Deutsche Post DHL Earnings: Small-Package and Global Forwarding Demand Continues To Normalize

Narrow-moat Deutsche Post DHL’s first-quarter top line fell 8% (organically) year over year, driven in part by retail-sector destocking and weakening industrial end markets. Global air and ocean forwarding demand and rates also continued to correct off exceptional levels seen earlier last year, especially on trade routes from Asia to the U.S. and Europe. Lingering normalization of business-to-consumer activity (off pandemic highs) for express, e-commerce solutions, and Parcel Germany also played a role, though comps are becoming less challenging. That said, this pullback is not a surprise and revenue was mostly in line with our expectations.