Canada Post on Tuesday said it is looking to sell its wholesale shipping subsidiary, SCI Group Inc., for an undisclosed price and pending cabinet approval.Blacklock’s Reporter noted the sale to Montreal-based Metro Supply Chain follows warnings the Crown corporation has posted heavy losses in the last fiscal year. It follows an “assessment of Canada Post’s long-term strategic plan,” it said.“Canada Post has been executing a comprehensive transformation plan focused on the rapidly evolving postal needs of the country,” the company said in a statement. “The plan positions the company for growth in Canada’s e-commerce market while delivering on its core mandate.”.The irony is that SCI, which operates 30 distribution centres nationwide, is one of the few bright spots in an otherwise bleak financial picture. SCI earned $16 million in pre-tax profits on $327 million in revenues compared to Canada Post’s broader $548 million in 2022.The Crown corporation earlier reported a $361 million loss in the first half of last year. Mail revenue was down 2%, parcel revenue 3% and direct marketing revenue 4%.That followed losses of $490 million in 2021, $779 million in 2020, $153 million in 2019 and $276 million in 2018. The post office earned pre-tax profits totaling $388 million in the period from 2014 to 2017.Manon Fortin, chief operating officer, noted at 2022 hearings of the Commons government operations committee the post office is “required to be financially self-sustainable.” The mandate is included in the Canada Post Corporation Act..“Is it currently possible to maintain a reasonable price and provide high quality service to Canadians?” asked Conservative MP Pierre Paul-Hus (Charlesbourg-Haute St. Charles, Que.). “Yes,” replied Fortin.“Do you see clawing out of these massive losses?” asked Conservative MP Kelly McCauley (Edmonton West). “We do have a path to sustainability,” said Fortin.“How are we going to get to fiscal sustainability?” asked MP McCauley. “We think that investing heavily in our service and our capacity and by putting Canadians first and by responding to the changing needs of Canadians, it’s helping us move forward,” replied Fortin.
Canada Post on Tuesday said it is looking to sell its wholesale shipping subsidiary, SCI Group Inc., for an undisclosed price and pending cabinet approval.Blacklock’s Reporter noted the sale to Montreal-based Metro Supply Chain follows warnings the Crown corporation has posted heavy losses in the last fiscal year. It follows an “assessment of Canada Post’s long-term strategic plan,” it said.“Canada Post has been executing a comprehensive transformation plan focused on the rapidly evolving postal needs of the country,” the company said in a statement. “The plan positions the company for growth in Canada’s e-commerce market while delivering on its core mandate.”.The irony is that SCI, which operates 30 distribution centres nationwide, is one of the few bright spots in an otherwise bleak financial picture. SCI earned $16 million in pre-tax profits on $327 million in revenues compared to Canada Post’s broader $548 million in 2022.The Crown corporation earlier reported a $361 million loss in the first half of last year. Mail revenue was down 2%, parcel revenue 3% and direct marketing revenue 4%.That followed losses of $490 million in 2021, $779 million in 2020, $153 million in 2019 and $276 million in 2018. The post office earned pre-tax profits totaling $388 million in the period from 2014 to 2017.Manon Fortin, chief operating officer, noted at 2022 hearings of the Commons government operations committee the post office is “required to be financially self-sustainable.” The mandate is included in the Canada Post Corporation Act..“Is it currently possible to maintain a reasonable price and provide high quality service to Canadians?” asked Conservative MP Pierre Paul-Hus (Charlesbourg-Haute St. Charles, Que.). “Yes,” replied Fortin.“Do you see clawing out of these massive losses?” asked Conservative MP Kelly McCauley (Edmonton West). “We do have a path to sustainability,” said Fortin.“How are we going to get to fiscal sustainability?” asked MP McCauley. “We think that investing heavily in our service and our capacity and by putting Canadians first and by responding to the changing needs of Canadians, it’s helping us move forward,” replied Fortin.
