Jumia has released its third-quarter 2021 report. It shows that active customers increased by 8% year-on-year but its adjusted losses have nearly doubled. The impact of the result was felt immediately as Jumia’s shares fell by 7%.

The gross value of orders on the platform grew 8.1% to $238 million, driven by everyday consumer items, such as beauty and cleaning products, while total orders for the phones and electronic category fell steadily. These numbers were $ 7 million and $ 223.5 million in the second quarter of 2021. Revenue grew by 8.5% year on year to $42.7 million.

 Jumia’s adjusted EBITDA and operating losses for the third quarter of 2021 increased 94% and 93% year-on-year. Each To $ 52.5 million and $ 64 million.

The key factor behind this significant increase in losses is the increase in the company’s sales, advertising and technology divisions.

“We see consumer investments as very strategic,” Jeremy Hodara, one of Jumia’s co-founders, told an investor briefing.

Meanwhile, the usage of the JumiaPay financial technology platform increased during the period, it said, to account for just over a third of the total, an increase of 1.5 percentage points.

The latest Jumia financial report simply shows that the etailer is still a long way from being profitable.

Musa Suleiman
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