E-commerce boom continues in Africa, according to Jumia results

Jumia, a pan-African e-commerce company (and the only continent-based technology company listed on the New York Stock Exchange), released its first-quarter financial performance on Tuesday. The company’s results included steady growth but lagged in some areas from the previous quarter. As always, the first page of each Jumia report highlights its year-over-year victories. The first quarter of 2022 was no different.

What did the company highlight in its “earnings” section?

Compared to the first quarter of 2021, Jumia reported double-digit growth in orders, GMV (gross volume of goods) and revenue. Orders increased 40% year-over-year, from 6.6 million to 9.3 million. GMV itself jumped 27% year-on-year, from $198.9 million to $252.7 million, and Jumia’s revenue reached $47.6 million, a 44% increase compared to the first quarter of 2021 of $33 million.

According to co-CEOs Jeremy Hodara and Sacha Poignonnec, Jumia experienced its highest rates of GMV, orders and revenue growth of the past nine quarters in Q1 2022. But those numbers fell well below where the e-commerce giant ended up. 2021. The last quarter saw gross merchandise volumes of $330 million, $62 million in revenue and 11.3 million orders placed.

However, it’s unfair to compare any quarter to the fourth quarter as they’re usually hot with ecommerce activity, festivities, parties, and Black Friday events every November, as TechCrunch estimates. Jumia shares rose sharply on Tuesday, rising about 16% in early trading. That despite the sequential decline in business growth during the quarter, Jumia’s Q1 2022 growth in GMV, orders and revenue comfortably exceeds that recorded last year.

Fast-moving consumer goods (FMCG) and food deliveries are the fastest growing among its quarterly active customer base of 3.1 million customers, up 28% year-over-year. FMCGs were the second largest category of items sold by Jumia during Q1 2022. However, it was the fastest growing category, expanding by 180% year-over-year.

Jumia said this growth was supported by the push for the “subcategory (races) that we are currently developing”. The e-commerce company is currently testing an offer (fast trade) in Lagos, Nigeria to deliver groceries to people’s homes in an hour or less.

Food delivery is up 86% year-over-year, while phones and electronics are up 19% year-over-year, despite “continued volatility in the global supply chain for these categories.”

Other metrics detail Jumia’s accelerated growth, the total value of payments (POS, Point of Sale Terminal) from its fintech arm, JumiaPay, increased 36.7% to $70.7 million in the first quarter, mainly supported by solid GMV growth, total JumiaPay transactions reached 3.2 million in Q1 2022, indicating a 32% year-over-year increase, most of these transactions were in the category (food delivery, JumiaPay) which reached 34% of orders on the platform throughout the quarter.

The company’s logistics business also fared well. In the last quarter, Q4 2021, the e-commerce platform sent 3.3 million packages to 996 partners, compared to 2.9 million packages to 766 customers in the previous quarter. In the first quarter of 2022, the pan-African e-commerce giant reached new heights, shipping more than 3.5 million packages to 1,250 customers.

Last quarter, the company announced plans to spend up to $55 million on sales and advertising in the first half of 2022. So far, it has spent $18.8 million this quarter in this category, up 94% from a year ago. .

According to its fourth quarter 2021 financial data, Jumia said it ended the year with $512.8 million ($117.1 million in cash and cash equivalents, $395.7 million in time deposits). and other financial assets). Those numbers are now $421.2 million, $88.7 million, and $332.6 million, respectively, as of March 31, 2022.

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