Canada Post posts $490 million loss in 2021

“The pandemic has accelerated online shopping in Canada, rapidly changing the needs of Canadians and the importance they place on their postal service. With sustained and elevated demand for parcel delivery in all parts of the country, the Corporation is responding by investing to expand capacity, improve service and innovate its operations.”

Revenues in 2021 were up about 6.3%, increasing by $407 million from the year prior.

The crown corporation’s parcels business saw the largest growth. Revenues were up by $238 million or 7.4%, despite the total volume of packages decreasing by 28 million pieces or 7%.

“The reopening of stores for in-person shopping also had an impact on Domestic Parcels volumes in the second half of 2021.”

Revenues from transaction mail were also up by $10 million, or 0.8%, despite volumes decreasing by 62 million pieces or 2%.

Canada Post said the 2021 federal election and census mailings greatly helped their transaction mail sector.

“Year-over-year comparisons are affected by COVID-19, which had different impacts on the lines of business in 2020: Direct Marketing and Transaction Mail volumes declined substantially, while Parcels volumes increased significantly to an unsustainable level, constrained by available capacity.”

The organization’s direct marketing business partially recovered in 2021. At the onset of the pandemic in 2020, they say many customers postponed or cancelled marketing campaigns.

In 2021, direct marketing revenues were up by $113 million, or 14.4%, as volumes increased by 595 million pieces or 18.4%.

The final component is the Canada Post Group of Companies (CPGOC), which includes Canada Post, Purolator, SCI Group, and Innovapost.

Overall, CPGOC recorded a loss before tax of $246 million in 2021, a 60.7% improvement from 2020’s $626 million loss.

Purolator fared the best, noting a profit of $269 million.

by David Opinko

Canada Post posts $490 million loss in 2021

What's Happening