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.
Despite posting a loss in what is traditionally the slowest period of the year, we expect to end 2017 with a profit before tax, largely due to growth in our Parcels business.
For the first three quarters of 2017, Canada Post reported a profit before tax of $13 million. In the fourth quarter, we expect a record online holiday shopping season. We delivered one million or more parcels on a single day a record 38 times in the first three quarters of 2017. That’s more than the record of 34 days in all of 2016.
The Canada Post segment’s $62-million loss before tax in the third quarter, which ended September 30, 2017, compares to a loss before tax of $60 million for the third quarter of 2016.
Key results for the Canada Post segment in Q3 compared to Q3 2016
Parcels revenue increased by $129 million or 38.9 per cent.
Volumes increased by 16 million pieces or 43.5 per cent.
Over the first three quarters of 2017, Parcels revenue increased $257 million or 22.5 per cent and volumes increased by 32 million pieces or 25.3 per cent compared to the first three quarters of 2016.
Transaction Mail volumes have been eroding for 11 straight years.
Volumes decreased by 8 million pieces, which is relatively flat compared to the same period in 2016, which had one extra business day. Revenue increased by $3 million or 2.2 per cent.
The increase in revenue in third quarter of 2017 is compared to Q3 2016, when there was lower revenue and fewer mailings due to labour uncertainty. Excluding this impact, Transaction Mail revenue would have declined in the third quarter of 2017.
Direct Marketing revenue increased by $15 million or 7.9 per cent.
Volumes increased by 151 million pieces or 17.1 per cent.
Excluding the negative impact of the labour uncertainty in Q3 2016, Direct Marketing revenue would have decreased in the third quarter of 2017.
Canada Post segment reports $31-million profit before tax in second quarter, driven by strong growth in parcels
The Canada Post segment is reporting a $31-million profit before tax for the second quarter, which ended July 1. We delivered one million or more parcels on a single day 25 times in the first half of the year, putting us on pace to beat last year’s record of 34 days on which we delivered one million or more parcels.
While the growth in parcels is encouraging, structural challenges such as Lettermail decline and pension funding obligations remain significant long-term threats to our financial self-sustainability.
Key results for the Canada Post segment in Q2 compared to Q2 2016
Parcels revenue increased by $83 million or 20.5 per cent.
Volumes increased by 10 million pieces or 23.0 per cent.
Transaction Mail revenue decreased by $63 million or 8.0 per cent.
Volumes decreased by 95 million pieces or 10.9 per cent. The erosion was similar to previous periods, once you exclude the large census mailings in Q2 2016 from the comparison.
Lettermail decline, like the pension funding obligation, is a structural challenge that remains a significant long-term threat to our financial self-sustainability.
Revenue decreased by $11 million or 3.8 per cent, largely reflecting declines in Personalized Mail and Publications Mail volumes and revenue.
Overall volumes increased by 23 million pieces or 1.8 per cent, because Neighbourhood Mail volumes increased by 54 million pieces or 5.7 per cent. Neighbourhood Mail revenue increased by $5 million or 5.2 per cent.
Continuing strong growth in parcels maintained the Canada Post segment’s position as the country’s No. 1 parcel company in the first quarter.
The growth in Parcels volumes – which were 12.5 per cent higher in the first quarter of 2017 than in the first quarter a year earlier – continues the positive momentum Canada Post achieved by competing to win business and deliver record-breaking parcel volumes in 2016, particularly during the peak holiday season.
The Canada Post segment’s $44-million profit before tax for the first quarter, ended April 1, 2017, is consistent with the $44-million profit before tax in the first quarter of 2016.
Key results for the Canada Post segment in Q1 compared to Q1 2016
- Parcels revenue increased by $45 million or 10.8 per cent.
- Volumes increased by more than six million pieces or 12.5 per cent.
- Revenue decreased by $32 million or 3.8 per cent.
- Volumes decreased by 56 million pieces or 5.9 per cent.
- The decline in mail is one of the significant challenges facing the Corporation, together with its pension obligations, labour costs and the need to invest in its network and customer service.
- Revenue decreased by $10 million or 3.4 per cent.
- Volumes fell by three million pieces or 0.3 per cent.
- However, the largest product category by volume, Neighbourhood MailTM, saw revenue grow by $1 million or 0.4 per cent and volumes grow by 12 million pieces or 1.5 per cent.