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
- 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.
- 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.
- 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.