Allegro, Poland’s largest e-commerce platform, has announced that it expects earnings to increase by 20%-23% in the crucial holiday quarter compared to the previous year. This comes after the company’s third-quarter core profit surpassed expectations.
In the Polish market, Allegro’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 32.4% to 778 million zlotys ($191.7 million). This exceeds the company-compiled consensus of 760 million zlotys. CEO Roy Perticucci stated that although Polish consumers are spending less on big-ticket items, they are spending more overall on Allegro compared to a year ago.
Allegro also revealed its plans to expand into new markets. The company is working on launches in Slovakia, Hungary, Slovenia, and Croatia for next year, following the successful launch of its marketplace in the Czech Republic this year.
The gross merchandise value (GMV), which measures transaction volumes, increased by 10.5% to 13.3 billion zlotys in Poland during the reporting quarter. Allegro expects GMV to grow by 9%-11% in the fourth quarter. Additionally, the number of active buyers in Poland reached 14.5 million, marking a sixth consecutive quarter of growth.
Allegro, known as the leading online shopping platform in Poland, reported a return to low double-digit growth in its home operations at the beginning of the fourth quarter after a slight dip in the previous quarter. The company also mentioned that its Black Week campaign has had a solid start.
With the news of Allegro’s strong performance and its plans for expansion, the company is set to continue its growth trajectory and maintain its position as a key player in the e-commerce market in Poland.
(Reporting by Anna Pruchnicka; Editing by Kim Coghill and Varun H K)