Canada Post segment reports $62-million loss before tax in third quarter

Despite posting a loss in what is traditionally the slowest period of the year, we expect to end 2017 with a profit before tax, largely due to growth in our Parcels business.

For the first three quarters of 2017, Canada Post reported a profit before tax of $13 million. In the fourth quarter, we expect a record online holiday shopping season. We delivered one million or more parcels on a single day a record 38 times in the first three quarters of 2017. That’s more than the record of 34 days in all of 2016.

The Canada Post segment’s $62-million loss before tax in the third quarter, which ended September 30, 2017, compares to a loss before tax of $60 million for the third quarter of 2016.

Key results for the Canada Post segment in Q3 compared to Q3 2016

Parcels

Parcels revenue increased by $129 million or 38.9 per cent.

Volumes increased by 16 million pieces or 43.5 per cent.

Over the first three quarters of 2017, Parcels revenue increased $257 million or 22.5 per cent and volumes increased by 32 million pieces or 25.3 per cent compared to the first three quarters of 2016.

Transaction Mail

Transaction Mail volumes have been eroding for 11 straight years.

Volumes decreased by 8 million pieces, which is relatively flat compared to the same period in 2016, which had one extra business day. Revenue increased by $3 million or 2.2 per cent.

The increase in revenue in third quarter of 2017 is compared to Q3 2016, when there was lower revenue and fewer mailings due to labour uncertainty. Excluding this impact, Transaction Mail revenue would have declined in the third quarter of 2017.

Direct Marketing

Direct Marketing revenue increased by $15 million or 7.9 per cent.

Volumes increased by 151 million pieces or 17.1 per cent.

Excluding the negative impact of the labour uncertainty in Q3 2016, Direct Marketing revenue would have decreased in the third quarter of 2017.

2017/11/24

Canada Post segment reports $31-million profit before tax in second quarter, driven by strong growth in parcels

The Canada Post segment is reporting a $31-million profit before tax for the second quarter, which ended July 1. We delivered one million or more parcels on a single day 25 times in the first half of the year, putting us on pace to beat last year’s record of 34 days on which we delivered one million or more parcels.

While the growth in parcels is encouraging, structural challenges such as Lettermail decline and pension funding obligations remain significant long-term threats to our financial self-sustainability.

Key results for the Canada Post segment in Q2 compared to Q2 2016

Parcels

Parcels revenue increased by $83 million or 20.5 per cent.
Volumes increased by 10 million pieces or 23.0 per cent.

Transaction Mail

Transaction Mail revenue decreased by $63 million or 8.0 per cent.
Volumes decreased by 95 million pieces or 10.9 per cent. The erosion was similar to previous periods, once you exclude the large census mailings in Q2 2016 from the comparison.
Lettermail decline, like the pension funding obligation, is a structural challenge that remains a significant long-term threat to our financial self-sustainability.

Direct Marketing

Revenue decreased by $11 million or 3.8 per cent, largely reflecting declines in Personalized Mail and Publications Mail volumes and revenue.
Overall volumes increased by 23 million pieces or 1.8 per cent, because Neighbourhood Mail volumes increased by 54 million pieces or 5.7 per cent. Neighbourhood Mail revenue increased by $5 million or 5.2 per cent.

2017/08/24

Le secteur Postes Canada enregistre un résultat avant impôt de 44 millions de dollars au premier trimestre

La forte croissance soutenue du secteur Colis nous a permis de demeurer le no 1 des colis au pays pendant le premier trimestre.

La croissance des volumes du secteur Colis, en hausse de 12,5 % au premier trimestre de 2017 par rapport à la même période l’an dernier, nourrit le dynamisme avec lequel Postes Canada a réussi à gagner de nouveaux clients et à livrer une quantité record de colis en 2016, surtout pendant la période des Fêtes.

Le secteur Postes Canada rapporte un résultat avant impôt de 44 millions de dollars au premier trimestre, lequel a pris fin le 1er avril 2017, ce qui correspond au résultat de 44 millions de dollars avant impôt enregistré au premier trimestre de 2016.

Principaux résultats du secteur Postes Canada au T1 de 2017 par rapport au T1 de 2016

Colis

• Les revenus du secteur Colis ont augmenté de 45 millions de dollars (10,8 %).
• Les volumes ont connu une hausse de plus de six millions d’articles (12,5 %).

Courrier transactionnel

• Les revenus ont reculé de 32 millions de dollars (3,8 %).
• Les volumes ont chuté de 56 millions d’articles (5,9 %).
• Le recul des volumes de courrier constitue l’un des grands défis que Postes Canada doit relever, en plus de ses obligations au titre du régime de retraite, de ses coûts de main-d’œuvre, et de la nécessité d’investir dans son réseau et le service à la clientèle.

Marketing direct

• Les revenus ont reculé de 10 millions de dollars (3,4 %).
• Les volumes ont baissé de trois millions d’articles (0,3 %).
• Par contre, le Courrier de quartierMC, la catégorie de produits la plus importante pour ce qui est des volumes, a connu une croissance d’un million de dollars de ses revenus, soit 0,4 %, et une augmentation de ses volumes de 12 millions d’articles, soit 1,5 %.

2017/05/29

Canada Post segment records $ 44 million profit before tax in first quarter

Continuing strong growth in parcels maintained the Canada Post segment’s position as the country’s No. 1 parcel company in the first quarter.

The growth in Parcels volumes – which were 12.5 per cent higher in the first quarter of 2017 than in the first quarter a year earlier – continues the positive momentum Canada Post achieved by competing to win business and deliver record-breaking parcel volumes in 2016, particularly during the peak holiday season.

The Canada Post segment’s $44-million profit before tax for the first quarter, ended April 1, 2017, is consistent with the $44-million profit before tax in the first quarter of 2016.

Key results for the Canada Post segment in Q1 compared to Q1 2016

Parcels

• Parcels revenue increased by $45 million or 10.8 per cent.
• Volumes increased by more than six million pieces or 12.5 per cent.

Transaction Mail

• Revenue decreased by $32 million or 3.8 per cent.
• Volumes decreased by 56 million pieces or 5.9 per cent.
• The decline in mail is one of the significant challenges facing the Corporation, together with its pension obligations, labour costs and the need to invest in its network and customer service.

Direct Marketing

• Revenue decreased by $10 million or 3.4 per cent.
• Volumes fell by three million pieces or 0.3 per cent.
• However, the largest product category by volume, Neighbourhood MailTM, saw revenue grow by $1 million or 0.4 per cent and volumes grow by 12 million pieces or 1.5 per cent.

2017/05/29

2016 financial results a positive sign

The Canada Post segment today reported a $55-million profit before tax for 2016. This was the segment’s third profitable year in a row. We remain Canada’s No. 1 parcel company – a proud achievement made possible by the dedication, customer focus and hard work of thousands of employees.

Our 2016 results are a positive sign, but we still face significant challenges: declining mail volumes; sizeable pension obligations; comparatively high labour costs; and the need to invest in our network to keep up with growing parcel volumes. We believe these challenges can be solved.

We have grown our annual Parcels revenue by $521 million since 2011, when we decided to focus on helping Canadian businesses grow through e-commerce. Our growth strategy is working – for them, and for us. It’s why 2016 was a game-changing year. For example, we delivered one million or more parcels in a day 34 times. As well, during the holiday season, we shattered every parcel delivery record.

Key results for the Canada Post segment compared to 2015

Parcels

• Revenue increased by $92 million or 5.6 per cent to $1.7 billion.
• Volumes rose by 14 million pieces or 7.7 per cent to 195 million.
• Parcels now generate 28 per cent of our revenue.

 
Transaction Mail

• Volumes continued their decade-long decline, falling by 286 million pieces or 7.8 per cent. That decline represents a revenue shortfall of $256 million based on the average revenue per piece in 2016.
• Transaction Mail volumes fell 44.1 per cent per address in the period 2007-2016, as volumes fall and the number of addresses increase.
• In 2016, Transaction Mail generated less than half of the segment’s revenue.

 
Direct Marketing

• Revenue fell by $67 million or 5.6 per cent to $1.14 billion.
• Volumes decreased by 261 million pieces or 5.3 per cent.

 
Group of Companies

• The Canada Post Group of Companies reported a profit before tax of $114 million, which was $22 million less than the profit before tax in 2015.
• Purolator’s profit before tax of $67 million was $11 million higher than its 2015 profit before tax.

2017/05/02