Allegro third-quarter profit rises as Polish business returns to growth By Reuters
Economy 9 minutes ago (Nov 30, 2022 01:40AM ET)
(C) Reuters. The Allegro website is displayed in this illustration taken October 12, 2020. REUTERS/Dado Ruvic/Illustration
(Reuters) -Poland’s biggest e-commerce platform Allegro reported a rise in third-quarter core profit on Wednesday, driven by a recovery in the company’s key home market, as it managed delivery costs and saw gross merchandise value rise.
Allegro, which bought Mall earlier this year, said it was focusing on reining in costs and capital discipline as it integrates the Czech online retailer into its business while bracing for a slowdown in consumer spend.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 13.9% to 537.3 million zlotys ($119.16 million) beating average analysts’ expectations of 496 million zlotys in a company-compiled consensus.
Gross merchandise value (GMV), an industry metric to measure transaction volumes, jumped 21% in Poland to 12.01 billion zlotys, Allegro added.
GMV growth continued at a similar level to third-quarter in October before slowing down in November as shoppers likely postponed online browsing and purchases during the ongoing football World Cup, the company said.
“In the face of economic uncertainty and inflation, customers have less to spend, but they know that they can find great value when they shop with us,” chief executive Roy Perticucci said in a statement.
At home, Allegro’s adjusted EBITDA showed year-on-year growth of 24.6% to 587.6 million zlotys, after falling 1.5% in the second quarter as the company introduced monetisation initiatives to manage delivery costs.
A higher share of high-margin ad revenue also helped, Allegro said.
Still, Allegro stuck to the outlook it had trimmed in September for the second time this year, anticipating high inflation could lower demand for discretionary spend.
The company posted a net loss as it booked a 2.3 billion zloty write-down after recognising a fall in value of its investment in Mall and WE|DO by more than half.
($1 = 4.5091 zlotys)
Allegro third-quarter profit rises as Polish business returns to growth
By Hari Kishan BENGALURU (Reuters) – The global economy needs to find a more solid footing before most stock markets to break out of their torpor, according to market strategists…
TOKYO (Reuters) – A wider range of Japanese companies are raising prices, including those in sectors historically reluctant to pass on higher costs to customers, a Bank of Japan…
By Stefanno Sulaiman and Gayatri Suroyo JAKARTA (Reuters) -Indonesian central bank governor Perry Warjiyo emphasised on Wednesday the need to adjust interest rates early to…
(C) 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.