Jumia Loss Widens as Sales Increase
Africa e-commerce firm Jumia Technologies (JMIA) on Wednesday reported a fourth-quarter (Q4) of the financial year 2021 revenue of $62 million, translating to about 26% growth from $49.3 million in the comparable period.
According to the result filed with the regulators, the company’s operating loss for the quarter ended December 31, 2021, expanded more than 78% to $84.7 million, from $47.5 million a year earlier.
Jumia has been breaking value despite a strong footprint in the marketplace, staying behind the breakeven point and the more it sells, the less profitable it becomes, according to the company’s financial results.
In its earnings call with analysts, the e-commerce company said it expects full-year 2022 adjusted earnings before interest, taxes, depreciation and amortization of $200 million to $220 million.
It also expects capital expenditures between $15 million to $25 million in 2022. Meanwhile, Jumia said it will offer more free shipping of goods to its customers in selected locations to boost usage this year.
Jumia, which became the first Africa-focused tech startup on the New York Stock Exchange when it was listed there in 2019, offers an online marketplace for vendors and food sellers, as well as associated services.
Its adjusted loss before interest, tax, depreciation and amortisation (EBITDA) widened to $196.7 million last year from $136.3 million in the prior year. Read Jumia: Andrew says value of stock is zero
That could widen further to $200-220 million this year, the company said in its earnings report, as it focuses on ramping up growth. It has not said when it expects to make a profit.
Annual active consumers increased to 8.0 million last year, a near 17% jump from the previous period, the company said, while total orders increased by just over a fifth.
Consumers were ordering more everyday products from the platform, Jumia said, helping it to make progress in its aim of increasing consumer orders of household products like soft drinks and soap, from a previous focus on electronics.
The share of fast-moving consumer goods in total merchandise sales during the period rose to 14% from 9% in the previous period, Jeremy Hodara, a co-founder and chief executive of Jumia, told an investor briefing.
“We are handling more consumers than ever before,” he said.
The firm will increase free shipping of goods to consumers by stocking more merchant products in its warehouses so they are readily available, he said.
It will also seek new clients for its logistics business, which already serves firms like Nigerian Bottling Co, Jumia told analysts at the earnings call. #Jumia Loss Widens as Sales Increase
