Jumia To Cease Operations in Non-Strategic Markets
Jumia Technologies AG (NYSE:JMIA), a leading e-commerce platform in Africa, has announced the planned closure of its operations in South Africa and Tunisia by the end of 2024. This strategic decision aims to optimize resources and focus on markets with stronger growth potential. For the year ended December 31, 2023, and the six months ended June 30, 2024, these two markets combined accounted for only 3.5% and 2.7% of total orders, and 4.5% and 3.0% of GMV, respectively.
CEO Francis Dufay stated that this difficult decision was made after thorough analysis, considering the growth potential and contribution of these markets to Jumia's overall business. The company expects this move to improve overall operational efficiency and accelerate growth in its remaining nine markets.
Jumia Technologies AG (NYSE:JMIA), una delle principali piattaforme di e-commerce in Africa, ha annunciato la chiusura pianificata delle sue operazioni in Sudafrica e Tunisia entro la fine del 2024. Questa decisione strategica punta a ottimizzare le risorse e a focalizzarsi su mercati con un potenziale di crescita più forte. Per l'anno conclusosi il 31 dicembre 2023 e per i sei mesi terminanti il 30 giugno 2024, questi due mercati insieme rappresentavano soltanto il 3,5% e il 2,7% degli ordini totali, e il 4,5% e il 3,0% del GMV, rispettivamente.
Il CEO Francis Dufay ha dichiarato che questa decisione difficile è stata presa dopo un'attenta analisi, considerando il potenziale di crescita e il contributo di questi mercati all'intero business di Jumia. L'azienda si aspetta che questa mossa migliori l'efficienza operativa complessiva e acceleri la crescita nei suoi restanti nove mercati.
Jumia Technologies AG (NYSE:JMIA), una de las principales plataformas de comercio electrónico en África, ha anunciado el cierre planeado de sus operaciones en Sudáfrica y Túnez para finales de 2024. Esta decisión estratégica tiene como objetivo optimizar recursos y enfocarse en mercados con mayor potencial de crecimiento. Para el año que terminó el 31 de diciembre de 2023 y los seis meses que terminaron el 30 de junio de 2024, estos dos mercados combinados representaron solo el 3,5% y el 2,7% de los pedidos totales, y el 4,5% y el 3,0% del GMV, respectivamente.
El CEO Francis Dufay declaró que esta difícil decisión se tomó después de un análisis exhaustivo, considerando el potencial de crecimiento y la contribución de estos mercados al negocio general de Jumia. La empresa espera que este movimiento mejore la eficiencia operativa general y acelere el crecimiento en sus nueve mercados restantes.
주미아 테크놀로지 AG(NYSE:JMIA)는 아프리카의 주요 전자상거래 플랫폼으로서 2024년 말까지 남아프리카와 튀니지에서의 운영 종료를 발표했습니다. 이 전략적 결정은 자원을 최적화하고 더 높은 성장 잠재력을 가진 시장에 집중하기 위한 것입니다. 2023년 12월 31일 종료된 연도와 2024년 6월 30일 종료된 6개월 동안, 이 두 시장은 총 주문의 3.5% 및 2.7%와 각각 GMV의 4.5% 및 3.0%에 해당했습니다.
CEO 프란시스 듀파이는 이 어려운 결정이 철저한 분석 후에 이루어졌다고 밝혔으며, 이 시장들이 주미아의 전체 비즈니스에 기여하는 성장 잠재력을 고려했습니다. 회사는 이번 조치가 전체 운영 효율성을 개선하고 나머지 9개 시장에서의 성장을 가속화할 것으로 기대하고 있습니다.
Jumia Technologies AG (NYSE:JMIA), une des principales plateformes de commerce électronique en Afrique, a annoncé la fermeture prévue de ses opérations en Afrique du Sud et en Tunisie d'ici la fin de 2024. Cette décision stratégique vise à optimiser les ressources et à se concentrer sur des marchés avec un plus grand potentiel de croissance. Pour l'année se terminant le 31 décembre 2023 et pour les six mois se terminant le 30 juin 2024, ces deux marchés représentaient seulement 3,5 % et 2,7 % des commandes totales, et 4,5 % et 3,0 % du GMV, respectivement.
Le PDG Francis Dufay a déclaré que cette décision difficile a été prise après une analyse approfondie, en tenant compte du potentiel de croissance et de la contribution de ces marchés à l'ensemble des activités de Jumia. L'entreprise s'attend à ce que ce mouvement améliore l'efficacité opérationnelle globale et accélère la croissance dans ses neuf marchés restants.
Jumia Technologies AG (NYSE:JMIA), eine der führenden E-Commerce-Plattformen in Afrika, hat die geplante Schließung ihrer Operationen in Südafrika und Tunesien bis Ende 2024 angekündigt. Diese strategische Entscheidung zielt darauf ab, Ressourcen zu optimieren und sich auf Märkte mit höherem Wachstumspotenzial zu konzentrieren. Im Jahr bis zum 31. Dezember 2023 und in den sechs Monaten bis zum 30. Juni 2024 machten diese beiden Märkte zusammen nur 3,5% und 2,7% der Gesamtbestellungen aus, sowie 4,5% und 3,0% des GMV, jeweils.
CEO Francis Dufay erklärte, dass diese schwierige Entscheidung nach einer gründlichen Analyse getroffen wurde, wobei das Wachstumspotenzial und der Beitrag dieser Märkte zum Gesamtgeschäft von Jumia berücksichtigt wurden. Das Unternehmen erwartet, dass dieser Schritt die betriebliche Effizienz verbessern und das Wachstum in den verbleibenden neun Märkten beschleunigen wird.
- Strategic focus on more promising markets with stronger growth potential
- Expected improvement in overall operational efficiency
- Potential acceleration of growth in remaining nine markets
- Closure of operations in South Africa and Tunisia
- Loss of market presence in two African countries
- Potential impact on employees, suppliers, and partners in affected markets
Insights
Jumia's decision to exit South Africa and Tunisia is a strategic move aimed at optimizing resources and focusing on more promising markets. The impact on the company's overall operations appears minimal, given that these two markets combined accounted for only
From a financial perspective, this move should lead to improved operational efficiency and potentially better resource allocation. By concentrating on markets with stronger growth potential, Jumia may be able to accelerate overall growth and enhance its financial performance. However, investors should monitor how quickly the company can redeploy resources and capitalize on opportunities in its remaining nine markets.
The planned closure by year-end 2024 gives Jumia time for a smooth transition. While there may be short-term costs associated with the exit, the long-term benefits of a more focused operation could outweigh these. Investors should look for updates on potential restructuring charges and any revised financial guidance in upcoming earnings reports.
Jumia's decision to exit South Africa and Tunisia reflects a broader trend in e-commerce of prioritizing markets with the highest growth potential. This move indicates that the competitive landscape and macroeconomic conditions in these countries have become challenging for Jumia's business model. The company's focus on its remaining nine markets suggests a shift towards areas where it has a stronger competitive advantage or sees better opportunities for market penetration.
From a market perspective, this decision could be seen as a positive step towards consolidating Jumia's position in its core markets. By reallocating resources, the company may be able to enhance its service offerings, improve customer experience and potentially increase market share in more promising regions. However, it's important to monitor how this strategic shift affects Jumia's overall market presence in Africa and whether it can maintain its position as a leading e-commerce platform on the continent.
Investors should pay attention to how this move impacts Jumia's competitive positioning against both local and global e-commerce players in its remaining markets. The success of this strategy will largely depend on Jumia's ability to capitalize on the unique characteristics and opportunities in each of its focus countries.
Ceasing Operations in South Africa and Tunisia to Optimize Resources and Focus on Markets with Stronger Growth Potential
LAGOS, NIGERIA / ACCESSWIRE / October 16, 2024 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or "the Company"), a leading e-commerce platform in Africa, today announced the planned closure of its operations in South Africa, operated under the brand name Zando, and Tunisia.
The closure of these markets will allow Jumia to focus resources on its most promising markets that have a stronger growth potential. For the year ended December 31, 2023, and the six months ended June 30, 2024, South Africa and Tunisia combined accounted for only
Jumia CEO, Francis Dufay said, "Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business and placing us on a path to profitability. After a thorough analysis, we made the difficult decision to close down our operations in South Africa and Tunisia. Both businesses account for a negligible portion of our overall operations. Furthermore, competitive and macroeconomic conditions in both markets have limited each country's growth potential and their contribution to our overall business has not aligned with expectations. Decisions like these are never easy and we are extremely grateful to team members in both countries, who worked tirelessly to serve our customers every day. We are also grateful to our suppliers, vendors and logistics partners in these markets. We deeply thank them for their hard work and service to Jumia."
Jumia believes that exiting these markets and refocusing resources on its other nine markets will leave the company better positioned to accelerate overall growth and further improve efficiency. The Company expects to cease operations in both South Africa and Tunisia by year end 2024.
About Jumia
Jumia is a leading pan-African e-commerce platform, with operations across 11 African countries. Its mission is to improve the quality of everyday life in Africa by leveraging technology to deliver innovative, convenient and affordable online services to customers, while helping businesses grow as they use Jumia's platform to better reach and serve customers.
The Jumia platform consists of a marketplace, which connects more than 64,000 sellers with customers, a vast logistics network, which enables the shipment and delivery of packages, and a proprietary payment service, JumiaPay, which facilitates transactions among participants active on the Jumia platform in select markets. For more information, visit the Company's website at https://group.jumia.com/.
Contact
Investors:
Sloane & Company
jumia@sloanepr.com
Media
Abdesslam Benzitouni
abdesslam.benzitouni@jumia.com
Orders corresponds to the total number of orders for products and services on our platform, irrespective of cancellations or returns, for the relevant period. The company believes that the number of orders is a useful indicator to measure the total usage of its 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. The Company believes 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.
The Company uses Orders and GMV as some of many indicators to monitor usage of its platform.
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 for the year ended December 31, 2023. 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.
SOURCE: Jumia Technologies AG
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