2016 financial results a positive sign

2017/05/02

The Canada Post segment today reported a $55-million profit before tax for 2016. This was the segment’s third profitable year in a row. We remain Canada’s No. 1 parcel company – a proud achievement made possible by the dedication, customer focus and hard work of thousands of employees.

Our 2016 results are a positive sign, but we still face significant challenges: declining mail volumes; sizeable pension obligations; comparatively high labour costs; and the need to invest in our network to keep up with growing parcel volumes. We believe these challenges can be solved.

We have grown our annual Parcels revenue by $521 million since 2011, when we decided to focus on helping Canadian businesses grow through e-commerce. Our growth strategy is working – for them, and for us. It’s why 2016 was a game-changing year. For example, we delivered one million or more parcels in a day 34 times. As well, during the holiday season, we shattered every parcel delivery record.

Key results for the Canada Post segment compared to 2015

Parcels

  • Revenue increased by $92 million or 5.6 per cent to $1.7 billion.
  • Volumes rose by 14 million pieces or 7.7 per cent to 195 million.
  • Parcels now generate 28 per cent of our revenue.

 
Transaction Mail

  • Volumes continued their decade-long decline, falling by 286 million pieces or 7.8 per cent. That decline represents a revenue shortfall of $256 million based on the average revenue per piece in 2016.
  • Transaction Mail volumes fell 44.1 per cent per address in the period 2007-2016, as volumes fall and the number of addresses increase.
  • In 2016, Transaction Mail generated less than half of the segment’s revenue.

 
Direct Marketing

  • Revenue fell by $67 million or 5.6 per cent to $1.14 billion.
  • Volumes decreased by 261 million pieces or 5.3 per cent.

 
Group of Companies

  • The Canada Post Group of Companies reported a profit before tax of $114 million, which was $22 million less than the profit before tax in 2015.
  • Purolator’s profit before tax of $67 million was $11 million higher than its 2015 profit before tax.

Comment policy

Our Comment policy applies to those who choose to use this site as a forum to discuss these topics. By using this site and submitting a comment, you agree to the terms and conditions of the Comment policy.

Learn more


Social media policy

While we encourage you all to get involved, we also want to make sure that Canada Post is consistently represented across all platforms. The social media employee policy and the related practices outline some of the key concepts for using social media.

Learn more


APOC Negotiations hub

Employees represented by the Association of Postal Officials of Canada (APOC) have ratified a four-year tentative agreement. The Corporation is presently implementing the changes, where applicable.

Learn more

Email updates

@