Allegro (ALE) Q1 2025 earnings summary

Executive summary

• New CEO Marcin Kuśmierz introduced, focusing on growth acceleration, efficiency, and leveraging AI and technology partnerships for innovation.

• Q1 2025 saw strong performance with Polish revenue up 15% year-over-year, GMV up 8.9%, and active buyers reaching 21 million across the group.

• International marketplaces delivered 81.6% GMV growth, with 3.7 million active buyers in Czech Republic, Slovakia, and Hungary, while the Mall Segment continued to contract as planned.

• Adjusted EBITDA for the Group rose 6.1% year-over-year, with Polish operations maintaining robust profitability and international losses narrowing.

• A PLN 1.4bn share buyback is set for shareholder approval at the June AGM.

Financial highlights

• Group GMV reached PLN 15.4bn (+8.0% YoY); revenue was PLN 2.62bn (+5.9% YoY); adjusted EBITDA was PLN 749.3m (+6.1% YoY).

• Polish operations: GMV PLN 14.8bn (+8.9% YoY), revenue PLN 2.39bn (+15.0% YoY), adjusted EBITDA PLN 859.4m (+4.8% YoY), take rate 12.58% (+0.40pp YoY).

• International operations: GMV PLN 669m (-9.0% YoY), revenue PLN 240m (-40.8% YoY), adjusted EBITDA loss PLN 110m, with Mall Segment GMV down 53.4% YoY.

• CapEx increased 64% year-over-year to PLN 205 million, mainly for logistics and technology investments.

• Cash conversion rate remained strong at 73%; leverage at 0.84x, below the 1x target.

Outlook and guidance

• 2025 targets reaffirmed: Group GMV growth of 8-11%, revenue up 7-11%, adjusted EBITDA up 10-17%.

• Polish operations expected to deliver 9-11% GMV growth and 8-12% adjusted EBITDA growth.

• International marketplaces to grow GMV 40-50% YoY, while Mall Segment GMV to decline 55-65% as transformation completes.

• Adjusted EBITDA growth expected to rebound in Q2 and remain strong for the rest of the year.

• Capex for 2025 guided at PLN 0.95–1.1bn, with logistics investments ramping up in Poland.