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Name | Symbol | Market | Type |
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Jumia Technologies AG | NYSE:JMIA | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.45 | 8.89% | 5.51 | 5.50 | 5.10 | 5.15 | 4,187,511 | 00:22:41 |
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
Financial highlights
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 4.31 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
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%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:
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 0.1Loss 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 29.7Cash and cash equivalents at the end of the period
132.2 19.4Non-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:
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:
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
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