The path to Jumia becoming profitable is probably still years away as the eCommerce has released its Q1 2020 report with revenue dipping.
The coronavirus pandemic no doubt was the reason for the revenue decline as major markets across Africa were shutdown to flatten the curve of the virus.
Only essential business services were allowed to operate which prompted Jumia to enter into partnerships with Twiga Foods and Mastercard among others.
Overall, the company reported revenue of EUR29.3 million for the quarter, down from EUR31.4 million the year earlier. The company reported a loss for the period of EUR42.3 million, slightly better than the EUR45.8 million in the first quarter of 2019.
The coronavirus affected “stock availability for the mobile phones and consumer electronics categories as well as fashion,” Jumia said in its Q1 report.
The supply problems contributed to an 11% decline in gross merchandise value, or the total value of orders for products and services bought on the platform, in the first quarter.
The merchandise value metric also faced pressure as Jumia reduced incentives and shoppers bought more everyday items like packaged foods. The company said it has increased its focus on everyday categories to drive consumer adoption of its platform.
Annual active consumers on its platform rose 51% in the quarter while the number of orders placed increased by 28%.
As of today, the price of Jumia stock stands at $4.212 shedding
