The Canada Post logo is seen on the outside the company’s Pacific Processing Centre, in Richmond, B.C., on June 1, 2017. THE CANADIAN PRESS/Darryl Dyck

Canada Post reports $153M loss in 2019 amid rising parcels competition

The Crown corporation delivered more than 7.7 billion pieces of mail and parcels last year

Canada Post lost $153 million before tax last year as intense e-commerce competition slowed growth at its parcels business and an ongoing shift toward online communication prompted mail operation declines.

The Crown corporation, that delivered more than 7.7 billion pieces of mail and parcels last year, said processing and delivering packages demands a range of resources, weighing on profits as tech giants such as Amazon expand their reach.

“Parcels processing and delivery requires more technology, space in buildings and vehicles, and time interacting with customers, making it significantly more costly than sorting and delivering letters,” Canada Post said in a release after markets closed Wednesday.

While the number of addresses receiving daily mail and parcel service climbed by 168,000 in 2019, residents and businesses increasingly chat, advertise and do business digitally, Canada Post said.

The COVID-19 pandemic had no impact on the its business last year, it said. “However, it has the potential to significantly impact the Canadian and global economy and therefore our business in 2020 and, possibly, going forward.”

READ MORE: Wearing non-medical masks now recommended in public: Canada’s top doctor

Shippers are in uncharted territory as the crisis upends delivery patterns, with surging consumer demand mitigating a drop in corporate orders amid border closures and travel controls.

Residential deliveries have gone up at an “equal if not greater pace” than the drop in business-to-business parcels as house-bound Canadians order items online, Purolator Inc. chief executive John Ferguson told The Canadian Press in late March.

The Canada Post Group of Companies, which owns the vast majority of the profitable Purolator, reported a loss of $23 million before taxes for 2019, compared with a loss of $118 million 2018. The net loss was $14 million compared with a net loss of $93 million in 2018.

PHOTOS: Canada Post employees salute healthcare workers

Purolator itself turned a before-tax tax profit of $152 million, a roughly five per cent decrease from $161 million of black ink in 2018.

Canada Post said its parcels revenue climbed by $232 million last year, topping $2.73 billion to exceed revenue from letters, bills and statements for the first time.

Revenue from that ”transaction mail,” sometimes known as snail mail, dropped by $69 million or 2.5 per cent year over year to $2.71 billion, with volumes falling by more 192 million pieces or 6.4 per cent to 2.8 billion.

The postal service’s direct marketing revenue decreased by $32 million or three per cent to generate roughly $1.1 billion, with volumes dropping by 75 million pieces or 1.6 per cent.

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Canada Post

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

BC NDP names two more Kelowna candidates

Justin Kulik will run in Kelowna-Lake Country and Krystal Smith will run in Kelowna-Mission for the BC NDP

Fender bender slows northbound traffic on Highway 97 in Kelowna

The three-vehicle collision happened around 4:45 on Wednesday afternoon

Guns seized in relation to southeast Kelowna murder investigation

RCMP seized several firearms from a West Kelowna home on Tuesday

Two new COVID-19 cases announced in Interior Health region

The total number of cases in the region is at 533

Kelowna women’s outreach group expands to support men amid ‘stressful and uncertain times’

HOPE Outreach says they’re expanding services in reaction to ‘stressful and uncertain times’

B.C. counts 125 new COVID-19 cases, up to 1,284 active

No new deaths or health care facility outbreaks

Documentary to celebrate the Shuswap’s music scene

Local initiative to feature several of the region’s artists

Health Canada green-lights rapid COVID-19 test

Health Canada approved the BCube test from Hyris Ltd. in the United Kingdom Sept. 23

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

FINLAYSON: COVID-related job losses concentrated in urban areas… especially Metro Vancouver

The biggest job losses, in absolute terms, have been in Metro Vancouver

Action demanded over death of First Nations youth in Abbotsford group home

Family and Indigenous organizations push for thorough investigation

Okanagan man accused of attacking two young boys back in court

Brian Lamb will remain behind bars until at least Oct. 14

U.S. boater fined $1,000 for violation of Quarantine Act

49-year-old man entered Canada to visit girlfriend in Surrey

Most Read