Canada Post lost $748 million in 2023, up from $548 million the year before, and another $76 million in the first quarter of 2024, bringing the Crown Corporation's losses to almost $3 Billion in six years.
Canada Post reports $748-million loss before tax for 2023 | Canada Post (news release):
May 3, 32024 - "Canada Post recorded a loss before tax of $748 million in 2023. Results were negatively impacted by the post-pandemic surge in parcel delivery competition, the ongoing erosion of Transaction Mail, and continued growth in addresses and delivery costs....
"In the post-pandemic parcel delivery landscape, competition has accelerated at a pace not seen in the company’s history. Canada Post’s estimated parcel delivery market share has eroded from 62 per cent prior to the pandemic to 29 per cent in 2023. At the same time, Transaction Mail continues to decline in both volume and as a revenue source. In 2006, Canadian households received an average of seven letters per week; in 2023, they received two. Delivering fewer letters to a growing number of addresses is compounding the financial pressures on the Corporation.
"In 2023, revenue fell by $240 million, or 3.3 per cent, compared to the prior year, dropping across all three lines of business – Parcels, Transaction Mail and Direct Marketing. The 2023 loss before tax widened by $200 million from a loss before tax of $548 million in 2022. The cost of operations in 2023 rose by $11 million, or 0.1 per cent, compared to 2022....
"Under the Canada Post Corporation Act, the postal service has an obligation to serve all Canadians in a financially self-sustaining manner based on revenue generated by the sale of postal products and services, not taxpayer dollars. Over the last 20 years, the amount of mail Canadians receive has declined by more than 50 per cent, while the number of addresses has increased by more than three million. This has resulted in lower revenues and higher costs.... Without changes to align the postal service to the needs of Canadians today, Canada Post projects larger, unsustainable losses in future years."
How Canada Post lost $3B in six years | About That | CBC News | May 23, 2024:
Canada Post reports $76-million loss before tax in first quarter | Canada Post (news release):
May 24, 2024 - "Canada Post recorded a loss before tax of $76 million in the first quarter of 2024 as revenue for Parcels and Transaction Mail declined and Direct Marketing picked up. The segment’s loss before tax improved compared to the same period of the prior year due to the receipt of non-recurring dividends partly related to the divestiture of SCI Group Inc. (SCI). Without these dividends, Canada Post’s loss before tax would have been approximately $224 million, compared to a loss before tax of $107 million in the first quarter of 2023.
"In the first quarter, Canada Post’s revenue declined by $56 million, or 1.5 per cent, compared to the same quarter of the prior year. Parcels results continued to be negatively impacted by the competitive environment, while Transaction Mail volumes continued to erode. In Direct Marketing, Canada Post Neighbourhood Mail service benefited from new business and higher sales.
"Canada Post’s loss from operations in the first quarter was $221 million, expanding by $109 million compared to the $112-million loss from operations it had recorded in the first quarter of 2023. The cost of operations increased by 2.8 per cent in the first quarter compared to the same period a year earlier.... Parcels revenue declined by $59 million, or 5.4 per cent, while volumes fell by 2 million pieces, or 1.1 per cent, compared to the same period in 2023. A crowded and competitive parcel delivery market continued to negatively affect results for the line of business.... Transaction Mail revenue fell by $20 million, or 1.3 per cent, as volumes declined by 16 million pieces, or 1.1 per cent, compared to the same period a year earlier. Transaction Mail revenue and volumes declined as consumers and mailers continued to shift to digital channels.
"The company maintained its regulated stamp prices at 2020 levels through the first quarter of 2024. In May, Canada Post raised its regulated postage rates after receiving Governor-in-Council approval of its proposed increase. For stamps purchased in a booklet, coil or pane, which represent most stamp sales, the rate has increased by seven cents, to 99 cents per stamp. The stamp price increase took effect on May 6, 2024, and did not impact first quarter results."
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