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 Group’s interim report, page 13, available at https://about.allegro.eu/financial-results
We want to simplify shopping and selling to be the most loved shopping destination in Europe - starting with CEE. Our results for the second quarter show we are making real progress. Allegro’s always-growing selection and great value-for-money proposition attracts consumers even as they are more careful with household budget. We keep growing despite slowing or even declining consumer demand. Our focus on cost discipline over the past year has delivered significant margin improvement and generated cash for future growth. The Allegro.cz marketplace, is now fully operational and offers Czech consumers an unmatched selection of over 150 million offers. It will take some time to offset declining GMV on MALL Group’s legacy websites, but we are getting there and we are highly optimistic that the group’s MALL and CZC brands will also be successful as the largest individual merchants on the new marketplace. We continue to learn from our Czech experience to formulate our plans to open four further marketplaces across the region next year.”
Roy Perticucci, Allegro CEO
Focus on key business developments and continued progress in our Fit to grow project helped us cut down on CAPEX and boosted margins during the second quarter of 2023. Despite continuing weak consumer sentiment across the footprint of MALL’s legacy business in the region, MALL’s Adjusted EBITDA loss was slightly reduced, with the first weeks of Allegro.cz operation setting foundations for accelerating growth. The impact of last year’s monetization initiatives on take rate alongside strong advertising performance, fuelled revenue rise in Poland, with Adjusted EBITDA growth coming in markedly above expectations. Excellent progress on margins and cash generation delivered another step-down in leverage and we intend to continue to improve. Allegro makes progress on efficiency and cash flow generation and we aim to accelerate the group’s GMV growth rate over the medium term thanks to the international marketplace roll-outs. As most economies where we operate are expected to improve in the coming quarters, we are confident consumers will continue to see the Allegro selection and great prices as the best shopping offer - across the region and beyond.”
Jon Eastick, Allegro CFO
Founded in Poland over 20 years ago, Allegro now operates a leading online marketplace across Central and Eastern Europe, aiming to establish itself as the go-to online shop for European consumers. Based in Luxembourg and listed on the Warsaw Stock Exchange, the platform connects millions of buyers with thousands of merchants who provide hundreds of millions of offers. Having established itself as an economic lifeline for all customers during the pandemic, the company solidified its status as the most convenient shopping platform in times of inflation. Allegro’s marketplace model rests mostly on facilitating sales of mainly new products by merchants, particularly via a business-to-customer model, giving European consumers easy access to offers spanning a variety of categories which include electronics; home and garden; sports and leisure; kids; automotive; fashion and shoes; health and beauty; books; media; collectables, and art.