Canada Post reports $290-million loss before tax in the third quarter

Canada Post has released its third quarter 2023 financial results. The Corporation recorded a loss before tax of $290 million as revenue fell across most lines of business.

While Parcels volumes increased, Parcels revenue continued to be impacted by an increasingly competitive parcel delivery market. Transaction Mail volumes and revenue continued to decline, while Direct Marketing volumes and revenue increased in the third quarter.

Highlights

• The Canada Post segment’s loss before tax in the third quarter widened by $63 million from the same period of 2022.
• Revenue fell by $154 million, or 3.5 per cent, in the first three quarters of 2023 compared to the same period of 2022.
• In the third quarter, Direct Marketing revenue increased by $7 million, or 3.3 per cent as volumes increased by 43 million pieces, or 4.9 per cent, while Transaction Mail revenue continued to erode with a decline of 7.7 per cent, compared to the same period a year earlier.
• Parcels revenue remained relatively flat in the third quarter, falling by $3 million, or 0.3 per cent, as volumes rose by 7 million pieces, or 12.1 per cent, compared to the same period of 2022. Growth in the ecommerce market, along with improved service performance contributed to the volume increase. Meanwhile, Parcels revenue continued to be negatively impacted by rate-shopping platforms, a crowded and competitive market, and a decrease in fuel surcharges which are tied to market rates.
• With Parcels representing approximately half of Canada Post’s revenue, the Corporation is transforming to better position itself in a competitive market and ensure the postal service continues to be a vital economic link for all Canadians.

Click here to read the full news release.

2023/11/24

Canada Post reports $254-million loss before tax in the second quarter

Canada Post has released its second quarter 2023 financial results. The Corporation recorded a loss before tax of $254 million as revenue fell across all lines of business.

The Parcels line of business saw increased volumes while revenue declined in what continues to be an increasingly competitive market. Transaction Mail volume and revenue continued to erode, while Direct Marketing revenue declined as businesses’ marketing budgets remained under pressure.

Highlights

• The Canada Post segment’s loss before tax of $254 million in the second quarter was $94 million, or 58.8 per cent larger than the same period of 2022.
• Revenue fell by $78 million, or 6.0 per cent, compared to the same period of 2022.
• Direct Marketing revenue fell by 3.7 per cent as businesses’ marketing budgets remained under pressure, and Transaction Mail revenue continued to erode with a decline of 5.2 per cent, compared to the same period a year earlier.
• Parcels revenue fell by 7.0 per cent compared to the same period of 2022. Revenues were impacted by the growing use of rate shopping platforms by customers, increased competition and a drop in fuel surcharges tied to market rates. At the same time, parcel volumes increased by 2.6 per cent due to ongoing strategic efforts to secure new accounts and additional volumes.
• With Parcels representing approximately half of Canada Post’s revenue, the Corporation is transforming to better position itself in a competitive market and ensure the postal service continues to be a vital economic link for all Canadians.
• We continue to make strategic investments to improve service and tracking, boost capacity and enhance the customer experience.

Click here to read the news release.

2023/08/25

Canada Post reports $107-million loss before tax in the first quarter

Canada Post has released its first quarter 2023 results. The Corporation recorded a loss before tax of $107 million as Parcels revenue was relatively flat and Transaction Mail and Direct Marketing revenue declined from the same period a year earlier.

The company continued to face intensifying competition in the parcel delivery sector. This increased competition as well as a softer ecommerce market negatively affected Parcels revenue and volumes in the first quarter.

Highlights

• The Canada Post segment’s loss before tax of $107 million in the first quarter marked an improvement of $22 million from the same period of 2022.
• Revenue fell by $32 million, or 1.7 per cent, compared to the same period of 2022.
• Parcels revenue was relatively flat as volumes declined slightly from the same period of the prior year.
• Direct Marketing revenue and volumes fell as businesses continued to pull back on marketing, and Transaction Mail revenue and volumes continued to erode.
• With Parcels representing approximately half of Canada Post’s revenue, we continue to invest to better position the company in a competitive market and ensure the postal service continues to be a valued delivery partner.
• We’re making significant strategic investments to improve service and tracking, enable our network, increase capacity and enhance the customer experience.

Click here to read the news release.

2023/05/26

Canada Post releases 2022 results and Annual Report

Canada Post’s 2022 results and Annual Report have been released. The Corporation recorded a loss before tax of $548 million in 2022. Growing competition in the parcel delivery sector, combined with economic uncertainty and reduced consumer spending, negatively affected parcel volumes and revenue.

To read the full story of 2022, including how we’re delivering on our purpose and transformation plan, A Stronger Canada – Delivered, go to our 2022 Annual Report on canadapost.ca.

Please watch this video from President and CEO Doug Ettinger, which provides context on the financial results and how we’re fighting for every parcel in an increasingly competitive landscape.

What you need to know:

• • Canada Post’s 2022 loss before tax widened by $58 million from a loss before tax of $490 million in 2021.
• • Total revenue for the Canada Post segment declined by $167 million, or 1.9 per cent, from the previous year.
• • While Parcels revenue declined from 2021, the line of business ended 2022 with stronger revenue than before the pandemic started.
• • Transaction Mail volumes continued to erode, while Direct Marketing revenue and volumes slowly recovered from the prior year.
• • We’re making strategic investments to improve service and tracking, enable our network, increase capacity and enhance the customer experience.
• • While online shopping has slowed partly due to economic uncertainty and the rising cost of living, the ecommerce market is expected to more than double over the next decade.

2023/05/04

Canada Post segment records $227-million loss before tax for third quarter

Canada Post’s third-quarter financial results are available. Here’s what we’re seeing and forecasting.

Canada’s ecommerce market has begun to settle after two years of accelerated growth. Online shopping is softening with the return of in-store shopping, the rising cost of living and economic uncertainty. The economy has also affected spending on direct marketing.

We’re also facing increased competition in ecommerce. There’s more in-house delivery by major retailers, more delivery to consumers in cities by traditional couriers and more new low-cost competitors.

The good news is that the fundamentals of ecommerce growth remain strong. We expect ecommerce to double in the next 10 years – with continued growth in our parcel volumes and revenue.

Canada Post remains very well positioned to succeed. Our transformation plan puts the needs of Canadians first and addresses what’s happening in the market. We’re investing billions of dollars, building capacity and improving service so that we can take on the competition. Canadians tell us they prefer us because we’re Canadian and they trust us.

Below are some key results compared to the same periods in 2021:

In the third quarter of 2022, Canada Post recorded a loss before tax of $227 million. That is an improvement from a loss before tax of $264 million in the third quarter of the prior year. For the first three quarters of the year, Canada Post recorded a loss before tax of $516 million, compared to a loss before tax of $492 million in the same period a year earlier.

Parcels: In the third quarter of 2022, revenue for the Parcels line of business increased by $22 million, or 2.8 per cent, as volumes declined by 12 million pieces, or 16.2 per cent, compared to the same period in 2021.

Transaction Mail: Revenue fell by $5 million, or 1.0 per cent, in the third quarter compared to the same period in 2021, as volumes fell by 28 million pieces, or 4.9 per cent.

Direct Marketing: For the third quarter, Direct Marketing revenue decreased by $11 million, or 4.7 per cent, while volumes fell by 107 million pieces, or 10.9 per cent, compared to the same quarter in 2021.

2022/11/25