Poland e-commerce firm Allegro cuts outlook for core market

Poland's biggest e-commerce company Allegro trimmed its full-year guidance for its core Polish market on Thursday for the second time this year, because it believes that high inflation could lower demand.

Allegro expects to see revenue growth of 23 per cent -- 26 per cent compared to 25 per cent -- 30 per cent earlier in the year, while adjusted earnings before taxes, depreciation and amortization EBITDA are expected to rise by between 10 per cent and 12 per cent compared to a previous range of 10 per cent and 15 per cent.

Roy Perticucci, who took over from Francois Nuyts as Allegro's CEO, said in a statement that the company is putting more emphasis on cost efficiency on our side with the hope of a more challenging environment driven by high inflation and rising costs of living.

Poland is grappling with price growth that has surged to a 25 year high, along with a slowdown that some economists say could tip the largest economy in the European Union's eastern wing into a recession. In August, inflation was 16.1 per cent, according to the data released by the Statistics Office.

Allegro said that the worsening outlook for economic growth, sustained inflation and concerns over energy security raised the risk of reduced consumer demand during the peak Christmas trading period.

It said its mid-term expectations are under review.

Allegro's second quarter revenue and adjusted EBITDA was in line with preliminary results last month, which was $445.03 million and 484.1 million zlotys.