By Libby George
LAGOS (Reuters) – Having a hard time e-commerce platform Jumia Technologies reported a nearly 7 percent fall in first quarter earnings due to supply chain disruptions, particularly in China, however saw lower money burn and indications that lockdowns were hastening a shift towards online shopping in Africa.
Jumia was the first Africa-focused tech start-up to go public on the New York Stock Exchange and reached a market capitalisation of over $1.5 billion just days after it noted last April.
However the company has actually had a hard time to discover its method, and its share price has tumbled some 90%from its peak a year ago. On Wednesday, its shares traded down around 24%from the previous close, at $3.98 at 1159 EST.
The outcomes, which caught the start of the coronavirus outbreak on the African continent, showed the lowest losses in profits before interest, taxes, devaluation and amortization in 6 quarters, at 35.6 million euros.
However revenue fell to 29.3 million euros. China is a an essential provider of electronic devices and cellphones offered on the platform.
Still, throughout a profits get in touch with Wednesday, founders Sacha Poignonnec and Jeremy Hodara stated they saw opportunities amidst the pandemic.
” We are seeing unprecedented demand to sign up with the Jumia platform, particularly for called brands,” Poignonnec said. “We believe those dynamics will help speed up the shift towards online.”
The company has just recently unveiled handle major brand names including Unilever, Procter & Gamble, Reckitt Benckiser, Nestle, Carrefour in Algeria and grocery company Twiga in Kenya.
The business is hoping virus containment procedures as lockdowns ease will increase the appeal of its service model, bypassing congested stores and providing cashless payment.
Though it presented information showing a drop in products sold amid lockdowns in crucial markets consisting of Nigeria and South Africa in March and into April, the company said figures in both markets had actually begun rebounding by the end of April.
In South Africa, a rigorous lockdown barred shipment of fashion items for several weeks, while in Nigeria, procedures made it difficult for some suppliers to access their stock.
Income in Morocco and Tunisia increased by contrast, and sales were somewhat greater on a group level by mid-April.
The figures likewise showed 28%orders growth, 77%year-on-year development in deals utilizing its JumiaPay payment platform and gross revenue per order climbing to 40 cents, up from breakeven a year earlier.
( Reporting by Libby George; Editing by Joe Bavier and Alexandra Hudson)