Canada Post sees revenues fall despite strong parcels growth

Canada Post

Canada Post Corporation saw revenues fall by 1.6% in 2016 to C$*7,880m. The group, made up of Canada Post, Purolator and SCI Group also saw operating profit fall 12.0% to C$149m.

Canada Post saw revenues fall 2.1% to C$6,186m. Its parcels segment saw 5.6% revenue growth to C$1,738m, aided by overall volume growth of 7.7%. However, its transaction mail (which made up C$3,037m of revenues) and direct marketing segments saw turnover fall by 4.8% and 5.6% respectively. Volumes of transaction mail fell by 7.8% in the year.

Elsewhere Purolator, an integrated freight and parcel solutions provider, and SCI group, a 3PL, saw revenues decrease 1.0% and 1.1% respectively.

The group said it had significant challenges, including declining mail volumes, pension obligations, labour costs and the need to invest in network capacity to keep up with growing parcel volumes. The group made a net profit of C$81m, down 18.2% from 2015. Canada Post’s net profit stood at C$46m, down by 2.1%.

Source: Canada Post