- Before the adjusted EBITDA, ie depreciation and one-time events, the transaction result decreased by 13.6% y / y to 463 million PLN1. This is due to investment in future growth. The rebound in the margin appears after the January low.
- In the first quarter, Allegro Pay issued loans worth 965 million PLN, an increase of> 400% per year.
- One Fulfillment, One Box by Allegro and One Kurier improve delivery quality.
- Allegro.com’s international expansion began as planned. Mall and WE | The recently completed acquisitions of DO groups will double the combined group’s target market and potential consumer base in Central and Eastern Europe.
Allegro is updating its year-round expectations for operations in Poland, accepting GMV growth in the range of 15-20%, revenue growth of 25-30% and adjusted EBITDA growth of 10-15% y / y. the fact that prolonged exposure to higher food, fuel and energy inflation may weaken voluntary consumer demand at the end of the year. Capital expenditures should be limited to 675-725 million PLN, which reflects a lower growth rate in the short term.
Allegro, Mall Group and WE | DO expects a return to GMV growth and revenue by December 2022 in nine months. Their adjusted EBITDA loss at that time should reach 80-120 million PLN, and capital investment should reach 100-120 million PLN.
“The increase recorded during this period, among others, was due to the excellent results created by fintech Allegro Pay and Allegro Smart loyalty program! President François Nuyts said.
2000 packing machines in the chain of stores
In the first quarter, the total value of goods sold through Allegro increased by 12.8% y / y, and among others, the average GMV among active buyers increased by 14.2% y / y.
Allegro Pay increased the value of loans by more than 400% to 965 million PLN.
The share of orders delivered the next day increased by 8 pp y / y. Vendor-designed Allegro solutions are complemented by Allegro’s investment in the One Fulfillment offer, the nationwide One Box network of Allegro packing machines, and more recently the One Kurier delivery option.
The platform aims to increase the number of Allegro green packing machines to more than 3,000 this year, thanks to a contract to install 2,000 packing machines at one of its retail outlets.
130 new brands at Allegro
In the first quarter, more than 130 leading brands, including Skechers, Vance, Costa Coffee and RedBull, opened stores in Allegro. These brands not only sell but also buy at Allegro – as every third Polish is an active buyer at Allegro, and every third Polish company makes monthly purchases on the platform thanks to the development of our Allegro Business service.
Revenues of the platform increased by 15.1% year-on-year to 1.39 billion PLN, while Allegro’s advertising activity increased by 21.1% year-on-year. The admission rate is 10.46%.
Allegro is renewing its expectations for this year, notwithstanding that GMV growth will be 15-20%, revenues 25-30% higher and Adjusted EBITDA y / y 10-15% higher. results Mall and WE | DO groups. During the year, capital expenditures were reduced to 675-725 million PLN.
“GMV Allegro’s growth of almost 13% in the first quarter allows us to expect good dynamics in the coming quarters,” said John Eastick, Allegro’s chief financial officer.
Highlights in Allegro
The agreement with Aion Bank allows Allegro Pay to withdraw part of its loan portfolio from the group’s balance sheet, which will ensure the development of the service in the future. In the first quarter, Aion received consumer loans worth 210 million PLN from Allegro Pay.
Allegro Business has seen an increase of almost 36% in the number of buyers with business accounts since the launch of the service in February 2021.
One Fulfillment service was launched for commercial purposes in mid-January. One Box will soon be available to all sellers.
The recently launched English-language version of the website, Allegro.com, gives European customers access to more than 60 million international offers, increasing the choice for all parties to the transaction within the EU.
The group is based in Luxembourg and is listed on the Warsaw Stock Exchange. Allegro.pl is also one of the 10 largest e-commerce portals in the world and one of the 100 largest internet portals in the world in terms of the number of monthly visits.