Allegro (ALE) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong growth with Polish revenue up 15% and GMV up 8.9% year-over-year, outpacing the broader retail market.

• International marketplaces delivered 81.6% GMV growth year-over-year, with active buyers reaching 3.7 million, while the Mall Segment continued to contract as planned.

• Adjusted EBITDA for the Group rose 6.1% year-over-year to PLN 749.3m, with Polish operations maintaining robust profitability and international losses narrowing.

• Active buyers reached 21 million across the group, with 15 million in Poland and 6 million internationally.

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

Financial highlights

• Group GMV reached PLN 15.4bn (+8.0% YoY); Polish GMV grew 8.9% YoY, outpacing 2.5% nominal retail sales growth.

• Take rate rose by 40 basis points to 12.58% in Poland and 0.31pp to 12.43% at Group level.

• Adjusted EBITDA to GMV margin was 5.82% in Poland and 4.85% at Group level.

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

• Cash conversion rate remained strong at 73%, with liquidity of PLN 3.8–4bn cash and PLN 1bn undrawn RCF.

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 8–17% 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, focused on logistics investments.