Q1 FY2020 results: Jumia performs well as losses shrink
With exactly one full year post IPO, the Jumia Q1 2020 report shows a better future ahead for the eCommerce company, recording a decent result as losses shrink in this quarter, especially after surviving a pretty tough 2019.
The Q1 report shows a decrease in the operational costs for the first time in six quarters, with Gross profit after Fulfillment expense reaching a record €2.5 million, compared to less than €0.1 million in the first quarter of 2019.
While being optimistic about the opportunity that the COVID-19 situation has presented for growth, its losses shrink standing at $47.4 million in Q1, which is lower than losses from both the previous quarter ($69.2 million) and Q1 2019 ($49.4 million).
JumiaPay, the brand’s fintech platform has continued to show impressive growth since 2019. Transactions in this quarter reached 2.3 million, a year-over-year increase of 77%, representing 35% on-platform penetration in terms of orders, almost matching the 2.4 million transaction volume it recorded in the very busy last quarter of 2019.
The company’s adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) losses decreased by 10 percent year-over-year. It is also important to note that orders through the platform grew to 6.4 million, which was 28 percent higher than the same period in previous year.
These positive results were achieved by Jumia amid the coronavirus pandemic, which has hammered the global economy since the beginning of 2020.