Canada Post segment reports Q1 profits
The Canada Post segment has reported a first quarter (Q1) 2016 profit before tax of $44m, supported by the continuing growth in its parcels business. This compares to a Q1 2015 profit before tax of $24m.
In a statement issued on Friday (27 May), Canada Post commented: “First-quarter Parcels revenue for the Canada Post segment climbed 12.5% and volumes grew 14.4% over the same period a year ago. As an example of the growth, Canada Post delivered one million or more parcels on every Monday in January as Canadians shop online more often.”
However, Canada Post added that Q1 revenue for transaction mail fell by $40m, as volumes of letters, bills and statements dropped by 83m pieces compared to the same period a year ago. Since the beginning of 2015, Canada Post’s mail volumes have fallen by nearly one third of a billion pieces.
Canada Post warned: “Though both parcels and direct marketing represent opportunity for Canada Post, their growth 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.”
As previously reported, Canada Post has implemented a range of measures which it hopes will help to rationalise its costs for mail delivery. This has included the controversial step of introducing “community mailboxes”.
On 5 May, Canada’s Public Services Minister Judy Foote announced that the Canadian government was launching an independent review of Canada Post’s activities.
In the first phase of the review, a four-member Task Force is working to “gather facts, conduct analysis and come up with viable options for postal service in Canada” and then produce a Discussion Paper in September.
