Canada Post segment posts $153 million loss for 2019

Canada Post recorded a loss before tax of $153 million for 2019. This loss can be attributed to four key factors:

• Canada Post’s Parcels business continued to grow but at a slower pace than 2018, as competition in e-commerce delivery intensified.
• The shift from mail to parcels is having a significant impact on our operating model. Processing and delivering parcels is significantly more expensive than letters.
• Transaction Mail and Direct Marketing continued to decline as Canadians communicate, transact and advertise more by digital means.
• Costs increased as the number of addresses continued to rise. In 2019, we served 168,000 more addresses.

Canada Post has a long-standing mandate to serve all Canadians while remaining financially self-sufficient. Fulfilling this dual mandate is a challenge that the company is addressing, as it invests and evolves to meet the changing needs and expectations of Canadians.

Key results for the Canada Post segment in 2019 compared to 2018:

Parcels

• Parcels revenue surpassed Transaction Mail revenue for the first time, and Canada Post remained the country’s leader in e-commerce delivery.
• Total Parcels revenue increased by $232 million compared to 2018, exceeding $2.7 billion.
• Revenue for Domestic Parcels increased by $204 million or 11.0 per cent over 2018, while volumes increased by 26 million pieces or 13.2 per cent compared to 2018.
• During the 2019 peak season, we set records by delivering more than 2 million parcels in a single day three times, and 1.1 million parcels on a single weekend.

Transaction Mail

• Transaction Mail revenue decreased by $69 million or 2.5 per cent, and volumes fell by 192 million pieces or 6.4 per cent.
• Transaction Mail generated more than $2.7 billion in 2019, or 40 per cent of the Canada Post segment’s revenue (it was 55 per cent in 2006, the peak year for Transaction Mail volumes).

Direct Marketing

• Direct Marketing revenue decreased by $32 million or 3.0 per cent, and volumes fell by 75 million pieces or 1.6 per cent.
• The Direct Marketing line of business generated $1.1 billion or 16 per cent of the segment’s revenue in 2019.

2020/05/20

Canada Post segment reports $135-million loss before tax in third quarter

The Canada Post segment recorded a loss before tax of $135 million in the third quarter, which is traditionally our softest quarter. Growth in parcels volumes only partially offset declines in mail volumes.

For the first three quarters of 2019, the Corporation recorded a loss before tax of $162 million.

Revenues decreased by $44 million or 2.8 per cent in the third quarter compared to the same period in 2018, and fell by $71 million or 0.9 per cent in the first three quarters compared to last year.

Parcels results

• Parcels volumes increased by 4 million pieces or 6.1 per cent in Q3 2019.
• Revenue increased by $22 million or 3.9 per cent.
• Domestic Parcels volumes and revenue increased by 3 million pieces (6.9 per cent) and $18 million (4.2 per cent), respectively.
• Canada Post remains the leading e-commerce delivery company in Canada.

Transaction Mail results

• Volumes fell by 80 million pieces or 11.3 per cent.
• Revenue decreased by $49 million or 7.5 per cent.
• The rates of decline in 2019 are partially explained by higher revenue and volumes in the first three quarters of 2018 due to provincial and municipal elections.

Direct Marketing results

• Direct Marketing volumes decreased by 32 million pieces or 2.9 per cent.
• Revenue decreased by $14 million or 5.4 per cent.

2019/11/22

Canada Post segment reports $50-million loss before tax in second quarter

The Canada Post segment recorded a loss before tax of $50 million for the second quarter of 2019, as continuing declines in mail volumes were offset by parcels volumes growth that was more modest than the significant growth rates of a year ago.

Revenue decreased by $1 million in the second quarter compared to the same period of 2018, and fell by $27 million for the first two quarters compared to last year.

Key results for the Canada Post segment in Q2 2019 compared to Q2 2018

Parcels results

• Parcels revenue increased by $31 million or 6.7 per cent in Q2 2019.
• Volumes increased by 6 million pieces or 8.8 per cent.
• Domestic Parcels revenue and volumes increased by $32 million (8.8 per cent) and 5 million pieces (10.5 per cent), respectively.
• Parcels growth was modest compared to Q2 last year.

Transaction Mail results

• Volumes fell by 55 million pieces or 5.7 per cent.
• Revenue decreased by $16 million or 0.8 per cent.
• Domestic Lettermail volumes decreased by 48 million pieces (5.3 per cent) and revenue decreased by $15 million (0.7 per cent).
• The ongoing decline in mail volumes remains a significant business challenge.

Direct Marketing

• Total Direct Marketing revenue decreased by $11 million (2.2 per cent) and volumes decreased by 73 million pieces (4.1 per cent).

2019/08/23

Canada Post segment reports $23-million profit before tax in first quarter

The Canada Post segment recorded a profit before tax of $23 million in the first quarter of 2019 (January, February and March), mainly due to modest growth in its Parcels business.

However, increases in Parcels revenue and volumes were significantly lower than in the same period last year, in part because major customers made other delivery arrangements during the labour disruption last fall and into 2019.

The $23-million profit before tax in the quarter compares to a profit before tax of $68 million in the same period last year.

Key results for the Canada Post segment in Q1 2019 compared to Q1 2018

Parcels results

• Parcels revenue increased by $20 million or 3.4 per cent.
• Volumes increased by about 1 million pieces or 2.6 per cent.
• Domestic Parcels revenue and volume increased by $40 million (9.4 per cent) and 6 million pieces or 14.4 per cent, respectively.
• Increases were driven by major commercial customers, as well as continued growth in e-commerce.

Transaction Mail results

• In Q1 2019, volumes decreased by 68 million pieces or 8.1 per cent.
• Revenue decreased by $31 million or 4 per cent.
• Domestic Lettermail volumes decreased by 61 million pieces (7.6 per cent) and revenue by $22 million (3.1 per cent).
• The ongoing decline in mail volumes remains a significant business challenge.

Direct Marketing

• Direct Marketing revenue decreased by $17 million (6.3 per cent).
• Volumes decreased by 70 million pieces (6.2 per cent).
• Neighbourhood Mail revenue decreased by $6 million (6.2 per cent), while volumes decreased by 50 million pieces (6 per cent).
• Personalized Mail and Publications Mail revenue declined by $8 million and $3 million, respectively; volumes decreased by 14 million pieces and 6 million pieces, respectively.

2019/05/27

Canada Post segment posts $270 million loss for 2018

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:

Parcels

• 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

• 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

• 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.

2019/04/18