Increased competition in the parcel delivery market impacted volumes and revenue as Canada Post recorded a pre-tax loss of $548 million in 2022.
The loss came amid growing competition in the parcel delivery sector combined with economic uncertainty and reduced consumer spending, all of which negatively affected parcel volumes and revenue. The Crown corporation’s 2022 pre-tax loss widened by $58 million compared to a pre-tax loss of $490 million in 2021. Total revenue declined by $167 million (or 1.9 per cent) from the previous year.
While parcels revenue declined from 2021, the line of business ended 2022 with stronger revenue than before the pandemic started; however, transaction mail volumes “continued to erode,” according to a statement from Canada Post.
Direct marketing revenue and volumes slowly recovered from the prior year.
Canada Post also reported its overall cost of operations fell by 0.8 per cent from the previous year “largely due to lower employee benefits driven by higher discount rates, and reduced labour costs related to lower parcel volumes.”
Looking ahead, Canada Post plans to continue its “strategic investments to improve service and tracking, enable its network, increase capacity and enhance the customer experience. With an obligation to deliver to all Canadian addresses, the continued growth of the Canada Post network added to costs in 2022.”
Canada Post added nearly 219,000 jobs during the year.