- Adjusted EBITDA for Q2: 763.1 million zloty (+31% year-over-year), beating the estimate of 733.8 million zloty.
- Revenue for Q2: 2.70 billion zloty, a 12% increase year-over-year, slightly below the estimate of 2.73 billion zloty.
- Net income for Q2: 347.1 million zloty, significantly higher than last year’s 119 million zloty, and above the estimate of 326 million zloty.
- Third Quarter Forecasts:
- Adjusted EBITDA: +5% to +8%.
- Revenue: +8% to +10%.
- Gross merchandise value (GMV): +9% to +10%.
- Capital expenditure: 175 million to 195 million zloty.
- Allegro.pl marketplace in Poland is seeing low double-digit growth in early Q3 2024, slightly ahead of the previous quarter.
- Q3 Adjusted EBITDA growth in Poland expected to slow due to:
- Monetization increases from Q3 2023 have been reached, with major changes completed in Q1 2024.
- Increased spending on marketing, logistics, and team expansion.
- The Allegro International Segment (Allegro.cz and Allegro.sk) shows mid to high single-digit QoQ GMV improvement, slower in summer but adding active buyers and repeat purchases.
- Polish consumers’ average annual spend on Allegro increased by 5.6% year-over-year, with higher spend per purchase in most categories.
- Group leverage reduced to 1.04x Adjusted EBITDA by end-June, providing financial flexibility for international expansion.
- Up to 20% of Polish Adjusted EBITDA to be invested in international expansion.
- Analyst recommendations: 15 buys, 6 holds, 0 sells.
A look at Allegro.eu Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Allegro.eu‘s long-term outlook, as indicated by Smartkarma Smart Scores, suggests a mixed bag of performance metrics. While the company scores high on momentum with a rating of 5, reflecting strong market performance, it receives lower scores in other areas. Value and Growth are both rated at 2, indicating moderate positioning in terms of financial performance and potential for expansion. Dividend score is the lowest at 1, implying limited returns to shareholders. In terms of Resilience, Allegro.eu secures a score of 3, signaling a moderate ability to withstand economic challenges. Overall, the company appears to be a well-performing player in the e-commerce sector with room for improvement in certain areas.
Allegro.eu SA, an e-commerce platform operating in Europe, caters to a wide range of product categories including automotive, fashion, electronics, books, and health & beauty. With a diverse product offering and a customer base across Europe, Allegro.eu holds a competitive position in the digital shopping landscape. Despite facing some challenges in terms of dividend payouts and growth potential, the company’s strong momentum indicates a positive market sentiment and overall investor confidence. As Allegro.eu continues to navigate the dynamic e-commerce market, enhancing its value proposition and strategic resilience could be key factors in shaping its long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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