Question Period Note: Canada Post Corporation 2019 Annual Report

About

On May 20, 2020, Canada Post Corporation released its 2019 financial results and recorded a loss before tax of $153 million.

Canada Post has a long-standing mandate to serve all Canadians while remaining financially self-sufficient
- Fulfilling this dual mandate is a challenge that the company is addressing, as it invests and evolves to meet the changing needs and expectations of Canadians

If pressed on the $153 million recorded loss before taxes:

Transaction mail and direct marketing continued to decline as Canadians communicate, transact and advertise more by digital means
In 2019 prior to COVID-19, Canada Post’s parcels business continued to grow but at a slower pace than 2018, as competition in e-commerce delivery intensified
Parcels revenue surpassed transaction mail revenue for the first time, and Canada Post remained the country’s leader in e-commerce delivery

Parcels revenue surpassed transaction mail revenue for the first time, and Canada Post remained the country’s leader in e-commerce delivery
Total parcels revenue increased by $232 million compared to 2018, exceeding $2.7 billion
Revenue for domestic parcels increased by $204 million or 11.0% over 2018, while volumes increased by 26 million pieces or 13.2% compared to 2018
During the 2019 peak season, Canada Post set records by delivering more than 2 million parcels in a single day three times, and 1.1 million parcels on a single weekend

Transaction mail revenue decreased by $69 million or 2.5%, and volumes fell by 192 million pieces or 6.4%
Transaction mail generated more than $2.7 billion in 2019, or 40% of the Canada Post segment’s revenue (it was 55% in 2006, the peak year for transaction mail volumes)

Direct marketing revenue decreased by $32 million or 3.0%, and volumes fell by 75 million pieces or 1.6%
The direct marketing line of business generated $1.1 billion or 16% of the segment’s revenue in 2019

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