Ottawa, ON — Canada Post reported that second quarter, parcel volumes grew by 10 million pieces or 23.0 per cent compared to the same period in 2016 and domestic parcels volumes grew by 7 million pieces or 19.6 per cent.
Canada Post delivered one million or more parcels on a single day 25 times in the first two quarters of 2017, which ended July 1. With the peak holiday season ahead, the Corporation is on pace to surpass the previous record of 34 days on which it delivered one million or more parcels, set in 2016. The growing momentum in the parcels business reflects the strategic decision Canada Post made in 2011 to become a leader in e-commerce.
“Our employees’ hard work is transforming this company into an e-commerce powerhouse,” says Deepak Chopra, Canada Post President and CEO. “I am so proud of them and their focus on the customer.”
The Canada Post segment’s $31-million profit before tax for the second quarter compares to a $1-million profit before tax in the second quarter of 2016. For the first two quarters of 2017, Canada Post reported a profit before tax of $75 million, compared to a profit before tax of $45 million for the same period in 2016.
The growth in parcels is encouraging, but structural challenges — such as lettermail decline and the pension funding obligation — remain significant long-term threats to financial self-sustainability.
Parcels revenue increased by $83 million or 20.5 per cent in the second quarter compared to the same period in 2016. Revenue in domestic parcels, the largest product category, also continued to grow strongly, increasing by $62 million or 21.2 per cent. In the first two quarters of 2017, parcels revenue increased by $128 million or 15.5 per cent, and volumes increased by 16 million pieces or 17.6 per cent when compared to the same period in 2016. For domestic parcels, revenue increased by $98 million or 16.6 per cent and volumes increased by 11 million pieces or 15.0 per cent in the first two quarters of 2017, compared to the same period in 2016.