In 2014, the Canada Post segment reported a profit before tax of $194 million.
Canada Post is seeing the early results of its Five-point Action Plan to realign the postal service with Canadians’ increasing need for parcel delivery and declining use of traditional mail services.
The results were mainly due to three factors:
- Strong growth in the Parcels business;
- New tiered pricing for Transaction Mail introduced as part of the Five-point Action Plan; and
- Lower employee benefit costs.
In 2014, Canada Post grew as an e-commerce business and became more customer-focused. The Annual Report highlights customers large and small who speak to how Canada Post helps them succeed.
The Annual Report also includes a report on the significant progress made by the Five-point Action Plan. Already, one million addresses have been converted or are in the process of being converted to community mailbox delivery.
Canada Post is encouraged by these results, but there is still a long way to go to create a financially sustainable postal service. We need to outpace the impact of the ongoing decline in Lettermail volumes by completing all the initiatives in the Five-point Action Plan. That will take time.