Canada Post suffered a big loss in 2019 before the coronavirus pandemic hit.
The corporation that runs Canada’s postal system said it lost $153 million before taxes last year as e-commerce competition slowed growth at its parcels business and an ongoing shift toward online communications further eroded shipments of letter mail and transaction mail (bills and statements).
The Crown Corporation said processing and delivering packages demands more technology, real estate, vehicles and time interacting with customers than handling letters, a burden that weighs on profits as tech giants such as Amazon expand their reach.
Canada Post also said the number of addresses receiving daily mail and parcel service climbed by 168,000 in 2019, but that residents and businesses are sending fewer parcels and mail than in the past.
Parcels revenue climbed by $232 million last year, topping $2.7 billion to exceed revenue from letters, bills and statements for the first time. However, revenue from transaction mail dropped by $69 million or 2.5% year-over-year, with volumes falling by more than 192 million pieces or 6.4%.
The Canada Post Group of Companies, which owns the profitable Purolator delivery company, reported a loss of $23 million before taxes in 2019, compared with a loss of $118 million in 2018. Canada Post said the COVID-19 pandemic could disrupt its operations in 2020 and beyond.
