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 15-17, available at https://about.allegro.eu/financial-results.
2 Estimates based on company data, Similarweb and data.ai for Q4’23.
Allegro is now a business serving almost 20 million active buyers across Central Europe, with the number growing both in Poland and abroad, as we continue with the gradual rollout of our marketplace. Our research shows that buyers’ attachment to Allegro goes hand in hand with shopping frequency. Generally, the more one buys with us, the more loyal they become. Thanks to that, despite a difficult Q4 when consumers held back their spending, we fared better than most retailers. And no wonder, since anyone can pick and choose from over half a billion offers from an ever-growing number of merchants. While more than every third Pole is an active buyer on Allegro, every second Polish company also shops on our platform. Our marketplace model also works great abroad, with around 15% of the Czech population actively buying on Allegro.cz just six months after its launch. We are strong in Poland, getting stronger in Czechia, and we are just launching our new marketplace in Slovakia. We will be doubling down to return our Czech legacy businesses to health, as they still perform below our expectations. Our focus is on return on investment in all our projects and deploying the asset-light expansion model which translates into a declining capital investment with each launch while instantly driving coverage and GMV.”
Roy Perticucci, Allegro CEO
Allegro finished 2023 strongly, with resilient 8.5% YOY GMV growth in Poland for Q4, achieved against a backdrop of continued weak consumer spending over the Christmas period. The combined efforts of our organisation to lift margins and deliver cost savings over the past year paid off with a 28% rise in Polish Q4 Adjusted EBITDA to PLN 906 million. Combining these higher margins with lower capital investment in 2023, we have now brought our financial leverage down to a comfortable 1.8x group Adjusted EBITDA, the same level we had before acquiring the MALL Group and WE|DO in April 2022. Falling leverage plus strong cash flows from our Polish marketplace enables us to confidently invest in taking the Allegro marketplace model to new markets outside Poland, with Allegro.cz performing well and doubling its GMV in Q4 versus the prior quarter. We are aiming to open Allegro marketplaces across MALL’s five-country footprint over the next two years and drive each to profitability within four years from launch. We’ve assigned up to 20% of Polish future EBITDA to fund this exciting marketplace expansion, including the funding of our MALL Group business while we redouble efforts to stem its losses and turn it into a lean merchant that makes a positive financial contribution to the Allegro group.”
Jon Eastick, Allegro CFO
3 Source: data.AI app, data for Q4 2023.
4 Source: Appflow, as of Q4’23.
5 Based on a price perception research conducted between 10-20.11.2023 in the form of an online survey (CAWI; N=1’500 surveys in Czechia vs. N=8’069 in PL used for comparison).
About Allegro
Founded in Poland almost 25 years ago, Allegro now operates a leading online marketplace across Central and Eastern Europe. Based in Luxembourg and listed on the Warsaw Stock Exchange after the largest IPO in the bourse's history, Allegro solidifies its position as the largest online marketplace of European origin. The platform connects millions of buyers from across Eastern and Central Europe as well as the EU with thousands of international merchants who provide hundreds of millions of offers. Having established itself as the go-to marketplace for all customers during the pandemic, Allegro consistently proves the most convenient and cost-efficient platform in times of inflation, aiming to become the most loved online shopping destination in Europe.