Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q1 2023 Earnings Presentation
25 slides from Allegro.eu's earnings presentation, May 25, 2023
Slide 1: Allegro.eu Q1 2023 Results presentation
Allegro.eu Q1 2023 Results presentation 25 May 2023 |1
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by Allegro.eu, a public limited liability company (société anonyme) incorporated and existing under the laws of the Grand Duchy of Luxembourg, having its registered office at 1, rue Hildegard von Bingen, L – 1282 Luxembourg, Grand Duchy
Slide 3: Agenda
Highlights Financial results: Polish Operations Mall Segment Group Management outlook Agenda Q&A |3
Slide 4: Highlights
Highlights |4
Slide 5: Allegro delivers resilient growth and improving margin despite retail sales slowdown
Allegro delivers resilient growth and improving margin despite retail sales slowdown Q1 2023 Financial Highlights Strong performance in Poland despite challenging macro underlines Consolidated1 GMV: 21.4% YoY (+14.0% YoY ex. Mall Segment2) resilient demand for Allegro's wide selection at attractive
Slide 6: Management continues to work on the Seven Priorities
Management continues to work on the Seven Priorities Poland CE-51 Framework to report progress Win in Czechia / Slovakia 1 Strong in Poland 2 with our marketplace model across the Growth organization 3 Scale up Allegro Pay Improve Smart! and delivery 4 economics 5 Mall 1P business turnaround Costs 6
Slide 7: Focus on customers in difficult times facilitates progress on Strong in Poland
Focus on customers in difficult times facilitates progress on Strong in Poland PRIORITY 1 Retail basics Advertising Grow selection Competitive pricing Improve convenience • High double-digit growth of Active • Launched Lowest Price Guarantee • New simplified allegro.pl main page • Strong pricing hol
Slide 8: 3P Czech platform soft launch. Strong performance of Allegro Pay
3P Czech platform soft launch. Strong performance of Allegro Pay PRIORITY 2 PRIORITY 3 3P marketplace soft launch in Czechia Allegro Pay • allegro.cz started serving customers on 9 May 2023 starting a new phase in • +82% YoY growth in originated loans to PLN 1,760m international marketplace expansio
Slide 9: allegro.cz soft launch extends 3P marketplace TAM to nearly 50m people
allegro.cz soft launch extends 3P marketplace TAM to nearly 50m people allegro.cz soft launch on 9th May Proprietary marketplace translated and integrated for ~20k+ experienced Allegro merchants selling cross border Czech market 38m Widest selection of ~100m Mall and CZC listing offers (10x more tha
Slide 10: Increasing efficiency across Smart! & Delivery, Mall 1P turnaround and Fit to Grow
Increasing efficiency across Smart! & Delivery, Mall 1P turnaround and Fit to Grow PRIORITY 4 PRIORITY 5 PRIORITY 6 Smart! Delivery experience Mall 1P turnaround Fit to grow • Stable churn as customers gradually • >2,700 APMs2 installed, with steadily • Strong focus on cost optimisation, • Reviewed
Slide 11: Financial results
Financial results | 11
Slide 12: Q1 2023 key results: Polish Operations
Polish Operations Q1 2023 key results: Polish Operations1 GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 PLN 12,339m Q1’23 14.2m Q1’23 PLN 3,582 Q1’23 11.02% Q1’23 +14.0% YoY +5.9% YoY +9.7% YoY +0.57pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV margin Cash Conversion5 PLN 1,708m Q1’23 PLN
Slide 13: 787k new Active Buyers added YoY, with average annual spend up by nearly 10%
Polish Operations 787k new Active Buyers added YoY, with average annual spend up by nearly 10% YoY Active Buyers (period end) LTM GMV / Active Buyer (period end) m PLN m 5.9% 9.7% 1.2% 1.7% 1.8% 1.1% 2.9% 1.9% 1.9% 2.6% 13.4 13.6 13.8 14.1 14.2 3,449 3,515 3,582 3,265 3,350 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q
Slide 14: Q1 GMV maintained the 14% YoY growth rate from Q4
Polish Operations Q1 GMV maintained the 14% YoY growth rate from Q4, despite Polish retail sales growth slowing by nearly 11pp1 during Q1 GMV2 • LTM GMV3 of PLN 50.9bn, up by 16.1% YoY and advancing by over PLN bn PLN 1.5 bn QoQ 12.8% 16.0% 21.4% 14.0% 14.0% • QoQ pick up in transaction growth offse
Slide 15: Revenue growth driven by marketplace, advertising and retail
Polish Operations Revenue growth driven by marketplace, advertising and retail Revenue Bridge Take Rate1 PLN m % Q1’23 Take Rate up by 0.57pp YoY, resulting 20.1% 48.0% 16.0% 20.3% 40.4% 22.7% mainly from monetization initiatives introduced in Q3’22, seasonally higher QoQ 59.0 7.6 16.8 7.2 1,708.5 2
Slide 16: Adjusted EBITDA up by 29.7% YoY in Q1
Polish Operations Adjusted EBITDA up by 29.7% YoY in Q1 mainly driven by co-financing increases and growing advertising contribution combined with improving SG&A efficiency Adjusted EBITDA bridge in Q1 20231 PLN m • GMV growth at higher take rates drive marketplace revenue growth 4.3% 4.9% • Continu
Slide 17: Capital investment down in Q1 driven by capex controls
Polish Operations Capital investment down in Q1 driven by capex controls, efficiency improvement and prioritization of development projects Capital expenditures1 by type -31.2% PLN m 161.1 • Refocus of Delivery Experience projects to improving APMs 87.9 110.8 utilisation to drive economics 28.5 • Of
Slide 18: Q1 2023 key results: MALL Segment
Mall Segment Q1 2023 key results: MALL Segment1 GMV Active Buyers3 LTM GMV / Active Buyer5 Take Rate6 PLN 800m Q1’23 4.2m Q1’23 pro-forma2 PLN 937 pro-forma2 12.88% Q1’23 -0.5% YoY pro-forma2 -2.5% YoY pro-forma2 +0.5% YoY pro-forma2 N/A8 Revenue Adjusted EBITDA Adj. EBITDA / GMV margin 1P Gross mar
Slide 19: Continuously declining consumer demand delaying Mall 1P business turnaround
Mall Segment Continuously declining consumer demand delaying Mall 1P business turnaround Mall Segment results Income Statement • Like-for-Like loss was PLN 53.4m excluding PLN 16.3m of 3P PLN m (unaudited) Q1 2022 pro-forma1 Q1 2023 marketplace start-up expenses GMV 804.0 799.9 • Revenue decline ref
Slide 20: Q1 2023 key results: Consolidated Group
Group Consolidated Q1 2023 key results: Consolidated Group GMV Adjusted EBITDA Take rate PLN 13,139m Q1’23 PLN 530.9m Q1’23 11.04% Q1’23 +21.4% YoY +14.7% YoY +0.59pp YoY Revenue Adj. EBITDA / GMV margin Cash Conversion1 PLN 2,321m Q1’23 4.04% Q1’23 75.2% Q1’23 +66.7% YoY -0.24pp YoY +10.0pp YoY 1.
Slide 21: Continued deleveraging down to 2.84x
Group Consolidated Continued deleveraging down to 2.84x despite seasonal working capital outflow driven by rising LTM EBITDA and extended scope of consumer loan sales Pro-forma1 • Continued deleveraging from strong EBITDA growth PLN m (unaudited) 1-Apr-22 31.12.2022 31.03.2023 in Q1’2023 and lower Y
Slide 22: Management outlook
Management outlook | 22
Slide 23: Q1 2023 completed slightly above expectations, Q2 2023 outlook
Q1 2023 completed slightly above expectations, Q2 2023 outlook Polish Operations Mall Segment3 Group consolidated Q1’23 Q1’23 Q1’23 Q1’23E Actual Q2’23E Q1’23E Actual Q2’23E Q1’23E Actual Q2’23E GMV 13-14% +14.0% 11-12% 1-2% YoY -0.5% pro- 3-6% YoY 20-21% +21.4% 10-11% YoY growth YoY YoY growth pro-
Slide 24: Q&A
Q&A | 24
Slide 25: Thank you
Thank you | 25