OTTAWA – Solid efforts across the organization to improve service and deliver greater convenience for Canadian online shoppers led to unprecedented growth in the Parcels line of business in 2015. This growth contributed to a profit before tax of $63 million for the Canada Post segment in 2015, compared to a profit before tax of $194 million in 2014.
While positive, the profit is modest in comparison to the Corporation’s revenue and the significant challenges facing the Canadian postal system. These challenges include declining mail volumes, an increasing number of addresses to serve each year, significant pension obligations and the ongoing need to invest in our infrastructure to continue to serve Canadians.
In addition to the growth in Parcels, there were three other major factors in the 2015 results: the continued erosion of Transaction Mail volumes; improved earnings as a result of strategic initiatives to transform the business; and an increase in employee benefit expenses due to lower interest rates.
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