Jumia Reports First Quarter 2022 Results
Jumia Technologies AG (NYSE:JMIA) reported strong financial results for Q1 2022, highlighting a 44% increase in revenue year-over-year, totaling $47.6 million. Orders surged by 40%, with Gross Merchandise Value (GMV) rising 27% to $252.7 million. JumiaPay also saw a 37% increase in Total Payment Value (TPV). Despite these growth figures, the company reported an operating loss of $66.4 million, exacerbated by increased marketing and operational expenses. Looking ahead, Jumia anticipates continued GMV growth and plans increased spending on advertising.
- Revenue increased by 44% year-over-year to $47.6 million.
- Orders grew by 40% year-over-year, reaching 9.3 million.
- GMV rose 27% year-over-year to $252.7 million.
- Total Payment Value (TPV) increased by 37% year-over-year to $70.7 million.
- First Party revenue surged by 152% year-over-year.
- Operating loss increased to $66.4 million, up 64% year-over-year.
- Fulfillment expenses rose 42% year-over-year to $24.3 million.
- Sales and Advertising expenses jumped 94% year-over-year to $18.8 million.
- Adjusted EBITDA loss rose to $55.3 million, up 70% year-over-year.
Continued growth acceleration in Q1 2022
Orders increased by
GMV increased by
Revenue increased by
LAGOS, NIGERIA / ACCESSWIRE / May 17, 2022 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the first quarter ended March 31, 2022.
Results highlights for the first quarter 2022
| For the three months ended March 31 | ||||||||||||||||||
| As reported | YoY | As reported | Constant currency | YoY | ||||||||||||||
In USD million, unless otherwise stated | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||||
Quarterly Active Consumers (million) | 2.4 | 3.1 | 28.7 | % | n.a. | n.a. | n.a. | |||||||||||
Orders (million) | 6.6 | 9.3 | 40.5 | % | n.a. | n.a. | n.a. | |||||||||||
Gross Merchandise Value (???GMV???) | 198.9 | 252.7 | 27.0 | % | 198.9 | 268.1 | 34.8 | % | ||||||||||
Total Payment Value (???TPV???) | 51.7 | 70.7 | 36.7 | % | 51.7 | 75.0 | 45.1 | % | ||||||||||
TPV as % of GMV | 26.0 | % | 28.0 | % | 26.0 | % | 28.0 | % | ||||||||||
Revenue | 33.0 | 47.6 | 44.3 | % | 33.0 | 50.5 | 53.1 | % | ||||||||||
Gross Profit | 24.6 | 27.7 | 12.6 | % | 24.6 | 29.3 | 19.3 | % | ||||||||||
Fulfillment expense | (17.1 | ) | (24.3 | ) | 41.7 | % | (17.1 | ) | (25.8 | ) | 50.3 | % | ||||||
Sales and Advertising expense | (9.7 | ) | (18.8 | ) | 93.8 | % | (9.7 | ) | (19.3 | ) | 98.6 | % | ||||||
Technology and Content expense | (8.3 | ) | (13.0 | ) | 56.4 | % | (8.3 | ) | (13.4 | ) | 61.7 | % | ||||||
G&A expense, excluding SBC | (24.4 | ) | (30.1 | ) | 23.3 | %% | (24.4 | ) | (31.7 | ) | 29.7 | % | ||||||
Adjusted EBITDA | (32.6 | ) | (55.3 | ) | 69.9 | % | (32.6 | ) | (57.4 | ) | 76.4 | % | ||||||
Operating Loss | (40.6 | ) | (66.4 | ) | 63.5 | (40.6 | ) | (68.6 | ) | 69.0 | % | |||||||
"We kicked off 2022 with very strong growth momentum, closing the first quarter with the highest GMV and Order growth rates of the past 9 quarters, up
"We remain focused on taking the business forward on our path to profitability, driving faster usage growth with improved levels of marketing efficiency. Sales & Advertising expense per Order and as % of GMV decreased sequentially, both reaching their lowest levels in the past 4 quarters, at
FIRST QUARTER 2022- BUSINESS HIGHLIGHTS
1. GROWTH ACCELERATION INITIATIVES
In the first quarter of 2022, we continued executing on our growth acceleration strategy building upon the momentum of the second half of 2021, continuing to scale the business towards profitability.
The key levers of our growth acceleration plan remain consistent:
- Sustained marketing investments on a multi-channel basis, to drive consumer awareness, adoption and retention.
- Enhanced assortment relevance with a focus on everyday product categories.
- Improved pricing and shipping policy.
- Improved customer experience and convenience through platform enhancements.
We have outlined below relevant developments in the first quarter of 2022 with respect to each one of these levers.
Marketing
- Brand awareness and consideration are core pillars of our marketing strategy and key to foster customer trust. We were pleased to see Jumia ranked #6 in the 2021 Most Influential Brands survey in Egypt released by Ipsos in March 2022. The ‘Most Influential Brands Survey' is a global Ipsos initiative, covering 14 markets and close to 800 brands worldwide. 2021 was the second edition of the survey in Egypt with 118 brands assessed across 14 categories. In 2021, Jumia progressed from the 7th to the 6th position of the ranking, maintaining its leadership within the digital and e-commerce category of the survey.
Assortment, pricing and shipping
- As part of our efforts to become the digital destination in Africa for everyday needs, we are expanding our assortment in the everyday categories and further enhancing our partnerships with sellers and brands. Between December 31, 2021 and March 31, 2022, we added almost one million SKUs in the FMCG category, the highest number of SKU adds in this category in the past 8 quarters. We also established pan-African partnerships with each of Coca-Cola and Danone across both our e-commerce and food delivery platforms.
- Price competitiveness is a key component of the Jumia value proposition for consumers, particularly in a more challenging macro environment that drives increased consumer price sensitivity. We are upgrading our price benchmarking tool into an automated system covering the full product assortment of Jumia, incorporating data from both online and offline channel checks. The new system leverages machine learning algorithms to match images and product features enhancing the speed and accuracy of screening and matching. It also allows for real-time price adjustment with dedicated modules for margin optimization.
- We are rolling out a free shipping program in select countries allowing consumers living in the main cities to benefit from next-day free shipping on Jumia Express items and basket sizes exceeding a minimum threshold. Jumia Express is an end-to-end logistics service provided to sellers where items are stored in our warehouse and picked and packed by Jumia. We expect the free shipping initiative to drive consumer adoption and overall usage growth. While we will be foregoing consumer shipping fees - booked under Fulfillment revenue - we expect to better monetize the Jumia Express service - booked under Value Added Service revenue - as we expect sellers to benefit from sales uplift as a result of the free shipping roll-out.
Technology: Platform enhancements
- We continue to invest in our technology backbone and front-end projects in particular, to make our platforms even more easy-to-use and engaging. During the first quarter of 2022, we continued working on an overhaul of our homepage and product pages to simplify navigation and product discovery. Key developments included creating stronger hierarchy of content on the homepage and more informative product pages with larger pictures and additional information such as available stock quantity for flash sales and promotions. We intend to further enhance user experience with incremental improvements to our product search algorithms and filtering modules, while increasing personalization throughout the stages of the user journey.
2. JUMIAPAY UPDATE
- In April 2022, JumiaPay was granted the Payment Service Solution Provider ("PSSP") license by the Central Bank of Nigeria, which allows us to process payments on behalf of third-party businesses in Nigeria.
- In parallel, we continued expanding the range of everyday digital and financial services available to consumers on the JumiaPay app. In Nigeria, JumiaPay is working with the CGAP, Consultative Group to Assist the Poor, which is a global partnership of more than 30 leading development organizations, focused on financial inclusion to improve the lives of lower income populations. As part of this partnership, we are piloting an e-doctor service on the JumiaPay app in collaboration with a third-party service provider, "Meeting Doctors". The objective of this service is to help workers, sellers and consumers in general access doctors remotely for a monthly subscription fee of around
$1. T he experiment will help validate the value delivered to our customers and workers and identify a sustainable model to achieve this.
3. MONETIZATION UPDATE
Logistics services to third parties
- We are making significant progress on the roll-out of our logistics services to third parties. Packages shipped during the first quarter of 2022 reached a new record of 3.5 million, on behalf of over 1,250 clients, an increase of more than 200 clients compared to the fourth quarter of 2021.
Advertising
- Our advertising activity experienced strong momentum during the first quarter of 2022, with 484 advertising campaigns, up
55% year-over-year, on behalf of almost 9,000 advertising clients, a24% year-over-year increase. Advertising clients during the quarter included high profile brand partners such as Unilever, L'Oréal, Adidas, Danone, Xiaomi, Coca-Cola, Krispy Kreme, Burger King and many more. - We are constantly improving the efficiency of our campaigns to enhance the returns on investment for our advertising clients, through better audience targeting, enhanced personalization and campaign management tools. As a result, advertising campaign performance, measured by the click-through rate on our ads, increased by
56% year-over-year in the first quarter of 2022, supporting sales and return on ad spend for our advertisers.
4. IMPACT
- Earlier in May 2022, we launched our inaugural ESG report highlighting our sustainability strategy and key themes in alignment with the Sustainability Accounting Standards Board ("SASB") and the United Nations Sustainable Development Goals ("UN SDGs"). The first edition of this report has been designed as an overview of our sustainability strategy with a mapping of our current sustainability practices.
- Our sustainability strategy is fully aligned with our corporate mission and has three main objectives:
- Living our mission: Our mission to "leverage technology to improve everyday lives" holds sustainability at its core. As we execute on this mission, we create jobs, reduce inequality and positively impact our communities.
- Embedding sustainability in our business operations: We aim to make business decisions and conduct our operations with sustainability guidelines and objectives in mind.
- Amplifying our impact through our ecosystem: Our impact is further amplified as we expand our sustainability practices to our ecosystem of partners and stakeholders.
- Our sustainability practices today can be grouped under five material themes outlined below. These themes have been developed in line with our understanding of how our business impacts our key stakeholder groups: consumers, partners, employees, investors and our communities.
Environment
1. Minimizing environmental impact through the reduction of carbon emissions, waste and offering customers pre-owned and refurbished goods.
Social
2. Providing convenience, accessibility and affordability to consumers.
3. Empowering sellers, partners, and communities by lowering the barriers to entry, providing training, access to funding and participating in initiatives to drive economic and social development.
4. Building an engaged, inclusive, and diverse workforce.
Governance
5. Operating with strong governance and ethical standards.
SELECTED OPERATIONAL KPIs
1. Marketplace KPIs
| For the three months ended | |||||||||
| March 31, | YoY | ||||||||
| 2021 | 2022 | Change | |||||||
Quarterly Active Consumers (million) | 2.4 | 3.1 | 28.7 | % | |||||
Orders (million) | 6.6 | 9.3 | 40.5 | % | |||||
GMV (USD million) | 198.9 | 252.7 | 27.0 | % | |||||
- Quarterly Active Consumers reached 3.1 million, up
29% year-over-year, supported by robust increases in both new and returning consumers. - Orders reached 9.3 million, up
40% year-over-year, the fastest growth rate of the past 9 quarters. The growth trends by product category illustrate the success of the strategic focus on everyday product categories, supported by increased marketing investments:- The fastest growing category in terms of items sold was FMCG, which increased by
180% year-over-year, supported by the momentum of the grocery sub-category which we are currently developing. FMCG was the second-largest category in terms of items sold after Fashion, accounting for15% of items sold in the first quarter of 2022, compared to8% in the first quarter of 2021. The second fastest growing category in terms of items sold was Food Delivery, which maintained very strong momentum, growing by86% year-over-year. - Phones and Electronics are showing some early signs of momentum growing by
19% year-over-year in terms of items sold despite continued global supply chain volatility for these categories.
- The fastest growing category in terms of items sold was FMCG, which increased by
- GMV reached
$252.7 million , up27% on a year-over-year basis and35% on a constant currency basis.- FX was a headwind to GMV performance in the first quarter of 2022 with 10 of our 11 local currencies depreciating against the USD. In particular, the Nigerian Naira, the West African CFA Franc and the Moroccan Dirham depreciated by
9% ,7% and6% respectively against the USD, in the first quarter of 2022 compared to the first quarter of 2021. - In terms of trends by product category, we observed the following:
- Continued diversification of GMV in favor of everyday categories, in line with our strategy to further establish Jumia at the heart of everyday consumption in Africa. Phones and Electronics decreased from
37% of GMV in the first quarter of 2021 to33% of GMV in the first quarter of 2022. - The largest contributing category to GMV growth in absolute terms was Food delivery, which increased by
61% year-over-year. The second largest contributing category to GMV growth was Home & Living which increased by24% year-over-year and was the largest product category in GMV terms accounting for18% of GMV in the first quarter of 2022, supported by the robust growth in home appliances.
- Continued diversification of GMV in favor of everyday categories, in line with our strategy to further establish Jumia at the heart of everyday consumption in Africa. Phones and Electronics decreased from
- FX was a headwind to GMV performance in the first quarter of 2022 with 10 of our 11 local currencies depreciating against the USD. In particular, the Nigerian Naira, the West African CFA Franc and the Moroccan Dirham depreciated by
2. JumiaPay KPIs
| For the three months ended | |||||||||
| March 31, | YoY | ||||||||
| 2021 | 2022 | Change | |||||||
TPV (USD million) | 51.7 | 70.7 | 36.7 | % | |||||
JumiaPay Transactions (million) | 2.4 | 3.2 | 31.7 | % | |||||
- TPV increased by
37% year-over-year and45% on a constant currency basis. Despite the FX headwind, TPV posted its fastest growth rate in USD terms of the past 5 quarters, supported by the strong growth in GMV. On-platform penetration of JumiaPay as a percentage of GMV reached a new high of28% in the first quarter of 2022 up from26% in the first quarter of 2021 as we focus on increasing the penetration of JumiaPay in a disciplined and gradual manner. - JumiaPay Transactions reached 3.2 million in the first quarter of 2022, increasing by
32% year-over-year, supported by accelerating volume growth across the business, in the Food Delivery category in particular.
Overall,
SELECTED FINANCIAL INFORMATION
| For the three months ended |
|
|
| |||
| March 31, |
| YoY |
| |||
| (USD million) |
| 2021 |
| 2022 |
| Change |
|
| Revenue | 33.0 | 47.6 | 44.3 | % | |||
Marketplace revenue | 24.4 | 26.4 | 8.2 | % | |||
Commissions | 9.1 | 8.6 | (5.2) | % | |||
Fulfillment | 8.6 | 8.0 | (7.5) | % | |||
Marketing & Advertising | 1.9 | 2.7 | 40.4 | % | |||
Value Added Services | 4.7 | 7.1 | 49.5 | % | |||
First Party revenue | 7.8 | 19.7 | 152.4 | % | |||
Other revenue | 0.8 | 1.6 | 88.6 | % | |||
| Gross Profit | 24.6 | 27.7 | 12.6 | % | |||
| Fulfillment expense | (17.1) | (24.3) | 41.7 | % | |||
| Sales and Advertising expense | (9.7) | (18.8) | 93.8 | % | |||
| Technology and Content expense | (8.3) | (13.0) | 56.4 | % | |||
| General and Administrative expense ("G&A") | (30.2) | (38.6) | 27.7 | % | |||
of which Share Based Compensation ("SBC") | (5.8) | (8.4) | 46.7 | % | |||
| G&A expense, excluding SBC | (24.4) | (30.1) | 23.3 | % | |||
| |||||||
| Adjusted EBITDA | (32.6) | (55.3) | 69.9 | % | |||
| Operating loss | (40.6) | (66.4) | 63.5 | % | |||
Revenue
- Revenue reached
$47.6 million in the first quarter of 2022, up44% on a year-over-year basis. This was driven by the strong growth in First Party revenue, which accelerated by152% in the first quarter of 2022, on a year-over-year basis. We undertook more business on a first-party basis during the quarter, as we continue to build-out the assortment in FMCG and the grocery sub-category in particular.
To support usage growth, we deployed more consumer incentives in the form of promotional discounts, which are accounted for as revenue deductions. Strategic use of consumer incentives on selected products or categories helps us drive conversion and is a core part of our growth acceleration strategy. Revenue is presented net of consumer incentives, which reached
As we move past the initial phase of promotions ramp-up launched in the second half of 2021, the efficiency of our promotional investments is improving. The ratio of consumer incentives as a percentage of revenue improved sequentially from
- Marketplace revenue reached
$26.4 million in the first quarter of 2022, up8% on a year-over-year basis, supported by the strong momentum in Value Added Services and Marketing & Advertising revenue streams. - Value Added Services revenue reached
$7.1 million , increasing by49% year-over-year, partly as a result of an increase in international logistics revenue. - Marketing & Advertising revenue reached
$2.7 million , increasing by40% , supported by an acceleration in the number of advertising campaigns run on behalf of our sellers during the quarter. - Commission revenue reached
$8.6 million , down5% year-over-year. Before consumer incentives impact, which come as a deduction to commission revenue, we maintained robust levels of commission monetization. Consumer incentives impacting commission revenue increased from$1.2 million in the first quarter of 2021 to$4.7 million in the first quarter of 2022. - Fulfillment revenue reached
$8.0 million , down7% year-over-year. Fulfillment revenue is net of consumer incentives in the form of shipping discounts and free shipping campaigns, which increased from$0.5 million in the first quarter of 2021 to$1.4 million in the first quarter of 2022. - Other revenue was up
89% year-over-year reaching$1.6 million , largely attributable to the strong momentum of our logistics-as-a-service offering, which generated over$1.0 million revenue in the first quarter of 2022.
Gross Profit
Gross profit reached
Fulfillment Expense
Fulfillment expense reached
Sales and Advertising Expense
Sales and Advertising expense reached
While we continued ramping-up our marketing investments in the first quarter of 2022 on a year-over-year basis, we did so at a slower pace compared to the second half of 2021 when Sales & Advertising expense was up
Technology and Content Expense
Technology and Content expense reached
General and Administrative Expense
General & Administrative expense, excluding SBC, reached
Operating loss
- Operating loss was
$66.4 million , up64% year-over-year and69% on a constant currency basis. This was mostly a result of increased growth investments in the form of consumer incentives, Sales and Advertising and Technology and Content investments. It was also affected by a47% increase in share-based compensation expense, which reached$8.4 million in the first quarter of 2022, reflecting the impact of the 2021 grants. - Adjusted EBITDA loss was
$55.3 million in the first quarter of 2022, up70% year-over-year and76% on a constant currency basis as a result of the increase in growth investments outlined above.
Cash Position
- At March 31, 2022, we had a liquidity position of
$421.2 million comprised of$88.7 million of cash and cash equivalents and$332.6 million of Term deposits and other financial assets. - Quarterly cash utilization, defined as the net decrease in cash & cash equivalents adjusted for FX effects and movements in term deposits and other financial assets, reached
$78.2 million . Cash utilization was affected by a working capital outflow of$23.4 million mostly due to the upfront yearly payment of hosting services and insurance fees as well as an increase in inventory relating to the uptick in first party activity.
GUIDANCE
We expect continued year-over-year GMV growth acceleration, building upon the momentum of the second half of 2021.
We expect to spend between
For the full year 2022, we expect Adjusted EBITDA loss of
In an effort to further increase our consumer reach and reduce delivery times, we intend to undertake logistics capacity expansion and upgrades and expect to incur capex between
The above forward-looking statements reflect our expectations as of May 17, 2022 and could be subject to change and involve inherent risks which we are not able to control. These risks include but are not limited to new potential disruptions caused by COVID-19, any global supply chain issues, the broader economic impact of the ongoing Russia-Ukraine conflict as well as political and economic conditions across countries where we operate.
CONFERENCE CALL AND WEBCAST INFORMATION
Jumia will host a conference call today, May 17, 2022 at 8:30 a.m. U.S. Eastern Time to discuss Jumia's results. Details of the conference call are as follows:
US Toll Free: 888-506-0062
International: 973-528-0011
UK Toll Free: 0800 520 0845
Entry Code: 975565
A live webcast of the earnings conference call can be accessed on the Jumia Investor Relations website: https://investor.jumia.com/
An archived webcast will be available following the call.
(UNAUDITED)
Consolidated statement of comprehensive income as of March 31, 2021 and 2022
| For the three months ended | ||||||||
| March 31, | March 31, | |||||||
In thousands of USD | 2021 | 2022 | ||||||
Revenue | 32,988 | 47,594 | ||||||
Cost of revenue | 8,403 | 19,921 | ||||||
Gross profit | 24,585 | 27,673 | ||||||
Fulfillment expense | 17,137 | 24,291 | ||||||
Sales and advertising expense | 9,719 | 18,836 | ||||||
Technology and content expense | 8,284 | 12,954 | ||||||
General and administrative expense | 30,191 | 38,564 | ||||||
Other operating income | 215 | 608 | ||||||
Other operating expense | 70 | 22 | ||||||
Operating loss | (40,601 | ) | (66,386 | ) | ||||
Finance income | 18,222 | 3,687 | ||||||
Finance costs | 2,288 | 6,634 | ||||||
Loss before Income tax | (24,667 | ) | (69,333 | ) | ||||
Income tax expense | 276 | 136 | ||||||
Loss for the period | (24,943 | ) | (69,469 | ) | ||||
Attributable to: | ||||||||
Equity holders of the Company | (24,936 | ) | (69,460 | ) | ||||
Non-controlling interests | (7 | ) | (9 | ) | ||||
Loss for the period | (24,943 | ) | (69,469 | ) | ||||
Other comprehensive income/loss to be classified to profit or loss in subsequent periods | ||||||||
Exchange differences on translation of foreign operations - net of tax | (51,363 | ) | 49,475 | |||||
Other comprehensive income / (loss) on net investment in foreign operations - net of tax | 35,257 | (49,779 | ) | |||||
Other comprehensive income / (loss) on financial assets at fair value through OCI | - | (7,237 | ) | |||||
Other comprehensive income / (loss) | (16,106 | ) | (7,541 | ) | ||||
Total comprehensive loss for the period | (41,049 | ) | (77,010 | ) | ||||
Attributable to: | ||||||||
Equity holders of the Company | (41,066 | ) | (77,009 | ) | ||||
Non-controlling interests | 17 | (1 | ) | |||||
Total comprehensive loss for the period | (41,049 | ) | (77,010 | ) | ||||
(UNAUDITED)
Consolidated statement of financial position as of December 31, 2021 and March 31, 2022
| As of | ||||||||
| December 31, | March 31, | |||||||
In thousands of USD | 2021 | 2022 | ||||||
Assets | ||||||||
Non-current assets | ||||||||
Property and equipment | 21,824 | 20,826 | ||||||
Intangible assets | 327 | 292 | ||||||
Deferred tax assets | 665 | 651 | ||||||
Other non-current assets | 2,278 | 2,546 | ||||||
Total Non-current assets | 25,094 | 24,315 | ||||||
Current assets | ||||||||
Inventories | 10,948 | 16,584 | ||||||
Trade and other receivables | 18,350 | 21,085 | ||||||
Income tax receivables | 1,468 | 1,504 | ||||||
Other taxes receivables | 3,775 | 5,223 | ||||||
Prepaid expenses | 5,672 | 13,712 | ||||||
Term deposits and other financial assets | 395,715 | 332,550 | ||||||
Cash and cash equivalents | 117,090 | 88,696 | ||||||
Total Current assets | 553,018 | 479,354 | ||||||
Total Assets | 578,112 | 503,669 | ||||||
Equity and Liabilities | ||||||||
Equity | ||||||||
Share capital | 234,154 | 234,154 | ||||||
Share premium | 1,736,469 | 1,736,469 | ||||||
Other reserves | 164,675 | 165,657 | ||||||
Accumulated losses | (1,722,260 | ) | (1,791,720 | ) | ||||
Equity attributable to the equity holders of the Company | 413,038 | 344,560 | ||||||
Non-controlling interests | (454 | ) | (454 | ) | ||||
Total Equity | 412,584 | 344,106 | ||||||
Liabilities | ||||||||
Non-current liabilities | ||||||||
Non-current borrowings | 8,631 | 7,496 | ||||||
Provisions for liabilities and other charges - non-current | 676 | 1,120 | ||||||
Deferred income - non-current | 875 | 742 | ||||||
Trade and other payables - non-current | 769 | 583 | ||||||
Total Non-current liabilities | 10,951 | 9,941 | ||||||
Current liabilities | ||||||||
Current borrowings | 3,906 | 4,250 | ||||||
Trade and other payables | 76,077 | 79,005 | ||||||
Income tax payables | 13,281 | 13,114 | ||||||
Other taxes payable | 18,952 | 11,197 | ||||||
Provisions for liabilities and other charges | 36,409 | 36,552 | ||||||
Deferred income | 5,952 | 5,504 | ||||||
Total Current liabilities | 154,577 | 149,622 | ||||||
Total Liabilities | 165,528 | 159,563 | ||||||
Total Equity and Liabilities | 578,112 | 503,669 | ||||||
(UNAUDITED)
Consolidated statement of cash flows as of March 31, 2021 and 2022
| For the three months ended | ||||||||
| March 31, | March 31, | |||||||
In thousands of USD | 2021 | 2022 | ||||||
Loss before Income tax | (24,667 | ) | (69,337 | ) | ||||
Depreciation and amortization of tangible and intangible assets | 2,302 | 2,632 | ||||||
Impairment losses on loans, receivables and other assets | 594 | 991 | ||||||
Impairment losses on obsolete inventories | 330 | 431 | ||||||
Share-based payment expense | 5,754 | 8,440 | ||||||
Net (gain)/loss from disposal of tangible and intangible assets | 31 | - | ||||||
Change in provision for other liabilities and charges | 988 | 817 | ||||||
Lease modification (income)/expense | (7 | ) | (1 | ) | ||||
Interest (income)/expenses | 361 | (909 | ) | |||||
Net foreign exchange (gain)/loss | (15,087 | ) | (367 | ) | ||||
Net (gain)/loss on financial instruments at fair value through profit or loss | - | 5,116 | ||||||
(Increase)/Decrease in trade and other receivables, prepayments and VAT receivables | 639 | (14,204 | ) | |||||
(Increase)/Decrease in inventories | (1,668 | ) | (6,143 | ) | ||||
Increase/(Decrease) in trade and other payables, deferred income and VAT payables | (4,779 | ) | (2,646 | ) | ||||
Income taxes paid | (321 | ) | (408 | ) | ||||
Net cash flows used in operating activities | (35,530 | ) | (75,467 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (442 | ) | (1,646 | ) | ||||
Proceeds from disposal of property and equipment | 9 | - | ||||||
Purchase of intangible assets | (18 | ) | (19 | ) | ||||
Interest received | 48 | 758 | ||||||
Movement in other non-current assets | 28 | (327 | ) | |||||
Movement in term deposits and other financial assets | 101 | 51,183 | ||||||
Net cash flows (used in) / from investing activities | (274 | ) | 49,949 | |||||
Cash flows from financing activities | ||||||||
Interest settled - financing | (9 | ) | - | |||||
Payment of lease interest | (390 | ) | (346 | ) | ||||
Repayment of lease liabilities | (621 | ) | (1,106 | ) | ||||
Equity transaction costs | (4,903 | ) | - | |||||
Capital contributions | 245,148 | - | ||||||
Net cash flows (used in) / from financing activities | 239,225 | (1,452 | ) | |||||
Net decrease/increase in cash and cash equivalents | 203,421 | (26,970 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (7,918 | ) | (1,424 | ) | ||||
Cash and cash equivalents at the beginning of the period | 373,931 | 117,090 | ||||||
Cash and cash equivalents at the end of the period | 569,434 | 88,696 | ||||||
Forward Looking Statements
This release includes forward-looking statements. All statements other than statements of historical facts contained in this release, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "believes," "estimates", "potential" or "continue" or the negative of these terms or other similar expressions that are intended to identify forward-looking statements. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement, including, without limitation, the risks described under Item 3. "Key Information-D. Risk Factors," in our Annual Report on Form 20-F as filed with the US Securities and Exchange Commission. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements.
The forward-looking statements included in this release are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor our advisors nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Neither we nor our advisors undertake any obligation to update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations, except as may be required by law. You should read this release with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.
Non-IFRS and Other Financial and Operating Metrics
Changes, percentages, ratios and aggregate amounts presented have been calculated on the basis of unrounded figures.
This release includes certain financial measures and metrics not based on IFRS, including Adjusted EBITDA, as well as operating metrics, including Quarterly Active Consumers, Orders and GMV. We define Quarterly Active Consumers, Orders, GMV, Total Payment Volume, JumiaPay Transactions and Adjusted EBITDA as follows:
Quarterly Active Consumers means unique consumers who placed an order for a product or a service on our platform, within the 3-month period preceding the relevant date, irrespective of cancellations or returns.
We believe that Quarterly Active Consumers are useful indicators of the adoption of our offering by consumers in our markets.
Orders corresponds to the total number of orders for products and services on our platform, irrespective of cancellations or returns, for the relevant period.
We believe that the number of orders is a useful indicator to measure the total usage of our platform, irrespective of the monetary value of the individual transactions.
Gross Merchandise Value ("GMV") corresponds to the total value of orders for products and services, including shipping fees, value added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns for the relevant period.
We believe that GMV is a useful indicator for the usage of our platform that is not influenced by shifts in our sales between first-party and third-party sales or the method of payment.
We use Quarterly Active Consumers, Orders and GMV as some of many indicators to monitor usage of our platform.
Total Payment Volume ("TPV") corresponds to the total value of orders for products and services for which JumiaPay was used including shipping fees, value-added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns, for the relevant period.
We believe that TPV, which corresponds to the share of GMV for which JumiaPay was used, provides a useful indicator of the development, and adoption by consumers, of the payment services offerings we make available, directly and indirectly, through JumiaPay.
JumiaPay Transactions corresponds to the total number of orders for products and services on our marketplace for which JumiaPay was used, irrespective of cancellations or returns, for the relevant period.
We believe that JumiaPay Transactions provides a useful indicator of the development, and adoption by consumers, of the cashless payment services offerings we make available for orders on our platform irrespective of the monetary value of the individual transactions.
We use TPV and the number of JumiaPay Transactions to measure the development of our payment services and the progressive conversion of cash on delivery orders into prepaid orders.
General and administrative expense, excluding SBC, corresponds to the General & Administrative ("G&A") expense excluding share-based payment expense ("SBC"). We use this metric to measure the development of our G&A costs exclusive of the impact of SBC which is mainly a non-cash expense, influenced, in part, by share price fluctuations.
Adjusted EBITDA corresponds to loss for the period, adjusted for income tax expense (benefit), finance income, finance costs, depreciation and amortization and further adjusted for share-based payment expense.
Adjusted EBITDA is a supplemental non-IFRS measure of our operating performance that is not required by, or presented in accordance with, IFRS. Adjusted EBITDA is not a measurement of our financial performance under IFRS and should not be considered as an alternative to loss for the period, loss before income tax or any other performance measure derived in accordance with IFRS. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate Adjusted EBITDA in the same manner. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance. Management believes that investors' understanding of our performance is enhanced by including non-IFRS financial measures as a reasonable basis for comparing our ongoing results of operations. By providing this non-IFRS financial measure, together with a reconciliation to the nearest IFRS financial measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
Management uses Adjusted EBITDA:
- as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations;
- for planning purposes, including the preparation of our internal annual operating budget and financial projections;
- to evaluate the performance and effectiveness of our strategic initiatives; and
- to evaluate our capacity to expand our business.
Items excluded from this non-IFRS measure are significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for analysis of our results reported in accordance with IFRS, including loss for the period. Some of the limitations are:
- Adjusted EBITDA does not reflect our share-based payments, income tax expense (benefit) or the amounts necessary to pay our taxes;
- although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and
- other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these and other limitations by providing a reconciliation of Adjusted EBITDA to the most directly comparable IFRS financial measure, loss for the period.
The following table provides a reconciliation of loss for the period to Adjusted EBITDA for the periods indicated:
| For the three months ended | ||||||||
| March 31, | ||||||||
(USD million) | 2021 | 2022 | ||||||
Loss for the period | (24.9 | ) | (69.5 | ) | ||||
Income tax expense | 0.3 | 0.1 | ||||||
Net Finance costs / (income) | (15.9 | ) | 2.9 | |||||
Depreciation and amortization | 2.3 | 2.6 | ||||||
Share-based payment expense | 5.8 | 8.4 | ||||||
Adjusted EBITDA | (32.6 | ) | (55.3 | ) | ||||
Constant currency data
Certain metrics have also been presented on a constant currency basis. We use constant currency information to provide us with a picture of underlying business dynamics, excluding currency effects.
Constant currency metrics are calculated using the average monthly exchange rates for each month during 2021 and applying them to the corresponding months in 2022, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. Constant currency information is not a measure calculated in accordance with IFRS. While we believe that constant currency information may be useful to investors in understanding and evaluating our results of operations in the same manner as our management, our use of constant currency metrics has limitations as an analytical tool, and you should not consider it in isolation, or as an alternative to, or a substitute for analysis of our financial results as reported under IFRS. Further, other companies, including companies in our industry, may report the impact of fluctuations in foreign currency exchange rates differently, which may reduce the value of our constant currency information as a comparative measure.
The following table sets forth the constant currency data for selected metrics.
| For the three months ended March 31 | ||||||||||||||||||||||||
| As reported | YoY | As reported | Constant currency | YoY | ||||||||||||||||||||
In USD million, except percentages | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||||||||||
GMV | 198.9 | 252.7 | 27.0 | % | 198.9 | 268.1 | 34.8 | % | ||||||||||||||||
TPV | 51.7 | 70.7 | 36.7 | % | 51.7 | 75.0 | 45.1 | % | ||||||||||||||||
TPV as % of GMV | 26.0 | % | 28.0 | % | 26.0 | % | 28.0 | % | ||||||||||||||||
Gross Profit | 24.6 | 27.7 | 12.6 | % | 24.6 | 29.3 | 19.3 | % | ||||||||||||||||
Fulfillment expense | (17.1 | ) | (24.3 | ) | 41.7 | % | (17.1 | ) | (25.8 | ) | 50.3 | % | ||||||||||||
Gross Profit after Fulfillment expense | 7.4 | 3.4 | (54.6) | % | 7.4 | 3.6 | (52.2) | % | ||||||||||||||||
Sales and Advertising expense | (9.7 | ) | (18.8 | ) | 93.8 | % | (9.7 | ) | (19.3 | ) | 98.6 | % | ||||||||||||
Technology and Content expense | (8.3 | ) | (13.0 | ) | 56.4 | % | (8.3 | ) | (13.4 | ) | 61.7 | % | ||||||||||||
G&A expense, excluding SBC | (24.4 | ) | (30.1 | ) | 23.3 | % | (24.4 | ) | (31.7 | ) | 29.7 | % | ||||||||||||
Adjusted EBITDA | (32.6 | ) | (55.3 | ) | 69.9 | % | (32.6 | ) | (57.4 | ) | 76.4 | % | ||||||||||||
Operating Loss | (40.6 | ) | (66.4 | ) | 63.5 | % | (40.6 | ) | (68.6 | ) | 69.0 | % | ||||||||||||
CONTACT:
Safae Damir
Head of Investor Relations
investor-relations@jumia.com
Abdesslam Benzitouni
Head of PR and Communications
press@jumia.com
SOURCE: Jumia Technologies AG
View source version on accesswire.com:
https://www.accesswire.com/701699/Jumia-Reports-First-Quarter-2022-Results
FAQ
What were Jumia's revenue figures for Q1 2022?
How much did orders increase for Jumia in Q1 2022?
What is the GMV growth percentage for Jumia in Q1 2022?
What was the operating loss reported by Jumia for Q1 2022?
What are Jumia's future expectations regarding GMV growth?
