Canada Post increased its revenues to 7.3 billion Canadian dollars (EUR 4.86 billion) in 2006,following a restructuring, a rise of 4.6% on the year before.
Consolidated net profit was down last year, however, by over 40% to CAD 119 million (EUR 79.2million) from CAD 199 million (EUR 132 million) in 2005, as operational costs rose by 6.5% to CAD7.12 billion.
Last year was the first full year since Canada Post restructured into three business lines –transactional mail, parcels and direct marketing – and one in which the group achieved its 12thconsecutive year of profit.
But growth in the parcels sector in 2006 was small, just 1.9%, to CAD 1.187 billion (EUR792.3 million), CAD 33 million (2.7%) less than planned, mainly due to changes in the B2C market,said the group.
“Change was especially evident in the Canadian business-to-consumer parcel market. Somecompanies that ship music CDs, for example, increasingly saw these products downloaded from theWeb.
“New regulations restricted Canadian pharmacies from mailing drugs to US consumers. And withmore online bill payments, packages of chequebooks shrank to a size more suitable to our Lettermailservice,” Canada Post said in its annual report.
But the group is expecting improved performance from the parcels sector in the years to comeas online sales grow. It has built a direct service with eBay Canada and is investing in newpackage sorting equipment.
Transactional mail revenues increased by 3.2% to CAD 3.2 billion (EUR 2.13 billion) comparedto 2005. Volumes held steady, partly thanks to the group creating more “multi-channel” services,where electronic files can be converted for delivery by letter mail, fax or “epost”, its onlinebill payment service.
Buoyed by strong growth in addressed and unaddressed admail, direct marketing revenues rosealmost 10% to over CAD 1.3 billion.
CEO Moya Greene said customer service had significantly improved during the year, pointingout that: “Independently measured service-performance levels exceeded corporate targets forLettermail, Xpresspost and Expedited Parcel.”
Last year had been a pivotal year for Canada Post, she added, “one that that laid thegroundwork for necessary renewal. Earning our customers’ business, loyalty and trust, and meetingtheir changing needs, was a priority for all the lines of business.
“We are making a broad effort to change the culture at Canada Post, and to engage all of ouremployees in the future success of the company.”
