Jumia Reports Fourth Quarter and Full Year 2023 Results
- Revenue declined by 2% year-over-year but increased by 28% in constant currency.
- Operating loss reduced by 90% year-over-year.
- Liquidity position improved with a decrease in cash utilization.
- Focus on efficiency and better unit economics to drive growth in 2024.
- Reduced marketing spend by 68% in 2023 to improve financials.
- None.
Insights
The financial results reported by Jumia Technologies AG reflect a company in transition, with a strategic focus on cost reduction and operational efficiency. The significant decrease in operating loss from $45 million to $4 million year-over-year indicates a successful implementation of cost-saving measures. However, the decline in revenue and Gross Merchandise Value (GMV) suggests that these measures may have come at the expense of top-line growth. The company's liquidity position, while lower by $27 million compared to the previous year, remains robust at $121 million, providing a cushion for future operations.
Investors should note the company's forecast for a return to growth in 2024, which implies confidence in the sustainability of their strategic choices. However, the emphasis on cost-cutting and reduced marketing spend raises questions about long-term customer acquisition and retention strategies. The balance between cost efficiency and growth will be crucial for Jumia's future performance.
The macroeconomic context in which Jumia operates, particularly in African markets, is characterized by high inflation rates and currency depreciation. These conditions have contributed to the company's reported revenue decline in absolute terms, but an increase in constant currency terms. This highlights the impact of exchange rate fluctuations on Jumia's financials, with the Nigerian Naira's depreciation notably affecting the company's GMV.
Investors should consider the broader economic environment, including consumer purchasing power and supply chain issues, when evaluating Jumia's potential for growth. The company's ability to navigate these challenges while reducing cash utilization and improving unit economics will be key to its success.
Jumia's focus on physical goods and the discontinuation of its food delivery operations reflect a strategic pivot towards areas with higher margins and growth potential. The reduction in Sales and Advertising expense by 68% year-over-year, while unusual for an e-commerce platform, indicates a shift towards organic growth and improved unit economics.
The reported growth in GMV of physical goods in five operating countries, despite an overall decline, suggests that Jumia's transformation efforts are yielding positive results in specific markets. The challenge will be to replicate this success across all operating countries. Additionally, the increased use of JumiaPay, with 45% of orders completed using the platform, indicates a strengthening of Jumia's ecosystem, which could enhance customer loyalty and transaction volumes.
Improvement in growth trends and significant reduction in operating loss, validating strategic choices
Forecasting to return to growth in 2024 and to further reduce cash utilization
LAGOS, NIGERIA / ACCESSWIRE / February 15, 2024 /- Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the fourth quarter ended December 31, 2023.
Results highlights for the fourth quarter 2023
- Revenue of
$59 million , down2% year-over-year, and up28% in constant currency. - GMV of
$233 million , down8% year-over-year, and up21% in constant currency. - Operating loss of
$4 million compared to$45 million in the fourth quarter of 2022, down90% year-over-year, and down101% in constant currency. - Adjusted EBITDA loss of
$1 million compared to a loss of$44 million in the fourth quarter of 2022, down99% year-over-year, and down111% in constant currency. - Loss before Income tax from continuing operations of
$17 million compared to$45 million in the fourth quarter of 2022, down62% year-over-year, and down66% in constant currency. - Liquidity position of
$121 million marking a decrease of$27 million in the fourth quarter of 2023 compared to a decrease of$57 million in the fourth quarter of 2022. - Net cash flows used in operating activities
$10 million compared to$53 million in the fourth quarter of 2022, down80% year-over-year.
Results highlights for the full year 2023
- Revenue of
$186 million , down8% year-over-year, and up20% in constant currency. - GMV of
$750 million , down20% year-over-year, and up1% in constant currency. - Operating loss of
$73 million compared to$202 million in 2022, down64% year-over-year, and down64% in constant currency. - Adjusted EBITDA loss of
$58 million compared to a loss of$182 million in 2022, down68% year-over-year, and down70% in constant currency. - Loss before Income tax from continuing operations of
$99 million compared to$206 million in 2022, down52% year-over-year, and down47% in constant currency. - Liquidity position of
$121 million marking a decrease of$107 million in 2023 compared to a decrease of$285 million in 2022. - Net cash flows used in operating activities
$74 million compared to$240 million in 2022, down69% year-over-year.
| For the three months ended | For the year ended | |||||||||||||||||||||||||||||||||||||||
| As reported | Constant currency | As reported | Constant currency | |||||||||||||||||||||||||||||||||||||
In USD million, unless otherwise stated | December 31, 2022 (2) | December 31, 2023 (2) | YoY Change | December 31, 2023 (2) | YoY Change | December 31, 2022 (2) | December 31, 2023 (2) | YoY Change | December 31, 2023 (2) | YoY Change | ||||||||||||||||||||||||||||||
Revenue | 60.6 | 59.4 | (1.9) | % | 77.6 | 28.2 | % | 203.3 | 186.4 | (8.3) | % | 244.7 | 20.4 | % | ||||||||||||||||||||||||||
Gross Profit (1) | 37.3 | 37.1 | (0.6) | % | 50.8 | 36.2 | % | 118.2 | 107.1 | (9.4) | % | 138.2 | 17.0 | % | ||||||||||||||||||||||||||
Fulfillment expense (1) | (18.6 | ) | (11.7 | ) | (37.0) | % | (15.6 | ) | (16.0) | % | (76.8 | ) | (43.9 | ) | (42.8) | % | (55.9 | ) | (27.2) | % | ||||||||||||||||||||
Sales and Advertising expense | (16.8 | ) | (6.2 | ) | (62.8) | % | (8.5 | ) | (49.4) | % | (66.9 | ) | (21.5 | ) | (67.9) | % | (26.2 | ) | (60.9) | % | ||||||||||||||||||||
Technology and Content expense | (13.7 | ) | (9.9 | ) | (27.7) | % | (9.9 | ) | (27.7) | % | (52.4 | ) | (41.5 | ) | (20.8) | % | (42.8 | ) | (18.3) | % | ||||||||||||||||||||
G&A expense, excluding SBC (1) | (32.4 | ) | (12.3 | ) | (62.2) | % | (15.0 | ) | (53.8) | % | (114.0 | ) | (69.2 | ) | (39.3) | % | (81.4 | ) | (28.6) | % | ||||||||||||||||||||
Adjusted EBITDA | (44.1 | ) | (0.6 | ) | (98.5) | % | 4.7 | (110.7) | % | (182.1 | ) | (58.2 | ) | (68.0) | % | (55.2 | ) | (69.7) | % | |||||||||||||||||||||
Operating Income/ (Loss) | (44.7 | ) | (4.5 | ) | (90.0) | % | 0.4 | (100.9) | % | (201.8 | ) | (73.3 | ) | (63.7) | % | (72.2 | ) | (64.2) | % | |||||||||||||||||||||
Loss before Income tax from continuing operations | (44.6 | ) | (17.1 | ) | (61.6) | % | (15.3 | ) | (65.7) | % | (206.2 | ) | (98.6 | ) | (52.2) | % | (109.3 | ) | (47.0) | % | ||||||||||||||||||||
Quarterly Active Customers (million) | 2.8 | 2.3 | (16.3) | % | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | |||||||||||||||||||||||||||||
Orders (million) | 6.9 | 6.6 | (3.7) | % | n.a. | n.a. | 27.5 | 21.3 | (22.4) | % | n.a. | n.a. | ||||||||||||||||||||||||||||
Gross Merchandise Value ("GMV") | 252.4 | 233.3 | (7.6) | % | 305.8 | 21.1 | % | 932.5 | 749.8 | (19.6) | % | 942.9 | 1.1 | % | ||||||||||||||||||||||||||
Total Payment Value ("TPV") | 65.8 | 59.3 | (9.9) | % | 86.6 | 31.7 | % | 256.2 | 192.2 | (25.0) | % | 263.3 | 2.8 | % | ||||||||||||||||||||||||||
TPV as of GMV | 26.1 | % | 25.4 | % | 28.3 | % | 27.5 | % | 25.6 | % | 27.9 | % | ||||||||||||||||||||||||||||
_________________________
(1) Restated 2022 figures to reflect the impact of i) the restatement of direct costs of providing logistic services to non-sellers at Jumia from ‘Fulfillment Expense' to ‘Cost of Revenue', ii) the reclassification of payment processing costs from ‘Cost of Revenue' to ‘Fulfillment Expense‘ and iii) the reclassification of payment processing costs from ‘General and Administrative Expense' to ‘Fulfillment Expense'. In the appendix, we have provided restated quarterly 2022 figures for ‘Cost of Revenue', ‘Gross Profit', ‘Fulfillment Expense' and ‘G&A Expense, excluding SBC'. Further information on our accounting policy changes can be found in our Annual Report on Form 20-F for 2022.
(2) All periods adjusted for exclusion of food delivery operations in 2023.
Dear Shareholders,
2023 has been a transformative year for Jumia.
Upheavals on the global stage have had a significant impact on African economies and its people. High inflation rates and currency depreciation have led to a scarcity of supply and have adversely impacted the purchasing power of customers. These have been challenging times for tech and retail businesses across the continent.
Against that unsettling backdrop, we embarked on a fundamental transformation of our company in order to rapidly improve our financials and establish a stronger foundation for our e-commerce business. This transformation obviously came with a painful short-term impact, as we discontinued activities with poor growth prospects, stopped expensive marketing practices, and radically streamlined our organization.
These bold, swift and early decisions have paid off yet we still have some way to go . We have closed 2023 in a much stronger position, looking at both financials and business fundamentals. Our Adjusted EBITDA loss for the full year of 2023 decreased to
Although GMV for the full year of 2023 declined by
1. Efficiency and better unit economics do not come at the expense of future growth.
We believe that Jumia is now a much leaner, more agile and more focused company. We have reevaluated our portfolio and made tough decisions regarding business activities that did not bring the right value. Recently, we discontinued our food delivery operations as we concluded that the growth prospects did not justify the complexity it created. We believe our focus and resources will be better invested in our physical goods business, where we see more opportunity for revenue growth and higher margins.
We have achieved savings across the whole organization, by shrinking General and Administrative Expense as well as significantly improving operational efficiency. We believe that these changes are enabling better output and laying the foundations for growth in 2024. Smaller and more agile teams can concentrate effectively on key priorities and are benefiting from strategic alignment across all countries and functions. Similarly, we believe that leaner logistics operations will enable us to enter new cities without compromising profitability.
We experienced positive year-over-year growth in GMV of physical goods in five of our eleven operating countries over two consecutive quarters of 2023, while significantly improving unit economics. Looking at all countries, the year-over-year GMV trajectory is improving quarter after quarter, reaching a decline of
2. We have proved that we can grow without disproportionate marketing spend.
Based on our experience across eleven operating countries for over 10 years, at Jumia, we believe that there is a lot of demand from African customers. However, this demand remains poorly served due to inconsistent supply and prices across different countries and cities. Our mission at Jumia is to bridge this gap between brands and suppliers on one hand and customers on the other hand. We are committed to building better supply in our priority categories (Phones, Electronics, Home & Living, Fashion and Beauty), by working closely with local sellers, global brands, and international sellers.
Along with our strategic focus to improve supply in priority categories, we have deliberately reduced our Sales and Advertising expense by
After four consecutive quarters of consistently low marketing expenditures, we believe that we have proven our case. In addition to GMV growth in selected countries, we have successfully run large promotional events, such as Black Friday, with very lean marketing budgets (as reflected in the fourth quarter of 2023 figures disclosed below).
Looking at 2024, we are fully committed to bringing our business back to growth, while further reducing losses.
We will continue to focus on our growth priorities in 2024, which are consistent with our efforts in 2023. In particular, we believe that there is still significant untapped potential for growth in all of our priority categories over the next several years. By executing consistently over time, we believe that we will be able to unlock a substantial amount of value.
We look at the recent quarters as clear steps towards our strategic focus, positioning us for topline growth and improved cash utilization for 2024. With the macro situation in several of our African markets starting to recover, we are confident that Jumia has never been in a better position to capture the unique opportunity of e-commerce in Africa.
On a more personal note, as I look back at this first year as CEO of Jumia, I am particularly proud of our company's resilience and its ability to change and adapt fast. I am grateful for what our employees have achieved within this short timeframe, in a challenging context. More than ever, we are committed to provide the best service possible to our customers and sellers, and build a successful business across the continent.
Francis Dufay |
Chief Executive Officer and |
Member of the Management Board |
SELECTED OPERATIONAL KPIs
- Marketplace KPIs
| For the three months ended | For the year ended | |||||||||||||||||||||||||||||||||||||||
| As Reported | Constant currency | As Reported | Constant currency | |||||||||||||||||||||||||||||||||||||
| December 31, 2022 | December 31, 2023 | YoY Change | December 31, 2023 | YoY Change | December 31, 2022 | December 31, 2023 | YoY Change | December 31, 2023 | YoY Change | |||||||||||||||||||||||||||||||
Quarterly Active Customers (million) (1) | 2.8 | 2.3 | (16.3) | % | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | |||||||||||||||||||||||||||||
Orders (million) (1) | 6.9 | 6.6 | (3.7) | % | n.a. | n.a. | 27.5 | 21.3 | (22.4) | % | n.a. | n.a. | ||||||||||||||||||||||||||||
GMV (USD million) (1) | 252.4 | 233.3 | (7.6) | % | 305.8 | 21.1 | % | 932.5 | 749.8 | (19.6) | % | 942.9 | 1.1 | % | ||||||||||||||||||||||||||
_________________________
(1) All periods adjusted for exclusion of food delivery operations in 2023.
- Quarterly Active Customers and Orders decreased by
16% and4% year-over-year, respectively, largely driven by deliberate decisions to focus on core categories and reduce customer incentives. - GMV in the fourth quarter of 2023declined by
8% year-over-year, and increased by21% year-over-year on a constant currency basis. - Foreign exchange was a significant headwind to GMV performance with 8 out of 10 local currencies in our countries of operation depreciating against the US Dollar in 2023, compared to 2022. Notably, the Naira experienced a
100% depreciation against the US Dollar, falling from a rate of USD/NGN 448 as of December 31, 2022 to a rate of USD/NGN 897 as of December 31, 2023. This foreign exchange development was the main contributor to our reported GMV decline year-over-year. - Five countries experienced positive year-over-year GMV growth (both as reported and on a constant currency basis), for the second quarter in a row.
- Quarter-over-quarter trends show meaningful progress on all usage KPIs:
- Quarterly Active Customers, Orders and GMV increased by
16% ,17% and42% quarter-over-quarter, respectively. - This increase was driven by a successful Black Friday campaign and strong sales over the Christmas season. This came as a result of strong preparation and planning on the supply side, leveraging a wide range of sourcing options, including local and international marketplace sellers, and corporate sales (primarily Egypt).
- This demonstrates that we are able to drive meaningful sales uplift while maintaining deliberately low marketing expenditures, thanks to our focus on improved value proposition, primarily through strong selection and prices. This gives us confidence in our ability to grow again in 2024, with healthy economics.
3. JumiaPay KPIs
| For the three months ended | For the year ended | |||||||||||||||||||||||||||||||||||||||
| As Reported | Constant currency | As Reported | Constant currency | |||||||||||||||||||||||||||||||||||||
| December 31, 2022 | December 31, 2023 | YoY Change | December 31, 2023 | YoY Change | December 31, 2022 | December 31, 2023 | YoY Change | December 31, 2023 | YoY Change | |||||||||||||||||||||||||||||||
TPV (USD million) (1) | 65.8 | 59.3 | (9.9) | % | 86.6 | 31.7 | % | 256.2 | 192.2 | (25.0) | % | 263.3 | - | |||||||||||||||||||||||||||
JumiaPay Transactions (million) (1) | 2.1 | 3.0 | 41.2 | % | n.a. | n.a. | 9.7 | 8.4 | (13.4) | % | n.a. | n.a. | ||||||||||||||||||||||||||||
_________________________
(1) All periods adjusted for exclusion of food delivery operations in 2023.
- TPV was
$59.3 million in the fourth quarter of 2023, down10% year-over-year and up32% on a constant currency basis. In the fourth quarter of 2023, TPV as a percentage of GMV remained stable at approximately25% compared to the same period in 2022. - JumiaPay Transactions reached 3.0 million in the fourth quarter of 2023, up
41% year-over-year.45% of Orders placed on the Jumia platform in the fourth quarter of 2023 were completed using JumiaPay, compared to31% in the fourth quarter of 2022. This increase was mostly attributable to an increase in the percentage of orders on our physical goods platform completed using JumiaPay. This evolution is consistent with our goal to enable easier, cashless payments on our physical goods platform via JumiaPay.
SELECTED FINANCIAL INFORMATION
| For the three months ended | For the year ended | |||||||||||||||||||||||||||||||||||||||
| As Reported | Constant currency | As Reported | Constant currency | |||||||||||||||||||||||||||||||||||||
(USD million) | December 31, 2022 (2) | December 31, 2023 (2) | YoY Change | December 31, 2023 (2) | YoY Change | December 31, 2022 (2) | December 31, 2023 (2) | YoY Change | December 31, 2023 (2) | YoY Change | ||||||||||||||||||||||||||||||
Revenue | 60.6 | 59.4 | (1.9) | % | 77.6 | 28.2 | % | 203.3 | 186.4 | (8.3) | % | 244.7 | 20.4 | % | ||||||||||||||||||||||||||
Marketplace revenue | 36.6 | 32.9 | (10.3) | % | 44.6 | 21.7 | % | 115.1 | 97.8 | (15.0) | % | 124.9 | 8.5 | % | ||||||||||||||||||||||||||
Commissions | 13.5 | 19.3 | 43.1 | % | 27.9 | 106.9 | % | 39.9 | 46.7 | 17.0 | % | 61.7 | 54.7 | % | ||||||||||||||||||||||||||
Fulfillment | 6.7 | 4.9 | (26.1) | % | 6.5 | (2.9) | % | 26.1 | 18.5 | (29.0) | % | 23.2 | (11.2) | % | ||||||||||||||||||||||||||
Marketing & Advertising | 7.2 | 3.7 | (47.7) | % | 3.7 | (48.7) | % | 16.9 | 12.4 | (26.8) | % | 14.9 | (11.8) | % | ||||||||||||||||||||||||||
Value Added Services | 9.3 | 4.9 | (47.7) | % | 6.5 | (29.9) | % | 32.2 | 20.3 | (37.1) | % | 25.1 | (22.2) | % | ||||||||||||||||||||||||||
First-Party sales | 22.5 | 26.1 | 16.0 | % | 32.4 | 43.8 | % | 81.7 | 86.4 | 5.7 | % | 117.2 | 43.4 | % | ||||||||||||||||||||||||||
Other revenue | 1.4 | 0.4 | (70.5) | % | 0.6 | (54.0) | % | 6.4 | 2.2 | (66.2) | % | 2.6 | (59.0) | % | ||||||||||||||||||||||||||
Gross Profit (1) | 37.3 | 37.1 | (0.6) | % | 50.8 | 36.2 | % | 118.2 | 107.1 | (9.4) | % | 138.2 | 17.0 | % | ||||||||||||||||||||||||||
Fulfillment expense (1) | (18.6 | ) | (11.7 | ) | (37.0) | % | (15.6 | ) | (16.0) | % | (76.8 | ) | (43.9 | ) | (42.8) | % | (55.9 | ) | (27.2) | % | ||||||||||||||||||||
Sales and Advertising expense | (16.8 | ) | (6.2 | ) | (62.8) | % | (8.5 | ) | (49.4) | % | (66.9 | ) | (21.5 | ) | (67.9) | % | (26.2 | ) | (60.9) | % | ||||||||||||||||||||
Technology and Content expense | (13.7 | ) | (9.9 | ) | (27.7) | % | (9.9 | ) | (27.7) | % | (52.4 | ) | (41.5 | ) | (20.8) | % | (42.8 | ) | (18.3) | % | ||||||||||||||||||||
General and Administrative expense ("G&A") (1) | (30.1 | ) | (13.9 | ) | (53.6) | % | (16.6 | ) | (44.6) | % | (122.2 | ) | (74.4 | ) | (39.1) | % | (86.6 | ) | (29.1) | % | ||||||||||||||||||||
of which Share Based Compensation ("SBC") | 2.3 | (1.7 | ) | 171.8 | % | (1.7 | ) | (171.7) | % | (8.2 | ) | (5.3 | ) | (35.9) | % | (5.3 | ) | (36.0) | % | |||||||||||||||||||||
G&A expense, excluding SBC (1) | (32.4 | ) | (12.3 | ) | (62.2) | % | (15.0 | ) | (53.8) | % | (114.0 | ) | (69.2 | ) | (39.3) | % | (81.4 | ) | (28.6) | % | ||||||||||||||||||||
Adjusted EBITDA | (44.1 | ) | (0.6 | ) | (98.5) | % | 4.7 | (110.7) | % | (182.1 | ) | (58.2 | ) | (68.0) | % | (55.2 | ) | (69.7) | % | |||||||||||||||||||||
Operating income / (loss) | (44.7 | ) | (4.5 | ) | (90.0) | % | 0.4 | (100.9) | % | (201.8 | ) | (73.3 | ) | (63.7) | % | (72.2 | ) | (64.2) | % | |||||||||||||||||||||
Loss before Income tax from continuing operations | (44.6 | ) | (17.1 | ) | (61.6) | % | (15.3 | ) | (65.7) | % | (206.2 | ) | (98.6 | ) | (52.2) | % | (109.3 | ) | (47.0) | % | ||||||||||||||||||||
_________________________
(1) Restated 2022 figures to reflect the impact of i) the restatement of direct costs of providing logistic services to non-sellers at Jumia from ‘Fulfillment Expense' to ‘Cost of Revenue', ii) the reclassification of payment processing costs from ‘Cost of Revenue' to ‘Fulfillment Expense‘ and iii) the reclassification of payment processing costs from ‘General and Administrative Expense' to ‘Fulfillment Expense'. In the appendix, we have provided restated quarterly 2022 figures for ‘Cost of Revenue', ‘Gross Profit', ‘Fulfillment Expense' and ‘G&A Expense, excluding SBC'. Further information on our accounting policy changes can be found in our Annual Report on Form 20-F for 2022.
(2) All periods adjusted for exclusion of food delivery operations in 2023.
Revenue
- Revenue reached
$59.4 million in the fourth quarter of 2023, down2% year-over-year and up28% on a constant currency basis.- Revenue from First-Party sales was
$26.1 million , up16% year-over-year and44% on a constant currency basis.
- Revenue from First-Party sales was
- Marketplace revenue reached
$32.9 million in the fourth quarter of 2023, down10% year-over-year and up22% on a constant currency basis. - While foreign exchange effects were a significant headwind to Revenue performance, we experienced growth in Commissions within our Marketplace revenue and in First-Party sales driven by growth in corporate sales to local and regional retailers, distributors and other corporate buyers in selected countries (primarily Egypt).
Gross Profit
Gross profit reached
Fulfillment expense
Fulfillment expense amounted to
Sales and Advertising expense
Sales and Advertising expense amounted to
Technology and Content expense
Technology and Content expense reached
General and Administrative expense
General and Administrative expense, reached
Operating loss
Operating loss was
Loss before Income tax from continuing operations was
Cash Position
- As of December 31, 2023, our liquidity position reached
$120.6 million comprised of$35.5 million in cash and cash equivalents and$85.1 million in term deposits and other financial assets. Our liquidity position as of September 30, 2023 amounted to$147.4 million , which marks a decrease of$26.8 million in the fourth quarter of 2023 compared to a decrease of$57.3 million in the fourth quarter of 2022, and a decrease of$18.9 million in the third quarter of 2023. Our liquidity position as of December 31, 2022 was$227.4 million , which marks a decrease of$106.9 million , in the year ended December 31, 2023 compared to a decrease of$285.4 million , in the year ended December 31, 2022. The reduction in the pace of the decrease of our liquidity illustrates our efforts to preserve our available cash resources. - Foreign exchange has been a significant headwind to our liquidity position, contributing a negative impact of
$3.2 million in the fourth quarter of 2023 compared to a negative impact of$2.1 million in the fourth quarter of 2022. The negative impact of foreign exchange movements on our reported liquidity position amounted to$18.2 million in 2023 compared to$8.8 million in 2022. - Net cash flows used in operating activities reached
$10.3 million , in the fourth quarter of 2023 down by80% compared to the same period in 2022.
GUIDANCE
We remain committed to reducing our losses and accelerating our progress towards cash efficiency and profitable growth.
Looking at 2024,
- We aim to further reduce our cash utilization compared to 2023.
- Based on the positive impact of our growth strategy, we project an increase in both orders and Gross Merchandise Value (GMV) in 2024, excluding potential impact of foreign exchange.
The above forward-looking statements reflect our expectations as of February 15, 2024, are subject to change and involve inherent risks, which are partially or fully beyond our control. These risks include but are not limited to political and economic conditions across countries where we operate, the broader economic impact of the ongoing Russia-Ukraine conflict and global supply chain issues.
CONFERENCE CALL AND WEBCAST INFORMATION
Jumia will host a conference call today, February 15th, 2024 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
UK: 44 20 3355 4169
International: 973-528-0011
Entry Code: 458593
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 December 31, 2022 and 2023
| For the three months ended | For the year ended | |||||||||||||||
In thousands of USD | December 31, 2022 (2) | December 31, 2023 (2) | December 31, 2022 (2) | December 31, 2023 (2) | ||||||||||||
Revenue | 60,553 | 59,406 | 203,300 | 186,402 | ||||||||||||
Cost of revenue (1) | (23,249 | ) | (22,341 | ) | (85,127 | ) | (79,298 | ) | ||||||||
Gross profit (1) | 37,304 | 37,065 | 118,173 | 107,104 | ||||||||||||
Fulfillment expense (1) | (18,565 | ) | (11,699 | ) | (76,783 | ) | (43,884 | ) | ||||||||
Sales and advertising expense | (16,771 | ) | (6,235 | ) | (66,859 | ) | (21,458 | ) | ||||||||
Technology and content expense | (13,714 | ) | (9,920 | ) | (52,411 | ) | (41,528 | ) | ||||||||
General and administrative expense (1) | (30,052 | ) | (13,942 | ) | (122,211 | ) | (74,425 | ) | ||||||||
Other operating income | 795 | 496 | 2,086 | 1,203 | ||||||||||||
Other operating expense | (25 | ) | (233 | ) | (86 | ) | (320 | ) | ||||||||
Termination Benefits | (3,706 | ) | - | (3,706 | ) | - | ||||||||||
Operating loss | (44,734 | ) | (4,468 | ) | (201,797 | ) | (73,308 | ) | ||||||||
Finance income | 4,928 | (1,594 | ) | 15,253 | 6,189 | |||||||||||
Finance costs | (4,772 | ) | (11,060 | ) | (19,618 | ) | (31,481 | ) | ||||||||
Loss before Income tax from continuing operations | (44,578 | ) | (17,122 | ) | (206,162 | ) | (98,600 | ) | ||||||||
Income tax benefit/ (expense) | (5,783 | ) | 572 | (6,979 | ) | (661 | ) | |||||||||
Loss for the period from continuing operations | (50,361 | ) | (16,550 | ) | (213,141 | ) | (99,261 | ) | ||||||||
Loss for the period from discontinued operations | (4,921 | ) | (1,092 | ) | (25,128 | ) | (4,917 | ) | ||||||||
Loss for the period | (55,282 | ) | (17,642 | ) | (238,269 | ) | (104,178 | ) | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of the Company | (55,239 | ) | (17,646 | ) | (238,232 | ) | (104,155 | ) | ||||||||
from continuing operations | (50,319 | ) | (16,554 | ) | (213,104 | ) | (99,238 | ) | ||||||||
from discontinued operations | (4,921 | ) | (1,092 | ) | (25,128 | ) | (4,917 | ) | ||||||||
Non-controlling interests | (43 | ) | 4 | (37 | ) | (23 | ) | |||||||||
from continuing operations | (43 | ) | 4 | (37 | ) | (23 | ) | |||||||||
Loss for the period | (55,282 | ) | (17,642 | ) | (238,269 | ) | (104,178 | ) | ||||||||
Other comprehensive income / (loss) to be classified to profit or loss in subsequent periods | ||||||||||||||||
Exchange differences gain on translation of foreign operations | 44,512 | 17,974 | 178,932 | 218,516 | ||||||||||||
Other comprehensive loss on net investment in foreign operations | (45,454 | ) | (21,598 | ) | (182,501 | ) | (228,976 | ) | ||||||||
Other comprehensive income / (loss) on financial assets at fair value through OCI | 4,813 | 1,265 | (5,672 | ) | 3,793 | |||||||||||
Other comprehensive income / (loss) | 3,871 | (2,359 | ) | (9,241 | ) | (6,667 | ) | |||||||||
Total comprehensive loss for the period | (51,411 | ) | (20,001 | ) | (247,510 | ) | (110,845 | ) | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of the Company | (51,365 | ) | (19,988 | ) | (247,490 | ) | (110,803 | ) | ||||||||
Non-controlling interests | (46 | ) | (13 | ) | (20 | ) | (42 | ) | ||||||||
Total comprehensive loss for the period | (51,411 | ) | (20,001 | ) | (247,510 | ) | (110,845 | ) | ||||||||
_________________________
(1) Restated 2022 figures to reflect the impact of i) the restatement of direct costs of providing logistic services to non-sellers at Jumia from ‘Fulfillment Expense' to ‘Cost of Revenue', ii) the reclassification of payment processing costs from ‘Cost of Revenue' to ‘Fulfillment Expense‘ and iii) the reclassification of payment processing costs from ‘General and Administrative Expense' to ‘Fulfillment Expense'. In the appendix, we have provided restated quarterly 2022 figures for ‘Cost of Revenue', ‘Gross Profit', ‘Fulfillment Expense' and ‘G&A Expense, excluding SBC'. Further information on our accounting policy changes can be found in our Annual Report on Form 20-F for 2022.
(2) Adjusted for discontinued food delivery operations in 2023.
(UNAUDITED)
Consolidated statement of financial position as of December 31, 2022 and December 31, 2023
| As of | ||||||||
In thousands of USD | December 31, 2022 | December 31, 2023 | ||||||
Assets | ||||||||
Non-current assets | ||||||||
Property and equipment | 28,498 | 14,361 | ||||||
Deferred tax assets | 710 | 531 | ||||||
Other taxes receivables | 5,967 | 4,721 | ||||||
Other non-current assets | 3,589 | 1,289 | ||||||
Total Non-current assets | 38,764 | 20,902 | ||||||
Current assets | ||||||||
Inventories | 11,437 | 9,699 | ||||||
Trade and other receivables | 23,101 | 24,703 | ||||||
Income tax receivables | 1,792 | 2,278 | ||||||
Other taxes receivable | 6,368 | 4,367 | ||||||
Prepaid expenses | 21,334 | 9,624 | ||||||
Term deposits and other financial assets | 155,846 | 85,088 | ||||||
Cash and cash equivalents | 71,579 | 35,483 | ||||||
Total Current assets | 291,457 | 171,242 | ||||||
Total Assets | 330,221 | 192,144 | ||||||
Equity and Liabilities | ||||||||
Equity | ||||||||
Share capital | 235,659 | 236,800 | ||||||
Share premium | 1,736,469 | 1,736,469 | ||||||
Other reserves | 163,174 | 160,729 | ||||||
Accumulated losses | (1,960,584 | ) | (2,064,763 | ) | ||||
Equity attributable to the equity holders of the Company | 174,718 | 69,235 | ||||||
Non-controlling interests | (469 | ) | (511 | ) | ||||
Total Equity | 174,249 | 68,724 | ||||||
Liabilities | ||||||||
Non-current liabilities | ||||||||
Non-current borrowings | 8,709 | 2,357 | ||||||
Trade and other payables | 209 | 125 | ||||||
Deferred tax liabilities | 899 | 204 | ||||||
Other taxes payable | 1,749 | 474 | ||||||
Provisions for liabilities and other charges | 889 | 514 | ||||||
Deferred income | 345 | - | ||||||
Total Non-current liabilities | 12,800 | 3,674 | ||||||
Current liabilities | ||||||||
Current borrowings | 5,138 | 3,718 | ||||||
Trade and other payables | 64,230 | 56,904 | ||||||
Income tax payables | 12,986 | 13,705 | ||||||
Other taxes payable | 20,947 | 23,452 | ||||||
Provisions for liabilities and other charges | 35,899 | 18,420 | ||||||
Deferred income | 3,972 | 3,547 | ||||||
Total Current liabilities | 143,172 | 119,746 | ||||||
Total Liabilities | 155,972 | 123,420 | ||||||
Total Equity and Liabilities | 330,221 | 192,144 | ||||||
(UNAUDITED)
Consolidated statement of cash flows as of December 31, 2022 and 2023
| For the three months ended | For the year ended | |||||||||||||||
In thousands of USD | December 31, 2022 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||||
Loss before Income tax from continuing operations | (44,579 | ) | (17,122 | ) | (206,162 | ) | (98,600 | ) | ||||||||
Loss before Income tax from discontinued operations | (4,921 | ) | (1,092 | ) | (25,128 | ) | (4,917 | ) | ||||||||
Loss before Income tax | (49,500 | ) | (18,214 | ) | (231,290 | ) | (103,517 | ) | ||||||||
Depreciation and amortization of tangible and intangible assets | 2,992 | 2,160 | 11,646 | 9,841 | ||||||||||||
Impairment losses on loans, receivables and other assets | 2,546 | 23 | 6,008 | 1,054 | ||||||||||||
Impairment losses/(reversals) on obsolete inventories | (163 | ) | (56 | ) | 1,947 | 215 | ||||||||||
Share-based payment (income) / expense | (2,345 | ) | 1,683 | 8,240 | 5,276 | |||||||||||
Net (gain)/loss from disposal of tangible and intangible assets | 30 | 203 | 35 | 173 | ||||||||||||
Change in provision for other liabilities and charges | 4,479 | (7,784 | ) | 473 | (17,089 | ) | ||||||||||
Lease modification (income)/expense | 10 | (52 | ) | 23 | (25 | ) | ||||||||||
Interest (income)/expense | (805 | ) | 357 | (2,721 | ) | (2,353 | ) | |||||||||
Net foreign exchange loss | 3,613 | 2,895 | 5,517 | 10,942 | ||||||||||||
Discounting effect (income) / expense | 486 | 6 | 486 | (73 | ) | |||||||||||
Net (gain)/loss on financial instruments at fair value through profit or loss | (1,007 | ) | 12,917 | 7,167 | 13,364 | |||||||||||
Impairment reversals on financial assets at fair value through OCI | - | - | (35 | ) | - | |||||||||||
Net loss recognized on disposal of debt instruments held at FVOCI | - | 976 | 2,290 | 3,908 | ||||||||||||
Share-based payment expense - settlement | (16 | ) | (30 | ) | (444 | ) | (291 | ) | ||||||||
(Increase)/Decrease in trade and other receivables, prepaid expenses and other tax receivables | (22,457 | ) | (2,963 | ) | (39,526 | ) | 6,089 | |||||||||
(Increase)/Decrease in inventories | 879 | (3,577 | ) | (4,036 | ) | (236 | ) | |||||||||
Increase/(Decrease) in trade and other payables, deferred income and other tax payables | 9,210 | 2,298 | (3,099 | ) | 1,867 | |||||||||||
Income taxes paid | (597 | ) | (1,127 | ) | (2,859 | ) | (3,143 | ) | ||||||||
Net cash flows used in operating activities | (52,645 | ) | (10,285 | ) | (240,178 | ) | (73,998 | ) | ||||||||
Cash flows from investing activities | ||||||||||||||||
Purchase of property and equipment | (2,769 | ) | (776 | ) | (11,147 | ) | (2,253 | ) | ||||||||
Proceeds from sale of property and equipment | 8 | 28 | 11 | 112 | ||||||||||||
Interest received | 1,666 | 1,343 | 4,762 | 4,826 | ||||||||||||
Movement in other non-current assets | (350 | ) | 327 | (1,586 | ) | 1,822 | ||||||||||
Movement in term deposits and other financial assets | 25,903 | (3,990 | ) | 220,207 | 59,049 | |||||||||||
Net cash flows (used in) / from investing activities | 24,458 | (3,068 | ) | 212,247 | 63,556 | |||||||||||
Cash flows from financing activities | ||||||||||||||||
Interest settled - financing | 17 | (1,080 | ) | (41 | ) | (1,083 | ) | |||||||||
Payment of lease interest | (409 | ) | (201 | ) | (1,496 | ) | (1,105 | ) | ||||||||
Repayment of lease liabilities | (1,962 | ) | (951 | ) | (7,170 | ) | (5,185 | ) | ||||||||
Equity transaction costs | (22 | ) | (19 | ) | (79 | ) | (40 | ) | ||||||||
Proceeds from exercise of stock options | - | - | 26 | - | ||||||||||||
Net cash flows (used in) / from financing activities | (2,376 | ) | (2,251 | ) | (8,760 | ) | (7,413 | ) | ||||||||
Net (decrease)/increase in cash and cash equivalents | (30,563 | ) | (15,604 | ) | (36,691 | ) | (17,855 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,126 | ) | (3,198 | ) | (8,820 | ) | (18,241 | ) | ||||||||
Cash and cash equivalents at the beginning of the period | 104,268 | 54,285 | 117,090 | 71,579 | ||||||||||||
Cash and cash equivalents at the end of the period | 71,579 | 35,483 | 71,579 | 35,483 | ||||||||||||
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. Considering 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 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 Annual Active Customers, Quarterly Active Customers, Orders and GMV. We define Annual Active Customers Quarterly Active Customers, Orders, GMV, Total Payment Volume, JumiaPay Transactions and Adjusted EBITDA as follows:
Annual Active Customers means unique customers who placed an order for a product or a service on our platform, within the 12-month period preceding the relevant date, irrespective of cancellations or returns.
Quarterly Active Customers means unique customers 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 Annual Active Customers and Quarterly Active Customers are useful indicators of the adoption of our offering by customers 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 Customers, 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 customers, 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 customers, 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 from continuing operations, 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 from continuing operations to Adjusted EBITDA for the periods indicated:
| For the three months ended | For the year ended | |||||||||||||||
(USD million) | December 31, 2022 (1) | December 31, 2023 (1) | December 31, 2022 (1) | December 31, 2023 (1) | ||||||||||||
Loss for the period from continuing | (50.4 | ) | (16.8 | ) | (213.1 | ) | (99.5 | ) | ||||||||
Income tax expense | 5.8 | (0.4 | ) | 7.0 | 0.9 | |||||||||||
Net Finance costs / (income) | (0.2 | ) | 12.7 | 4.4 | 25.3 | |||||||||||
Depreciation and amortization | 2.9 | 2.1 | 11.5 | 9.8 | ||||||||||||
Share-based payment (income) / expense | (2.3 | ) | 1.7 | 8.2 | 5.3 | |||||||||||
Adjusted EBITDA | (44.1 | ) | (0.6 | ) | (182.1 | ) | (58.2 | ) | ||||||||
_________________________
(1) Adjusted for discontinued food delivery operations in 2023.
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 foreign exchange rates for each month during 2022 and applying them to the corresponding months in 2023, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. These calculations do not include any other macroeconomic effect such as local currency inflation effects or any price adjustment to compensate local currency inflation or devaluations. 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 | ||||||||||||||||||||
| As reported | YoY Change | Constant currency | YoY Change | |||||||||||||||||
In USD million, except percentages | December 31, 2022 (2) | December 31, 2023 (2) | December 31, 2023 (2) | |||||||||||||||||
Gross Profit (1) | 37.3 | 37.1 | (0.6)% | 50.8 | ||||||||||||||||
Fulfillment expense (1) | (18.6 | ) | (11.7 | ) | (37.0)% | (15.6 | ) | (16.0)% | ||||||||||||
Gross Profit after Fulfillment expense | 18.7 | 25.4 | 35.2 | |||||||||||||||||
Sales and Advertising expense | (16.8 | ) | (6.2 | ) | (62.8)% | (8.5 | ) | (49.4)% | ||||||||||||
Technology and Content expense | (13.7 | ) | (9.9 | ) | (27.7)% | (9.9 | ) | (27.7)% | ||||||||||||
G&A expense, excluding SBC (1) | (32.4 | ) | (12.3 | ) | (62.2)% | (15.0 | ) | (53.8)% | ||||||||||||
Adjusted EBITDA | (44.1 | ) | (0.6 | ) | (98.5)% | 4.7 | (110.7)% | |||||||||||||
Operating Income/ (Loss) | (44.7 | ) | (4.5 | ) | (90.0)% | 0.4 | (100.9)% | |||||||||||||
Loss before Income tax from continuing operations | (44.6 | ) | (17.1 | ) | (61.6)% | (15.3 | ) | (65.7)% | ||||||||||||
GMV | 252.4 | 233.3 | (7.6)% | 305.8 | ||||||||||||||||
TPV | 65.8 | 59.3 | (9.9)% | 86.6 | ||||||||||||||||
TPV as % of GMV | ||||||||||||||||||||
_________________________
(1) Restated 2022 figures to reflect the impact of i) the restatement of direct costs of providing logistic services to non-sellers at Jumia from ‘Fulfillment Expense' to ‘Cost of Revenue', ii) the reclassification of payment processing costs from ‘Cost of Revenue' to ‘Fulfillment Expense‘ and iii) the reclassification of payment processing costs from ‘General and Administrative Expense' to ‘Fulfillment Expense'. We have provided in appendix restated quarterly 2022 figures for ‘Cost of Revenue', ‘Gross Profit', ‘Fulfillment Expense' and ‘G&A Expense, excluding SBC'. Further information on our accounting policy changes can be found in our Annual Report on Form 20-F for 2022.
(2) Adjusted for discontinued food delivery operations in 2023.
Restated metrics for historical quarters
In December 2023, the Group closed its food delivery business in all markets which qualified as a discontinued operation. Discontinued operations are presented in a single line in "Consolidated statement of comprehensive income" which applies to all comparative periods presented. The following table provides the updated operational and financial metrics for continuing operations for the last two years:
(UNAUDITED)
Restated metrics for historical quarters for operational and financial metrics for continuing operations for the last two years
In thousands of USD, unless otherwise stated | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | FY 22 | FY 23 | ||||||||||||||||||||
Quarterly Active Customers (million) | 2.6 | 2.8 | 2.6 | 2.8 | 2.0 | 2.0 | 2.0 | 2.3 | n.a. | n.a. | ||||||||||||||||||||
Orders (million) | 6.6 | 7.4 | 6.6 | 6.9 | 4.5 | 4.5 | 5.7 | 6.6 | 27.5 | 21.3 | ||||||||||||||||||||
GMV | 225,064 | 242,930 | 212,099 | 252,442 | 173,217 | 179,151 | 164,130 | 233,310 | 932,535 | 749,808 | ||||||||||||||||||||
TPV | 63,773 | 67,206 | 59,420 | 65,772 | 41,142 | 49,428 | 42,420 | 59,256 | 256,171 | 192,246 | ||||||||||||||||||||
JumiaPay Transactions (million) | 63.8 | 67.2 | 59.4 | 65.8 | 41.1 | 49.4 | 42.4 | 59.3 | 256.2 | 192.2 | ||||||||||||||||||||
Revenue | 44,638 | 53,307 | 44,803 | 60,553 | 41,250 | 44,032 | 41,715 | 59,406 | 203,301 | 186,403 | ||||||||||||||||||||
Marketplace revenue | 23,489 | 27,267 | 27,730 | 36,647 | 23,353 | 22,297 | 19,328 | 32,867 | 115,133 | 97,845 | ||||||||||||||||||||
Commissions | 7,533 | 8,763 | 10,092 | 13,491 | 9,742 | 9,158 | 8,457 | 19,308 | 39,879 | 46,665 | ||||||||||||||||||||
Fulfillment | 6,677 | 6,417 | 6,317 | 6,665 | 4,833 | 4,569 | 4,177 | 4,927 | 26,076 | 18,506 | ||||||||||||||||||||
Marketing & Advertising | 2,327 | 4,337 | 3,121 | 7,154 | 2,600 | 3,691 | 2,356 | 3,745 | 16,939 | 12,392 | ||||||||||||||||||||
Value Added Services | 6,952 | 7,750 | 8,200 | 9,337 | 6,178 | 4,879 | 4,338 | 4,887 | 32,239 | 20,282 | ||||||||||||||||||||
First Party revenue | 19,592 | 24,392 | 15,223 | 22,520 | 17,368 | 21,129 | 21,756 | 26,130 | 81,727 | 86,383 | ||||||||||||||||||||
Other revenue | 1,557 | 1,648 | 1,850 | 1,386 | 529 | 606 | 631 | 409 | 6,441 | 2,175 | ||||||||||||||||||||
Cost of revenue | (19,718 | ) | (26,039 | ) | (16,123 | ) | (23,249 | ) | (16,342 | ) | (21,141 | ) | (19,475 | ) | (22,341 | ) | (85,129 | ) | (79,299 | ) | ||||||||||
Gross profit | 24,920 | 27,268 | 28,680 | 37,304 | 24,908 | 22,891 | 22,240 | 37,065 | 118,172 | 107,104 | ||||||||||||||||||||
Fulfillment expense | (18,731 | ) | (21,827 | ) | (17,659 | ) | (18,565 | ) | (11,817 | ) | (10,612 | ) | (9,756 | ) | (11,699 | ) | (76,782 | ) | (43,884 | ) | ||||||||||
Sales and Advertising expense | (15,866 | ) | (19,528 | ) | (14,694 | ) | (16,771 | ) | (5,339 | ) | (5,472 | ) | (4,411 | ) | (6,235 | ) | (66,859 | ) | (21,457 | ) | ||||||||||
Technology and Content expense | (12,352 | ) | (13,494 | ) | (12,850 | ) | (13,714 | ) | (11,183 | ) | (10,695 | ) | (9,730 | ) | (9,920 | ) | (52,410 | ) | (41,528 | ) | ||||||||||
General and Administrative expense ("G&A") | (37,501 | ) | (32,996 | ) | (21,663 | ) | (30,052 | ) | (25,161 | ) | (18,527 | ) | (16,795 | ) | (13,942 | ) | (122,212 | ) | (74,425 | ) | ||||||||||
of which Share Based Compensation ("SBC") | (8,440 | ) | (7,640 | ) | 5,498 | 2,345 | (949 | ) | (1,302 | ) | (1,341 | ) | (1,683 | ) | (8,237 | ) | (5,275 | ) | ||||||||||||
of which Depreciation and amortization | (2,587 | ) | (2,830 | ) | (3,105 | ) | (2,944 | ) | (2,828 | ) | (2,608 | ) | (2,232 | ) | (2,138 | ) | (11,466 | ) | (9,806 | ) | ||||||||||
Other operating income | 608 | 410 | 274 | 795 | 210 | 368 | 128 | 496 | 2,087 | 1,202 | ||||||||||||||||||||
Other operating expense | (22 | ) | (5 | ) | (36 | ) | (25 | ) | (47 | ) | (18 | ) | (22 | ) | (233 | ) | (88 | ) | (320 | ) | ||||||||||
Termination benefits | - | - | - | (3,706 | ) | - | - | - | - | (3,706 | ) | - | ||||||||||||||||||
Adjusted EBITDA | (47,917 | ) | (49,702 | ) | (40,341 | ) | (44,135 | ) | (24,652 | ) | (18,155 | ) | (14,773 | ) | (647 | ) | (182,095 | ) | (58,227 | ) | ||||||||||
Operating loss | (58,944 | ) | (60,172 | ) | (37,948 | ) | (44,734 | ) | (28,429 | ) | (22,065 | ) | (18,346 | ) | (4,468 | ) | (201,798 | ) | (73,308 | ) | ||||||||||
Finance income, net | 3,687 | 2,954 | 3,684 | 4,928 | 3,117 | 2,895 | 1,770 | (1,594 | ) | 15,253 | 6,188 | |||||||||||||||||||
Finance costs, net | (6,634 | ) | (3,920 | ) | (4,292 | ) | (4,772 | ) | (3,929 | ) | (11,689 | ) | (4,802 | ) | (11,060 | ) | (19,618 | ) | (31,480 | ) | ||||||||||
Loss before Income tax from continuing operations | (61,891 | ) | (61,138 | ) | (38,556 | ) | (44,578 | ) | (29,241 | ) | (30,859 | ) | (21,378 | ) | (17,122 | ) | (206,163 | ) | (98,600 | ) | ||||||||||
Income tax expense | (136 | ) | (268 | ) | (791 | ) | (5,783 | ) | (100 | ) | 169 | (1,302 | ) | 356 | (6,978 | ) | (877 | ) | ||||||||||||
Loss for the period from continuing operations | (62,027 | ) | (61,406 | ) | (39,347 | ) | (50,361 | ) | (29,341 | ) | (30,690 | ) | (22,680 | ) | (16,766 | ) | (213,141 | ) | (99,477 | ) | ||||||||||
Attributable to: | ||||||||||||||||||||||||||||||
Equity holders of the Company | (62,018 | ) | (61,411 | ) | (39,356 | ) | (50,319 | ) | (29,332 | ) | (30,676 | ) | (22,678 | ) | (16,770 | ) | (213,104 | ) | (99,456 | ) | ||||||||||
Non-controlling interests | (9 | ) | 5 | 9 | (42 | ) | (9 | ) | (14 | ) | (2 | ) | 4 | (37 | ) | (21 | ) | |||||||||||||
Discontinued Operations
In December 2023, the Group closed its food delivery business in all markets which qualified as a discontinued operation. Discontinued operations are presented in a single line in "Consolidated statement of comprehensive income" which applies to all comparative periods presented.
The following table provides operational and financial metrics for discontinued operations for the last two years:
(UNAUDITED)
Operational and Financial metrics for discontinued operations for the last two years
In thousands of USD, unless otherwise stated | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | FY 22 | FY 23 | ||||||||||||||||||||
Quarterly Active Customers (million) | 0.5 | 0.5 | 0.5 | 0.5 | 0.4 | 0.4 | 0.4 | 0.2 | 2.0 | 1.4 | ||||||||||||||||||||
Orders (million) | 2.7 | 2.9 | 2.8 | 3.0 | 2.4 | 2.0 | 1.6 | 1.0 | 11.4 | 7.0 | ||||||||||||||||||||
GMV | 27,601 | 28,137 | 28,605 | 30,681 | 24,946 | 23,134 | 16,836 | 10,967 | 115,024 | 75,883 | ||||||||||||||||||||
TPV | 6,912 | 6,980 | 7,160 | 8,096 | 7,570 | 7,478 | 5,703 | 4,877 | 29,148 | 25,628 | ||||||||||||||||||||
JumiaPay Transactions (million) | 6.9 | 7.0 | 7.2 | 8.1 | 7.6 | 7.5 | 5.7 | 4.9 | 29.2 | 25.7 | ||||||||||||||||||||
Revenue | 2,957 | 4,017 | 5,684 | 5,927 | 5,022 | 4,483 | 3,175 | 1,952 | 18,585 | 14,632 | ||||||||||||||||||||
Cost of revenue | (631 | ) | (1,343 | ) | (1,975 | ) | (2,394 | ) | (1,328 | ) | (1,377 | ) | (335 | ) | (209 | ) | (6,343 | ) | (3,249 | ) | ||||||||||
Gross profit | 2,326 | 2,674 | 3,709 | 3,533 | 3,694 | 3,106 | 2,840 | 1,743 | 12,242 | 11,383 | ||||||||||||||||||||
Fulfillment expense | (5,379 | ) | (5,826 | ) | (5,523 | ) | (5,335 | ) | (4,159 | ) | (3,105 | ) | (2,264 | ) | (1,584 | ) | (22,063 | ) | (11,112 | ) | ||||||||||
Sales and Advertising expense | (2,971 | ) | (2,634 | ) | (1,746 | ) | (1,476 | ) | (487 | ) | (301 | ) | 68 | (181 | ) | (8,827 | ) | (901 | ) | |||||||||||
Technology and Content expense | (602 | ) | (778 | ) | (748 | ) | (714 | ) | (603 | ) | (385 | ) | (354 | ) | (511 | ) | (2,842 | ) | (1,853 | ) | ||||||||||
General and Administrative expense ("G&A") | (817 | ) | (993 | ) | (899 | ) | (929 | ) | (878 | ) | (508 | ) | (489 | ) | (559 | ) | (3,638 | ) | (2,434 | ) | ||||||||||
of which Depreciation and amortization | (46 | ) | (46 | ) | (45 | ) | (44 | ) | (41 | ) | (37 | ) | (27 | ) | (20 | ) | (181 | ) | (125 | ) | ||||||||||
Adjusted EBITDA | (7,397 | ) | (7,511 | ) | (5,162 | ) | (4,877 | ) | (2,392 | ) | (1,156 | ) | (174 | ) | (1,072 | ) | (24,947 | ) | (4,793 | ) | ||||||||||
Operating loss | (7,443 | ) | (7,557 | ) | (5,207 | ) | (4,921 | ) | (2,433 | ) | (1,193 | ) | (199 | ) | (1,092 | ) | (25,128 | ) | (4,917 | ) | ||||||||||
Loss for the period from discontinued operations | (7,443 | ) | (7,557 | ) | (5,207 | ) | (4,921 | ) | (2,433 | ) | (1,193 | ) | (199 | ) | (1,092 | ) | (25,128 | ) | (4,917 | ) | ||||||||||
SOURCE: Jumia Technologies AG
View the original press release on accesswire.com
FAQ
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