Parcels core to Canada Post profit growth

The postal operation segment of Canada Post Group saw a 24.5% growth in parcel volumes in 2017, helping take the postal operator to $74 million profit before tax.

In a statement issued last week, Canada Post said: “Most of the Parcels revenue growth of $393m was from domestic shipments, which speaks to the important role Canada Post plays delivering for online shoppers and retailers across the country. The Canada Post segment grew revenue to $6.4bn, an increase of 4.1% over 2016.

“In 2017, for the first time, the Canada Post segment exceeded $2bn in Parcels revenue. It has grown annual Parcels revenue by over $900m since 2011, the year the Corporation pivoted to focus on e‑commerce. By adapting to the evolving needs of Canadians, who use the postal service less for mail and more for e‑commerce delivery, Canada Post became and remains the country’s No.1 parcel company.”

Parcels are a very important part of Canada Post’s business, generating 33% of the postal operation’s revenue in 2017 which is up from 28% on the year before. Its parcel volumes increased by 47 million pieces, of which domestic parcels increased by 32 million pieces (22.3%). The company’s domestic parcel revenue increased by 25.1% ($309m).

Across the whole Canada Post Group, profit before tax was $199 million an increase of 74.9% over 2016.