes.

For the first three quarters of 2019, the Corporation recorded a loss before tax of $162 million.

Revenues decreased by $44 million or 2.8 per cent in the third quarter compared to the same period in 2018, and fell by $71 million or 0.9 per cent in the first three quarters compared to last year.

Parcels results

• Parcels volumes increased by 4 million pieces or 6.1 per cent in Q3 2019.
• Revenue increased by $22 million or 3.9 per cent.
• Domestic Parcels volumes and revenue increased by 3 million pieces (6.9 per cent) and $18 million (4.2 per cent), respectively.
• Canada Post remains the leading e-commerce delivery company in Canada.

Transaction Mail results

• Volumes fell by 80 million pieces or 11.3 per cent.
• Revenue decreased by $49 million or 7.5 per cent.
• The rates of decline in 2019 are partially explained by higher revenue and volumes in the first three quarters of 2018 due to provincial and municipal elections.

Direct Marketing results

• Direct Marketing volumes decreased by 32 million pieces or 2.9 per cent.
• Revenue decreased by $14 million or 5.4 per cent.

2019/11/22

Canada Post segment reports $50-million loss before tax in second quarter

The Canada Post segment recorded a loss before tax of $50 million for the second quarter of 2019, as continuing declines in mail volumes were offset by parcels volumes growth that was more modest than the significant growth rates of a year ago.

Revenue decreased by $1 million in the second quarter compared to the same period of 2018, and fell by $27 million for the first two quarters compared to last year.

Key results for the Canada Post segment in Q2 2019 compared to Q2 2018

Parcels results

• Parcels revenue increased by $31 million or 6.7 per cent in Q2 2019.
• Volumes increased by 6 million pieces or 8.8 per cent.
• Domestic Parcels revenue and volumes increased by $32 million (8.8 per cent) and 5 million pieces (10.5 per cent), respectively.
• Parcels growth was modest compared to Q2 last year.

Transaction Mail results

• Volumes fell by 55 million pieces or 5.7 per cent.
• Revenue decreased by $16 million or 0.8 per cent.
• Domestic Lettermail volumes decreased by 48 million pieces (5.3 per cent) and revenue decreased by $15 million (0.7 per cent).
• The ongoing decline in mail volumes remains a significant business challenge.

Direct Marketing

• Total Direct Marketing revenue decreased by $11 million (2.2 per cent) and volumes decreased by 73 million pieces (4.1 per cent).

2019/08/23

Canada Post segment reports $23-million profit before tax in first quarter

The Canada Post segment recorded a profit before tax of $23 million in the first quarter of 2019 (January, February and March), mainly due to modest growth in its Parcels business.

However, increases in Parcels revenue and volumes were significantly lower than in the same period last year, in part because major customers made other delivery arrangements during the labour disruption last fall and into 2019.

The $23-million profit before tax in the quarter compares to a profit before tax of $68 million in the same period last year.

Key results for the Canada Post segment in Q1 2019 compared to Q1 2018

Parcels results

• Parcels revenue increased by $20 million or 3.4 per cent.
• Volumes increased by about 1 million pieces or 2.6 per cent.
• Domestic Parcels revenue and volume increased by $40 million (9.4 per cent) and 6 million pieces or 14.4 per cent, respectively.
• Increases were driven by major commercial customers, as well as continued growth in e-commerce.

Transaction Mail results

• In Q1 2019, volumes decreased by 68 million pieces or 8.1 per cent.
• Revenue decreased by $31 million or 4 per cent.
• Domestic Lettermail volumes decreased by 61 million pieces (7.6 per cent) and revenue by $22 million (3.1 per cent).
• The ongoing decline in mail volumes remains a significant business challenge.

Direct Marketing

• Direct Marketing revenue decreased by $17 million (6.3 per cent).
• Volumes decreased by 70 million pieces (6.2 per cent).
• Neighbourhood Mail revenue decreased by $6 million (6.2 per cent), while volumes decreased by 50 million pieces (6 per cent).
• Personalized Mail and Publications Mail revenue declined by $8 million and $3 million, respectively; volumes decreased by 14 million pieces and 6 million pieces, respectively.

2019/05/27