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Name | Symbol | Market | Type |
---|---|---|---|
Jumia Technologies AG | NYSE:JMIA | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 5.47 | 0 | 01:00:00 |
Significant progress towards profitability
Gross profit increased by 12% year-over-year Gross Profit after Fulfillment expense reached a record €8.4mm Adjusted EBITDA loss decreased by 47% year-over-year
Jumia Technologies AG (NYSE: JMIA) (“Jumia” or the “Company”) announced today its financial results for the fourth quarter and full-year ended December 31, 2020.
Results highlights for the fourth quarter 2020
“We continued to make significant strides towards breakeven during the fourth quarter of 2020. Gross Profit after Fulfillment expense reached a record €8.4 million during the quarter. In parallel, efficiencies across the full cost structure allowed us to decrease Fulfillment, Sales & Advertising and General & Administrative expenses (excluding share-based compensation) by 18%, 34% and 36% respectively, year-over-year. As a result, Adjusted EBITDA loss contracted by 47% year-over-year, reaching €28.3 million”, commented Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia.
“While 2020 has been a challenging year operationally with COVID-19 related supply and logistics disruption, it has been a transformative one for our economic model, as we firmly put the business on track towards breakeven. In addition, we raised approximately €203 million in a primary offering in December 2020. This strengthened our balance sheet, enhanced our unit economics and overall positioned Jumia to scale efficiently towards profitability. Beyond the near-term objective of breakeven, our long-term focus remains on fueling the growth of our e-commerce and payment platforms in Africa for decades to come.”
FOURTH QUARTER 2020 – SELECTED BUSINESS HIGHLIGHTS
Black Fridays 2020
Jumia Advertising
Jumia Logistics
Commitment to community
SELECTED OPERATIONAL KPIs
1. Marketplace KPIs
For the three months ended December 31,
For the year ended December 31,
YoY Change
YoY Change
2019
2020
2019
2020
Annual Active Consumers (mm)
6.1
6.8
11.9
%
6.1
6.8
11.9
%
Orders (mm)
8.3
8.1
(2.6)
%
26.5
27.9
5.1
%
GMV (€ mm)
292.9
(1)
231.1
(21.1)
%
1,030.9
(1)
836.5
(18.9)
%
----------------------------------------------------------------------------------------------------
(1) Adjusted for perimeter changes: exit of Cameroon, Rwanda, Tanzania and the travel activities and improper sales practices.
The development of the pandemic remains a fluid situation and we expect it to drive continued operating environment uncertainty. We also expect the economic challenges induced by the pandemic to negatively impact consumer sentiment and spending power.
2. JumiaPay KPIs
For the three months ended December 31,
For the year ended December 31,
YoY Change
YoY Change
2019
2020
2019
2020
TPV (€ million)
45.6
59.3
30.0
%
124.3
196.4
58.0
%
JumiaPay Transactions (million)
2.4
2.7
9.5
%
7.6
9.6
26.1
%
SELECTED FINANCIAL INFORMATION
For the three months ended December 31,
For the year ended December 31,
YoY Change
YoY Change
(€ million)
2019
2020
2019
2020
Revenue
49.3
41.8
(15.3)
%
160.4
139.6
(12.9)
%
Marketplace revenue
26.0
27.7
6.5
%
78.5
93.8
19.6
%
Commissions
8.4
10.0
18.6
%
25.0
34.6
38.5
%
Fulfillment
8.9
10.1
13.6
%
26.9
32.4
20.7
%
Marketing & Advertising
2.3
3.0
29.9
%
6.1
7.7
26.6
%
Value Added Services
6.4
4.7
(27.3)
%
20.5
19.1
(7.0)
%
First Party revenue
23.0
13.5
(41.4)
%
81.2
44.2
(45.6)
%
Platform revenue
49.1
41.2
(16.0)
%
159.6
138.0
(13.5)
%
Non-Platform revenue
0.2
0.5
150.7
%
0.8
1.6
108.4
%
Gross Profit
24.8
27.9
12.5
%
75.9
92.8
22.3
%
Fulfillment expense
(23.9)
(19.5)
(18.4)
%
(77.4)
(69.3)
(10.4)
%
Sales & Advertising expense
(15.5)
(10.2)
(34.2)
%
(56.0)
(32.5)
(42.0)
%
Technology and Content expense
(7.7)
(7.3)
(5.5)
%
(27.3)
(27.8)
2.1
%
General and Administrative expense ("G&A")
(39.2)
(31.5)
(19.7)
%
(144.5)
(115.7)
(20.0)
%
of which Share Based Compensation ("SBC")
(5.3)
(9.6)
80.9
%
(37.3)
(21.6)
(41.9)
%
G&A expense, excluding SBC
(33.9)
(21.8)
(35.5)
%
(107.3)
(94.0)
(12.3)
%
Adjusted EBITDA
(53.4)
(28.3)
(47.1)
%
(182.7)
(119.5)
(34.6)
%
Operating loss
(61.1)
(40.0)
(34.6)
%
(227.9)
(149.2)
(34.5)
%
Revenue
Gross Profit
Gross profit increased by 12% to €27.9 million in the fourth quarter of 2020 from €24.8 million in the fourth quarter of 2019 as a result of the increase in Marketplace revenue. We also drove significant improvements in the profitability of our first party business which posted an increase in gross profit in the fourth quarter of 2020 compared to the same period the prior year, despite a 41% decline in first party revenue.
Fulfillment Expense
Sales & Advertising Expense
General and Administrative Expense
General & Administrative expense, excluding SBC, reached €21.8 million, down 36% on a year-over-year basis. This significant decrease was attributable to staff costs savings as a result of the portfolio optimization and headcount rationalization initiatives launched in the fourth quarter of 2019, alongside a decrease in professional fees, including legal expenses.
Operating loss
Operating loss was €40.0 million in the fourth quarter of 2020 while Adjusted EBITDA loss was €28.3 million, decreasing by 35% and 47% on a year-over-year basis respectively, demonstrating meaningful progress on our path to profitability.
Cash Position
At the end of December 31, 2020, we had €304.9 million of cash on our balance sheet. This includes approximately €203 million of gross proceeds from the offering completed in December 2020.
GUIDANCE
Our focus continues to be on making further progress towards breakeven and we remain committed to reducing our Adjusted EBITDA loss in absolute terms in 2021 compared to 2020.
The ongoing COVID-19 pandemic as well as the ensuing economic challenges result in substantial uncertainty concerning our operating environment and financial outlook. This may be further exacerbated by instances of social protests or political disruption, as experienced in Nigeria over the course of October 2020 as part of the End SARS campaign or in Uganda in January 2021 where internet was suspended ahead of the presidential election.
These external factors, combined with continued focus on cost efficiency and, to a lesser extent, the continued effects of the business mix rebalancing, are likely to drive continued volatility across some of our key performance indicators.
CONFERENCE CALL AND WEBCAST INFORMATION
Jumia will host a conference call today, February 24, 2021 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): 1-844-750-4870 Participant International Dial in: 1-412-317-5165 Canada Toll Free: 1-855-669-9657 UK Toll Free: 0800-279-9489
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 as of December 31, 2019 and 2020
For the three months ended
For the year ended
December 31, 2019
December 31, 2020
December 31, 2019
December 31, 2020
In thousands of EUR
Revenue
49,276
41,761
160,408
139,623
Cost of revenue
24,440
13,831
84,506
46,783
Gross profit
24,836
27,930
75,902
92,840
Fulfillment expense
23,880
19,496
77,392
69,313
Sale and advertising expense
15,490
10,188
56,019
32,472
Technology and content expense
7,728
7,304
27,272
27,844
General and administrative expense
39,200
31,478
144,525
115,664
Other operating income
537
525
1,929
3,326
Other operating expense
188
(53)
496
101
Operating loss
(61,113)
(39,958)
(227,873)
(149,228)
Finance income
(953)
1,954
3,959
4,923
Finance costs, net
1,003
7,700
2,576
14,038
Loss before Income tax
(63,069)
(45,704)
(226,490)
(158,343)
Income tax expense
522
1,228
575
2,615
Loss for the period
(63,591)
(46,932)
(227,065)
(160,958)
Attributable to:
Equity holders of the Company
(63,461)
(47,084)
(226,689)
(160,928)
Non-controlling interests
(130)
152
(376)
(30)
Loss for the period
(63,591)
(46,932)
(227,065)
(160,958)
Other comprehensive income/loss to be classified to profit or loss in subsequent periods
Exchange differences on translation of foreign operations - net of tax
10,829
25,521
(19,449)
73,569
Other comprehensive income / (loss) on net investment in foreign operations - net of tax
(11,131)
(25,251)
20,179
(74,406)
Other comprehensive income / (loss)
(302)
270
730
(837)
Total comprehensive loss for the period
(63,893)
(46,662)
(226,335)
(161,795)
Attributable to:
Equity holders of the Company
(63,763)
(46,862)
(225,959)
(161,811)
Non-controlling interests
(130)
200
(376)
16
Total comprehensive loss for the period
(63,893)
(46,662)
(226,335)
(161,795)
(UNAUDITED) Consolidated statement of financial position as of December 31, 2019 and December 31, 2020
As of
December 31, 2019
December 31, 2020
In thousands of EUR
Assets
Non-current assets
Property and equipment
17,434
16,559
Intangible assets
47
442
Deferred tax assets
109
102
Other non-current assets
1,508
1,377
Total Non-current assets
19,098
18,480
Current assets
Inventories
9,996
6,703
Trade and other receivables
16,936
10,722
Income tax receivables
725
635
Other taxes receivables
5,395
3,084
Prepaid expenses
12,593
10,405
Term deposits and other current assets
62,418
991
Cash and cash equivalents
170,021
304,901
Total Current assets
278,084
337,441
Total Assets
297,182
355,921
Equity and Liabilities
Equity
Share capital
156,816
179,259
Share premium
1,018,276
1,205,340
Other reserves
104,114
108,623
Accumulated losses
(1,096,134)
(1,268,719)
Equity attributable to the equity holders of the Company
183,072
224,503
Non-controlling interests
(498)
(343)
Total Equity
182,574
224,160
Liabilities
Non-current liabilities
Non-current borrowings
6,127
7,950
Deferred tax liabilities
—
50
Provisions for liabilities and other charges – non-current
226
361
Deferred income – non-current
1,201
831
Total Non-current liabilities
7,554
9,192
Current liabilities
Current borrowings
3,056
2,966
Trade and other payables
56,438
61,772
Income tax payables
10,056
11,436
Other taxes payable
4,473
10,327
Provisions for liabilities and other charges
27,040
31,804
Deferred income
5,991
4,264
Total Current liabilities
107,054
122,569
Total Liabilities
114,608
131,761
Total Equity and Liabilities
297,182
355,921
(UNAUDITED) Consolidated statement of cash flows as of December 31, 2019 and 2020
For the three months ended
For the year ended
December 31, 2019
December 31, 2020
December 31, 2019
December 31, 2020
In thousands of EUR
Loss before Income tax
(63,069)
(45,704)
(226,490)
(158,343)
Depreciation and amortization of tangible and intangible assets
2,378
2,023
7,906
8,133
Impairment losses on loans, receivables and other assets
3,270
872
5,877
4,405
Impairment losses on obsolete inventories
(452)
(129)
275
471
Share-based payment expense
5,333
9,649
37,267
21,647
Net (gain)/loss from disposal of tangible and intangible assets
21
(27)
(149)
(17)
Net (gain)/loss from disposal of financial assets at amortized cost
(6)
—
—
—
Impairment losses on investment in subsidiaries
—
—
28
—
Change in provision for other liabilities and charges
3,741
1,428
6,780
5,455
Lease modification (income)/expense
—
—
—
(57)
Interest (income)/expenses
(380)
239
(682)
613
Net foreign exchange (gain)/loss
1,989
6,256
(1,034)
10,617
(Increase)/Decrease in trade and other receivables, prepayments and VAT receivables
(9,255)
(4,104)
(15,443)
5,356
(Increase)/Decrease in inventories
1,007
1,431
(509)
1,758
Increase/(Decrease) in trade and other payables, deferred income and VAT payables
4,490
1,198
4,880
2,587
Income taxes paid
(23)
299
(1,294)
(1,097)
Net cash flows used in operating activities
(50,956)
(26,569)
(182,588)
(98,472)
Cash flows from investing activities
Purchase of property and equipment
(2,049)
(648)
(5,658)
(1,997)
Proceeds from disposal of property and equipment
39
18
51
21
Purchase of intangible assets
(78)
(24)
(109)
(520)
Proceeds from sale of intangible assets
2
—
224
—
Payment for acquisition of subsidiary, net of cash acquired
—
—
7
—
Interest received
262
122
795
773
Movement in other non-current assets
(111)
(27)
(295)
49
Movement in term deposits and other current assets
(1)
42
(62,716)
61,718
Net cash flows (used in) / from investing activities
(1,936)
(517)
(67,701)
60,044
Cash flows from financing activities
Repayment of borrowings
(4)
—
(9)
—
Interest settled - financing
56
(7)
(22)
(34)
Payment of lease interest
(476)
(347)
(1,176)
(1,332)
Repayment of lease liabilities
(1,222)
(953)
(3,769)
(3,999)
Equity transaction costs
(2,501)
(10,767)
(7,357)
(11,193)
Capital contributions
(16)
203,002
329,161
203,006
Proceeds from exercise of share options
—
104
—
680
Net cash flows (used in) / from financing activities
(4,163)
191,032
316,828
187,128
Net decrease/increase in cash and cash equivalents
(57,055)
163,946
66,539
148,700
Effect of exchange rate changes on cash and cash equivalents
3
(6,194)
2,847
(13,820)
Cash and cash equivalents at the beginning of the period
227,073
147,149
100,635
170,021
Cash and cash equivalents at the end of the period
170,021
304,901
170,021
304,901
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. 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. In light of 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.
Non-IFRS and Other Financial and Operating Metrics
Changes, percentages, ratios and aggregate amounts presented have been calculated on the basis of unrounded figures.
This release includes certain financial measures and metrics not based on IFRS, including Adjusted EBITDA, as well as operating metrics, including Annual Active Consumers, Orders and GMV. We define Annual Active Consumers, Orders, GMV, Total Payment Volume, JumiaPay Transactions and Adjusted EBITDA as follows:
Annual Active Consumers means unique consumers who placed an order for a product or a service on our platform, within the 12-month period preceding the relevant date, irrespective of cancellations or returns.
We believe that Annual Active Consumers is a useful indicator for adoption of our offering by consumers in our markets.
Orders corresponds to the total number of orders for products and services on our platform, irrespective of cancellations or returns, for the relevant period.
We believe that the number of orders is a useful indicator to measure the total usage of our platform, irrespective of the monetary value of the individual transactions.
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.
We believe that GMV is a useful indicator for the value transacted on our platform that is not influenced by shifts in our sales between first-party and third-party sales or the method of payment.
We use Annual Active Consumers, Orders and GMV as some of many indicators to monitor usage of our platform.
Total Payment Volume (“TPV”) corresponds to the total value of orders for products and services completed using JumiaPay including shipping fees, value-added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns, for the relevant period.
We believe that TPV provides a useful indicator of the development, and adoption by consumers, of our payment services offerings.
JumiaPay Transactions corresponds to the total number of orders for products and service completed using JumiaPay, irrespective of cancellations or returns, for the relevant period.
We believe that JumiaPay Transactions provides a useful indicator of the development, and adoption by consumers, of our payment services offerings for orders on our platform irrespective of the monetary value of the individual transactions.
We use TPV and the number of JumiaPay Transactions to measure the development of our payment services.
Adjusted EBITDA corresponds to loss for the period, 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 period, 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 period. 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 period.
The following table provides a reconciliation of loss for the period to Adjusted EBITDA for the periods indicated:
For the three months ended December 31,
For the year ended December 31,
(€ million)
2019
2020
2019
2020
Loss for the period
(63.6)
(46.9)
(227.1)
(161.0)
Income tax expense
0.5
1.2
0.6
2.6
Net Finance costs / (income)
2.0
5.7
(1.4)
9.1
Depreciation and amortization
2.3
2.0
7.9
8.1
Share-based payment expense
5.3
9.6
37.3
21.6
Adjusted EBITDA
(53.4)
(28.3)
(182.7)
(119.5)
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005480/en/
Safae Damir Head of Investor Relations investor-relations@jumia.com
Abdesslam Benzitouni Head of PR and Communications press@jumia.com
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