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

Sooke, Sidney businesses win top awards during the BC Food and Beverage Awards

Sheringham Distillery won Gold Award for Product of Year while Cascadia Seaweed won Innovation Award

Victoria Humane Society takes revenue hit after donation bins vandalized

Organization removes clothing donation bins after contents removed, scattered

West Shore RCMP arrives just in time thanks to tip

Officers remind of resources after mental health call Monday morning

Lamborghini driver slapped with nearly $1,000 in fines while speeding in Central Saanich

Vehicle impounded by Central Saanich police, 11 points issued

Man arrested after speeding to Victoria court date for driving offence

West Shore RCMP remind drivers to be mindful of construction zones

Weekend sees 267 cases, 3 deaths in B.C.; Dr. Henry says events leading to COVID spread

There are currently 1,302 active cases in B.C., while 3,372 people are under public health monitoring

Lightning strike: Tampa Bay blanks Dallas 2-0 to win Stanley Cup

Hedman wins Conn Smythe Trophy as playoff MVP

16 MLAs retiring from B.C. politics add up to $20M in pensions: Taxpayers Federation

Taxpayers pay $4 for every dollar MLAs contribute to their pensions

SOOKE HISTORY: Alleged bootlegger has day in court

Blackberry wine confiscated at home

Shawnigan Lake’s Kubica gets 25 to life for murder in California

Former Shawnigan Lake man convicted of killing woman in 1990

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. VOTES 2020: Echoes of HST in B.C. debate over sales tax

Cannabis, tobacco, luxury cars still taxed in B.C. Liberal plan

She warned her son about toxic drugs, then he was dead

Donna Bridgman’s son died at the age of 38 in Vancouver

Duration of Tour de Rock stop in Chemainus much shorter than usual

Four alumni riders don’t get to come for breakfast in COVID year

Most Read