Canada Post Corporation 2019 Annual Report: Committee of the Whole—July 8, 2020

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Context

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

Key results for the Canada Post segment in 2019 compared to 2018:

parcels:
- 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 3 times, and 1.1 million parcels on a single weekend
transaction mail:
- 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:
- 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