Allegro (ALE) Q2 2024 earnings summary

Executive summary

• Q2 2024 results met or exceeded all guidance metrics, with group GMV up 11.1% YoY and active buyers surpassing 20 million, including over 5 million outside Poland.

• Polish operations delivered strong growth, with GMV up 11.6% YoY and revenue up 23.8% YoY, while international operations contributed positively for the first time since the Mall acquisition but continued to face challenges.

• Adjusted EBITDA for the group rose 31.5% YoY, with Polish Adjusted EBITDA up 34.9% YoY.

• Net profit for Q2 2024 was PLN 347.1m (+191.8% YoY), and net cash from operating activities surged 158.5% YoY to PLN 2,145.6m.

• Leverage reduced to 1.04x from 2.6x a year ago, with net debt at PLN 3,005.9m.

Financial highlights

• Group revenue increased 12.5% YoY in Q2 2024 to PLN 2,697m; H1 2024 revenue was PLN 5,172.3m (+9.6% YoY).

• Adjusted EBITDA reached PLN 763.1m in Q2 2024 (+31.5% YoY), with a margin of 4.83%; H1 2024 adjusted EBITDA was PLN 1,469.3m (+32.2% YoY).

• Polish operations: Q2 2024 GMV PLN 15,054m (+11.6% YoY), revenue PLN 2,345m (+23.8% YoY), adjusted EBITDA PLN 908.3m (+34.9% YoY).

• International operations: Q2 2024 GMV PLN 767m (+3.2% YoY), revenue PLN 370m (-27.2% YoY), adjusted EBITDA loss of PLN -144.9m.

• Cash conversion improved to 83.3%, up 4.48pp YoY.

Outlook and guidance

• Q3 2024 Polish operations GMV expected to grow 10-11% YoY, revenue 16-18% YoY, adjusted EBITDA 11-13% YoY.

• International GMV expected to decline 3-6% YoY in Q3 due to slower growth and Mall segment contraction.

• Group consolidated GMV growth in July and August 2024 running at 9-10% YoY.

• CapEx for Q3 projected at PLN 140-195 million, with increased investment in delivery and new market launches.