Major drop in parcels and mail creates $76M loss for Canada Post

In the first three months of 2024, Canada Post delivered 16 million fewer pieces of mail and two million fewer parcels to Canadian households and businesses creating a $76 million loss for the Crown Corporation.

In early May, Canada Post reported a total loss of $748 million for 2023, driven by a decrease of 117 million pieces of mail and a substantial 62 per cent drop in parcel deliveries.

In the first quarter, the postal service’s revenue decreased by $56 million, or 1.5 per cent, compared to the same quarter of the previous year. The loss from operations reached $221 million, an increase of $109 million from the $112-million loss during the same period in 2023. The Crown Corporation attributed this to slightly higher labor costs and increased employee benefit costs due to a decline in discount rates. However, it said in a statement this increase in costs was partially offset by lower non-capital investments as the company refocused its 2024 investment priorities.

Parcels revenue in the first quarter declined by $59 million, or 5.4 per cent, with volumes falling by two million pieces, or 1.1 per cent, compared to the same period in 2023. Canada Post blamed the loss to “a crowded and competitive parcel delivery market.” Residential and business mail revenue fell by $20 million, or 1.3 per cent, as volumes declined by 16 million pieces, or 1.1 per centr. The postal agency noted that mail revenue and volumes continue to decline as consumers and businesses shift to digital channels.

Conversely, direct marketing revenue grew by $23 million, or 12.2 percent, with volumes increasing by 180 million pieces, or 22.4 percent, compared to the same period in 2023. Canada Post credited this positive result to new business and higher sales for the company’s Neighbourhood Mail service.

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