Allegro, Poland’s largest online retailer, increased its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 23.6 percent year-over-year to 931.8 million zlotys in the first quarter. Thanks to growth in sales volume, the outlook for international markets has improved. The company, which also operates in the Czech Republic, reported this in today’s earnings report.
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Allegro is crushing expectations
The result exceeded analysts’ estimates, who had expected adjusted profit to reach 849 million zlotys. Gross merchandise value (GMV) increased by 12.8 percent to 17.29 billion zlotys. “The first quarter showed that we are achieving our goals at a pace that is well ahead of our full-year plans,” said CEO Marcin Kuśmierz.
Allegro’s profitability has so far been hampered by its overseas operations, Reuters reported. In March, the company completed the sale of its businesses in Slovenia and Croatia, the final step in the restructuring of the Mall Group, which Allegro acquired in 2022. “The momentum in the Czech Republic, Slovakia, and Hungary is so strong that today we are raising the GMV outlook for international operations to 40 to 45 percent,” said CFO Jon Eastick. In this industry, GMV is used to measure transaction volume.
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Allegro is stepping up its game in the region
Previously, the company had estimated GMV growth in the range of 35 to 40 percent. The company also raised its outlook for international revenue. It now expects it to grow by 25 to 35 percent, whereas in March the company had anticipated growth of 20 to 30 percent.
Allegro operates an online marketplace whose business model primarily involves facilitating sales for merchants in all the markets where it operates. In the Czech Republic, Allegro owns the e-shops Mall.cz and CZC.cz, as well as the courier service One by Allegro. The company has also launched the online marketplace Allegro.cz. In 2024, Allegro also entered the Slovak and Hungarian markets. It reports that it now has 4.9 million active customers in the Czech Republic, Slovakia, and Hungary.
Source: Reuters
