Jumia(JMIA) - 2023 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The adjusted EBITDA loss for the full year of 2023 decreased to $58.2 million from $182.1 million in 2022, showing steady improvement quarter-over-quarter [6] - The loss before tax from continuing operations for the full year of 2023 decreased to $98.6 million from $206.2 million in 2022 [6] - Liquidity position improved, decreasing from $227.4 million in 2022 to $106.9 million in 2023, with a liquidity position of $120.6 million at the end of 2023 [11][62] - Revenue reached $59 million in Q4 2023, down 2% year-over-year but up 28% in constant currency [45][74] Business Line Data and Key Metrics Changes - Marketplace revenue reached $32.9 million in Q4 2023, down 10% year-on-year but up 22% on a constant currency basis [21] - Sales and advertising expenses decreased from $16.8 million in Q4 2022 to $6.2 million in Q4 2023, reflecting a 63% year-on-year reduction [19][40] - Fulfillment expenses amounted to $11.7 million, down 37% year-on-year [39] Market Data and Key Metrics Changes - GMV for the full year of 2023 declined by 20% and orders by 22% year-over-year, but GMV reached $233 million in Q4 2023, down 8% year-over-year but growing significantly by 21% on a constant currency basis [11][30][67] - The share of physical goods transactions paid through JumiaPay increased from 18.8% in Q4 2022 to 27.7% in Q4 2023 [20] Company Strategy and Development Direction - The company is focused on building better supply in priority categories such as phones, electronics, home and living, fashion, and beauty [12][16] - A strategic shift away from unprofitable categories and expensive consumer incentives has been implemented to drive profitable growth [14][29] - The company aims to further reduce cash utilization in 2024 while pursuing top-line growth in both orders and GMV [13][43] Management's Comments on Operating Environment and Future Outlook - Management noted that high inflation rates and currency depreciations have adversely impacted consumer purchasing power across African markets [5] - The macroeconomic situation in several African markets is starting to recover, with improving GDP growth trends expected in 2024 and 2025 [31][69] - The company is confident in its ability to capture the unique opportunity of e-commerce in Africa, having never been in a better position [31][79] Other Important Information - The company discontinued its food delivery operations due to poor growth prospects and complexity [29] - Significant savings were achieved across the organization, with general and administrative expenses down 62% year-on-year [77] Q&A Session Summary - No questions were raised during the Q&A session, and the conference concluded with closing remarks from management [26][64]