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Jumia reports impressive topline growth in Q1



NYSE listed e-commerce platform Jumia Technologies has announced its financial results for the quarter ended March 31, 2019.

The company reported a 12 % growth in revenue to 31.8 million euros from 28.3 million reported in the previous year while net loss widened to €45.8 Million. Operating loss year-on-year improved by 356 basis points while market place revenue grew by 102%. Active users grew by 42% to 4.3 Million year on year.

Jumia Results for the three months
ended March 31st
(€ 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%

The Q1 release comes a few days after short-seller Citron Research made public two critical reports over the last two days accusing the company of fraud and said its stock is “worthless.”

However, Citi Research, in a note to investors dubbed “Jumia Technologies (JMIA): What to Make of the Citron Allegations?” asessed the allegations and concluded that the allegations were not substantial as indicated by Citron.

“For investors, we believe the most important factor remains the company’s ability to deliver on its guidance, starting with Q1. We maintain our Neutral / High Risk (2H) rating on the shares, reflecting the significant growth prospects of the company, balanced by the inherent volatility of operating in early-stage e-commerce markets. “

Citi Research

According to Citi, Jumia is well positioned to tap Africa’s vast growth potential. However, citi notes that the firm’s financial losses mean that it needs to grow strongly for several years while carefully managing its operating expenses.

“We believe that the shares’ strong performance since listing values the shares fairly, given this balance of reward and risk. “


Citi also noted that the most important factor remains Jumia’s ability to deliver on its guidance, starting with Q1.

The management of Jumia noted that penetration of E-Commerce in Africa is less than 1% and the potential is much higher compared to the other continents. The firm’s Co-CEOs Sacha Poignonnec and Jeremy Hodara noted that they will maximize the value from the platform through different product lines such as logistics and payments.

“We will not be distracted from executing on our strategy and carrying out our mission by those who seek to create doubts to profit at our expense and that of our long-term stakeholders,” Jumia Co-CEO Sacha Poignonnec noted during the conference call with analysts and investors.


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