Jumia Reports Fourth Quarter 2024 Results
Strategic Initiatives Fuel Accelerated Growth in Orders and Active Customers
Cost Discipline and Targeted Marketing Drive Further Operational Efficiency Gains
LAGOS, NG / ACCESS Newswire / February 20, 2025 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the fourth quarter ended December 31, 2024.
Results highlights for the fourth quarter 2024
Results highlights for the full year 2024
Business Highlights for the fourth quarter 2024
Company Commentary
"I am proud of what we have accomplished in 2024. We saw robust growth in secondary cities, expanded our supply from international sellers, and further improved marketing efficiency. In the fourth quarter, excluding South Africa and Tunisia, we achieved strong acceleration in our key usage metrics, with Physical Goods Orders and Quarterly Active Customers increasing by 18% and 8% year-over-year, respectively, without an increase in marketing costs. We closed the year on a high note with strong Black Friday sales, underscoring that our strategy is working.
As we look ahead to 2025, I am optimistic about Jumia's future. The business is stronger and more efficient than it was just two years ago, and I believe we have a good opportunity ahead of us. Our priorities for the year are to build on this momentum by driving top-line growth and improving operational efficiencies. We plan to double down on expansion outside the main urban centers, expand our product assortment with competitive pricing, and strengthen relationships with international sellers. To improve our path to profitability, we will continue to enforce cost discipline and enhance operational and marketing efficiency.
I am confident that we are well-positioned to deliver sustainable growth and achieve profitability." --CEO, Francis Dufay
SELECTED FINANCIAL INFORMATION
Financial Results for the fourth quarter ended December 31, 2024
|
For the three months ended |
For the year ended December |
|||||||||||||||||||||||||||||||||||||||
|
As reported |
YoY |
Constant currency |
YoY |
As reported |
YoY |
Constant currency |
YoY |
|||||||||||||||||||||||||||||||||
|
In USD million, unless otherwise stated |
December 31, 2023 |
December 31, 2024 |
Change |
December 31, 2024 |
Change |
December 31, 2023 |
December 31, 2024 |
Change |
December 31, 2024 |
Change |
||||||||||||||||||||||||||||||
|
Revenue |
59.4 |
45.7 |
(23)% |
58.0 |
(2)% |
186.4 |
167.5 |
(10)% |
219.0 |
17% |
||||||||||||||||||||||||||||||
|
Gross Profit |
37.1 |
23.9 |
(36)% |
30.4 |
(18)% |
107.1 |
99.5 |
(7)% |
131.8 |
23% |
||||||||||||||||||||||||||||||
|
Fulfillment expense |
(11.7 |
) |
(12.9 |
) |
11% |
(15.9 |
) |
36% |
(43.9 |
) |
(41.9 |
) |
(4)% |
(52.8 |
) |
20% |
||||||||||||||||||||||||
|
Sales and Advertising expense |
(6.2 |
) |
(4.8 |
) |
(24)% |
(6.3 |
) |
2% |
(21.5 |
) |
(17.3 |
) |
(19)% |
(24.3 |
) |
13% |
||||||||||||||||||||||||
|
Technology and Content expense |
(9.9 |
) |
(10.0 |
) |
1% |
(10.4 |
) |
5% |
(41.5 |
) |
(37.5 |
) |
(10)% |
(38.8 |
) |
(7)% |
||||||||||||||||||||||||
|
G&A expense, excluding SBC (1) |
(12.3 |
) |
(12.9 |
) |
5% |
(13.3 |
) |
9% |
(69.2 |
) |
(63.4 |
) |
(8)% |
(72.9 |
) |
5% |
||||||||||||||||||||||||
|
Adjusted EBITDA (1) |
(0.6 |
) |
(13.7 |
) |
nm |
(12.2 |
) |
nm |
(58.2 |
) |
(51.3 |
) |
(12)% |
(45.9 |
) |
(21)% |
||||||||||||||||||||||||
|
Operating Income/ (Loss) |
(4.5 |
) |
(17.3 |
) |
nm |
(16.2 |
) |
nm |
(73.3 |
) |
(66.0 |
) |
(10)% |
(62.5 |
) |
(15)% |
||||||||||||||||||||||||
|
Loss before Income tax from continuing operations (2) |
(17.1 |
) |
(17.6 |
) |
3% |
(15.2 |
) |
(19)% |
(98.6 |
) |
(97.6 |
) |
(1)% |
(81.1 |
) |
(8)% |
||||||||||||||||||||||||
_________________________
(1) See "Non-IFRS and Other Financial and Operating Metrics" for a reconciliation of non-IFRS measures to IFRS measures.
(2) Loss before Income tax from continuing operations in constant currency, and the corresponding year-over-year change, excludes the impact of foreign exchange recorded in finance income/costs. Net foreign exchange gains/(losses) in reported currency were $1.5 million in the fourth quarter of 2023 and $(1.3) million in the fourth quarter of 2024. For the year ended December 31, these amounts were $(10.5) million in 2023 and $(13.0) million in 2024, respectively.
Revenue
Gross Profit
Expenses
Loss before Income tax from continuing operations
_____________________________
1 In addition to marketplace revenue and first-party sales, revenue included other revenue of $0.4 million in the fourth quarter of 2023 and $0.4 million in the fourth quarter of 2024. For the year ended December 31, 2024, other revenue was $1.6 million compared to $2.2 million for the year ended December 31, 2023.
2 Operating expenses variance consists of the variance in Fulfillment expense $(1.2) million, Sales and advertising expense $1.5 million, Technology and content expense $(0.1) million, General and administrative expense $(0.4) million, Other operating income $0.7 million and Other operating expense $(0.2) million.
Cash Position
SELECTED OPERATIONAL KPIs
Marketplace KPIs
|
For the three months ended |
For the year ended December |
|||||||||||||||||||||||||||||||||||||||
|
As Reported |
Constant currency |
As Reported |
Constant currency |
|||||||||||||||||||||||||||||||||||||
|
December 31, 2023 |
December 31, 2024 |
YoY Change |
December 31, 2024 |
YoY Change |
December 31, 2023 |
December 31, 2024 |
YoY Change |
December 31, 2024 |
YoY Change |
|||||||||||||||||||||||||||||||
|
Annual Active Customers (million) |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
5.7 |
5.4 |
(5)% |
n.a. |
n.a. |
||||||||||||||||||||||||||||||
|
Quarterly Active Customers (million) |
2.3 |
2.4 |
4% |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
||||||||||||||||||||||||||||||
|
Quarterly Active Customers (million) adjusted for perimeter effects (1) |
2.2 |
2.4 |
8% |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
||||||||||||||||||||||||||||||
|
Orders (million) |
6.6 |
7.4 |
11% |
n.a. |
n.a. |
21.3 |
22.7 |
6% |
n.a. |
n.a. |
||||||||||||||||||||||||||||||
|
Orders (million) adjusted for perimeter effects (1) |
6.5 |
7.3 |
14% |
n.a. |
n.a. |
20.6 |
22.3 |
8% |
n.a. |
n.a. |
||||||||||||||||||||||||||||||
|
GMV (USD million) |
233.3 |
206.1 |
(12)% |
263.6 |
13% |
749.8 |
720.6 |
(4)% |
957.3 |
28% |
||||||||||||||||||||||||||||||
|
GMV (USD million) adjusted for perimeter effects (1) |
224.9 |
204.5 |
(9)% |
262.1 |
17% |
716.0 |
703.7 |
(2)% |
939.7 |
31% |
||||||||||||||||||||||||||||||
|
TPV (USD million) |
59.3 |
59.2 |
-% |
74.2 |
25% |
192.2 |
195.4 |
2% |
284.7 |
48% |
||||||||||||||||||||||||||||||
|
JumiaPay Transactions (million) |
3.0 |
3.3 |
11% |
n.a. |
n.a. |
8.4 |
10.1 |
20% |
n.a. |
n.a. |
||||||||||||||||||||||||||||||
_________________________
(1) Adjustments for perimeter effects relate to the exit from Tunisia and South Africa
GUIDANCE
Jumia remains committed to driving healthy growth, enhancing operational efficiency, and positioning the company for profitability.
We are currently observing favorable trends in the first quarter, giving us confidence in establishing our full-year 2025 guidance as follows:
The above forward-looking statements reflect Jumia's expectations as of February 20, 2025, are subject to change, and involve inherent risks, which are partially or fully beyond its control. These risks include but are not limited to political and economic conditions across countries where it operates, the broader economic impact of the ongoing regional conflicts, and global supply chain issues.
CONFERENCE CALL AND WEBCAST INFORMATION
Jumia will host a conference call to discuss its fourth quarter 2024 results at 8:30 AM ET on February 20, 2025.
Interested parties can access the conference at:
US Dial-in (Toll Free): 888-506-0062
International Dial-in: 973-528-0011
United Kingdom Dial-in: 44 20 3355 4169
Entry Code: 434300
The live call will also be available via webcast on Jumia's Investor Relations Website: https://investor.jumia.com/investor-relations/default.aspx .
A replay of the call will be available until Thursday, March 6, 2025 and can be accessed by dialing 877-481-4010 for toll free access or 919-882-2331 for international access using the replay passcode: 51933.
(UNAUDITED)
Consolidated statement of comprehensive income as of December 31, 2023 and 2024
|
For the three months ended |
For the year ended December |
|||||||||||||||
|
In thousands of USD |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
||||||||||||
|
Revenue |
59,406 |
45,687 |
186,402 |
167,486 |
||||||||||||
|
Cost of revenue |
(22,341 |
) |
(21,802 |
) |
(79,298 |
) |
(67,958 |
) |
||||||||
|
Gross profit |
37,065 |
23,885 |
107,104 |
99,528 |
||||||||||||
|
Fulfillment expense |
(11,699 |
) |
(12,935 |
) |
(43,884 |
) |
(41,920 |
) |
||||||||
|
Sales and advertising expense |
(6,235 |
) |
(4,759 |
) |
(21,458 |
) |
(17,288 |
) |
||||||||
|
Technology and content expense |
(9,920 |
) |
(10,016 |
) |
(41,528 |
) |
(37,515 |
) |
||||||||
|
General and administrative expense |
(13,942 |
) |
(14,328 |
) |
(74,425 |
) |
(69,926 |
) |
||||||||
|
Other operating income |
496 |
1,237 |
1,203 |
2,413 |
||||||||||||
|
Other operating expense |
(233 |
) |
(413 |
) |
(320 |
) |
(1,297 |
) |
||||||||
|
Operating loss |
(4,468 |
) |
(17,329 |
) |
(73,308 |
) |
(66,005 |
) |
||||||||
|
Finance income |
(1,594 |
) |
2,656 |
6,189 |
7,319 |
|||||||||||
|
Finance costs |
(11,060 |
) |
(2,973 |
) |
(31,481 |
) |
(38,873 |
) |
||||||||
|
Loss before Income tax from continuing operations |
(17,122 |
) |
(17,646 |
) |
(98,600 |
) |
(97,559 |
) |
||||||||
|
Income tax benefit / (expense) |
572 |
(1,890 |
) |
(661 |
) |
(1,546 |
) |
|||||||||
|
Loss for the period from continuing operations |
(16,550 |
) |
(19,536 |
) |
(99,261 |
) |
(99,105 |
) |
||||||||
|
Loss for the period from discontinued operations |
(1,092 |
) |
- |
(4,917 |
) |
- |
||||||||||
|
Loss for the period |
(17,642 |
) |
(19,536 |
) |
(104,178 |
) |
(99,105 |
) |
||||||||
|
Attributable to: |
||||||||||||||||
|
Equity holders of the Company |
(17,646 |
) |
(19,533 |
) |
(104,155 |
) |
(99,086 |
) |
||||||||
|
from continuing operations |
(16,554 |
) |
(19,533 |
) |
(99,238 |
) |
(99,086 |
) |
||||||||
|
from discontinued operations |
(1,092 |
) |
- |
(4,917 |
) |
- |
||||||||||
|
Non-controlling interests |
4 |
(3 |
) |
(23 |
) |
(19 |
) |
|||||||||
|
from continuing operations |
4 |
(3 |
) |
(23 |
) |
(19 |
) |
|||||||||
|
Loss for the period |
(17,642 |
) |
(19,536 |
) |
(104,178 |
) |
(99,105 |
) |
||||||||
|
Other comprehensive income / (loss) to be classified to profit or loss in subsequent periods |
||||||||||||||||
|
Exchange differences gain on translation of foreign operations |
17,974 |
2,147 |
218,516 |
219,671 |
||||||||||||
|
Other comprehensive loss on net investment in foreign operations |
(21,598 |
) |
(91 |
) |
(228,976 |
) |
(207,468 |
) |
||||||||
|
Other comprehensive income on financial assets at fair value through OCI |
1,265 |
158 |
3,793 |
3,737 |
||||||||||||
|
Other comprehensive income / (loss) |
(2,359 |
) |
2,214 |
(6,667 |
) |
15,940 |
||||||||||
|
Total comprehensive loss for the period |
(20,001 |
) |
(17,322 |
) |
(110,845 |
) |
(83,165 |
) |
||||||||
|
Attributable to: |
||||||||||||||||
|
Equity holders of the Company |
(19,988 |
) |
(17,344 |
) |
(110,803 |
) |
(83,170 |
) |
||||||||
|
Non-controlling interests |
(13 |
) |
22 |
(42 |
) |
5 |
||||||||||
|
Total comprehensive loss for the period |
(20,001 |
) |
(17,322 |
) |
(110,845 |
) |
(83,165 |
) |
||||||||
(UNAUDITED)
Consolidated statement of financial position as of December 31, 2023 and December 31, 2024
|
As of |
||||||||
|
In thousands of USD |
December 31,
|
December 31,
|
||||||
|
Assets |
||||||||
|
Non-current assets |
||||||||
|
Property and equipment |
14,361 |
17,196 |
||||||
|
Deferred tax assets |
531 |
323 |
||||||
|
Other taxes receivables |
4,721 |
3,814 |
||||||
|
Other non-current assets |
1,289 |
1,408 |
||||||
|
Total Non-current assets |
20,902 |
22,741 |
||||||
|
Current assets |
||||||||
|
Inventories |
9,699 |
6,432 |
||||||
|
Trade and other receivables |
23,157 |
15,783 |
||||||
|
Income tax receivables |
2,000 |
3,041 |
||||||
|
Other taxes receivable |
4,143 |
4,227 |
||||||
|
Prepaid expenses |
9,470 |
5,903 |
||||||
|
Term deposits and other financial assets |
85,088 |
78,585 |
||||||
|
Cash and cash equivalents |
35,483 |
55,360 |
||||||
|
Total Current assets |
169,040 |
169,331 |
||||||
|
Total Assets |
189,942 |
192,072 |
||||||
|
Equity and Liabilities |
||||||||
|
Equity |
||||||||
|
Share capital |
236,800 |
283,093 |
||||||
|
Share premium |
1,736,469 |
1,792,181 |
||||||
|
Other reserves |
160,729 |
180,442 |
||||||
|
Accumulated losses |
(2,064,763 |
) |
(2,168,924 |
) |
||||
|
Equity attributable to the equity holders of the Company |
69,235 |
86,792 |
||||||
|
Non-controlling interests |
(511 |
) |
(506 |
) |
||||
|
Total Equity |
68,724 |
86,286 |
||||||
|
Liabilities |
||||||||
|
Non-current liabilities |
||||||||
|
Non-current borrowings |
2,357 |
7,260 |
||||||
|
Trade and other payables |
125 |
6 |
||||||
|
Deferred tax liabilities |
204 |
540 |
||||||
|
Other taxes payable |
474 |
1,626 |
||||||
|
Provisions for liabilities and other charges |
514 |
638 |
||||||
|
Total Non-current liabilities |
3,674 |
10,070 |
||||||
|
Current liabilities |
||||||||
|
Current borrowings |
3,718 |
3,938 |
||||||
|
Trade and other payables |
55,425 |
44,301 |
||||||
|
Income tax payables |
13,427 |
13,510 |
||||||
|
Other taxes payable |
23,452 |
13,994 |
||||||
|
Provisions for liabilities and other charges |
18,420 |
12,893 |
||||||
|
Deferred income |
3,102 |
7,080 |
||||||
|
Total Current liabilities |
117,544 |
95,716 |
||||||
|
Total Liabilities |
121,218 |
105,786 |
||||||
|
Total Equity and Liabilities |
189,942 |
192,072 |
||||||
(UNAUDITED)
Consolidated statement of cash flows as of December 31, 2023 and 2024
|
For the three months ended |
For the year ended December |
|||||||||||||||
|
In thousands of USD |
December 31,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||
|
Loss before Income tax from continuing operations |
(17,122 |
) |
(17,646 |
) |
(98,600 |
) |
(97,559 |
) |
||||||||
|
Loss before Income tax from discontinued operations |
(1,092 |
) |
- |
(4,917 |
) |
- |
||||||||||
|
Loss before Income tax |
(18,214 |
) |
(17,646 |
) |
(103,517 |
) |
(97,559 |
) |
||||||||
|
Depreciation and amortization of tangible and intangible assets |
2,160 |
2,311 |
9,841 |
8,265 |
||||||||||||
|
Impairment losses on loans, receivables and other assets |
23 |
609 |
1,054 |
715 |
||||||||||||
|
Impairment losses/(reversals) on obsolete inventories |
(56 |
) |
(181 |
) |
215 |
197 |
||||||||||
|
Share-based compensation expense |
1,683 |
1,418 |
5,276 |
6,541 |
||||||||||||
|
Net (gain)/loss from disposal of tangible and intangible assets |
203 |
124 |
173 |
854 |
||||||||||||
|
Change in provision for other liabilities and charges |
(7,784 |
) |
(105 |
) |
(17,089 |
) |
(3,125 |
) |
||||||||
|
Lease modification (income)/expense |
68 |
(26 |
) |
95 |
(94 |
) |
||||||||||
|
Interest (income)/expense |
357 |
(788 |
) |
(2,353 |
) |
(569 |
) |
|||||||||
|
Discounting effect (income)/expense |
6 |
(108 |
) |
(73 |
) |
(289 |
) |
|||||||||
|
Net foreign exchange (gain)/loss |
2,895 |
1,348 |
10,942 |
13,359 |
||||||||||||
|
Net loss on financial instruments at fair value through profit or loss |
12,917 |
- |
13,364 |
16,163 |
||||||||||||
|
Impairment reversals on financial assets at fair value through OCI |
- |
- |
- |
(17 |
) |
|||||||||||
|
Net loss recognized on disposal of debt instruments held at FVOCI |
976 |
- |
3,908 |
3,427 |
||||||||||||
|
Share-based compensation expense - settlement |
(30 |
) |
(10 |
) |
(291 |
) |
(178 |
) |
||||||||
|
(Increase)/Decrease in trade and other receivables, prepaid expenses and other tax receivables |
(893 |
) |
(2,340 |
) |
8,159 |
3,242 |
||||||||||
|
(Increase)/Decrease in inventories |
(3,577 |
) |
882 |
(236 |
) |
834 |
||||||||||
|
Increase/(Decrease) in trade and other payables, deferred income and other tax payables |
331 |
(10,602 |
) |
699 |
(5,594 |
) |
||||||||||
|
Income taxes (paid)/received |
(1,127 |
) |
(1,415 |
) |
(3,143 |
) |
(3,375 |
) |
||||||||
|
Net cash flows used in operating activities |
(10,062 |
) |
(26,529 |
) |
(72,976 |
) |
(57,203 |
) |
||||||||
|
Cash flows from investing activities |
||||||||||||||||
|
Purchase of property and equipment |
(776 |
) |
(1,829 |
) |
(2,253 |
) |
(3,678 |
) |
||||||||
|
Proceeds from sale of property and equipment |
28 |
217 |
112 |
332 |
||||||||||||
|
Interest or other charges received |
1,343 |
1,277 |
4,826 |
1,934 |
||||||||||||
|
Movement in other non-current assets |
105 |
(154 |
) |
471 |
(269 |
) |
||||||||||
|
Movement in term deposits and other financial assets |
(3,991 |
) |
(63 |
) |
59,377 |
(8,721 |
) |
|||||||||
|
Net cash flows (used in) / from investing activities |
(3,291 |
) |
(552 |
) |
62,533 |
(10,402 |
) |
|||||||||
|
Cash flows from financing activities |
||||||||||||||||
|
Interest settled - financing |
(1,080 |
) |
26 |
(1,083 |
) |
- |
||||||||||
|
Payment of lease interest |
(201 |
) |
(516 |
) |
(1,105 |
) |
(1,025 |
) |
||||||||
|
Repayment of lease liabilities |
(951 |
) |
(972 |
) |
(5,185 |
) |
(4,098 |
) |
||||||||
|
Equity transaction costs |
(19 |
) |
(2,109 |
) |
(40 |
) |
(5,055 |
) |
||||||||
|
Capital contributions |
- |
- |
- |
99,642 |
||||||||||||
|
Net cash flows (used in) / from financing activities |
(2,251 |
) |
(3,571 |
) |
(7,413 |
) |
89,464 |
|||||||||
|
Net (decrease)/increase in cash and cash equivalents |
(15,604 |
) |
(30,652 |
) |
(17,856 |
) |
21,859 |
|||||||||
|
Effect of exchange rate changes on cash and cash equivalents |
(3,198 |
) |
186 |
(18,241 |
) |
(1,982 |
) |
|||||||||
|
Cash and cash equivalents at the beginning of the period |
54,285 |
85,826 |
71,579 |
35,483 |
||||||||||||
|
Cash and cash equivalents at the end of the period |
35,483 |
55,360 |
35,483 |
55,360 |
||||||||||||
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 for the year ended December 31, 2023. 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. Considering 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 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 Customers, Quarterly Active Customers, Orders and GMV. We define Annual Active Customers Quarterly Active Customers, Orders, GMV, Total Payment Volume, JumiaPay Transactions and Adjusted EBITDA as follows:
Annual Active Customers means unique customers 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.
Quarterly Active Customers means unique customers who placed an order for a product or a service on our platform, within the 3-month period preceding the relevant date, irrespective of cancellations or returns.
We believe that Annual Active Customers and Quarterly Active Customers are useful indicators of the adoption of our offering by customers 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.
Gross Merchandise Value ("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 usage of 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 Quarterly Active Customers, 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 for which JumiaPay was used 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, which corresponds to the share of GMV for which JumiaPay was used, provides a useful indicator of the development, and adoption by customers, of the payment services offerings we make available, directly and indirectly, through JumiaPay.
JumiaPay Transactions corresponds to the total number of orders for products and services on our marketplace for which JumiaPay was used, irrespective of cancellations or returns, for the relevant period.
We believe that JumiaPay Transactions provides a useful indicator of the development, and adoption by customers, of the cashless payment services offerings we make available 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 and the progressive conversion of cash on delivery orders into prepaid orders.
General and administrative expense, excluding SBC , corresponds to the General & Administrative ("G&A") expense excluding share-based compensation expense ("SBC"). We use this metric to measure the development of our G&A costs exclusive of the impact of SBC which is mainly a non-cash expense, influenced, in part, by share price fluctuations.
Adjusted EBITDA corresponds to loss for the period from continuing operations, adjusted for income tax expense (benefit), finance income, finance costs, depreciation and amortization and further adjusted for share-based compensation 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 from continuing operations to Adjusted EBITDA for the periods indicated:
|
For the three months ended |
For the year ended December |
|||||||||||||||
|
(USD million) |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
||||||||||||
|
Loss for the period from continuing operations |
(16.6 |
) |
(19.5 |
) |
(99.3 |
) |
(99.1 |
) |
||||||||
|
Income tax benefit / (expense) |
(0.6 |
) |
1.9 |
0.7 |
1.5 |
|||||||||||
|
Net Finance costs / (income) |
12.7 |
0.3 |
25.3 |
31.6 |
||||||||||||
|
Depreciation and amortization |
2.1 |
2.2 |
9.8 |
8.2 |
||||||||||||
|
Share-based compensation expense |
1.7 |
1.4 |
5.3 |
6.5 |
||||||||||||
|
Adjusted EBITDA |
(0.6 |
) |
(13.7 |
) |
(58.2 |
) |
(51.3 |
) |
||||||||
Constant currency data
Certain metrics have also been presented on a constant currency basis. We use constant currency information to provide us with a picture of underlying business dynamics, excluding currency effects.
Constant currency metrics are calculated using the average foreign exchange rates for each month during 2023 and applying them to the corresponding months in 2024, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. These calculations do not include any other macroeconomic effect such as local currency inflation effects or any price adjustment to compensate local currency inflation or devaluations. Constant currency information is not a measure calculated in accordance with IFRS. While we believe that constant currency information may be useful to investors in understanding and evaluating our results of operations in the same manner as our management, our use of constant currency metrics has limitations as an analytical tool, and you should not consider it in isolation, or as an alternative to, or a substitute for analysis of our financial results as reported under IFRS. Further, other companies, including companies in our industry, may report the impact of fluctuations in foreign currency exchange rates differently, which may reduce the value of our constant currency information as a comparative measure.
The following table sets forth the constant currency data for selected metrics:
|
For the three months ended |
For the year ended December |
|||||||||||||||||||||||||||||||||||||||
|
As reported |
YoY |
Constant currency |
YoY |
As reported |
YoY |
Constant currency |
YoY |
|||||||||||||||||||||||||||||||||
|
In USD million, except percentages |
December 31, 2023 |
December 31, 2024 |
Change |
December 31, 2024 |
Change |
December 31, 2023 |
December 31, 2024 |
Change |
December 31, 2024 |
Change |
||||||||||||||||||||||||||||||
|
Revenue |
59.4 |
45.7 |
(23)% |
58.0 |
(2)% |
186.4 |
167.5 |
(10)% |
219.0 |
17% |
||||||||||||||||||||||||||||||
|
Marketplace revenue |
32.9 |
22.8 |
(31)% |
29.3 |
(11)% |
97.8 |
89.4 |
(9)% |
118.8 |
21% |
||||||||||||||||||||||||||||||
|
Third-party sales |
28.4 |
20.0 |
(30)% |
25.8 |
(9)% |
81.6 |
78.8 |
(3)% |
105.1 |
29% |
||||||||||||||||||||||||||||||
|
Value-added services |
0.7 |
0.8 |
14% |
(0.9 |
) |
27 |
% |
3.9 |
2.9 |
(25)% |
3.6 |
(6)% |
||||||||||||||||||||||||||||
|
Marketing and advertising |
3.7 |
2.1 |
(45)% |
2.7 |
(28)% |
12.4 |
7.7 |
(38)% |
10.0 |
(19)% |
||||||||||||||||||||||||||||||
|
First-party sales |
26.1 |
22.5 |
(14)% |
28.2 |
8% |
86.4 |
76.5 |
(11)% |
98.3 |
14% |
||||||||||||||||||||||||||||||
|
Other revenue |
0.4 |
0.4 |
(14)% |
0.4 |
8% |
2.2 |
1.6 |
(26)% |
2.0 |
(9)% |
||||||||||||||||||||||||||||||
|
Gross Profit |
37.1 |
23.9 |
(36)% |
30.4 |
(18)% |
107.1 |
99.5 |
(7)% |
131.8 |
23% |
||||||||||||||||||||||||||||||
|
Fulfillment expense |
(11.7 |
) |
(12.9 |
) |
11% |
(15.9 |
) |
36% |
(43.9 |
) |
(41.9 |
) |
(4)% |
(52.8 |
) |
20% |
||||||||||||||||||||||||
|
Sales and Advertising expense |
(6.2 |
) |
(4.8 |
) |
(24)% |
(6.3 |
) |
2% |
(21.5 |
) |
(17.3 |
) |
(19)% |
(24.3 |
) |
13% |
||||||||||||||||||||||||
|
Technology and Content expense |
(9.9 |
) |
(10.0 |
) |
1% |
(10.4 |
) |
5% |
(41.5 |
) |
(37.5 |
) |
(10)% |
(38.8 |
) |
(7)% |
||||||||||||||||||||||||
|
G&A expense, excluding SBC |
(12.3 |
) |
(12.9 |
) |
5% |
(13.3 |
) |
9% |
(69.2 |
) |
(63.4 |
) |
(8)% |
(72.9 |
) |
5% |
||||||||||||||||||||||||
|
Adjusted EBITDA |
(0.6 |
) |
(13.7 |
) |
nm |
(12.2 |
) |
nm |
(58.2 |
) |
(51.3 |
) |
(12)% |
(45.9 |
) |
(21)% |
||||||||||||||||||||||||
|
Operating Income/ (Loss) |
(4.5 |
) |
(17.3 |
) |
nm |
(16.2 |
) |
nm |
(73.3 |
) |
(66.0 |
) |
(10)% |
(62.5 |
) |
(15)% |
||||||||||||||||||||||||
|
Loss before Income tax from continuing operations (1) |
(17.1 |
) |
(17.6 |
) |
3% |
(15.2 |
) |
(19)% |
(98.6 |
) |
(97.6 |
) |
(1)% |
(81.1 |
) |
(8)% |
||||||||||||||||||||||||
|
GMV |
233.3 |
206.1 |
(12)% |
263.6 |
13% |
749.8 |
720.6 |
(4)% |
957.3 |
28% |
||||||||||||||||||||||||||||||
|
TPV |
59.3 |
59.2 |
-% |
74.2 |
25% |
192.2 |
195.4 |
2% |
284.7 |
48% |
||||||||||||||||||||||||||||||
|
TPV as % of GMV |
25% |
29% |
28% |
26% |
27% |
30% |
||||||||||||||||||||||||||||||||||
_________________________
(1) Loss before Income tax from continuing operations in constant currency, and the corresponding year-over-year change, excludes the impact of foreign exchange recorded in finance income/costs. Net foreign exchange gains/(losses) in reported currency were $1.5 million for the fourth quarter of 2023 and $(1.3) million for the fourth quarter of 2024. For the year ended December 31, these amounts were $(10.5) million in 2023 and $(13.0) million in 2024, respectively.
Contact Information
Ignatius Njoku
Head of Investor Relations
[email protected]
SOURCE: Jumia Technologies AG
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