COVID-19 contributed to Canada Post’s losses in 2020 as the corporation lost $779 million before tax, that represents a fivefold increase from 2019, even as it encounters record parcel volumes.
COVID related costs are estimated to be around $292 million, majorly from special leaves for high-risk employees, those offering child and elder care, higher overtime, and the impact of higher parcel volumes.
Canada Post reveals transaction mail revenues dropped by $230 million and direct marketing revenues declined $257 million from 2019 as mailings were either cancelled or delayed because marketers turned to digital alternatives.
The overall impact of COVID on revenues was $194 million if the 25 percent growth in parcels revenue to $699 million is factored in. Close to two-thirds of that increase is connected to COVID-19 as total volumes grew by 21 percent to 69 million pieces.
Canada Post reveals its busiest day for parcel delivery was December 21 when 2.4 million items were processed and it encountered 181 consecutive days of delivering a minimum of one million parcels as more Canadians shopped online.
There was a speedy decline in traditional mail as volumes of letters, bills and statements dropped by 10.5 percent to 286 million while revenue was down by 8.9 percent. Around $146 million of the $230-million decrease is attributed to the pandemic.
The Canada Post Group of Companies which comprises Purolator, Canada Post, SCI Group Inc. and Innovapost Inc. recorded $626 million loss before tax, compared with $23 million loss in 2019.
The Purolator segment made a whooping $176-million profit, a 15.4 percent increase from $152 million.
