Africa’s e-commerce giant, Jumia, in a staggering report, recorded a loss of Eur 37.6 million (N17 billion) after tax in the second quarter of 2020 following the devastating effect of COVID-19.
However, there was an improvement in the losses incurred when compared to the loss of Eur 66.7 million recorded in the same period in 2019.
Jumia is facing perilous times as it strives to dig itself out of a massive loss hole. The Eur 34.9 million revenue made by the company was cleaned out by the losses incurred.
It poses much worry that despite having an increase in the number of customers and orders on its platform, the company still records huge losses.
According to Jumia, the e-commerce giant now has 6.8 million active customers as at the second quarter of 2020 which represents a 40% increase when compared to the same quarter in 2019.
Orders also peaked at 6.8 million showing an 8% increase, while GMV was €228.3 million, down 13% on a year-over-year basis.
Jumia explained the results as follows;
“We have made significant progress on our path to profitability in the second quarter of 2020, with Operating loss decreasing 44% year-over-year to €37.6 million. This was achieved thanks to an all-time high Gross Profit after Fulfillment expense of €6.0 million and record levels of marketing efficiency with Sales & Advertising expense decreasing by 51% year-over-year,”
Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia.
“We are navigating these uncertain times of COVID-19 pandemic with strong financial discipline and operational agility which positions us to emerge from this crisis stronger and even more relevant to our consumers, sellers, and communities.”