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
Our third-quarter results show that Allegro continues to be the best place to shop online. In the face of economic uncertainty and inflation, customers have less to spend, but they know that they can find great value when they shop with us. We have a plan and the right set of priorities in place to build our business and growth further. Our underlying aim is to strengthen in Poland and build our share abroad by growing our base of loyal merchants and consumers. Allegro Pay is scaling up into a self-funding operation. We want to capture the full business potential of Smart! and our delivery strength. The key goal now is to roll out our marketplace model internationally - starting from Czechia next year. We are moving at speed to achieve this goal. At the same time we are focusing on cost management and capital discipline across the group to fund our objectives. Allegro has a huge opportunity to continue its growth. Our business model proves to be the best solution for both buyers 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 concerned about keeping their costs in check.”
Roy Perticucci, Allegro CEO
Allegro’s Polish marketplace platform remains the go-to e-commerce choice for both consumers and merchants even as economic pressures continue to build, enabling Allegro to sequentially accelerate its GMV growth to over 21% YoY in Q3. The steps we have taken to improve our margins over recent months resulted in a return to Adjusted EBITDA growth and its Q3 YoY improvement of 25% for the Group’s Polish operations. In the face of rising costs of capital, a full scale cost of living crisis and the macroeconomic challenges across Europe, compounded by the continuing war in Ukraine, we have taken the decision to recognize a fall in value of our investment in MALL Group and WE|DO by more than half. Many e-commerce companies have fallen in market value by between 50 and 70% since we committed to the acquisition a year ago. Having said that, MALL managed to grow GMV in the third quarter and reduce its Adjusted EBITDA losses and we remain committed to leveraging the assets and capabilities we acquired to help us take the Allegro marketplace beyond Poland, starting with the Czech Republic. Recent measures taken to improve the profitability of our Smart! offering in the face of high inflation and rising delivery costs, together with refinancing of all short term borrowings and a return to falling financial leverage, places the Group in a strong position to navigate the uncertain trading environment expected in the next few quarters.”
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.