Jumia announced today financial results for its fourth quarter ended December 31, 2017 and for the full year 2017.
Jumia, the leading online eCommerce ecosystem in Africa, grew GMV by 64,5% to 197,9 MEUR (+113% in constant currency) in the fourth quarter of 2017, compared with 120,2 MEUR in fourth quarter 2016. Jumia marketplace platforms significantly scaled the number of orders with a YoY growth of +94% in Q4 2017.
Jumia saw GMV increase by 41,8 % year over year from 357,5 MEUR in 2016 to 507 MEUR in 2017 (+79% in constant currency), mainly driven by improved macro-economic conditions, as well as a stronger relevance of the marketplace, notably with a significant increase in the number of active merchants as well as products and services available. Jumia is increasingly addressing daily needs of consumers across its markets, resulting in a strong increase in the number of orders and growth of customer base.
Sacha Poignonnec and Jeremy Hodara, Jumia co-CEOs commented: “We made great progress in 2017 with significant growth of the business, driven by technological innovations and improved relevance of the offering of goods and services. This growth is demonstrating the robust momentum in our core businesses and markets, and the increased adoption of online services by African consumers. We are also seeing good results from our strategy to further develop our logistics platform and our payment platform. Our customers continue to benefit from increasing access to great services, quality products, improved customer experience and the tremendous convenience of being able to shop online”.
- Jumia reached the threshold of 550 million visits across Africa in 2017. Other groundbreaking figures for 2017 include the number of products available on the platform which skyrocketed from 50,000 in 2012 to over 5 million in 2017.
- Jumia saw a huge success of Black Friday with more than 100 million visits, breaking all previous sales records across all topline drivers (new customers, orders, items sold, visits).
- The company launched its own payment platform, JumiaPay, to further facilitate transactions between merchants and consumers and tailor its solutions to specific local needs and requirements.
- Jumia launched a consumer-facing payment mobile application (`Jumia One´), enabling customers to easily access digital services such as Airtime/Data, TV, Utilities. Jumia One is gradually integrating more online and financial solutions to help consumers save time and money and access a large set of different services from a one stop shop App.
- Over 8 million packages were handled through the Jumia logistic platform, a unique achievement. The company maintains close control over its logistics through a fully integrated network of local providers, using Jumia technology and data.
- Adjusted EBITDA for 2017 stood at a negative 120.1 MEUR, while EBITDA margin as a percentage of GMV was -23.7% (compared to -25.5% for the previous year), reflecting the continued investment in building the ecosystem as well as the continuous improvement in efficiency.
|Key Financials (EURm)||Q4 2016||Q4 2017||FY 2016||FY 2017|
|% of revenue||2.2%||3.1%||1.8%||2.4%|
|Balance Sheet (EURm)||31-Dec-16||31-Dec-17|
|Net working capital3||(12.2)||(10.1)|
|Key Performance Indicators (m)||Q4 2016||Q4 2017||FY 2016||FY 2017|
|Active customers (LTM)8||1.5||2.2|
Source: Jumia’s unaudited consolidated IFRS financial information and management reports
On August 30, 2016 Africa eCommerce Holding GmbH, the holding company of Jumia, was merged into Africa Internet Holding GmbH (formerly trading under Africa Internet Group). In June 2016, all business models of Africa Internet Group were renamed around the Jumia brand. The figures shown for all periods refer to Africa Internet Holding GmbH.
(1) Adjusted EBITDA is calculated as operating profit or loss before depreciation of property, plant and equipment, amortization of intangible assets and share-based compensation expenses.
(2) Capital expenditure is calculated as purchase of property, plant and equipment plus acquisition of intangible assets.
(3) Net working capital is calculated as inventories plus trade and other receivables plus prepaid expenses minus trade and other payables.
(4) The total value of “total orders” including shipping fees, VAT and before deduction of any discounts/vouchers
(5) Deviation to prior publications of GMV is primarily attributable to alignment of foreign currency conversion method to Jumia’s key financials and due to alignment of GMV definition to industry practice
(6) Total number of valid orders placed on the platform within the period.
(7) Deviation to prior publications of total orders is primarily attributable to alignment of total orders definition to industry practice
(8) Number of customers having made at least one order as defined in “total orders” within the last 12 months before end of period.
(9) Pro-forma cash position of EUR 245m includes cash on balance sheet plus capital commitments.
Source: Jumia Ghana