Canada Post records a loss of $748 million before tax in 2023

Canada Post records a loss of $748 million before tax in 2023
Canada Post records a loss of $748 million before tax in 2023

Canada Post reported a pre-tax loss of $748 million for 2023, warning that larger and unsustainable losses were likely to come if its business model was not changed.

The state-owned company says it is grappling with intense competition in parcel delivery services, which has caused its market share to drop from 62% before the pandemic to 29% last year.

In addition to increased competition in the parcel business, financial pressures are exacerbated by having fewer letters to deliver to an increasing number of addresses.

President and CEO Doug Ettinger says Canada Post must adapt its business model because the postal service has seen a 60% drop in the number of letters delivered since 2006.

Last year’s loss was about 37% larger than 2022’s loss of $548 million, while revenue of $6.9 billion was down 3.3% from the previous year.

The Canada Post Group of Companies recorded a pre-tax loss of $529 million last year, while the $293 million earned by its Purolator sector somewhat offset Canada Post’s losses.

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