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Business booms for Canada Post Group thanks to popularity of online shopping

The rise of online shopping has helped Canada Post boost its bottom line. AP Photo/Ross D. Franklin, File

The Canada Post Group of Companies reported a profit of $144 million for 2017, up from $81 million in 2016, as its parcel business grew with the popularity of online shopping.

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The improved profit at the company which includes Canada Post, Purolator and SCI Group came as revenue from operations totalled nearly $8.23 billion in last year, up from $7.88 billion in 2016.

Canada Post has seen its parcels business grow significantly as shoppers opt for online retailers, offsetting a decline in the company’s traditional transaction mail business.

The Canada Post segment earned $57 million, up from $46 million in the previous year.

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Parcels revenue at Canada Post increased to $2.13 billion, up from $1.74 billion, while transaction mail revenue fell to $2.91 billion compared with $3.04 billion a year earlier. Direct marketing revenue edged down to $1.12 billion compared with nearly $1.14 billion in 2016.

Meanwhile, the company’s Purolator business earned $88 million in 2017, up from $48 million, while its SCI Group logistics arm earned $15 million, the same as in 2016.

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