Canada Post Reports $748 Million Loss, Warns of Unsustainable Future

Canada Post disclosed a significant financial setback, revealing a staggering loss of $748 million before taxes for the previous year. The Crown corporation emphasized the urgent need for business model adjustments to avert further sizable losses. CEO Doug Ettinger cited intense competition in the parcel delivery sector as a primary challenge.

The company’s market share plummeted from 62% before the pandemic to a mere 29% in the last year, attributing this decline to heightened competition in parcel services. Simultaneously, Canada Post noted a sustained decrease in letter volumes, exacerbating its financial woes amidst escalating delivery costs and expanding address numbers.

Evolving consumer preferences and technological advancements have fueled a 60% decrease in letter deliveries since 2006, necessitating a strategic overhaul of Canada Post’s operational framework to remain viable in the evolving landscape.

The reported loss of $748 million represents a 37% increase from the previous year’s $548 million deficit, while the revenue dipped by 3.3% to $6.9 billion compared to the preceding year. Within the Canada Post Group of Companies, a $529 million collective loss was recorded, partially offset by the $293 million profit generated by its Purolator segment.