Allegro’s Q1 performance was in line with expectations. Progress on strategic initiatives underpins confidence in full-year outlook

21.05.2025

Financial highlights

Consolidated Group

· Allegro’s consolidated gross merchandise value (GMV) rose by 8% YoY and Adjusted EBITDA¹ growth improved to 6.1% YoY in the first quarter of 2025 amid higher active buyer spend in Poland and robust GMV growth on international marketplaces.

· Active buyers rose by 5.4% to hit 21m across Allegro’s footprint in Q1, with their average spend 3.7% higher YoY.

Poland

· GMV from Polish Operations outpaced the country’s retail sales growth by 3.6 times with an 8.9% YoY rise to PLN 14.8bn in Q1, showing customer appreciation for Allegro’s unbeatable selection and shopping convenience.

· Revenue² in Poland grew 15.0% YoY to reach PLN 2.4bn, with high-margin advertising revenue up by 29.4% YoY and take rate rising by 0.4pp to 12.58%.

· Adjusted EBITDA from Polish operations grew by 4.8% YoY to PLN 859.4m. Margin came in at 5.82% of GMV or 0.21pp higher QoQ, as new co-financing fees kicked in only in March.

· Seasonal investment into working capital put Allegro’s net leverage to 0.84x vs 1.38x a year earlier, close to the new policy target of 1.0x Adjusted EBITDA. Cash balances stood at PLN 3.8bn, more than sufficient to cover the proposed PLN 1.4bn share buyback.

· Active buyers’ base in Poland exceeded 15.1m in Q1. Average GMV per active buyer accelerated growth to 8.1% YoY to PLN 4,097 during the last 12 months, demonstrating Allegro’s selling power and strong customer trust.

· Allegro Pay originated PLN 2.8bn of loans in Q1, a nearly 20% rise YoY, boosting the share of GMV it finances to almost 17%.

· Allegro Delivery helped push the share of deliveries managed by Allegro to over 29%, or 5pp more QoQ. The new service now offers over 17,000 APMs across Poland, including over 5,000 Allegro One Boxes and the networks of Orlen Paczka and DHL.

Allegro International Segment

· Allegro’s marketplaces in Czechia, Slovakia, and Hungary saw both GMV and revenue jump by around 80% YoY in Q1, reflecting the opening of Allegro.sk and Allegro.hu during 2024 and rising shopping frequency.

· Unmatched selection and improving customer experience helped boost the number of active buyers in the three countries to 3.7m, or 0.3m more QoQ.

· The pool of local merchants selling on Allegro’s new marketplaces rose by 56% on an annual basis, with their GMV 57% higher at the same time.

Outlook & Capital Allocation Policy

· Allegro is keeping its full-year expectations unchanged. GMV growth for Polish operations is expected to come in at 9-11% this year, with revenue seen rising by 14-17%, and Adjusted EBITDA up by 8-12%. GMV for international marketplaces is expected to be 40-50% up this year, revenue is seen 55-65% higher, while the Adjusted EBITDA loss should come in at PLN 350-400m. MALL Segment is expected to finish the year with GMV down by 55-65%, with revenue falling by 45-55%, while its Adjusted EBITDA loss is projected to equal PLN 150-170m. CAPEX is foreseen at PLN 850m-1bn in Poland, PLN 40-50m on international marketplaces, and PLN 30-40m in the MALL Segment this year. Consolidated GMV is expected to grow by 8-11%, with revenue seen 7-11% higher in 2025. The group’s Adjusted EBITDA growth is predicted at 10-17% YoY, with consolidated CAPEX seen coming in at PLN 920m-1.1bn.

· Allegro’s PLN 1.4bn share buyback will be put to a shareholder vote during AGM on June 26. The distribution is part of the group’s capital allocation policy, aimed at driving profitable growth and returning surplus capital to shareholders via share buybacks.

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, pages 20-22, available here.

² The sum of Total Revenue and Other Operating Income.

Allegro is now serving 21 million active buyers, six million of whom are based outside Poland. Quite an achievement and a great moment to be joining the company. Not only is the number of active buyers rising in Poland and internationally, but they also continue to spend more with us on average, which proves that Allegro knows how to draw high-quality traffic and how to satisfy consumers. Allegro’s advantage has always been the quality of the offered selection, the level of customer care and the unique company culture. I aim to ensure that Allegro continues to focus on excellence and growth, while delighting the customer. Looking ahead, my priorities are clear: driving even greater operational efficiency, developing new products and services, and forging powerful strategic partnerships. Above all, we want to deepen our commitment to all our clients and remain the marketplace of choice for a growing pool of consumers and merchants from across the region. Allegro is the largest marketplace founded in Europe, contributing to 1% of Poland’s GDP, and we have so many ideas for further growth! I’m thrilled to lead Allegro into this exciting new chapter.”

Marcin Kuśmierz, Allegro’s new CEO

Poland Update: Allegro starts the year on a strong footing, with GMV rising much faster than retail sales with healthy margins maintained

Allegro’s focus on growing its core marketplace and building new growth engines translated into GMV in Poland outpacing the country’s retail sales growth by 3.6 times in the first quarter. Growing GMV at a stronger take rate pushed Adjusted EBITDA higher on an annual basis at a margin of 5.82% or at the upper end of Allegro’s mid-term aspirations. The number of active buyers in Poland hit 15.1 million, with their average spend rising by 8.1%, or at the highest pace in over a year and a half. Allegro remains the go-to place for convenient online shopping, as confirmed by an industry-high rNPS (relational net promoter score or a measure of customer satisfaction) of 70 points — 17 points ahead of the nearest competitor and at an even clearer lead over the Asian platforms.³

Allegro plays a significant role in building trust in online shopping in Poland, as confirmed by 84% of Poles in a recent study.⁴ A different poll showed that 9 in 10 buyers see shopping on Allegro as safe.⁵ Consumer safety and trust are priorities for Allegro, which successfully blocked over 122 million attempts to list products that did not meet its requirements last year. The platform also significantly limited the number of offers merchants can introduce to the platform from outside Europe, while at the same time developing tools to help merchants comply with intellectual property law, consumer law, and anti-competitive practices.

First-quarter results only partly include monetisation improvements that came into force in March. Allegro tweaked its co-finance model while at the same time simplifying its fee structure to boil it down to just one mandatory fee — a move well received by Allegro merchants. The platform plans to introduce a set of new tools for brands in the coming months to help them better respond to buyers' needs. The “brand store” format is the first of those, combining a new stand-out presentation of products with Allegro’s trademark shopping experience. Merchants can also rely on branded programmes, which streamline online shopping while solidifying consumer loyalty — a byword for online growth:

Allegro Smart! users on average buy five times more frequently than others and boost merchant sales per offer 2.5 times. Free deliveries for one annual fee offered by Allegro Smart! has helped over 7 million of its beneficiaries in Poland save more than PLN 15 billion while shopping on Allegro since Smart! launched in 2018.

Allegro Pay facilitates buying with made-to-measure loans. The group’s financial arm extended PLN 2.8bn in such loans during the first quarter, a nearly 20% rise versus a year earlier. It helped finance almost 17% of Allegro’s GMV as its over 2.2 million users generally buy over a third more than those who are not armed with an Allegro Pay wallet.

Allegro Delivery, a partnership programme with other leading logistics providers, helps increase efficiency and drive down delivery costs. Under the programme, Allegro manages deliveries done by various networks for the sake of customer ease. Thanks to onboarding DHL in late March, buyers can now choose from over 17 thousand automatic parcel machines (APMs) under Allegro Delivery, including more than 5,000 Allegro One Boxes, which rapidly expanded volumes and utilisation and hit an NPS of 87.⁶ It took Allegro Delivery less than a year to win the hearts of consumers. It’s a win-win-win for Allegro’s partners, buyers as well as Allegro itself, helping to deliver over 90% of orders within two working days in Poland.

Advertising business continues its impressive trajectory, as Allegro maintains focus on driving highly effective traffic to merchant listings. Advertising revenue soared by 29% year-on-year in the first quarter and continued to outpace GMV growth to reach a significant 2% share of it. This was fuelled by smarter, AI-powered ads that now have a 16% larger click-through ratio than a year earlier, alongside strong pricing.

Allegro brands and services complement each other, boosting average spending among active buyers. All this innovation rests in one’s hand thanks to the Allegro app, No.1 among shopping apps in Poland with 9.4 million active users monthly — 11% higher in annual terms. Their number was also 13% up quarterly in Czechia, Slovakia, and Hungary.

International Update: New marketplaces accelerate GMV growth with good progress in customer loyalty

Allegro’s marketplaces in Czechia, Slovakia, and Hungary saw the number of active buyers rise to 3.7m in the first quarter, with their purchase frequency on the rise too. The unique cross-border offer raises Allegro’s appeal also among merchants, who welcome the benefits of access to larger markets. The number of Allegro.pl sellers with exportable offers rose by nearly 30% on an annual basis in the first quarter, while the pool of local merchants from the three new countries grew by 56% year-on-year and 10% versus end-2024. Allegro wants to promote and better distinguish the unique wide selection and quick delivery from European merchants from its Asian competitors. That’s why offers with long shipping times — mostly from East Asia — have been removed from Allegro's international marketplaces in recent months. This move has improved consumer trust metrics and conversion rates with very little GMV impact. Allegro still welcomes Asian merchants, but is focusing on those inventory located in Europe, helping local merchants selling on international marketplaces grow their GMV by 57% versus a year earlier.

Allegro’s overall GMV on allegro.cz, allegro.sk, and allegro.hu accelerated growth to 82% year-on-year in Q1. International marketplaces’ revenue was up by 80%, with both revenue and GMV coming in even better than full-year goals. In logistics, Allegro is deepening its cooperation with parcel delivery company DPD in Czechia, which will include Allegro’s almost 700 lockers in its DPD Pickup network around the country. As a result, customers will have the added convenience of picking up multiple parcels from many e-commerce retailers in one place simply, quickly, and at any time.

The turnaround of the MALL Group is going according to plan. Legacy platforms in Czechia and Slovakia have been decommissioned, and all their traffic redirected to Allegro marketplaces. The group has also unified its organisation and processes across borders to leverage a single tech stack to improve business efficiency. Allegro expects MALL’s cash-positive contribution to group results in 2026.

Financial Update

First-quarter results show that Allegro is off to a very solid start to the year, delivering good GMV growth of almost 9% in Poland while Polish retail sales grew just 2.5% overall, confirming customer appreciation for, and trust in, Allegro’s unbeatable selection, great prices and shopping convenience. Polish margins moved up 0.21pp sequentially to 5.82% of GMV for Q1, at the higher end of our mid-term aspirations, with more to come in Q2 as new co-financing rates will be in force for the full quarter. We are also seeing promising performance from our international marketplaces, where GMV growth moved up to 82% YoY for the first quarter and margins improved significantly. Financial leverage is at 0.84x Adjusted EBITDA, comfortably in line with Allegro's new capital allocation policy, as we prepare to buy back PLN 1.4bn of shares later this year. Overall, these results give us the confidence to reconfirm our full year 2025 outlook.”

Jon Eastick, Allegro CFO

³ Source: Minds & Roses study, January 2025. Nearest competitors: Empik (rNPS 53), MediaExpert (rNPS 50), Zalando (rNPS 47), Aliexpress (rNPS 26), Temu (rNPS 25), Shein (rNPS 24).

⁴ SWResearch for Allegro, report “The Role of Allegro in e-commerce in Poland.”Research conducted using the CAWI method on a representative group of Poles aged 16-59 (n=1000). The study was conducted in December 2024.

⁵ Danae report for Allegro, a study conducted using the CAWI interview method on a representative group of 500 adult Poles (n=500). The study was conducted in June 2024.

⁶ As of March 2025, source: Allegro own transactional NPS survey. Question: “Delivery method for this purchase was [delivery method]. Would you recommend it to family or friends?”

About Allegro

Founded in Poland 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 millions of products. Allegro has already established itself as the go-to marketplace for consumers in Poland and the flywheel of the Polish economy, helping to generate around 1% of the country’s gross domestic product (GDP) and its total workforce. It wants to echo the positive impact in every country where it operates, aiming to become the most loved online shopping destination in Europe.