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.