By Adedapo Adesanya
Jumia Technologies recorded a 21 per cent growth in its Gross Merchandise Value (GMV), which shows the total sales monetary value for merchandise sold through a particular marketplace over a certain time frame, in the second quarter of the year as the metric jumped to $271.1 million compared to $223.5 in the same period last year.
This was announced today in its financial results for the second quarter ended June 30, 2022.
Revenue also grew 42.5 per cent to $57.3 million from $40.2 million while it raked in a gross profit of $30.4 million from $26.8 million, a 13.6 per cent growth by comparison.
This is as Orders and Quarterly Active Consumers also grew by 35 per cent and 25 per cent respectively. In the period under review, Jumia across the board settled 10.3 million orders against 7.6 million, while its customer base in the three months grew from 2.7 million last year to 3.4 million.
Commenting on the results, Mr Jeremy Hodara and Mr Sacha Poignonnec, co-Chief Executive Officers of Jumia said, “We remain focused on scaling the business towards profitability. In the second quarter of 2022, we have successfully delivered on each building block of our path to profitability: usage growth momentum, monetization acceleration and cost discipline.
“Despite a deteriorating macro environment, we maintained a strong pace of usage growth. Orders, Quarterly Active Consumers, and GMV grew by 35 per cent, 25 per cent, and 21 per cent respectively, on a year-over-year basis.
“Leveraging robust usage growth, we further accelerated monetization. Gross Profit and Marketplace revenue were up 14 per cent and 17 per cent year-over-year respectively, the fastest growth rates of the past 5 quarters.”
In the context of rising inflation and input cost pressure, Jumia announced that cost discipline remained a top priority, adding that it drove usage growth and monetization acceleration with lower-than-expected marketing investments with Sales and Advertising expenses of $41.0 million in the first half of 2022 compared to our guidance of $50-55 million.
“We believe we are now past the peak of quarterly Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) losses reached in the fourth quarter of 2021 and intend to redouble our efforts to reach profitability, leveraging our strong business fundamentals.
“We intend to reduce Adjusted EBITDA losses starting from the second half of 2022 with a 12 per cent to 29 per cent decrease year-over-year.”
“We are confident our consistent and disciplined execution will help us reach profitability and build an even stronger and more relevant platform,” the company noted.
Speaking on its impact initiatives, Jumia noted that in Nigeria, it partnered with Errand360 to offer eco-friendly, bicycle-powered meal deliveries to our customers.
“This partnership will help us reduce our carbon emissions and delivery costs thanks to lower maintenance costs and zero spend on fuel,” it said.
Coca-Cola Partners Jumia to Meet Consumer Demand
By Modupe Gbadeyanka
A partnership aimed to meet the demands of consumers in Africa has been signed between Jumia and Coca-Cola.
Through this deal, consumers of the soft drink brand will have the opportunity of having the products delivered to their doorsteps in the shortest time possible, the leading e-commerce platform in Africa confirmed in a statement.
This move, which will be available to customers in Nigeria, Egypt, Kenya, Morocco, Côte d’Ivoire, and Uganda, will increase the assortment available on Jumia and support product delivery in the fastest time possible. Consumers also will enjoy promotions such as ‘buy-one-get-one free’ and discounts of up to 20 per cent on Coca-Cola orders.
“We are happy to partner with Coca-Cola to meet consumer demand for everyday products at the fastest delivery time and at affordable prices.
“Coming after the launch of our Quick Commerce – Jumia Food Mart, we are happy to let our consumers know that they can expect their delivery of beverages in under 20 minutes, offering convenience at its best,” the chief commercial officer of Jumia, Romain Christodoulou, stated.
The Vice President for Customer & Commercial Leadership at Coca-Cola Africa Operating Unit, Minas Vourodimos, while also commenting, said, “We are pleased to partner with Jumia as we strive to meet the needs of consumers across Africa by making our beverages available for delivery to their homes when they need them.
“Through this, we will be offering an alternative for easy and fast access to Coca-Cola brands across several beverage categories to hydrate and refresh.”
There has been a notable increase in purchases of everyday products on Jumia since the COVID-19 outbreak as more consumers than ever continue to embrace online shopping.
Groceries/everyday essentials is a fast-growing category on Jumia, according to the Africa e-commerce report entitled Jumia Africa e-Commerce Index 2021.
d.light to Explore Nigerian Solar Energy Market
By Modupe Gbadeyanka
More players are exploring the Nigerian solar energy market to provide consumers with better alternatives as the country battles with poor electricity supply from the national grip, which collapses at the slightest opportunity.
The latest entrant into the ecosystem is d.light, a global leader in social transformation. The company plans to flood the market with over 25 million sustainable products, including solar lanterns, solar home systems, TVs, radios and smartphones sold globally across over 70 countries.
At the launch of the brand in Nigeria recently, the chairman of the board, Mrs Ibukun Awosika, explained that the company’s goal is to bridge the gap and ensure inclusiveness for everyone.
“Our vision is to change the lives of billions of people on the face of the earth who cry for equity to have a chance to live a better life. We are in Nigeria to transform Africa one community at a time, and this is our driving force,” she said.
In his address, the co-founder and CEO, Ned Tozun, stated that d.light had employed over 6,000 people across Africa.
“Our target is lower-income individuals. There is the sun in the village and the cities, so when we just say a rural market, it is not. The guy who lives in Lagos but doesn’t have a generator shouldn’t even use a generator if he can have a solar solution. Why? Because of environmental sustainability.
“So, when you think about all the ESG matters, you will encourage more people to use alternate sources of energy rather than polluting sources of energy. That helps everywhere, whether you are in the city or the village. It is about lower income.
“What we’ve done is to think of the entire problem chain. Firstly, innovate the product. Two, how do you deliver it? Deliver it to them at the most reasonable price. Thirdly, make sure it’s affordable for them.
“How is it affordable? It is pay-as-you-go. They don’t have to look for the capital to buy. They look for signing-up, proving they have the ability to be able to pay every week – they have a different system: every week, every month, every day – are different available options, and as you increase your credibility ratio in terms of your performance, you then have opportunity to get into more,” he said.
On his part, the co-founder and president, Mr Sam Goldman, said, “The reality is that we are still so far from where we need to be in terms of our population and their needs.
“Hence, our target market is the low-income individuals, not just the rural communities, which is why the company adopts the ‘pay-as-you-go” model. Access to sustainable energy will not be possible except we solve the funding problem.”
d.light was established in 2007 by Ned Tozun, a Canadian, and Sam Goldman, an American, met at Stanford Business School. It has operated in several markets globally like India, China, Kenya, Uganda, Tanzania and Ethiopia before expanding to Nigeria.
Jumia Kicks off Brand Festival to Promote Authentic Brands
Jumia, the leading pan-African e-commerce platform, has commenced its annual ‘brand festival’ campaign, targeted at promoting authentic products at the best prices directly from the manufacturers on the Jumia platform.
The campaign, which starts on Monday, September 12th and will run through October 2nd, 2022, offers millions of consumers nationwide the opportunity to buy original products from the official stores of several top brands such as Adidas, Samsung, Infinix, Umidigi, Nivea, DeFacto, Nestle, Bacardi, Intel/HP, Unilever, Pernod Ricard, Oraimo, Diageo, Coca Cola, Apple, and Xiaomi.
“The Jumia Brand Festival is not only for the promotion of authentic products, but it also serves as a means for consumers to get the best prices directly from the manufacturers on our platform. We are aware of the needs of today’s consumers, which is to gain quality goods at the most competitive market prices and that is the essence of this campaign. We have partnered with the best international brands to make their products accessible to consumers across the country, so consumers can spend less while buying more,” said Ijeoma Arum, Chief Commercial Officer, Jumia Nigeria.
“Partnering with Jumia is always an opportunity to co-create on providing customers with amazing offers on innovative Mobile and Electronics products which Samsung is best known for both locally and globally. With the current economic situation, it is imperative to ensure that customers are still able to access basic commodities that have a significant impact on their daily activities. The Jumia Brand Festival is set to provide this and we are happy to be a part of it,” said Oyebade Moses, Manager of e-commerce Group, Samsung Electronics West & Central Africa.
Consumers can take advantage of the amazing offers during the Anniversary Sale by simply downloading the Jumia App. The campaign will feature Treasure Hunt, Brand Days, Daily Check-In, and Flash Sales, where consumers can win exciting prizes and get further discounts on a number of products. The campaign is also providing free shipping on a wide range of products to consumers within Lagos, Abuja, and Ibadan.
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