Jumia: COVID-19 brought about a complex combination of health, economic and operational challenges
Jumia Technologies – the online marketplace in Africa and logistics company – has reported revenue of EUR29.3 million for the first quarter of 2020, down from EUR31.4 million this time last year. The company reported a loss for the period of EUR42.3 million, compared to EUR45.8 million in the first quarter 2019.
Results for the quarter ended March 31, 2020.
- Usage growth
- Annual Active Consumers reached 6.4 million, a year-over-year increase of 51%.
- Orders reached 6.4 million, a year-over-year increase of 28%.
- GMV was €190 million, a year-over-year decrease of 11% compared to GMV adjusted for perimeter changes as well as previously reported improper sales practices of €214 million in the first quarter of 2019. This trajectory was attributable to the continued effects from the business mix rebalancing initiated in 2019 as well as the supply and logistics disruption caused by the COVID-19 pandemic.
- JumiaPay development
- TPV reached €35.5 million, a year-over-year increase of 71%, taking on-platform TPV penetration from 10% in the first quarter of 2019 to 19% in the first quarter of 2020.
- JumiaPay Transactions reached 2.3 million, a year-over-year increase of 77%, representing 35% on-platform penetration in terms of Orders.
- Monetization development
- Gross profit reached €18.4 million, a year-over-year increase of 21%.
- Cost efficiency
- Gross profit after Fulfillment expense reached a record €2.5 million, compared to less than €0.1 million in the first quarter of 2019.
- Sales & Advertising expense was €8.9 million, the lowest level since 2017, and a year-over-year decrease of 25%. 12-month Sales & Advertising expense per Annual Active Consumer decreased by 26% from €11 in the first quarter of 2019 to €8 in the first quarter of 2020.
- Adjusted EBITDA loss was €35.6 million, the lowest level in the past 6 quarters and a year-over-year decrease of 10%.
- Operating loss was €43.7 million, a 4% decrease year-over-year.
“The onset of the COVID-19 pandemic in the first quarter of 2020 brought about a complex combination of health, economic and operational challenges. Our first priority was to help our employees, consumers and communities stay safe. On the operational side, we took prompt action to ensure business continuity and adjust our logistics to meet high standards of safety and hygiene”, commented Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia.
“We believe the COVID-19 pandemic proves that e-commerce has a key role to play in helping consumers safely access essential goods and providing an efficient distribution channel for brands and sellers, at a time when offline channels are disrupted. We are more than ever confident about the relevance of Jumia and the gradual adoption of e-commerce by both consumers and sellers.
In 2019, we focused on what is proving to be crucial to navigate this crisis: affordable, high purchase frequency product categories and cost efficiency. We are driving Annual Active Consumers growth, which was up 51% year-over-year, and orders, up 28%, at the same time as reducing Sales & Advertising expense by 25% over the same period. Our Adjusted EBITDA loss decreased by 10% year-over-year, reaching the lowest level in the past 6 quarters, as we make progress on our path to profitability.”