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    2022 Annual Report
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    Our 2022 financial results

    In 2022, the Canada Post segment recorded a loss before tax of $548 million, as growing competition in the parcel delivery sector, combined with economic uncertainty and reduced consumer spending, negatively affected parcel volumes and revenue.

    The Corporation’s 2022 loss before tax widened by $58 million from a loss before tax of $490 million in 2021.

    Here are some of the key factors explaining the 2022 financial results:

    • Total revenue for the Canada Post segment declined by $167 million, or 1.9 per cent,Footnote 1 from the previous year.
    • While Parcels revenue declined from 2021, the line of business ended 2022 with stronger revenue than before the pandemic started.
    • Transaction Mail volumes continued to erode.
    • Direct Marketing revenue and volumes slowly recovered from the prior year.
    • Canada Post’s overall cost of operations fell by 0.8 per cent from the previous year. This was largely due to lower employee benefits driven by higher discount rates, and reduced labour costs related to lower parcel volumes.
    • With an obligation to deliver to all Canadian addresses, the continued growth of the Canada Post network added to costs in 2022. Addresses increased by approximately 219,000 during the year.

    As the business shifts from mail to parcels, pressure on costs continues. The Corporation is making strategic investments to improve service and tracking, enable its network, increase capacity and enhance the customer experience.

    The ecommerce parcel delivery sector in Canada has transformed over the past few years, as significant growth in online shopping resulted in increased competition. While online shopping has slowed partly due to economic uncertainty and the rising cost of living, the ecommerce market is expected to more than double over the next decade. With parcels representing approximately half of Canada Post’s revenue, the Corporation is investing to better position itself in a competitive market and ensure the postal service continues to be a valued delivery partner.

    While the immediate focus must be on critical investments and improvements to meet the changing needs of Canadians and Canadian businesses, financial self-sustainability remains the Corporation’s medium- to long-term goal. Canada Post has a long-standing mandate to be financially self-sustainable while serving all Canadians.

    Parcels

    • In 2022, Parcels revenue declined by $99 million, or 2.3 per cent, and volumes fell by 75 million pieces, or 20.4 per cent, compared to 2021, when volumes remained elevated due to COVID-19.
    • Increased competition, coupled with the return to in-store shopping and lower consumer spending, negatively affected Parcels volumes in 2022.
    • Limited shipping capacity out of China and supply chain disruptions also impacted inbound parcels.
    • The Corporation proactively managed its commercial customer and product mix to help offset the decline in revenue.
    • Canada Post continued to invest in capacity to position its Parcels business for long-term growth.

    Transaction Mail

    • Transaction Mail revenue declined by $70 million, or 2.4 per cent, as volumes fell by 165 million pieces, or 6.3 per cent, compared to 2021.
    • Revenue and volumes declined from higher levels in 2021, when the line of business benefitted from the 2021 Census and federal election mailings.
    • Maintaining regulated stamp prices at 2020 levels throughout 2022 also negatively affected revenues.
    • Transaction Mail continues to erode as consumers and mailers migrate to digital channels.

    Direct Marketing

    • Direct Marketing revenue increased by $32 million, or 3.9 per cent, as volumes rose by 67 million pieces, or 2.1 per cent, from 2021.
    • Canada Post Personalized Mail™ and Canada Post Neighbourhood Mail™ revenues and volumes increased slightly at the start of 2022 as businesses resumed marketing campaigns amid the post-lockdown return to in-person shopping.
    • Campaigns then slowed, however, as economic uncertainty rose and businesses pulled back on spending.
    • Declining consumer spending and global paper shortages also negatively impacted demand for marketing campaigns.
    • Publications Mail revenue and volumes declined slightly due to the timing of mailing campaigns and a continued drop in paper subscriptions.
    • The Corporation continues to invest in Direct Marketing products to maximize their value proposition and integrate them with digital experiences.

    Footnote1. All percentages were adjusted for differences in business and paid days and calculated on values rounded to the nearest thousand. In 2022, there was one less business day and one less paid day compared to 2021.