GMV grew by 58%, leading to a
102% increase in Marketplace revenue
Jumia continued to deliver cost efficiency
improvements
JumiaPay entered into a strategic partnership
with Mastercard who also made a €50 million
investment in Jumia
Jumia Technologies AG (NYSE:JMIA) (“Jumia” or the Company)
announced today its financial results for the quarter ended March
31, 2019.
“Jumia delivered excellent results during the first quarter of
2019: strong GMV growth of 58% leading to 102% growth in
marketplace revenue, year-on-year improvement of 356 basis points
of Operating loss as a percentage of GMV and further development of
JumiaPay, highlighted by the investment by and partnership with
Mastercard,” said Sacha Poignonnec and Jeremy Hodara, co-CEOs of
Jumia. “We believe that Jumia is increasingly relevant for
consumers and sellers in Africa. Looking ahead, we remain focused
on our core operations, driving consumer adoption and engagement on
our marketplace, increasing the penetration of JumiaPay, while
continuing to improve our financial profile and making a
sustainable impact on the continent.”
Business highlights
- The €50 million investment by
Mastercard into Jumia, in a concurrent private placement with our
Initial Public Offering, marked another milestone in the
development of JumiaPay and a validation of its potential. We are
partnering with Mastercard on a number of initiatives, including
the development and marketing of co-branded products (i.e., cards,
virtual cards and quick response codes).
- In the first quarter of 2019, our
marketplace continued to gain depth and diversity as we focused on
attracting quality sellers to our platform and providing our
consumers with an expanding range of products and services. An
example of this strategy is the partnership we announced this
quarter with the technology leader Xiaomi. As part of this
partnership, we are opening the Mi official store on our platform
with the ability to offer a number of Xiaomi products on an
exclusive basis. This demonstrates the attractiveness of Jumia as a
destination of choice for high profile international brands, giving
them access to millions of potential consumers in Africa with one
partnership.
Financial highlights
- Gross Merchandise Volume (“GMV”) grew
this quarter by 58% on a yearly basis, on the back of strong
marketplace growth, leading to a 102% increase this quarter in
Marketplace revenue on a yearly basis. Our strong GMV growth
combined with the attractive value proposition we offer both
sellers and consumers are a key engine of monetization, which we
derive from diversified revenue streams such as Commissions,
Fulfillment, Value Added Services, Marketing and Advertising
services.
- Gross Profit margin as a percentage of
GMV increased from 5.6% in the first quarter of 2018 to 6.5% this
quarter, as a result of the increased GMV monetization rate. Our
Gross Profit also exceeded Fulfillment expense this quarter.
- We continue to have a strong focus on
cost efficiency. Leveraging our strong brand awareness and highly
localized marketing approach, we have been able to gain 205bps of
marketing efficiency this quarter, bringing the Sales &
Advertising expense from 7.2% of GMV in the first quarter of 2018
to 5.1% in the first quarter of 2019.
- Adjusted EBITDA loss as a percentage of
GMV improved from negative 19.8% in the first quarter of 2018 to
negative 16.4% in the first quarter of 2019.
Selected Operational KPIs
2018 2019 First
Quarter Second Quarter
Third Quarter Fourth Quarter First
Quarter
GMV1
(€
million) 152 166 198
311 240
LTM Active Consumers2
(million)
3.0 3.2 3.5
4.0 4.3
1 GMV corresponds to the total value of orders including
shipping fees, value added tax, and before deductions of any
discounts or vouchers, irrespective of cancellations or returns.2
Active Consumers means unique consumers who placed an order on our
marketplace within the 12-month period preceding the relevant date,
irrespective of cancellations or returns
- GMV increased by 57.6% from €152
million in the first quarter of 2018 to €240 million in the first
quarter of 2019, on the back of strong growth of both Active
Consumers and spend per Active Consumer.
- The number of Active Consumers at March
31st, 2019 was 4.3 million, up from 3.0 million a year ago. We
believe that a major driver of our Active Consumers growth is the
continued expansion of our product offering and the growing
relevance of our platform, which drives consumer adoption and
engagement.
Selected Financial Information
1. Revenue
The following table shows a breakdown of revenue, for the first
quarters of 2018 and 2019.
For the three months ended March
31st YoY (€ million)
2018
2019 Change
Marketplace revenue
7.9 16.0
102.3% Commissions 2.8 5.5 95.5% Fulfillment
2.3 5.0 116.1% Marketing 0.3 0.9 200.7% Value Added Services 2.5
4.6 85.8%
First Party revenue 19.8
15.6 (21.2%) Platform
revenue 27.7 31.7
14.1% Non-Platform revenue 0.6
0.2 (68.1%)
Revenue
28.3 31.8
12.3%
- First Party/
Marketplace mix. Our primary sources of revenue are
commissions and fees generated from third-party sales (“Marketplace
revenue” or “Revenue related to third-party sales”) and revenue
from sales of goods we undertake ourselves (“First Party revenue”
or ““Revenue related to first-party sales”). Shifts in the mix
between first party and marketplace activities trigger substantial
variations in our Revenue as we record the full sales price net of
returns as First Party revenue and only commissions and fees in the
case of Marketplace revenue. Accordingly, we steer our operations
not on the basis of our total revenue, but rather on the basis of
Gross profit, as changes between third-party and first-party sales
mix are largely eliminated at the Gross profit level. Over time, it
is our goal to reduce the proportion of first party activity in
favor of third-party activity at group level. This strategy may
however vary from quarter to quarter and from country to
country.
- Marketplace
revenue increased by 102.3% in the first quarter of 2019
compared to the first quarter of 2018, on the back of strong
revenue growth across all components of Marketplace revenue,
demonstrating our ability to monetize the platform as we continue
to grow overall GMV.
- Commissions, which are charged to our
sellers, grew by 95.5%
- Fulfillment, which are delivery fees
charged to consumers, grew by 116.1%
- Value Added Services, which include
revenue from services charged to our sellers such as logistics
services, packaging, or content creation, grew by 85.8%
- Marketing and advertising, which
include performance marketing campaigns, or the placement of
banners on our platform, grew by 200.7%
- First Party
revenue decreased by 21.2% as we conducted fewer sales of
goods on a first party basis. We undertake our first party activity
in an opportunistic manner to complement the breadth of product
assortment on our platform, usually in areas where we see unmet
consumer demand.
2. Gross Profit
For the three months ended March 31st YoY (€ million)
2018 2019 Change
Gross
profit 8.6 15.7
82.3% As % of GMV 5.6% 6.5%
Gross profit increased by 82.3% from €8.6 million in the first
quarter of 2018 to €15.7 million in the first quarter of 2019,
primarily due to an increase in Marketplace revenue.
Gross profit margin as a percentage of GMVincreased from 5.6% in
the first quarter of 2018 to 6.5% in the first quarter of 2019 as a
result of increased platform monetization.
3. Fulfillment Expense
For the three months ended March
31st YoY (€ million)
2018
2019 Change
Fulfillment expense
(9.6) (15.2)
59.4% As % of GMV 6.3% 6.3%
Fulfillment expense includes expenses related to services of
third-party logistics providers, expenses related to our network of
warehouses and pick-up stations, including employee benefit
expenses. Fulfillment expense is influenced by a number of factors
including:
- The origin of the goods, for example
the cost of shipping a product from a cross-border seller based
overseas is higher than shipping from a local seller
- The destination of the package and type
of delivery, for example main city vs. secondary city vs. rural
area, and home delivery vs. pick-up station
- The type of goods, for example the cost
of delivery is higher for a large home appliance than a fashion
accessory
Despite an increase this quarter in the freight and shipping
expense portion of Fulfillment expense, as a result of higher
proportion of cross-border sales, our Gross Profit exceeded
Fulfillment expense this quarter.
4. Sales & Advertising Expense
For the three months ended March
31st YoY (€ million)
2018
2019 Change
Sales & Advertising expense
10.9 12.3
12.5% As % of GMV 7.2% 5.1%
Our Sales and Advertising expense increased by 12.5% to €12.3
million in the first quarter of 2019 from €10.9 million in the
first quarter of 2018, while we were able to increase our GMV by
57.6% over the same period. As a result, Sales and Advertising
expense as a percentage of GMV, decreased from 7.2% in the first
quarter of 2018 to 5.1% in the first quarter of 2019, demonstrating
the relevance of our marketing strategy as well as the continuous
user adoption of our platform.
5. General and Administrative Expense, Technology and
Content Expense
For the three months ended March
31st YoY (€ million)
2018
2019 Change General and Administrative
("G&A") expense 17.4 27.8 59.9% Share-Based Compensation
("SBC") expense (3.6) (4.3)
18.2%
G&A expense, excluding SBC
13.7 23.5 71.0% As
% of GMV 9.0% 9.8%
Technology & Content expense 5.1
5.9 15.3% As % of GMV
3.3% 2.4%
G&A, Technology & Content expense, excluding SBC
18.8 29.3
55.9% As % of GMV 12.3% 12.2%
General and Administrative expense contains wages and benefits,
including share-based payment expense of management, as well as
seller management, commercial development, accounting and legal
staff, consulting expense, audit expense, office rent and related
utilities, insurance and other overhead expense.
General and Administrative expense excluding SBC increased by
71.0% from €13.7 million in the first quarter of 2018 to €23.5
million in the first quarter of 2019. As a percentage of GMV,
General & Administrative expense excluding SBC, increased from
9.0% in the first quarter of 2018 to 9.8% in the first quarter of
2019, as the improvements due to operating leverage were more than
offset by non-recurring expenses concomitant with the IPO.
Technology and Content expense increased by 15.3% from €5.1
million in the first quarter of 2018 to €5.9 million in the first
quarter of 2019. As a percentage of GMV, Technology and content
expense, decreased from 3.3% in the first quarter of 2018 to 2.4%
in the first quarter of 2019, as a result of operating
leverage.
6. Operating Loss and Adjusted EBITDA
For the three months ended March 31st (€
million)
2018 2019
Operating loss (34.3) (45.5) Depreciation and amortization 0.5 1.7
Share-Based Compensation ("SBC") expense 3.6
4.3
Adjusted EBITDA (30.2)
(39.5) As % of GMV (19.8%) (16.4%)
Adjusted EBITDA loss, as a percentage of GMV improved from
negative 19.8% in the first quarter of 2018 to negative 16.4% in
the first quarter of 2019 as a result of a higher gross profit
margin as a percentage of GMV, marketing efficiencies and
operating leverage improving Technology & Content expense as a
percentage of GMV.
On January 1, 2019, we adopted IFRS 16 accounting guidance
amending the accounting for leases. This led to a reduction of
G&A by approximately €1.1 million in the first quarter of 2019
and an increase in Depreciation and amortization by approximately
€1.3 million, resulting in a positive impact on Adjusted EBITDA of
€1.1 million in the first quarter of 2019 and a negative impact on
Operating loss of €0.2 million. Prior period amounts were not
retrospectively adjusted.
7. Net IPO Proceeds
As of March 31st, 2019, we had €132.2 million of Cash and cash
equivalent on the balance sheet.
After the balance sheet date, we completed our Initial Public
Offering. The net proceeds from our Initial Public Offering, the
investment by Mastercard, the issuance of anti-dilution shares to
certain of our existing shareholders and the exercise by the
underwriters of their option to purchase additional ADRs added
$280.2 million to our cash and cash equivalents in April 2019.
Conference Call and Webcast information
Jumia will host a conference call today, May 13, 2019 at
8:30 a.m. U.S. Eastern Time to discuss Jumia’s results. Details of
the conference call are as follows:
Participant Dial in (Toll Free): 1-888-317-6016
Participant International Dial in: 1-412-317-6016
Canada Toll Free: 1-855-669-9657
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 for the quarters ended March 31, 2019 and
2018
For the three months ended March
31 March 31 In millions of EUR
2019 2018
Revenue 31.8 28.3 Cost of revenue
16.2 19.8
Gross profit
15.7 8.6 Fulfillment expense 15.2 9.6 Sales
and advertising expense 12.3 10.9 Technology and content expense
5.9 5.1 General and administrative expense 27.8 17.4 Other
operating income 0.1 0.1 Other operating expense
0.0 0.0
Operating loss
(45.5) (34.3) Finance income 0.6 0.6 Finance
costs 0.8 0.3
Loss
before Income tax (45.7) (34.0) Income tax
expense 0.1 0.1
Loss for the period
(45.8)
(34.1) Attributable to: Equity holders of the
Company (45.7) (33.6) Non-controlling interests
(0.1) (0.5)
Loss for the period
(45.8)
(34.1) Other comprehensive income/loss to be
classified to profit or loss in subsequent periods Exchange
differences on translation of foreign operations - net of tax
(11.9) 6.6 Other comprehensive income / (loss) on net investment in
foreign operations - net of tax 12.2
(6.6) Other comprehensive loss
0.4 (0.1)
Total comprehensive loss for the
period
(45.4)
(34.2) Attributable to: Equity holders of the
Company (45.4) (33.7) Non-controlling interests
(0.1) (0.4)
Total comprehensive loss for the
period
(45.4)
(34.2)
(UNAUDITED)
Consolidated Statement of financial
position as of March 31, 2019 and 2018
As of March
31 December 31 In millions of EUR
2019 2018
Assets Non-current assets Property and
equipment 15.5 5.0 Intangible assets 0.1 0.2 Deferred tax assets
0.2 0.2 Other non-current assets 1.4
1.3
Total Non-current assets
17.2 6.6
Current assets Inventories 11.0 9.4 Trade and other
receivables 13.3 13.0 Other taxes receivable 5.5 4.9 Prepaid
expense and other current assets 12.6 7.4 Cash and cash equivalents
132.2 100.6
Total
Current assets 174.7
135.4 Total Assets
191.9 142.0 Equity and
Liabilities Equity Share capital 0.1 0.0 Share
premium 0.8 0.8 Other reserves 0.1 0.1 Accumulated losses
(0.9) (0.9)
Equity
attributable to the equity holders of the Company 81.1
50.0 Non-controlling interests
(0.2) (0.1) Total Equity
80.9 49.8
Liabilities Non-current liabilities 0.0 0.0
Non-current borrowings 6.0
0.0
Total Non-current liabilities
6.0 0.0
Current
liabilities Borrowings 3.4 0.0 Trade and other payables 58.6
47.7 Income tax payables 0.1 0.1 Other taxes payable 7.6 7.4
Provisions for liabilities and other charges 31.3 30.4 Deferred
income 3.9 6.5
Total
Current liabilities 104.9
92.2 Total Liabilities
110.9 92.2 Total
Equity and Liablities 191.9
142.0
(UNAUDITED)
Consolidated statement of cash flows
for the quarters ended March 31, 2019 and 2018
For the three months ended March
31 March 31 In millions of EUR
2019 2018
Loss before Income tax (45.7) (34.0)
Depreciation and amortization 1.7 0.5 Impairment losses on
loans, receivables and other assets 0.5 0.3 Impairment losses on
obsolete inventories 0.2 (0.0) Share-based payment expense 4.3 3.6
Loss/(Gain) on disposal of property, equipments and intangible
assets 0.0 0.0 (Gain) /Loss on disposal of financial assets 0.0 0.0
Net accrued interest and similar (income)/expense 0.2 (0.0) Net
unrealized foreign exchange (gain)/loss (0.1) (0.4)
(Increase)/Decrease in trade and other receivables, prepayments and
VAT receivables (7.3) 0.6 (Increase)/Decrease in inventories (1.7)
0.8 Increase/(Decrease) in trade and other payables, prepayments
and VAT payables 8.0 (4.7) Change in provision for other
liabilities and charges 0.6 (0.0) Income taxes paid
(0.1) 0.1
Net cash flows used in
operating activities (39.3)
(33.1) Cash flows from investing
activities Purchase of property and equipment (0.7) (0.5)
Proceeds from sale of property and equipment 0.0 0.0 Purchase of
intangible assets 0.0 (0.0) Consolidated securities investment
(0.0) 0.0 Purchase of financial assets (0.0) 0.0 Movement in other
non-current assets 0.1
(0.3)
Net cash flows used in investing activities
(0.7) (0.8)
Cash flows from financing activities Proceeds from
borrowings 0.0 0.0 Financial interest paid (0.3) 0.0 Payment of
lease liabilities (0.8) 0.0 Capital contributions 75.0 24.0
Expenses reclassed to Equity (2.7)
0.0
Net cash flows from financing activities
71.2 24.0
Net increase in cash and cash equivalents
31.2 (9.9) Effect of exchange rate
changes on cash and cash equivalents 0.4
(0.4)
Cash and cash equivalents at the
beginning of the period
100.6 29.7
Cash and cash equivalents at the end of
the period
132.2 19.4
Non-IFRS and Other Financial and
Operating Metrics
This release includes certain financial measures and metrics not
based on IFRS, including Adjusted EBITDA, as well as operating
metrics, including GMV and Active Consumers. We define GMV, Active
Consumers and Adjusted EBITDA as follows:
GMV corresponds to the total value
of orders including shipping fees, value added tax, and before
deductions of any discounts or vouchers, irrespective of
cancellations or returns.
Active Consumers means unique
consumers who placed an order on our marketplace within the
12-month period preceding the relevant date, irrespective of
cancellations or returns.
Adjusted EBITDA corresponds to loss
for the year, adjusted for income tax expense, finance income,
finance costs, depreciation and amortization and 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 year, 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 year. Some of the limitations are:
- Adjusted EBITDA does not reflect our
share-based payments, income tax expense 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 year.
The following tables provide a reconciliation of loss for the
year to Adjusted EBITDA for the periods indicated:
For the three months ended March 31st (€
million)
2018 2019
Loss for the period
(34.1) (45.8) Income tax expense
0.1 0.1 Finance costs 0.3 0.8 Finance income (0.6)
(0.6) Depreciation and amortization 0.5 1.7 Share-based payment
exercise 3.6 4.3
Adjusted EBITDA
(30.2) (39.5)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190513005383/en/
Safae DamirHead of Investor
Relationsinvestor-relations@jumia.comAbdesslam BenzitouniHead of PR
and Communicationspress@jumia.com
Jumia Technologies (NYSE:JMIA)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Jumia Technologies (NYSE:JMIA)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024