Allegro, Poland’s top e-commerce platform, reported a 4.9% rise in Q1 adjusted core earnings in its domestic market and confirmed its full-year forecast, even as competition from platforms like Temu intensifies.
Incoming CEO Marcin Kuśmierz said the company continues to see strong buyer engagement both domestically and abroad:
“Not only is the number of active buyers rising in Poland and internationally, but they also continue to spend more with us on average.”
Q1 Results Overview
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Adjusted EBITDA (Poland): 859.4 million zlotys ($229.6 million)
(slightly below analyst expectations of 875 million zlotys) -
Gross Merchandise Value (GMV):
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Poland: Up 8.9% to 14.78 billion zlotys
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International Markets: Up 82%
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Active Buyers (Group-wide): 21 million (↑5.4% YoY)
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Of which 6 million are international
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Competitive Strategy and Platform Evolution
Despite “not the best” trading conditions in Q1, Finance Chief Jon Eastick noted that the outlook for Q2 is firmer, with the company remaining optimistic for the latter half of 2024.
To differentiate from Asian e-commerce players like Temu, Allegro has removed listings with long shipping times, particularly those from East Asia. This has helped:
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Increase shopping frequency
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Boost the number of local merchants on its international platforms (↑56% YoY)
“Removing most of the long delivery time Asian selection helped Allegro distinguish itself,” Eastick said.
Allegro also continues to invest in logistics infrastructure to lower costs and improve service, expanding its network of:
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In-house parcel lockers
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Partner-managed delivery points
The share of delivery volumes managed by Allegro rose to 29% in Q1, up from 24% in Q4 2023.
Market Reaction
Despite the overall positive momentum, Allegro shares slipped ~2% in early trading. Analysts at JPMorgan called the result “moderately negative” due to:
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Slightly softer Polish profitability
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No upside surprises in GMV growth
Still, Allegro remains Poland’s dominant player and is steadily building out its international presence in Czech Republic, Slovakia, and Hungary, aiming to consolidate its regional leadership.