Record parcel growth for Canada Post
Canada Post has reported a $74m profit before tax for 2017, supported by a record 24.5% growth in parcel volumes.
In a statement issued yesterday (3 May), Canada Post said: “Most of the Parcels revenue growth of $393m was from domestic shipments, which speaks to the important role Canada Post plays delivering for online shoppers and retailers across the country. The Canada Post segment grew revenue to $6.4bn, an increase of 4.1% over 2016.
“In 2017, for the first time, the Canada Post segment exceeded $2bn in Parcels revenue. It has grown annual Parcels revenue by over $900m since 2011, the year the Corporation pivoted to focus on e‑commerce. By adapting to the evolving needs of Canadians, who use the postal service less for mail and more for e‑commerce delivery, Canada Post became and remains the country’s No.1 parcel company.”
The figures showed just how central parcels have become to Canada Post’s business. Total parcels volumes increased by 47m pieces (or 24.5%), while Domestic Parcels volumes grew by 32m pieces (22.3%). Domestic Parcels revenue increased by $309m (25.1%). Parcels generated 33% of the segment’s revenue in 2017, up from 28% in 2016 and only 21% in 2011.
The Canada Post Group of Companies (which includes the core Canada Post segment and also its three non-wholly owned subsidiaries, Purolator Holdings, SCI Group and Innovapost) reported a profit before tax of $199m, which was an increase of $85m or 74.9% over the 2016 results.