Canada Post reports profit for 2014
The Canada Post segment reported a profit before tax of $194 million in 2014 as the Five-point Action Plan began to take hold.
The results were mainly due to three factors:
• strong growth in the Parcels business;
• new tiered pricing for Transaction Mail; and
• lower employee benefit costs.
While we all should be encouraged by these results, there is still a long way to go to create a financially sustainable postal service. We need to outpace the impact of the ongoing decline in Lettermail volumes by completing all the initiatives in the Five-point Action Plan. That will take time.
For example, it will take four more years to convert all the roughly 5 million addresses to community mailboxes – and more than half the financial benefit of the plan is from that initiative. Most of the savings are coming later, and there will be ups and downs before we are financially sustainable.
Key results compared to 2013
Parcels: Revenue from our top 25 e-commerce customers rose by almost 30 per cent in 2014. Revenue from Domestic Parcels surpassed $1 billion for the first time, rising by $85 million. Canada Post’s total Parcels revenue increased by $120 million to more than $1.5 billion and volumes increased by seven million pieces. A very successful holiday season made an important contribution to the growth of our Parcels business.
Transaction Mail: Volumes fell by 5.2 per cent or 214 million pieces in 2014. Compared to 2006, Domestic Lettermail volumes fell by 1.4 billion pieces, or 28 per cent. The tiered pricing structure contained in the Five-point Action Plan helped to offset the impact of this steep and continuing volume decline. As a result, Transaction Mail revenue rose by $238 million.
Direct Marketing: Volumes fell by 2.2 per cent in 2014. Marketing mail still generates more than $1.2 billion a year for Canada Post.
Employee benefit costs: A $181-million non-cash reduction in employee benefit costs was a result of strong pension asset returns in 2013 and an increase in the discount rates used to calculate these obligations. Pension costs remain highly volatile and are expected to increase in 2015.
The Canada Post Group of Companies reported a profit before tax of $269 million in 2014.
Read the news release and the Annual Report for full details.
2015/03/27
The Pension Plan
Canada Post understands the Pension Plan is crucial to your retirement. In this video, Deepak Chopra, President and CEO, explains the challenges we face with the Pension Plan, the importance the Corporation is placing on making the right choices and its commitment to addressing them.
2015/03/03
Canada Post segment reports Q3 profit; Transaction Mail volumes continue to fall
The Canada Post segment reported a profit before tax of $13 million in the third quarter compared to a loss before tax of $129 million in the same quarter of 2013. As they were in the second quarter, the results are mostly due to the impact of lower employee-benefit costs, continued growth in the Parcels business and new pricing measures for Transaction Mail contained in the Corporation’s Five-point Action Plan.
Volumes in Transaction Mail continued to fall in the third quarter after being lower than expected in the second quarter. Compared to the same periods in 2013, volumes decreased by 6.1 per cent in the third quarter and by 5.1 per cent in the first three quarters of 2014.
Implementation of the Five-point Action Plan is well underway. To date, approximately 800,000 households have either been converted from delivery at the door to community mailbox delivery or are in various stages of the conversion process for 2015. In addition, a strong focus on consolidating processing operations is delivering savings.
For the first three quarters of 2014, the Canada Post segment reported a profit before tax of $39 million compared to a loss before tax of $165 million for the same period in 2013 and is expected to report a profit for 2014. The Canada Post Group of Companies reported a profit before tax of $35 million in the third quarter, compared to a loss before tax of $109 million for the third quarter of 2013.
Read the news release for more information.
2014/11/26
Canada Post segment reports Q2 profit; Parcel revenue grows more than 11 per cent
The Canada Post segment reported a profit before tax of $53 million for the second quarter of 2014, primarily due to the impact of lower employee benefit costs, continued growth in the Parcels business and new pricing measures for Transaction Mail contained in the Corporation’s Five-point Action Plan.
Canada Post is encouraged by the result, but Transaction Mail volumes continued their historic decline, falling by 38 million pieces, or 2.3 per cent in the second quarter and by 117 million pieces or 4.7 per cent in the first two quarters of 2014, compared to the same periods in 2013.
Canada Post is focused on executing the various elements of the Five-point Action Plan and has made considerable progress so far this year.
Meanwhile, online shopping continues to drive growth. Parcel revenues for the Canada Post segment rose by 11.3 per cent to $353 million in the second quarter of 2014, compared to the same period in the prior year.
Read the news release for more information.
2014/08/27
The Canada Post E-commerce Innovation Awards
Now in their third year, these Awards recognize companies that are driving the e-commerce industry in Canada. Past events have drawn retail giants such as Indigo and Future Shop. Our winners have included established retailers such as Mountain Equipment Co-op and Lowes.ca, as well as emerging trendsetters. See these highlights from the 2013 Awards to get a sense of how Canada Post is a leader in the e-commerce sector.
2014/06/06