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.
2. Company estimates based on Similarweb and data.ai for Q3’23.
We fulfilled all our financial expectations for the third quarter, with Allegro's Polish operations delivering strong results and our newly launched Allegro.cz marketplace quickly picking up speed. Our Polish GMV outpaced nominal retail sales in Poland in Q3. While Polish consumers are clearly spending less on big-ticket items, they are spending more overall on Allegro than a year ago as they bring us their everyday shopping and take advantage of our merchants' great prices and huge selection. Allegro's value proposition has already made a huge splash also in Czech e-commerce, with over 1.1m consumers shopping on Allegro.cz just a couple of months after its full commercial launch. As well as preparing for the peak shopping season, our team is already working on country launches in Slovakia, Hungary, Slovenia, and Croatia for 2024, with the Allegro.cz marketplace as our playbook. It’s our aim that, this time next year, shoppers all over Central Europe will be choosing their Christmas gifts on Allegro.”
Roy Perticucci, Allegro CEO
Allegro's third quarter results for our Polish Operations were truly exceptional, with Adjusted EBITDA margin to GMV in Poland reaching 5.86% or up by almost 1pp YoY, and leverage dropping rapidly to a comfortable 2.17x Adjusted EBITDA. Our Fit-to-Grow cost control initiatives have slowed expense growth and limited capital expenditure while we work on utilising capacity across our delivery and tech platforms. Our work to transform our MALL brands into successful and efficient merchants on our new Allegro marketplaces across Central Europe is in full swing, with further progress made on MALL loss reduction. With leverage low and falling and our credit facilities recently extended to 2027, we now have the flexibility to invest in innovation to drive growth and delivery capabilities across our expanded footprint and deliver long-term growth at market-leading margins, in line with our midterm aspirations."
Jon Eastick, Allegro’s CFO
3. Source: Appflow, as of Q3’23.
About Allegro: 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.