Polish e-commerce firm Allegro eyes higher Q1 profit
-
Loading... - johansen emma
- 30 Mar 2023
- 68 Views
- 0 Like
- 0 Comment
Poland's biggest e-commerce platform Allegro said on Thursday it expects core earnings to rise in the first quarter, as it focuses on cost control amid continuing economic uncertainty.
Allegro is looking to keep costs down as it integrates the Mall Group business it bought last year and adapts to consumers spending less.
"There was what we call trading down starting to be more visible in the fourth quarter," finance chief Jon Eastick said in an interview. "Category by category people are taking cheaper options because they know they need money for their energy bills and fuel cost."
The company expects consumers to feel pressure this year, Eastick said.
Inflation around central Europe has surged in the past year, more than elsewhere in the continent, as food prices have jumped alongside energy costs. In Poland, Allegro's largest market, inflation in February was 18.4 per cent year on year, the highest in 26 years.
Allegro forecast its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to increase 20 per cent-23 per cent in its key Polish market.
Shares in the company were up 6.7 per cent by 0748 GMT. Read More…
