Jumia(US:JMIA)2024-05-07 14:25Financial Data and Key Metrics Changes - Jumia's GMV improved to $181.5 million, up 5% year-over-year or 39% on a constant currency basis [9] - Total revenue was $48.9 million, up 19% year-over-year or 57% on a constant currency basis [35] - Gross profit was $31.2 million, up 25% year-over-year or 67% on a constant currency basis, with a gross profit margin of 17.2% compared to 14.4% in Q1 2023 [61] - Adjusted EBITDA loss declined to $4.3 million or $1.4 million on a constant currency basis [50][68] - Loss before income tax increased to $39.6 million from $29.2 million a year ago, largely due to foreign exchange losses [10][52] Business Line Data and Key Metrics Changes - Marketplace revenue was $25.9 million, up 11% year-over-year or 48% on a constant currency basis [35] - Revenue from first-party sales was $22.4 million, up 29% year-over-year or 69% on a constant currency basis [36] - Fulfillment expenses as a percentage of GMV improved from 6.8% in Q1 2023 to 5.2% in Q1 2024 [4] - Sales and advertising expense was $3.7 million, down 30% year-over-year [5] Market Data and Key Metrics Changes - The Nigerian Naira devaluated to NGN1396 from NGN461 to US$1, a roughly 200% year-over-year devaluation [11] - The Egyptian Pound devaluated from EGP47 to EGP31 to US$1, approximately a 50% year-over-year devaluation [24] - In Kenya, the Shilling gained almost 19% in the first quarter [13] Company Strategy and Development Direction - Jumia's growth strategy focuses on three key pillars: strengthening the core business, improving cash efficiency, and building strong operating fundamentals [25] - The company is simplifying its operating model and reducing headcount to create a more efficient organization [37] - Jumia is expanding its logistics capabilities to reach underserved markets, with 51% of orders now coming from outside capital cities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Jumia's future, citing a strong start to the year and the effectiveness of their strategy [3][43] - The company is acquiring higher quality customers while reducing marketing spend, indicating a more sustainable growth model [44] - Management is hopeful for macro improvements in Nigeria and other markets, despite current challenges [13] Other Important Information - Jumia has reduced overall headcount by 43% since the end of 2022, contributing to a 31% year-over-year decline in G&A expenses [37] - The liquidity position was $101.5 million, with 79% held in US Dollars to limit exposure to local currency fluctuations [38][57] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries [47][48]