(Reuters) -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, as it anticipates high inflation could lower demand.
Allegro expects year-on-year revenue growth of 23%-26% compared to 25%-30% previously, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to rise by between 10%-12% versus a previous range of 10% and 15%.
“With the prospect of a significantly more challenging environment driven by high inflation and the rising costs of living, we are putting increasingly more focus on cost efficiency on our side,” Roy Perticucci, who took over from Francois Nuyts as Allegro’s CEO, said in a statement.
Poland is grappling with price growth that has surged to a 25-year high combined with a slowdown some economists say could tip the largest economy in the European Union’s eastern wing into recession. In August, inflation was 16.1%, statistics office data showed.
Allegro said 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 added its mid-term expectations are under review.
Allegro’s second-quarter revenue and adjusted EBITDA was in line with preliminary results announced last month at 2.21 billion zlotys ($445.03 million) and 484.1 million zlotys, respectively.
($1 = 4.9660 zlotys)
(Reporting by Anna Pruchnicka; editing by Barbara Lewis)
