business

Allegro at a loss in the second quarter. The company is lowering its forecasts for the entire year 2022.

2022-09-29 07:34, act 2022-09-29 09:52

publication
2022-09-29 07:34

update
2022-09-29 09:52

Allegro at a loss in the second quarter.  The company is lowering its forecasts for the entire year 2022.
Allegro at a loss in the second quarter.  The company is lowering its forecasts for the entire year 2022.
/ Allegro

Allegro showed a loss in the second quarter of this year and at the same time lowered the forecast of financial results for the entire 2022 group and operations in Poland – the company said in a statement. Allegro’s medium-term expectations for 2023-2026 are currently being verified. On Thursday morning, the company’s shares decreased by approx. 5%.

Adjusted EBITDA in Q2 2022 amounted to, as estimated, PLN 551.3 million, which means a decrease by 1.5%. Every year. This is the result excluding Mall Group and WE | DO. Consolidated adjusted EBITDA is PLN 484 million, down 13.5 percent. less year to year. According to estimates, revenues excluding Mall Group and WE | DO increased by 22.3% in the last quarter. to PLN 1.6 billion, and GMV by 16 percent. up to PLN 12.11 billion. Revenues in the second quarter increased by 69%. up to PLN 2.2 billion. The value of GMV increased by 23.5 percent. up to PLN 12.9 billion, according to estimates. The Group incurred a net loss of PLN 63.5 million in the period. The results for the entire first six months are available here.

Allegro said that it is updating its expectations for the entire year for operations in Poland, assuming GMV growth in the range of 15-17 percent, with an increase in revenues at the level of 23-26 percent. and an increase in adjusted EBITDA by 10-12 percent. y / y The investment outlays are to be limited to PLN 650-700 million.

In May, the group announced that it was assuming GMV growth of 15-20 percent, with revenues expected to be 25-30 percent. higher yoy, and adjusted EBITDA is to be 10-15 percent. higher yoy without taking into account the results of the Mall Group and WE | DO. Capital expenditures throughout the year were to amount to PLN 675-725 million.

Allegro announced on Thursday morning that in 2022 on a consolidated level, GMV is to increase by 22-24 percent. against the previously anticipated 22-28 percent. The group’s revenues are to increase by 67-71 percent this year. against 70-76 percent previously expected. The group’s adjusted EBITDA is expected to increase by 2-6%. compared to the previously planned 4-11 percent, and the investment outlays are currently expected in the range of PLN 720-800 million against the previously assumed 775-845.

The group said that Allegro’s medium-term expectations for 2023-2026 announced on February 24 are currently being revised to reflect the changing business environment in the cost structure and focus on increasing efficiency.

Allegro said that in Q3 2022, until the date of the report, the management noted that GMV growth for Polish operations continued to accelerate quarterly and expects GMV growth in Q3 to be slightly above 20%.

“We are cautious about our latest expectations, which are based on our conservative view of the coming months. The economic environment is changing rapidly, but our operating model has proven to be effective and stable by providing consumers with a large choice and great prices and buying experience. Ours. the medium-term expectations so far were published on the day when Russia invaded Ukraine and the environment turned out to be more uncertain, said Jon Eastick, Allegro’s financial director, quoted in the press release.

“The new Allegro president ordered a cautious and logical shift towards balancing growth with efficiency and return on investment, in order to be fully prepared for possibly more difficult operating conditions. Therefore, we are updating our expectations. At the same time, however, it is worth noting that the Polish part of the group improved the margin trend. in the second quarter and is on track to further accelerate GMV growth and return to Adjusted EBITDA growth in the current quarter. The strength of the results helps mitigate any challenges posed by the newly acquired MALL business, and our goal remains to stabilize GMV there in the tough conditions at present. ” .

Allegro finalized the acquisition of Mall Group and WE | BY April 1, 2022 (PAP Biznes)

epo / BPL / MKu

Source:Banker24

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