1 Allegro has included certain alternative performance measures in this Press release that are not measures defined within the International Financial Reporting Standards. Definitions of alternative performance measures used by Allegro can be found in the quarterly management report, page 11, available at https://about.allegro.eu/financial-results
“With the prospect of a significantly more challenging environment driven by high inflation and the rising costs of living, we are putting increasingly more focus on cost efficiency on our side, while we continue to drive growth through strong trading performance in Poland and international expansion. Our business model is the best solution for both customers and merchants facing inflationary pressures. We have built a growth platform ready for use by any merchant, as well as a platform full of everyday shopping bargains for any consumer needing to keep costs in check. Allegro wants to be taking care of both of these groups and in order to do this effectively, we need to prioritize and maximize our long-term cashflows. Substantial investments of the past few years, reflected also in rising costs, have markedly changed our capital structure. While most of those investments have been worthwhile, going forward we will prioritize the most value accretive projects, account for realization risk, and make sure that we don’t pursue anything that we don’t have the bandwidth to finish effectively. Allegro has a huge opportunity to continue its growth - we just want to be even smarter in how we go about it. The aim is to strengthen in Poland and win beyond. As a consistently successful marketplace for over two decades, I’m convinced we have the proper know-how to do that. We are a company of builders who tackle challenges head-on and we want to grow as e-commerce expands, serving existing customers even better and reaching out to new ones across Europe.”
Roy Perticucci, Allegro CEO
“We err on the side of caution with our newest expectations, which take into account a conservative view on the months to come. While the macroeconomic environment is changing rapidly, our marketplace model has proven successful and resilient, because it provides consumers with great selection, great prices and a great buying experience. Our mid-term expectations, prepared in last year’s planning round, were published on the very day Russia invaded Ukraine, and the world has become a much more uncertain place over the past seven months. Our new CEO is leading the management team through a prudent and logical pivot towards balancing growth objectives with efficiency and return on investment to fully prepare for the likely more difficult economic times ahead and we have put our mid-term expectations under review while we finish this very important planning round. That said, the Polish operations improved their margins trend in Q2 and are set to further accelerate GMV growth and return to Adjusted EBITDA growth in the current quarter. This strength of performance helps to absorb headwinds to our group results caused by our newly acquired Mall business as we aim to stabilize their GMV in a tough trading environment.”
Jon Eastick, Allegro CFO
About the Allegro Group
Allegro Group is the go-to e-commerce platform for European consumers and has delivered strong revenue growth, profitability and cash flow at scale. Based in Luxembourg and listed on the Warsaw Stock Exchange, the group operates a leading online marketplace across Central and Eastern Europe. Its Allegro.pl domain is one of the world’s top ten e-commerce websites, also ranking among top 100 websites in the world by visits per month. The group’s Merchants sell across a variety of categories, covering electronics; home and garden; sports and leisure; kids; automotive; fashion and shoes; health and beauty; books; media; collectibles and art. Its platforms facilitate sales of mainly new products by Merchants, particularly via a business-to-customer model, giving European Consumers easy access to millions of offers at most competitive prices.