E-commerce continues to boom in Africa, according to Jumia findings

Jumia, the African e-commerce company (and the only technology company based on the continent and listed on the New York Stock Exchange), announced its financial performance for the first quarter on Tuesday. The company’s results included flat growth, but it lags in some areas compared to the previous quarter. As always, the front page of every Jumia report highlights the yearly earnings it has made. The first quarter of 2022 was no different.

What did the company highlight in the “Gains” section?

Compared to the first quarter of 2021, Jumia recorded double-digit growth in orders, GMV (gross merchandise volume) and revenue. Orders rose 40% year over year, from 6.6 million to 9.3 million. GMV itself jumped 27% year-over-year from $198.9 million to $252.7 million, and Jumia’s revenue came to $47.6 million, an increase of 44% over Q1 2021 revenue of $33 million.

According to co-CEOs Jeremy Hodara and Sacha Poignonik, Jumia experienced the highest growth rates in sales growth rate, orders and revenue over the past nine quarters in the first quarter of 2022. But those numbers fell well below where the e-commerce giant finished in 2021. The quarter saw The latter has a total merchandise volume of 330 million US dollars, 62 million US dollars in revenue and 11.3 million orders placed.

However, it’s unfair to compare any quarter to the fourth, as it’s usually hot with e-commerce activity, festivities, parties and Black Friday events every November, TechCrunch estimates. Jumia shares rose sharply on Tuesday, rising nearly 16 percent in early trading. This is despite a sequential decline in business growth during the quarter, but Jumia’s Q1 2022 growth in GMV, orders and revenue comfortably exceeds what it recorded last year.

Fast-moving consumer goods (FMCG) and food delivery are the fastest growing among their quarterly active customer base of 3.1 million, up 28% year-over-year. FMCG was the second largest category of merchandise sold by Jumia during the first quarter of 2022. However, it was the fastest growing category, seeing an expansion of 180% year-over-year.

Jumia said this growth was supported by the momentum of the “sub-category (genres) that we are currently developing”. The e-commerce company is currently trialing an offer (express commerce) in Lagos, Nigeria to deliver groceries to people’s homes in an hour or less.

Food delivery is up 86% year over year, while phones and electronics are up 19% year over year despite “continuous volatility in the global supply chain for these categories.”

Other metrics detail the exponential growth of Jumia, with the total value of payments (point of sale, point of sale) of its fintech arm, JumiaPay, up 36.7% to $70.7 million in the first quarter, primarily driven by strong growth in GMV, total transactions on the Wasl site. JumiaPay reached 3.2 million in the first quarter of 2022, indicating an increase of 32% year-over-year, and most of these transactions were in the (food delivery, JumiaPay) category which generated 34% of orders on the platform over the quarter.

The company’s logistics business was also doing well. In the last quarter, the fourth quarter of 2021, the e-commerce platform shipped 3.3 million packages to 996 partners, compared to 2.9 million packages for 766 customers in the previous quarter. In the first quarter of 2022, the African e-commerce giant reached new heights, shipping more than 3.5 million packages for 1,250 customers.

Last quarter, the company announced plans to spend up to $55 million on sales and advertising in the first half of 2022. So far, it has spent $18.8 million this quarter in this category, up 94% year over year.

According to its financial statements for the fourth quarter of 2021, Jumia said it closed the year with $512.8 million ($117.1 million in cash and cash equivalents, and $395.7 million in time deposits and other financial assets). These numbers are now $421.2 million, $88.7 million, and $332.6 million, respectively, as of March 31, 2022.

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