Jumia Reports Second Quarter 2024 Results

Execution Against Strategic Priorities Drives Continued Acceleration in Usage Trends

Cash Management Initiatives Deliver Further Improvements in Cash Utilization

LAGOS, NIGERIA / ACCESSWIRE / August 6, 2024 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the second quarter ended June 30, 2024.

Results highlights for the second quarter 2024

• Revenue of $36.5 million, down 17% year-over-year, or up 15% in constant currency.

• GMV of $170.1 million, down 5% year-over-year, or up 35% in constant currency.

• Operating loss of $20.2 million compared to $22.1 million in the second quarter of 2023, down 8% year-over-year, and down 5% in constant currency.

• Adjusted EBITDA loss of $16.3 million as compared to a loss of $18.2 million in the second quarter of 2023, down 10% year-over-year, and down 11% in constant currency.

• Loss before income tax from continuing operations of $22.5 million in the second quarter of 2024, down 27% year-over-year or up 1% in constant currency.

• Liquidity position of $92.8 million, a decrease of $8.7 million in the second quarter of 2024 as compared to a decrease of $39.1 million in the second quarter of 2023.

• Net cash flows used in operating activities of $8.4 million as compared to net cash flows used in operating activities of $19.5 million in the second quarter of 2023.

Company Commentary

"Jumia delivered another quarter of acceleration in its usage trends along with improved cash efficiency. Continued execution against our strategic priorities drove a 7% year-over-year increase in Orders, while Orders per Customer, excluding JumiaPay app Orders, which do not incur logistics costs, climbed to 2.1 Orders in the second quarter of 2024. GMV improved 35% year-over-year in constant currency and we delivered GMV growth in reported currency in six of our countries in the second quarter, up from five in the first quarter of 2024, a sign that the Jumia value proposition continues to resonate with the African consumer.

Our quarterly cash burn ¹ declined 55%, or $10.4 million, quarter-over-quarter to $8.7 million in the second quarter of 2024 as a result of disciplined cost management and reductions in finance costs. Year-over-year our marketing spend declined 19% as we continued to invest in proven channels, such as CRM, SEO and local offline channels. These efforts delivered a 6% sequential increase in our active customer count and continued improvements in our 90 day repurchase rate.

Our performance this quarter reinforces our belief that our strategy is working. Our deep understanding of the African e-commerce market as well as our unique asset base and strategy position Jumia for growth as we progress on the path towards profitability." - Francis Dufay, CEO

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¹ Cash burn is defined as the use of Jumia's Liquidity Position, which is comprised of Jumia's cash and cash equivalents and term deposits and other financial assets.

Financial Results for the second quarter ended June 30, 2024

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(1) See "Non-IFRS and Other Financial and Operating Metrics" for a reconciliation of non-IFRS measures to IFRS measures.
(2) Loss before income tax from continuing operations in constant currency excludes the impact of foreign exchange recorded in finance income/costs.

Revenue

• Revenue of $36.5 million, down 17% year-over-year or up 15% year-over-year on a constant currency basis.

  • Marketplace revenue, comprised of commissions, fulfillment revenue, value added services and marketing and advertising revenue was $20.0 million, down 10% year-over-year or up 27% year-over-year on a constant currency basis. The decline in USD was primarily driven by the impact of foreign exchange devaluations. These declines were partially offset by increases in commissions from third-party corporate sales.

• First-Party sales revenue was $16.1 million, down 24% year-over-year or up 4% year-over-year on a constant currency basis, driven by lower first party corporate sales in Egypt, and the impact of foreign exchange.

Gross Profit

• Gross profit was $21.6 million, down 6% year-over-year or up 35% year-over-year on a constant currency basis.

• Gross profit as a percentage of GMV was 13%, flat when compared to the second quarter of 2023 as a result of improved marketplace margins and a reduction in spending on customer incentives offset by foreign exchange devaluations.

  • The percentage of orders of physical goods benefiting from customer incentives decreased from 31% in the second quarter of 2023 to 28% in the second quarter of 2024.

Expenses

• Fulfillment expense amounted to $9.3 million, down 12% year-over-year or up 18% year-over-year on a constant currency basis.

  • Fulfillment expense per Order, excluding JumiaPay app Orders, which do not incur logistics costs, decreased by 16% year-over-year to $2.2, reflecting an increase of 13% year-over-year on a constant currency basis.

• Sales and Advertising expense was $4.4 million, down 19% year-over-year or up 20% year-over-year on a constant currency basis.

• Technology and Content expense was $8.7 million, down 18% year-over-year or down 14% year-over-year on a constant currency basis.

• General and Administrative expense was $19.2 million, up 4% year-over-year or up 26% year-over-year on a constant currency basis.

  • General and Administrative expense, excluding share-based compensation, was $17.6 million, up 2% year-over-year or up 26% year-over-year on a constant currency basis.

• This increase was due to the release of tax provisions in the second quarter of 2023, which did not recur in the second quarter of 2024. A decline in staff costs had a partially offsetting effect.

Operating loss

• Operating loss was $20.2 million, down by 8% year-over-year or down 5% year-over-year on a constant currency basis, primarily reflecting the impact of cost reductions in the quarter.

• Loss before income tax from continuing operations was $22.5 million, down 27% year-over-year, driven by cost savings initiatives in the quarter and a decrease in finance costs mostly driven by a decrease in net foreign exchange losses compared to the second quarter of 2023. The finance costs for the second quarter of 2024 were mainly influenced by losses recognized on the sale of financial assets. These assets, consisting of investments in securities measured at fair value, only impact our income statement upon disposal. This shift in the nature of finance costs between the two quarters highlights the varying financial factors affecting our performance.

• Loss before income tax from continuing operations, which excludes the impact of foreign exchange recorded in finance income and finance costs, was up 1% in constant currency.

Cash Position

• As of June 30, 2024, the Company's liquidity position was $92.8 million, comprised of $45.1 million in cash and cash equivalents and $47.7 million in term deposits and other financial assets.

• Jumia's liquidity position decreased $8.7 million in the second quarter of 2024 as compared to a decrease of $39.1 million in the second quarter of 2023, and a decrease of $19.1 million in the first quarter of 2024.

• The continued improvement in Jumia's cash management illustrates its ongoing efforts to effectively preserve its cash resources as it executes on its growth strategy. As of the second quarter of 2024, 67% of the Company's liquidity position was held in USD, as the Company continues to refine its cash repatriation strategy.

SELECT OPERATIONAL KPIs

1. Marketplace KPIs