Normalizing B2C Parcel Deliveries Tempers Deutsche Post DHL’s Q1 Performance, but No Major Surprises

Narrow-moat Deutsche Post DHL’s first-quarter organic revenue grew 17% year over year, ahead of our expected run rate due to outperformance in the global air and ocean forwarding division. Relative to the same period last year, total revenue growth came from rising fuel surcharges, favorable overall pricing conditions (especially for global forwarding and express), and higher business-to-business, or B2B, shipment weights at Express, partly offset by normalizing business-to-consumer, or B2C, parcel volumes across all segments, including very tough comparisons.