Jumia Technologies The co-founder and co-CEO of Jumia Sacha Poignonnec said on YouTube show “PreMarket Prep” on Wednesday that it has overcome the payment and logistics challenges in Africa, putting the company in a very advantageous position.
Poignonnec said that because the distribution of goods is more difficult than anywhere else in the world, penetration of the African market can be challenging. He said that the company focuses on core business in 11 countries/regions in Africa, which account for approximately 70% of Africa’s GDP and population.
The co-CEO stated that Jumia hopes to establish its e-commerce and food delivery services as well as Jumia Pay products. He said that the company’s existing partners see Jumia as a strategic partner, adding that the company is in a good position to establish other partnerships with “large enterprises.”
He said his company hopes to split Jumia Pay and Jumia Logistics if relevant enough. However, he pointed out that Jumia has not considered splitting these assets out.
First Quarter Earnings
First-quarter revenue was down 6% on the year to 27.4 million euros ($33.47 million), below the 35.1-million-euro consensus estimate. Jumia announced that annual active consumers increased 7% to 6.9 million and orders were up 3% to 6.6 million.
Poignonnec told Benzinga that he expects user and transaction growth to accelerate over the next few quarters.
Revenue in the first quarter fell by 6% year-on-year to 27.4 million euros (approximately $33.47 million), which was lower than the market consensus expectation of 35.1 million euros. Jumia announced that annual active consumers increased by 7% to 6.9 million, and orders increased by 3% to 6.6 million. Poignonnec told Benzinga that he expects the growth of users and transactions to accelerate in the next few quarters.
He said that Jumia is committed to expanding scale and development by expanding trust with customers and improving choice, price and convenience, adding that if the company can perform tasks in these areas, then profitability will follow.