Parcels drive Q1 profit; mail volumes continue to fall

2016/05/27

Canada Post released its financial results for the first quarter of 2016 today. Continued strength in Parcels contributed to a $44-million profit before tax for the Canada Post segment, the country’s No. 1 parcel company.

Transaction Mail volumes fell by 83 million pieces compared to the same period in 2015 and remain a significant challenge. Direct Marketing generated revenue of $286 million for the first quarter of 2016 for the Canada Post segment.

Parcels’ growth and Direct Marketing represent opportunity, but will not be enough to offset the decline in the core Lettermail business and pay for the pension, or allow the Corporation to invest in its network and customer service. Therefore, this growth will not be enough to ensure Canada Post’s long-term financial self-sustainability.

Key results for the Canada Post segment compared to Q1 2015

Parcels

  • Revenue grew 12.5 per cent or $41 million to $421 million.
  • Volumes rose by 14.4 per cent or more than 5 million pieces.
  • Volumes in Domestic Parcels, the largest product line, increased by 20.5 per cent.

 

Transaction Mail

  • Volumes fell by 6.6 per cent
  • Revenue declined by three per cent or $40 million to $849 million.
  • Since the beginning of 2015, mail volumes have fallen by nearly one third of a billion pieces.

 

Direct Marketing

  • Volumes fell by 2.6 per cent or 50 million pieces.
  • Revenue decreased by 3.5 per cent or $15 million to $286 million, although Neighbourhood Mail revenue remained relatively flat.

 

Employee benefit expenses: Employee benefit costs, including pension, continue to be volatile and remain a significant challenge. Expenses fell by $19 million due to a slight increase in the discount rates used to calculate benefit plan costs in 2016, as well as positive pension asset returns in 2015.

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

@