Canada Post posted a $841 million loss before tax for 2024, 12.4% worse than 2023’s $748 million shortfall and the seventh consecutive annual loss for the corporation.
This follows total revenue shrinking by $800 million, or 12.2%, driving an operating loss of almost $1.3 billion after stripping out one-off gains from the sales of SCI Group and Innovapost. The Crown corporation has now accumulated more than $3.8 billion in pre-tax losses since 2018.
Divestiture proceeds and dividends temporarily flattered the bottom line; without them, management concedes the pre-tax loss “would have been significantly larger.” A 32-day nationwide strike by the Canadian Union of Postal Workers alone inflicted a net $208 million hit, as revenue evaporated faster than costs.
Although full cash-flow figures were not disclosed, the widening loss and a cost base that is 65% labour-driven underline escalating cash burn. Management warned that many parcel customers who defected to rival carriers during the strike “have not yet returned,” signalling weaker operating cash inflows well into 2025.
In terms of segments, Parcels recorded revenue down 20.3% (-$683 million) on a 19.9% volume slide (-56 million pieces), with the segment hammered by the strike, aggressive competition and lower fuel-surcharge revenue.
Transaction Mail saw revenue fall 5.3% (-$105 million) as letter volumes dropped 9.3% (-187 million pieces) despite a May postage-rate hike. Meanwhile, Direct Marketing’s revenue eased 3.0% (-$21 million) even as volumes inched 1.8% higher, with growth in Neighbourhood Mail offset by strike-related campaign cancellations.
The wider Canada Post Group reported a $665 million pre-tax loss versus last year’s loss of $529 million. Purolator Holdings eked out a $294 million profit, up a marginal $1 million year-on-year, highlighting the stark divergence between the parcel subsidiary and the core post office.
To avert insolvency, Ottawa has offered up to $1.03 billion in repayable funding through March 2026. The loan buys time but does not alter what the company calls “structural issues” embedded in its outdated regulatory and labour frameworks.
“The status quo has led us to the verge of financial insolvency and is not an option,” CEO Doug Ettinger warned, adding that Canada Post “must be prepared to do what’s necessary to help deliver for Canada as it navigates a challenging future.”
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