Shares in Allegro.eu, a Polish e-commerce company, rose after it announced a profit for the second quarter and a reduction in debt. The company reported an after-tax profit of 119.0 million Polish zlotys ($27 million), compared to a loss of PLN63.5 million in the same period last year. This positive result can be attributed to margin improvement and cash generation.
The company’s revenue increased by 8.5% to PLN2.4 billion due to a strong performance in its Polish operations, driven by monetization initiatives and effective advertising strategies. Allegro.eu’s adjusted earnings before interest, taxes, depreciation, and amortization grew by 20% to PLN580.4 million.
Citi analysts noted that the company’s adjusted EBITDA was 11% higher than expected, thanks to strong performance in Poland and better-than-anticipated international losses.
Allegro.eu is optimistic about its future performance, with projected revenue growth of 3% to 5% for the third quarter and anticipated adjusted EBITDA growth of 23% to 25% year-on-year.
The company’s solid second-quarter results and positive third-quarter guidance are expected to have a positive impact on its share price, according to Citi.
Allegro.eu also reported a reduction in net debt, which stood at PLN5.92 billion at the end of June, representing a 5.5% decrease since the beginning of the year.
Overall, Allegro.eu’s financial performance is encouraging and highlights its ability to generate profit while effectively managing debt.
