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 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 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 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.