Canada Post recorded a loss before tax of $270 million for 2018. Three main non-recurring items factor into the result:
- Resolving pay equity for previous years, which cost the Corporation $280 million.
- The labour disruption in the fall, which created an estimated revenue shortfall of $195 million and resulted in a net impact of $135 million to the loss before taxes.
- And an update to workers compensation liabilities, which saved the company $48 million.
Had it not been for these non-recurring factors, Canada Post would have recorded a profit in 2018.
The segment’s $270 million loss is a decline of $346 million compared to 2017. Going forward, Canada Post estimates the significant pay and benefit improvements related to pay equity for Rural and Suburban Mail Carriers will cost $140 million a year.
Two important trends continued in 2018: the strong growth in parcels and the significant decline in mail volumes. Parcels generated 38 per cent of the segment’s revenue in 2018, compared to 34 per cent in 2017 and only 21 per cent in 2011. Canada Post remains the country’s leading parcel delivery company.
The results were released today, along with the 2018 Canada Post annual report, which is completely digital for the first time.
Key results for the Canada Post segment in 2018 compared to 2017:
- Total Parcels volumes increased by 54 million pieces or 21.7 per cent.
- Revenue increased by $308 million or 13.6 per cent.
- For Domestic Parcels, volumes grew by 20 million pieces or 10.9 per cent, and revenue increased by $254 million or 15.3 per cent.
- Transaction Mail volumes fell by 187 million pieces or 6.2 per cent.
- Revenue decreased by $151 million or 5.5 per cent.
- Canadians mailed 2.4 billion (44 per cent) fewer pieces of mail in 2018 than in the peak year of 2006.
- Direct Marketing volumes fell by 169 million pieces or 3.9 per cent.
- Revenue decreased by $23 million or 2.4 per cent.
- Volumes and revenue were negatively affected by the labour disruption in the last quarter.
The annual report meets accessibility standards so that any visually impaired reader has access to the same information as a fully sighted reader. This allows text-to-voice software programs to:
- Read aloud in the correct pronunciation for French or English.
- Tab through the page by headers and subheaders, giving non-sighted readers a quick way to skim the page for information.
- Read aloud the information in all infographics and tables according to accessibility best practices.
- Provide a description of what a photograph or illustration looks like.
Canada Post recorded a $94-million loss before tax in the third quarter (July, August and September), mainly due to the costs of implementing an arbitrator’s final pay equity ruling on how much delivery employees in suburban and rural Canada are paid.
For the first three quarters of 2018, Canada Post is reporting a loss before tax of $266 million, compared to a profit before tax of $13 million for the same period in 2017. Without costs related to the pay equity ruling, we would have reported a small profit before tax for the first three quarters of 2018.
Pay equity costs and the impact of rotating strikes in October and November are major factors in Canada Post projecting a loss for 2018.
However, our Parcels business continues to grow strongly, and Canada Post remains the country’s leading parcel delivery company. We’ve grown our Parcels revenue year over year in 25 of the last 26 quarters.
Key results for the Canada Post segment in Q3 2018 compared to Q3 2017
- Parcels revenue increased by $106 million or 21.2 per cent.
- Volumes increased by 14 million pieces or 23.3 per cent.
- Over the first three quarters of 2018, Parcels revenue increased by $322 million or 21.8 per cent, and volumes increased by 44 million pieces or 26.7 per cent when compared to the same period in 2017.
- Transaction Mail volumes have been eroding for 12 straight years.
- Volumes decreased by 35 million pieces or 4.6 per cent, while revenue decreased by $24 million or 3.6 per cent.
- For the first three quarters of 2018, Transaction Mail volumes decreased by 119 million pieces or 4.9 per cent and revenue decreased by $103 million or 4.6 per cent, compared to the same period in 2017.
- Direct Marketing revenue decreased by $5 million or 1.9 per cent.
- Volumes decreased by 44 million pieces or 3.9 per cent.
- Over the first three quarters of 2018, Direct Marketing revenue decreased by $9 million or 1.1 per cent and volumes decreased by 54 million pieces or 1.5 per cent when compared to the same period in 2017.
The Canada Post segment is reporting a $242-million loss before tax in the second quarter, which ended June 30, 2018. This is mainly in recognition of estimated costs associated with adjusting how RSMC employees are paid.
Discussions are under way with the Canadian Union of Postal Workers to reach an agreement to resolve the issue of pay equity for RSMC. As we continue to work towards a meaningful resolution, we have an obligation to reflect the estimated financial impact in the corporate financial results.
The business continues to see strong growth in e-commerce. In the second quarter, we remained the country’s leading parcel delivery company. We have grown Parcels revenue year over year in 24 of the last 25 quarters – dating back to 2012.
Key results for the Canada Post segment in Q2 2018 compared to Q2 2017
Parcels revenue grew by $106 million or 19.6 per cent
Parcels volumes increased by 13 million pieces or 24.1 per cent
Domestic Parcels continued to grow strongly, as revenue increased by $81 million or 20.5 per cent and volumes grew by 6 million pieces or 14.5 per cent.
Transaction Mail revenue decreased by $33 million or 6 per cent
Volumes decreased by 34 million pieces or 5.9 per cent
The ongoing decline in mail volumes remains a significant challenge.
Revenue fell by $1 million or 2 per cent
Volumes grew by 13 million pieces but fell by 0.6 per cent when adjusted for trading days
Revenue for Neighbourhood Mail increased by $4 million or 1.3 per cent while volumes increased by 27 million pieces or 1.3 per cent.
(All revenue amounts for 2017 were restated as a result of new accounting standards.)
The Canada Post segment is reporting a $70-million profit before tax for the first quarter of 2018, which ended March 31.
The growth in Parcels volumes was driven by strong performance from major commercial customers and by Canada Post’s solid delivery performance as consumers order more products online. The growth continues the positive momentum Canada Post achieved in 2017, when employees delivered record Parcels volumes.
Revenue for Q1 2017 was restated as a result of new accounting standards.
Key results for the Canada Post segment in Q1 2018 compared to Q1 2017
Parcels revenue grew by $110 million or 24.6 per cent.
Parcels volumes increased by 17 million pieces or 33.0 per cent. Some of that growth occurred as Transaction Mail Inbound Letter-post migrated to Parcels due to changes in international induction procedures.
Transaction Mail revenue decreased by $46 million or 4.1 per cent.
Volumes decreased by 50 million pieces or 4.0 per cent.
Revenue decreased by $3 million, which is an increase of 0.5 per cent when adjusted for trading days. Volumes fell by 23 million pieces or 0.5 per cent.
Revenue for Neighbourhood Mail remained constant while volumes decreased slightly, by seven million pieces.
The Canada Post segment today reported a $74-million profit before tax for 2017, largely due to unprecedented growth in its parcels business. It was the segment’s fourth profitable year in a row.
In 2017, for the first time, Canada Post grew Parcels revenue to more than $2 billion.
Annual Parcels revenue has grown by over $900 million since 2011, the year Canada Post pivoted the business to focus on e-commerce. In 2017, Parcels revenue growth of $393 million outpaced the $124 million decline in revenue from Transaction Mail.
A significant challenge remains: With the number of addresses growing each year, the number of pieces of Transaction Mail we deliver to each address has declined 47.7 per cent since 2006.
Key results for the Canada Post segment compared to 2016.
Revenue grew by $393 million or 23.1 per cent in 2017 to $2.1 billion.
Volumes rose by 47 million pieces or 24.5 per cent. Canada Post delivered one million or more parcels on a single day 67 times in 2017 – including 40 days in a row during the holiday season.
Parcels now generate 33 per cent of the segment’s revenue, up from 28 per cent in 2016 and only 21 per cent in 2011.
Revenue from Neighbourhood Mail, the largest product category by volume, grew 6.9 per cent and volumes grew by 7.5 per cent compared to 2016.
Overall, Direct Marketing revenue fell $17 million or 1.1 per cent and volumes increased by 166 million pieces or 4 per cent.
With Canadians’ extensive use of digital technology, mail volumes continue to decline significantly. Volumes fell by 5.5 per cent or 200 million pieces. Revenue fell by 3.7 per cent or $124 million. Transaction Mail generated 45 per cent of the segment’s revenue.
Canadians mailed two billion (41 per cent) fewer pieces of Domestic Lettermail in 2017 than in the peak year of 2006.