Allegro Q3 profit tops estimates on online shopping boom

Poland’s e-commerce platform Allegro ALEP.WA said on Tuesday it swung to a net profit in the third quarter, beating analysts’ forecasts, as consumers continued to shop online despite the easing of pandemic-related restrictions.

The company, whose website has been attracting about 21 million visitors a month, reported a net profit of 324.4 million zlotys ($81.58 million), from a loss of 132 million zlotys a year ago, and above analysts’ forecast of 263 million zlotys.

Allegro, which has become the go-to marketplace in Poland and is enjoying a boom in online sales accelerated by the pandemic, has been investing in logistics and fintech to gain a competitive edge and create new revenue streams.

“Growth is underpinned by consumers sticking with their post-lockdown e-commerce shopping habits, as well as the impact of Allegro’s constant improvements to price, selection, the Smart! program and new initiatives such as Allegro Pay,” Chief Financial Officer Jon Eastick said.

The Polish platform floated its payments service Allegro Pay to all customers and started deliveries earlier this month to its own parcel lockers, which it plans to have at least 3,000 by the end of 2022.

Its revenue rose by 32.9% to 1.23 billion zlotys in the reported quarter.

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