Canada Post delivers profit, reduces expenses
O T TAWA Canada Post Group returned to profitability last year as the national postal service both grew revenue and reduced expenses.
The group that includes Canada Post, Purolator and other businesses had a $198-million net profit, compared to a $29-million net loss in 2013.
The group’s total revenue was $7.98 billion, up $419 million or 5.5 per cent from $7.563 billion in 2013, while the logistics segment had a $10-million net profit, all of which were partially offset by a $13-million loss in other aspects of the business. The Canada Post postal service accounted for 77.5 per cent of the group’s total revenue or $6.214 billion last year — up $331 million or 5.6 per cent from $5.883 billion in 2013. The next-largest revenue source was the Purolator courier service, which generated $1.687 billion in 2014, up $64 million.
The government-owned corporation said the main Canada Post business had a $148-million net profit in 2014, compared with a $75-million net loss in 2013. Purolator had a $53-million net profit, up from $48 million in 2013.
Transaction mail — letters, bills and the like — generated $3.2 billion of revenue for the postal service last year. Canada Post said it had $238 million more in revenue
from transaction mail last year, mostly because of new pricing that took effect last March.
Canada Post parcel delivery generated $1.5 billion of revenue
in 2014, up $120 million from 2013, due to surging demand from businesses filling orders placed by online customers.
Direct marketing customers who deliver advertising and publications through Canada Post generated $1.2 billion of revenue, down $37 million from 2013, due to electronic substitution, bill consolidation and competition, the company said.
On the cost side, Canada Post said employee benefits at the postal service fell to $4.139 billion from $4.385 billion in 2013. Other operating costs increased to $1.601 billion from $1.509 billion.
During 2014, Canada Post converted 100,000 addresses that had door-to-door delivery to community mailboxes. In 2015, it plans to convert about 900,000 addresses.