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.