PRESS RELEASE

from Jumia Technologies AG (NASDAQ:JMIA)

Jumia Reports First Quarter 2024 Results

Continued Execution Delivers Strong Year-over-Year Growth in GMV and Orders

Disciplined Cost Management Drives Further Improvements in Cash Utilization

LAGOS, NIGERIA / ACCESSWIRE / May 7, 2024 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the first quarter ended March 31, 2024.

Results highlights for the first quarter 2024

  • Revenue of $49 million, up 19% year-over-year, and up 57% in constant currency.
  • GMV of $181 million, up 5% year-over-year, and up 39% in constant currency.
  • Operating loss of $8 million compared to $28 million in the first quarter of 2023, down 71% year-over-year, and down 79% in constant currency.
  • Adjusted EBITDA loss of $4 million as compared to a loss of $25 million in the first quarter of 2023, down 83% year-over-year, and down 94% in constant currency.
  • Loss before Income tax from continuing operations in the first quarter of 2023, was up 36% year-over-year and up 12% in constant currency largely driven by a $11 million increase in net foreign exchange losses, mostly without a cash impact, as a result of currency devaluations in Nigeria and Egypt and an increase in finance costs related to Jumia's treasury and investment portfolio management activities.
  • Liquidity position of $101 million, a decrease of $19 million in the first quarter of 2024 as compared to a decrease of $22 million in the first quarter of 2023.
  • Net cash flows from operating activities of $4 million as compared to net cash flows used in operating activities of $19 million in the first quarter of 2023.

Company Commentary

"Jumia is off to a strong start to the year. Following a transformational 2023, we continued to execute against our strategic priorities focused on strengthening our core business and improving cash efficiency while establishing a leaner organization primed for growth. Our efforts drove a 5% year-over-year and 39% constant-currency improvement in GMV in the quarter, while order growth and AOV also expanded, a clear sign that our strategy is working.

"Disciplined expense management and further streamlining of our logistics network reduced our quarterly cash burn(1) to $19.1 million from $22.0 million in the first quarter of 2023. Efforts to orient spend toward more efficient marketing channels along with reductions in customer discounts also helped attract a stickier and higher quality customer base, driving a 300 basis-point improvement in repurchase rates versus the prior year.

"Our success is more notable when considered against the challenging macro environment in Africa. Significant currency devaluations in some of our largest markets impacted both purchasing power and supply availability, making for a difficult operating environment. However, our ability to secure sufficient inventory and offer a diversified product assortment at competitive prices continues to keep consumers engaged on our platform. Importantly, we are also beginning to see early signs of general stabilization in select markets, leaving us hopeful that conditions will continue to improve. For example, despite the volatile conditions, we are seeing order growth in Nigeria and Ghana, illustrating Jumia's value proposition. Additionally, in Egypt, the government floated the Egyptian pound and significantly increased interest rates, resulting in higher U.S. dollar inflows from foreign investors.

Overall, I am pleased with our progress to date and remain energized about Jumia's potential for the future. We have proven that with the right team and the right strategy, growth does not require heavy spending. Rather, a deep understanding and appreciation of the African ecommerce market, along with a targeted growth strategy leaves us well positioned to drive continued growth in 2024 and beyond." - Jumia Chief Executive Officer, Francis Dufay

(1) Cash burn is defined as the use of Jumia's Liquidity Position, which is comprised of Jumia's cash and cash equivalents and term deposits and other financial assets.

Financial Results for the Three Months Ended March 31, 2024

For the three months ended
As reportedConstant currency
In USD million, unless otherwise statedMarch 31,
2023
March 31,
2024
YoY
Change
March 31,
2024
YoY
Change
Revenue
41.348.918.5%64.857.0%
Gross Profit
24.931.225.2%41.667.0%
Fulfillment expense
(11.8)(9.4)(20.6)%(12.4)5.3%
Sales and Advertising expense
(5.3)(3.7)(29.9)%(5.5)3.0%
Technology and Content expense
(11.2)(9.1)(18.5)%(9.3)(17.1)%
G&A expense, excluding SBC
(24.2)(15.3)(36.8)%(18.5)(23.5)%
Adjusted EBITDA
(24.7)(4.3)(82.6)%(1.4)(94.4)%
Operating Income/ (Loss)
(28.4)(8.3)(70.7)%(6.0)(78.8)%
Loss before Income tax from continuing operations (1)
(29.2)(39.6)35.5%(23.9)(12.5)%

(1) Loss before income tax from continuing operations in constant currency excludes the impact of foreign exchange recorded in finance income/costs.

Revenue

  • Revenue of $48.9 million, up 19% year-over-year or up 57% year-over-year on a constant currency basis.
    • Marketplace revenue, comprised of commissions, fulfillment revenue, value added services and marketing and advertising revenue was $25.9 million, up11% year-over-year or up48% year-over-year on a constant currency basis, driven by higher commissions and corporate sales, partially offset by the impact of foreign exchange.
    • First-Party sales revenue was $22.4 million, or up 29% year-over-year and 69% year-over-year on a constant currency basis, driven by sales of larger ticket items, such as electronics and home & living items, partially offset by the impact of foreign exchange.

Gross Profit

  • Gross profit was $31.2 million, up 25% year-over-year or up 67% year-over-year on a constant currency basis.
  • Gross profit as a percentage of GMV was 17% compared to 14% in the first quarter of 2023, driven by corporate sales, improved marketplace margins and a reduction in spending on customer incentives and promotions.

Expenses

  • Fulfillment expense amounted to $9.4 million, down 21% year-over-year or up 5% year-over-year on a constant currency basis.
    • Fulfillment expense per Order, excluding JumiaPay app Orders, which do not incur logistics costs, decreased by 20% year-over-year to $2.40, reflecting an increase of 7% year-over-year on a constant currency basis.
  • Sales and Advertising expense was $3.7 million, down 30% year-over-year or up 3% year-over-year on a constant currency basis.
  • Technology and Content expense was $9.1 million, down 19% year-over-year or down 17% year-over-year on a constant currency basis.
  • General and Administrative expense was $17.5 million, down 31% year-over-year or down 18% year-over-year on a constant currency basis.
    • General and Administrative expense, excluding share-based compensation, was $15.3 million, down 37% year-over-year or down 23% year-over-year on a constant currency basis.
    • This decrease was driven primarily by a reduction in tax provisions as well as a decline in staff costs during the quarter.

Operating loss

  • Operating loss was $8.3 million, down by 71% year-over-year or 79% year-over-year on a constant currency basis, driven by significant cost reductions and improved gross margins.
  • Loss before income tax from continuing operations was $39.6 million, up 36% year-over-year, primarily driven by an increase in net foreign exchange losses.
    • The increase was largely driven by a $11.3 million increase in net foreign exchange losses, mostly without cash impact, as a result of currency devaluations in Nigeria and Egypt and an increase in finance costs related to our treasury activities. The increase also reflects losses associated with our investment portfolio management activities.
  • Loss before Income tax from continuing operations was up 12% in constant currency, which excludes the impact of foreign exchange recorded in finance income and finance costs.

Cash Position

  • As of March 31, 2024, the Company's Liquidity Position was $101.5 million, comprised of $28.6 million in cash and cash equivalents and $72.8 million in term deposits and other financial assets.
  • Jumia's Liquidity Position decreased $19.1 million in the first quarter of 2024 as compared to a decrease of $22.0 million in the first quarter of 2023, and a decrease of $26.8 million in the fourth quarter of 2023.
    • Jumia incurred a $5.9 millioncash loss associated with currency translation related to devaluations in two of Jumia's largest markets, Egypt and Nigeria, in the three months ended March 31, 2024.
  • The continued improvement in Jumia's cash management illustrates its ongoing efforts to effectively preserve its cash resources as it executes on its growth strategy. Notably, the Company continues to refine it cash repatriation strategy. As of the first quarter of 2024, 79% of its Liquidity Position was held in USD, helping to limit risk and the Company's exposure to shifts in local currency valuations.

SELECT OPERATIONAL KPIs

1. Marketplace KPIs

For the three months ended
As ReportedConstant currency
March 31,
2023
March 31,
2024
YoY
Change
March 31,
2024
YoY
Change
Quarterly Active Customers (million)
2.01.9(4.7)%n.a.n.a.
Orders (million)
4.54.61.9%n.a.n.a.
GMV (USD million)
173.2181.54.8%240.338.7%
TPV (USD million)
41.145.410.3%78.891.6%
JumiaPay Transactions (million)
1.32.051.8%n.a.n.a.
  • GMV increased by 5% year-over-year to $181.5 million and Orders increased by 2% year-over-year. The growth in GMV and Orders was driven by continued efforts to enhance and diversify Jumia's product assortment, more efficient marketing spend and reductions in customer incentives.
    • Jumia is also taking a disciplined and targeted approach to marketing spend focused on targeting more efficient marketing channels, such as search engine optimization (SEO) and customer relationship management (CRM).
    • Efforts are attracting a stickier and higher quality customer base as evidenced by a 300 basis point year-over-year improvement in repurchase rates in the first quarter of 2024.
      • Jumia's cohort data shows that 39% of the Company's fourth quarter 2023 cohort of new customers completed a second purchase within 90 days as compared to 36% in the fourth quarter of 2022 cohort re-ordering in first quarter of 2023.
  • JumiaPay Transactions reached 2.0 million, an increase of 52% year-over-year driven by the successful rollout of JumiaPay on delivery in one of Jumia's largest markets.
    • Ongoing efforts to streamline the user experience and the continued rollout of JumiaPay on delivery to increase cashless orders, positions JumiaPay as a stronger enabler of the Company's ecommerce platform.
  • TPV and TPV as a percentage of GMV increased by 10% year-over year and 125 basis points year-over-year, respectively, due to improvements in the customer experience.

GUIDANCE

Jumia remains committed to reducing its losses and accelerating its progress towards cash efficiency and profitable growth.

The Company reiterates its outlook for 2024,

  • It aims to further reduce its cash utilization as compared to FY 2023.
  • Based on the positive impact of its growth strategy, Jumia projects an increase in both orders and GMV in 2024, excluding the potential impact of foreign exchange.

The above forward-looking statements reflect Jumia's expectations as of May 7, 2024, are subject to change and involve inherent risks, which are partially or fully beyond its control. These risks include but are not limited to political and economic conditions across countries where it operates, the broader economic impact of the ongoing regional conflicts and global supply chain issues.

CONFERENCE CALL AND WEBCAST INFORMATION

Jumia will host a conference call to discuss its first quarter 2024 results at 8:30 AM ET on May 7, 2024.

Interested parties can access the conference at:

US Dial-in (Toll Free): 888-506-0062
International Dial-in: 973-528-0011
United Kingdom Dial-in: 44 20 3355 4169
Entry Code: 636500

The live call will also be available via webcast on Jumia's Investor Relations Website: https://investor.jumia.com/investor-relations/default.aspx.

A replay of the call will be available until Tuesday, May 21, 2024 and can be accessed by dialing dialing 877-481-4010 for toll free access or 919-882-2331 for international access using the replay passcode: 50437.

(UNAUDITED)
Consolidated statement of comprehensive income as of March 31, 2023 and 2024

For the three months ended
In thousands of USD
March 31,
2023
March 31,
2024
Revenue
41,25048,893
Cost of revenue
(16,342)(17,709)
Gross profit
24,90831,184
Fulfillment expense
(11,817)(9,377)
Sales and advertising expense
(5,339)(3,742)
Technology and content expense
(11,183)(9,109)
General and administrative expense
(25,161)(17,452)
Other operating income
210249
Other operating expense
(47)(86)
Termination Benefits
--
Operating loss
(28,429)(8,333)
Finance income
3,1171,293
Finance costs
(3,929)(32,595)
Loss before Income tax from continuing operations
(29,241)(39,635)
Income tax benefit/ (expense)
(100)(1,022)
Loss for the period from continuing operations
(29,341)(40,657)
Loss for the period from discontinued operations
(2,429)-
Loss for the period
(31,770)(40,657)
Attributable to:
Equity holders of the Company
(31,761)(40,650)
from continuing operations
(29,332)(40,650)
from discontinued operations
(2,429)-
Non-controlling interests
(9)(7)
from continuing operations
(9)(7)
Loss for the period
(31,770)(40,657)
Other comprehensive income / (loss) to be classified to profit or loss in subsequent periods
Exchange differences gain on translation of foreign operations
59,467169,673
Other comprehensive loss on net investment in foreign operations
(60,362)(158,584)
Other comprehensive income / (loss) on financial assets at fair value through OCI
2531,381
Other comprehensive income / (loss)
(642)12,470
Total comprehensive loss for the period
(32,412)(28,187)
Attributable to:
Equity holders of the Company
(32,396)(28,189)
Non-controlling interests
(16)2
Total comprehensive loss for the period
(32,412)(28,187)

(UNAUDITED)
Consolidated statement of financial position as of December 31, 2023 and March 31, 2024

As of
In thousands of USD
December 31,
2023
March 31,
2024
Assets
Non-current assets
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