Business
E-commerce giant Jumia reports 15% drop in revenue during Oct to Dec 2020 period
Jumia said the effects of the COVID-19 pandemic played out throughout 2020
African e-commerce group Jumia’s revenue decreased by 15.3 percent to US$51.14 million in the 3 months to 31 December 2020. Annual active consumers reached 6.8 million, up 12 percent year-on-year, with continued growth in both new and returning consumers. Orders fell 2.6 percent to US$9.9 million from US$10.15 million after a 14 percent drop in transactions on the JumiaPay app, while orders on the rest of the platform were stable.
The Gross Merchandise Volume (GMV) was US$282.75 million, a down 21.1 percent from US$358.36 million in 2019 as the business mix rebalancing begun in late 2019 continued to have an effect in the final quarter of 2020.
The gross profit increased by 12 percent to US$34.14 million from US$30.35 million after a rise in Marketplace revenue. The total payment volume (TPV) increased by 30 percent to US$72.57 million from US$55.8 million in 2019. On-platform penetration of JumiaPay as a percentage of GMV increased to 25.7 percent from 15.6 percent in 2019.
JumiaPay Transactions increased by 10 percent to 2.7 million from 2.4 million in 2019, as transactions above €10 (US$12.24), which include prepaid purchases on the Jumia physical goods marketplace and Jumia Food platforms, grew by 55 percent over the same period. Sales and Advertising expense decreased by 34 percent to US$12.48 million from US$18.96 million in 2019.
The operating loss was US$48.93 million and the adjusted EBITDA loss was US$34.62 million, decreasing by 35 percent and 47 percent on a year-over-year basis respectively, which Jumia said demonstrated “meaningful” progress on its path to profitability.
Jumia said the effects of the COVID-19 pandemic played out throughout 2020, including the final quarter of 2020 when the reinstatement of movement restrictions and curfews in some geographies affected logistics flows for the e-commerce business and dinner deliveries for Jumia Food. Overall, COVID-19 had a net negative effect on the business in 2020.
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