- 5 May 2021
- Transport / Logistics Services
Even with record parcels volumes and revenues, Canada Post had a a loss before tax of $779 million in 2020.
Parcels did very well with revenues growing by 25% compared to 2019. Volumes were strong, growing by 21%. In addition its Purolator segment saw profits grow to $176 million, a significant growth against 2019’s results.
Offsetting the success of the parcels business included changes in working practices for COVID safety that proved costly, and Transaction Mail seeing a decline in revenues of $230 million as well as a decline in Direct Marketing revenues of $257 million – both brought about by the pandemic. In addition, the postal operator incurred a charge of $127 million due to a 2020 arbitrator’s ruling over a new collective agreement with the Canadian Union of Postal Workers.
Canada Post is entirely self financing and has a strong cash position so the struggles of this year should not impact its investment plans for the coming years.