Canada Post 2020 financial results were released today.
In an unprecedented year dominated by COVID-19, Canada Post recorded a loss before tax of $779 million in 2020, as it worked hard to keep people safe while maintaining an essential service for Canadians.
Costs related to COVID are estimated at $292 million. A significant portion of that was due to special leaves to support higher-risk employees and those providing child and elder care, as well as increased overtime expenses.
The additional expenses to keep people safe included the cost of redesigning work centres to accommodate physical distancing in our facilities, and for collection, processing and delivery, which increased along with Parcels volumes.
Transaction Mail revenue declined by $230 million and Direct Marketing revenue fell by $257 million, compared to 2019, as marketers cancelled or delayed mailings due to COVID-19 and mailers increasingly turned to digital alternatives. It is estimated that $382 million of that total $487 million revenue decline was due to COVID-19. The estimated net negative impact of COVID-19 was $194 million, after factoring in the growth of Parcels revenue.
Apart from the costs related to COVID-19, the company incurred an additional $127 million in costs stemming from the June 2020 arbitrator’s ruling that resulted in new collective agreements with the Canadian Union of Postal Workers. The segment would have still incurred a loss without the impacts of COVID-19 and the new collective agreements with CUPW.
Total Parcels revenue grew by $699 million, or 25.0 per cent, and total volumes grew by 69 million pieces, or 21.0 per cent, compared with 2019. It is estimated that $471 million of that increase is due to COVID-19. Domestic Parcels revenue increased by $613 million, or 29.1 per cent, and volumes increased by 70 million pieces, or 30.9 per cent, compared with 2019.
For more details, read the news release.