LAGOS, NIGERIA / ACCESSWIRE / February 23, 2022 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the fourth quarter and full-year ended December 31, 2021.
Results highlights for the fourth quarter 2021
For the three months ended December 31 | ||||||||||||||||||||||||
As reported | YoY | As reported | Constant currency | YoY | ||||||||||||||||||||
In USD million, unless otherwise stated | 2020 | 2021 | Change | 2020 | 2021 | Change | ||||||||||||||||||
Quarterly Active Consumers (million) | 3.0 | 3.8 | 28.8 | % | n.a. | n.a. | n.a. | |||||||||||||||||
Orders (million) | 8.1 | 11.3 | 39.9 | % | n.a. | n.a. | n.a. | |||||||||||||||||
GMV | 274.6 | 330.1 | 20.2 | % | 274.6 | 339.2 | 23.5 | % | ||||||||||||||||
TPV | 70.1 | 90.5 | 29.1 | % | 70.1 | 93.4 | 33.2 | % | ||||||||||||||||
TPV as % of GMV | 25.5 | % | 27.4 | % | 25.5 | % | 27.5 | % | ||||||||||||||||
Revenue | 49.3 | 62.0 | 25.8 | % | 49.3 | 63.7 | 29.1 | % | ||||||||||||||||
Gross Profit | 33.0 | 33.7 | 2.1 | % | 33.0 | 34.7 | 5.1 | % | ||||||||||||||||
Fulfillment expense | (23.1 | ) | (30.5 | ) | 31.8 | % | (23.1 | ) | (31.2 | ) | 34.9 | % | ||||||||||||
Sales and Advertising expense | (12.0 | ) | (31.1 | ) | 159.1 | % | (12.0 | ) | (31.4 | ) | 161.3 | % | ||||||||||||
Technology and Content expense | (8.7 | ) | (13.1 | ) | 50.8 | % | (8.7 | ) | (13.3 | ) | 52.5 | % | ||||||||||||
G&A expense, excluding SBC | (26.2 | ) | (32.0 | ) | 22.2 | % | (26.2 | ) | (36.2 | ) | 38.6 | % | ||||||||||||
Adjusted EBITDA | (33.8 | ) | (70.0 | ) | 106.9 | % | (33.8 | ) | (71.7 | ) | 111.8 | % | ||||||||||||
Operating Loss | (47.5 | ) | (84.7 | ) | 78.3 | % | (47.5 | ) | (86.0 | ) | 81.2 | % |
"The fourth quarter of 2021 marked meaningful acceleration and growth momentum with new records reached across all usage metrics. Quarterly Active Consumers, Orders and GMV reached all-time highs of 3.8 million, 11.3 million and $330 million respectively, increasing by 29%, 40% and 20% year-over-year respectively," commented Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia. "Our growth acceleration strategy initiated in the second half of 2021 is clearly bearing fruit. This further fuels our confidence to continue investing in consumer acquisition and education in the form of marketing and consumer incentives to drive e-commerce adoption. In parallel, we intend to further invest in our platform, enhancing our technology backbone and logistics infrastructure to support the long-term growth of the business. We are confident our efforts to accelerate growth will help us scale Jumia and ultimately contribute to taking the business to profitability."
FOURTH QUARTER 2021- BUSINESS HIGHLIGHTS
1. GROWTH ACCELERATION INITIATIVES
In the fourth quarter of 2021, we continued executing on the growth acceleration strategy initiated at the end of the second quarter of 2021. Our strategy was further informed by the learnings from in-depth customer research conducted in the second half of 2021, in collaboration with the Boston Consulting Group. The survey covered over 5,000 respondents in selected markets, encompassing both qualitative and quantitative research.
The key levers of our growth acceleration plan are as follows:
We have outlined below relevant developments in the fourth quarter of 2021 with respect to each one of these levers.
Marketing investments
Commercial: Assortment and pricing
Technology: Platform enhancements
2. JUMIAPAY UPDATE
3. MONETIZATION UPDATE
Logistics services to third parties
Advertising
4. IMPACT INITIATIVES
Outlined below are selected initiatives as part of our ongoing sustainability efforts.
SELECTED OPERATIONAL KPIs
1. Marketplace KPIs
For the three months ended | For the year ended | |||||||||||||||||||||||
December 31, | YoY | December 31, | YoY | |||||||||||||||||||||
2020 | 2021 | Change | 2020 | 2021 | Change | |||||||||||||||||||
Quarterly Active Consumers (million) | 3.0 | 3.8 | 28.8 | % | n.a. | n.a | n.a | |||||||||||||||||
Annual Active Consumers (million) | n.a | n.a. | n.a. | 6.8 | 8.0 | 16.7 | % | |||||||||||||||||
Orders (million) | 8.1 | 11.3 | 39.9 | % | 27.9 | 34.0 | 22.0 | % | ||||||||||||||||
GMV (USD million) | 274.6 | 330.1 | 20.2 | 955.5 | 990.6 | 3.7 | % |
2. JumiaPay KPIs
For the three months ended | For the year ended | |||||||||||||||||||||||
December 31, | YoY | December 31, | YoY | |||||||||||||||||||||
2020 | 2021 | Change | 2020 | 2021 | Change | |||||||||||||||||||
TPV (USD million) | 70.1 | 90.5 | 29.1 | % | 224.3 | 263.3 | 17.4 | % | ||||||||||||||||
JumiaPay Transactions (million) | 2.7 | 3.9 | 46.5 | % | 9.6 | 12.1 | 25.5 | % |
Overall, 34.7% of Orders placed on the Jumia platform in the fourth quarter of 2021 were completed using JumiaPay, compared to 33.1% in the fourth quarter of 2020.
SELECTED FINANCIAL INFORMATION
For the three months ended | For the year ended | |||||||||||||||||||||||
December 31, | YoY | December 31, | YoY | |||||||||||||||||||||
(USD million) | 2020 | 2021 | Change | 2020 | 2021 | Change | ||||||||||||||||||
Revenue | 49.3 | 62.0 | 25.8 | % | 159.4 | 177.9 | 11.7 | % | ||||||||||||||||
Marketplace revenue | 32.8 | 32.4 | (1.2) | % | 107.1 | 108.2 | 1.0 | % | ||||||||||||||||
Commissions | 11.8 | 8.9 | (24.8) | % | 39.5 | 35.3 | (10.6) | % | ||||||||||||||||
Fulfillment | 11.9 | 10.7 | (9.8) | % | 37.0 | 36.4 | (1.6) | % | ||||||||||||||||
Marketing & Advertising | 3.5 | 4.2 | 20.0 | % | 8.8 | 10.8 | 22.5 | % | ||||||||||||||||
Value Added Services | 5.6 | 8.6 | 53.2 | % | 21.8 | 25.7 | 18.0 | % | ||||||||||||||||
First Party revenue | 15.9 | 28.2 | 76.8 | % | 50.4 | 65.1 | 29.2 | % | ||||||||||||||||
Other revenue | 0.6 | 1.5 | 135.6 | % | 1.9 | 4.6 | 149.6 | % | ||||||||||||||||
Gross Profit | 33.0 | 33.7 | 2.1 | % | 106.0 | 110.5 | 4.3 | % | ||||||||||||||||
Fulfillment expense | (23.1 | ) | (30.5 | ) | 31.8 | % | (79.1 | ) | (88.7 | ) | 12.1 | % | ||||||||||||
Sales and Advertising expense | (12.0 | ) | (31.1 | ) | 159.1 | % | (37.1 | ) | (81.9 | ) | 121.0 | % | ||||||||||||
Technology and Content expense | (8.7 | ) | (13.1 | ) | 50.8 | % | (31.8 | ) | (39.2 | ) | 23.3 | % | ||||||||||||
General and Administrative expense ("G&A") | (37.4 | ) | (44.0 | ) | 17.7 | % | (132.0 | ) | (142.8 | ) | 8.1 | % | ||||||||||||
of which Share Based Compensation ("SBC") | (11.2) | (12.0) | 7.2 | % | (24.7) | (34.5) | 39.8 | % | ||||||||||||||||
G&A expense, excluding SBC | (26.2 | ) | (32.0 | ) | 22.2 | % | (107.3 | ) | (108.2 | ) | 0.8 | % | ||||||||||||
Adjusted EBITDA | (33.8 | ) | (70.0 | ) | 106.9 | % | (136.3 | ) | (196.7 | ) | 44.3 | % | ||||||||||||
Operating loss | (47.5 | ) | (84.7 | ) | 78.3 | % | (170.3 | ) | (240.9 | ) | 41.4 | % |
Revenue
To support usage growth, we deployed more consumer incentives in the form of promotional discounts which are accounted for as revenue deductions. Strategic use of consumer incentives on selected products or categories helps us drive conversion and is a core part of our growth acceleration strategy. Revenue is presented net of consumer incentives, which reached $11.1 million in the fourth quarter of 2021 compared to $3.2 million in the fourth quarter of 2020. First party revenue is also presented net of the relevant consumer incentives, which reached $1.6 million in the fourth quarter of 2021, compared to $0.7 million in the fourth quarter of 2020.
Gross Profit
Gross profit reached $33.7 million in the fourth quarter of 2021, up 2% year-over-year. On a constant currency basis, gross profit was up 5% year-over-year. Gross profit is net of consumer incentives, which we consider as growth investments and which increased from $3.2 million in the fourth quarter of 2020 to $11.1 million in the fourth quarter of 2021.
Fulfillment Expense
Fulfillment expense reached $30.5 million, up 32% year-over-year while Orders accelerated by 40% over the same period, as we continue driving logistics costs efficiencies.
Sales and Advertising Expense
Sales and Advertising expense reached $31.1 million in the fourth quarter of 2021, up 159% year-over-year and up 81% compared to the fourth quarter of 2019. The increase in marketing investments is a core lever of our growth acceleration strategy and was implemented across marketing channels. We also rebalanced our marketing investment mix with an increased share of offline media and video advertising to drive awareness and activation. In the fourth quarter of 2021, 50% of our Sales & Advertising expense was allocated to online marketing campaigns, 41% to offline media and video advertising and 9% to staff costs. In the fourth quarter of 2020, offline media and video advertising accounted for only 17% of the Sales & Advertising spend, with online marketing campaigns and staff costs representing 63% and 20% respectively.
Technology and Content Expense
Technology and Content expense increased by 51% to $13.1 million in the fourth quarter of 2021 from $8.7 million in the same period last year, as we increased our technology investments and expanded our technology headcount to support the growth of our e-commerce and payment activities.
General and Administrative Expense
General & Administrative expense, excluding SBC, reached $32.0 million in the fourth quarter of 2021, up 22% on a year-over-year basis. This trend was mostly attributable to a temporary increase in professional fees as well as an uptick in staff costs as we strengthened the management team in selected areas to support the growth of the business.
Operating loss
Cash Position
At December 31, 2021, we had a liquidity position of $512.8 million comprised of $117.1 million of cash and cash equivalents and $395.7 million of Term deposits and other financial assets. Cash used in operating and investing activities reached $66.6 million. Cash utilization was supported by a positive working capital effect of $4.1 million as a result of an increase in payables relating to the uptick in first party activity as well as a shorter receivables cycle.
GUIDANCE
For 2022, we expect continued year-over-year GMV growth acceleration, building upon the momentum of the second half of 2021.
To support our long-term growth, we intend to continue investing in e-commerce adoption while further enhancing our platform. We expect to spend between $50 million and $55 million in Sales & Advertising in the first half of 2022. For the full year 2022, we expect Adjusted EBITDA loss of $200 million to $220 million. In an effort to further increase our consumer reach and reduce delivery times, we intend to undertake logistics capacity expansion and upgrades and expect to incur capex between $15 million to $25 million during the full year 2022.
The above forward-looking statements reflect our expectations as of February 23, 2022 and could be subject to change and involve inherent risks which we are not able to control. These risks include but are not limited to new potential disruptions caused by COVID-19, any global supply chain issues, as well as political and economic conditions across countries where we operate.
CONFERENCE CALL AND WEBCAST INFORMATION
Jumia will host a conference call today, February 23, 2022 at 8:30 a.m. U.S. Eastern Time to discuss Jumia's results. Details of the conference call are as follows:
US Toll Free: 888-506-0062
International: 973-528-0011
UK Toll Free: 0800 520 0845
Entry Code: 632681
A live webcast of the earnings conference call can be accessed on the Jumia Investor Relations website: https://investor.jumia.com/
An archived webcast will be available following the call.
(UNAUDITED)
Consolidated statement of comprehensive income as of December 31, 2020 and 2021
For the three months ended | For the year ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
In thousands of USD | 2020 | 2021 | 2020 | 2021 | ||||||||||||
Revenue | 49,339 | 62,048 | 159,366 | 177,934 | ||||||||||||
Cost of revenue | 16,350 | 28,372 | 53,397 | 67,385 | ||||||||||||
Gross profit | 32,989 | 33,676 | 105,969 | 110,549 | ||||||||||||
Fulfillment expense | 23,104 | 30,459 | 79,114 | 88,695 | ||||||||||||
Sales and advertising expense | 12,010 | 31,121 | 37,063 | 81,924 | ||||||||||||
Technology and content expense | 8,688 | 13,102 | 31,781 | 39,197 | ||||||||||||
General and administrative expense | 37,369 | 43,999 | 132,021 | 142,765 | ||||||||||||
Other operating income | 647 | 534 | 3,797 | 1,415 | ||||||||||||
Other operating expense | (58 | ) | 202 | 116 | 279 | |||||||||||
Operating loss | (47,477 | ) | (84,673 | ) | (170,329 | ) | (240,896 | ) | ||||||||
Finance income(*) | 2,281 | 1,917 | 5,620 | 24,842 | ||||||||||||
Finance costs(*) | 8,896 | 1,902 | 16,023 | 10,291 | ||||||||||||
Loss before Income tax(*) | (54,092 | ) | (84,658 | ) | (180,732 | ) | (226,345 | ) | ||||||||
Income tax expense | 1,426 | 371 | 2,986 | 442 | ||||||||||||
Loss for the period(*) | (55,518 | ) | (85,029 | ) | (183,718 | ) | (226,787 | ) | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of the Company(*) | (55,688 | ) | (85,016 | ) | (183,682 | ) | (226,747 | ) | ||||||||
Non-controlling interests | 170 | (13 | ) | (36 | ) | (40 | ) | |||||||||
Loss for the period(*) | (55,518 | ) | (85,029 | ) | (183,718 | ) | (226,787 | ) | ||||||||
Other comprehensive income/loss to be classified to profit or loss in subsequent periods | ||||||||||||||||
Exchange differences on translation of foreign operations - net of tax | 36,875 | 12,257 | 95,187 | (12,282 | ) | |||||||||||
Other comprehensive income / (loss) on net investment in foreign operations - net of tax | (29,662 | ) | (11,764 | ) | (84,926 | ) | (3,667 | ) | ||||||||
Other comprehensive income / (loss) on financial assets at fair value through OCI(*) | - | (2,499 | ) | - | (3,941 | ) | ||||||||||
Other comprehensive income / (loss)(*) | 7,213 | (2,006 | ) | 10,261 | (19,890 | ) | ||||||||||
Total comprehensive loss for the period | (48,305 | ) | (87,035 | ) | (173,457 | ) | (246,677 | ) | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of the Company | (48,523 | ) | (87,032 | ) | (173,430 | ) | (246,666 | ) | ||||||||
Non-controlling interests | 218 | (3 | ) | (27 | ) | (11 | ) | |||||||||
Total comprehensive loss for the period | (48,305 | ) | (87,035 | ) | (173,457 | ) | (246,677 | ) |
(*) As of September 30, 2021, interests and management fees of the financial investments have been reclassified from "Other reserves" to "Finance income" and "Finance costs".
(UNAUDITED)
Consolidated statement of financial position as of December 31, 2020 and 2021
As of | ||||||||
December 31, | December 31, | |||||||
In thousands of USD | 2020 | 2021 | ||||||
Assets | ||||||||
Non-current assets | ||||||||
Property and equipment | 20,308 | 21,824 | ||||||
Intangible assets | 542 | 327 | ||||||
Deferred tax assets | 125 | 665 | ||||||
Other non-current assets | 1,688 | 2,278 | ||||||
Total Non-current assets | 22,663 | 25,094 | ||||||
Current assets | ||||||||
Inventories | 8,221 | 10,948 | ||||||
Trade and other receivables | 13,146 | 17,963 | ||||||
Income tax receivables | 779 | 1,468 | ||||||
Other taxes receivables | 3,782 | 3,775 | ||||||
Prepaid expenses | 12,761 | 5,672 | ||||||
Term deposits and other financial assets | 1,215 | 395,715 | ||||||
Cash and cash equivalents | 373,931 | 117,090 | ||||||
Total Current assets | 413,835 | 552,631 | ||||||
Total Assets | 436,498 | 577,725 | ||||||
Equity and Liabilities | ||||||||
Equity | ||||||||
Share capital | 219,843 | 234,154 | ||||||
Share premium | 1,478,230 | 1,736,469 | ||||||
Other reserves | 143,871 | 164,557 | ||||||
Accumulated losses | (1,566,600 | ) | (1,722,142 | ) | ||||
Equity attributable to the equity holders of the Company | 275,344 | 413,038 | ||||||
Non-controlling interests | (447 | ) | (454 | ) | ||||
Total Equity | 274,897 | 412,584 | ||||||
Liabilities | ||||||||
Non-current liabilities | ||||||||
Non-current borrowings | 9,750 | 8,631 | ||||||
Deferred tax liabilities | 61 | - | ||||||
Provisions for liabilities and other charges - non-current | 442 | 676 | ||||||
Deferred income - non-current | 1,019 | 875 | ||||||
Trade and other payables - non-current | - | 769 | ||||||
Total Non-current liabilities | 11,272 | 10,951 | ||||||
Current liabilities | ||||||||
Current borrowings | 3,638 | 3,906 | ||||||
Trade and other payables | 75,770 | 75,430 | ||||||
Income tax payables | 14,026 | 13,281 | ||||||
Other taxes payable | 12,662 | 19,212 | ||||||
Provisions for liabilities and other charges | 39,004 | 36,409 | ||||||
Deferred income | 5,229 | 5,952 | ||||||
Total Current liabilities | 150,329 | 154,190 | ||||||
Total Liabilities | 161,601 | 165,141 | ||||||
Total Equity and Liabilities | 436,498 | 577,725 |
(UNAUDITED)
Consolidated statement of cash flows as of December 30, 2020 and 2021
For the three months ended | For the year ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
In thousands of USD | 2020 | 2021 | 2020 | 2021 | ||||||||||||
Loss before Income tax(*) | (54,092 | ) | (84,658 | ) | (180,732 | ) | (226,345 | ) | ||||||||
Depreciation and amortization of tangible and intangible assets | 2,413 | 2,613 | 9,282 | 9,656 | ||||||||||||
Impairment losses on loans, receivables and other assets | 1,056 | (66 | ) | 5,028 | 2,011 | |||||||||||
Impairment losses on obsolete inventories | (137 | ) | 51 | 539 | 416 | |||||||||||
Share-based payment expense | 11,220 | 12,032 | 24,710 | 34,548 | ||||||||||||
Net (gain)/loss from disposal of tangible and intangible assets | (31 | ) | 149 | (19 | ) | 180 | ||||||||||
Change in provision for other liabilities and charges | 1,699 | (1,324 | ) | 6,226 | (243 | ) | ||||||||||
Lease modification (income)/expense | (2 | ) | (9 | ) | (66 | ) | (37 | ) | ||||||||
Interest (income)/expenses(*) | 279 | (1,037 | ) | 700 | (996 | ) | ||||||||||
Net foreign exchange (gain)/loss | 7,215 | 5,087 | 12,118 | (7,774 | ) | |||||||||||
Net (gain)/loss on financial instruments at fair value through profit or loss | - | 851 | - | 998 | ||||||||||||
Impairment losses on financial assets at fair value through OCI | - | 35 | - | 88 | ||||||||||||
Share-based payment expense - settlement | - | (1,237 | ) | - | (1,237 | ) | ||||||||||
(Increase)/Decrease in trade and other receivables, prepayments and VAT receivables | (4,523 | ) | (2,863 | ) | 6,120 | (2,630 | ) | |||||||||
(Increase)/Decrease in inventories | 1,639 | (1,412 | ) | 2,007 | (3,751 | ) | ||||||||||
Increase/(Decrease) in trade and other payables, deferred income and VAT payables | 1,391 | 8,607 | 2,951 | 26,012 | ||||||||||||
Income taxes paid | 317 | (243 | ) | (1,253 | ) | (2,017 | ) | |||||||||
Net cash flows used in operating activities(*) | (31,556 | ) | (63,424 | ) | (112,389 | ) | (171,121 | ) | ||||||||
Cash flows from investing activities | ||||||||||||||||
Purchase of property and equipment | (763 | ) | (4,426 | ) | (2,279 | ) | (7,166 | ) | ||||||||
Proceeds from disposal of property and equipment | 21 | 12 | 24 | 22 | ||||||||||||
Purchase of intangible assets | (36 | ) | 6 | (595 | ) | (19 | ) | |||||||||
Interest received(*) | 150 | 1,400 | 883 | 2,602 | ||||||||||||
Movement in other non-current assets | (29 | ) | (758 | ) | 57 | (683 | ) | |||||||||
Movement in term deposits and other financial assets(*) | 30 | 571 | 68,862 | (399,566 | ) | |||||||||||
Net cash flows (used in) / from investing activities(*) | (627 | ) | (3,195 | ) | 66,952 | (404,810 | ) | |||||||||
Cash flows from financing activities | ||||||||||||||||
Interest settled - financing | (8 | ) | 7 | (39 | ) | (74 | ) | |||||||||
Payment of lease interest | (413 | ) | (366 | ) | (1,520 | ) | (1,543 | ) | ||||||||
Repayment of lease liabilities | (1,141 | ) | (872 | ) | (4,570 | ) | (5,072 | ) | ||||||||
Equity transaction costs | (12,297 | ) | (179 | ) | (12,776 | ) | (7,779 | ) | ||||||||
Capital contributions | 243,202 | - | 243,202 | 348,646 | ||||||||||||
Proceeds from exercise of share options | 125 | 5 | 747 | 68 | ||||||||||||
Net cash flows (used in) / from financing activities | 229,468 | (1,405 | ) | 225,044 | 334,246 | |||||||||||
Net decrease/increase in cash and cash equivalents | 197,285 | (68,024 | ) | 179,607 | (241,685 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 4,128 | 167 | 3,645 | (15,156 | ) | |||||||||||
Cash and cash equivalents at the beginning of the period | 172,518 | 184,947 | 190,679 | 373,931 | ||||||||||||
Cash and cash equivalents at the end of the period | 373,931 | 117,090 | 373,931 | 117,090 |
(*) As of September 30, 2021, interests and management fees of the financial investments have been reclassified from "Other reserves" to "Finance income" and "Finance costs".
Forward-Looking Statements
This release includes forward-looking statements. All statements other than statements of historical facts contained in this release, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "believes," "estimates", "potential" or "continue" or the negative of these terms or other similar expressions that are intended to identify forward-looking statements. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement, including, without limitation, the risks described under Item 3. "Key Information-D. Risk Factors," in our Annual Report on Form 20-F as filed with the US Securities and Exchange Commission. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements.
The forward-looking statements included in this release are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor our advisors nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Neither we nor our advisors undertake any obligation to update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations, except as may be required by law. You should read this release with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.
Non-IFRS and Other Financial and Operating Metrics
Changes, percentages, ratios and aggregate amounts presented have been calculated on the basis of unrounded figures.
This release includes certain financial measures and metrics not based on IFRS, including Adjusted EBITDA, as well as operating metrics, including Annual Active Consumers, Orders and GMV. We define Annual Active Consumers, Orders, GMV, Total Payment Volume, JumiaPay Transactions and Adjusted EBITDA as follows:
Annual Active Consumers means unique consumers who placed an order for a product or a service on our platform, within the 12-month period preceding the relevant date, irrespective of cancellations or returns.
Quarterly Active Consumers means unique consumers who placed an order for a product or a service on our platform, within the 3-month period preceding the relevant date, irrespective of cancellations or returns.
We believe that Annual Active Consumers and Quarterly Active Consumers are useful indicators of the adoption of our offering by consumers in our markets.
Orders corresponds to the total number of orders for products and services on our platform, irrespective of cancellations or returns, for the relevant period.
We believe that the number of orders is a useful indicator to measure the total usage of our platform, irrespective of the monetary value of the individual transactions.
Gross Merchandise Value ("GMV") corresponds to the total value of orders for products and services, including shipping fees, value added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns for the relevant period.
We believe that GMV is a useful indicator for the usage of our platform that is not influenced by shifts in our sales between first-party and third-party sales or the method of payment.
We use Annual Active Consumers, Quarterly Active Consumers, Orders and GMV as some of many indicators to monitor usage of our platform.
Total Payment Volume ("TPV") corresponds to the total value of orders for products and services for which JumiaPay was used including shipping fees, value-added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns, for the relevant period.
We believe that TPV, which corresponds to the share of GMV for which JumiaPay was used, provides a useful indicator of the development, and adoption by consumers, of the payment services offerings we make available, directly and indirectly, through JumiaPay.
JumiaPay Transactions corresponds to the total number of orders for products and services on our marketplace for which JumiaPay was used, irrespective of cancellations or returns, for the relevant period.
We believe that JumiaPay Transactions provides a useful indicator of the development, and adoption by consumers, of the cashless payment services offerings we make available for orders on our platform irrespective of the monetary value of the individual transactions.
We use TPV and the number of JumiaPay Transactions to measure the development of our payment services and the progressive conversion of cash on delivery orders into prepaid orders.
Adjusted EBITDA corresponds to loss for the period, adjusted for income tax expense (benefit), finance income, finance costs, depreciation and amortization and further adjusted for share-based payment expense.
Adjusted EBITDA is a supplemental non-IFRS measure of our operating performance that is not required by, or presented in accordance with, IFRS. Adjusted EBITDA is not a measurement of our financial performance under IFRS and should not be considered as an alternative to loss for the period, loss before income tax or any other performance measure derived in accordance with IFRS. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate Adjusted EBITDA in the same manner. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance. Management believes that investors' understanding of our performance is enhanced by including non-IFRS financial measures as a reasonable basis for comparing our ongoing results of operations. By providing this non-IFRS financial measure, together with a reconciliation to the nearest IFRS financial measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
Management uses Adjusted EBITDA:
Items excluded from this non-IFRS measure are significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for analysis of our results reported in accordance with IFRS, including loss for the period. Some of the limitations are:
Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these and other limitations by providing a reconciliation of Adjusted EBITDA to the most directly comparable IFRS financial measure, loss for the period.
The following table provides a reconciliation of loss for the period to Adjusted EBITDA for the periods indicated:
For the three months ended | For the year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(USD million) | 2020 | 2021 | 2020 | 2021 | ||||||||||||
Loss for the period(*) | (55.5 | ) | (85.0 | ) | (183.7 | ) | (226.8 | ) | ||||||||
Income tax expense | 1.4 | 0.4 | 3.0 | 0.4 | ||||||||||||
Net Finance costs / (income)(*) | 6.6 | (0.0 | ) | 10.4 | (14.6 | ) | ||||||||||
Depreciation and amortization | 2.4 | 2.6 | 9.3 | 9.7 | ||||||||||||
Share-based payment expense | 11.2 | 12.0 | 24.7 | 34.5 | ||||||||||||
Adjusted EBITDA | (33.8 | ) | (70.0 | ) | (136.3 | ) | (196.7 | ) |
(*) As of September 30, 2021, interests and management fees of the financial investments have been reclassified from "Other reserves" to "Finance income" and "Finance costs".
Quarterly Active Consumers
The following table sets forth Quarterly Active Consumers data for historical periods:
In million | Q1 19 | Q2 19 | Q3 19 | Q4 19 | Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 | Q2 21 | Q3 21 | Q4 21 | |||||||||||||
Quarterly Active Consumers | 1.6 | 2.0 | 2.3 | 2.8 | 2.2 | 2.5 | 2.4 | 3.0 | 2.4 | 2.7 | 3.0 | 3.8 |
Constant currency data
Certain metrics have also been presented on a constant currency basis. We use constant currency information to provide us with a picture of underlying business dynamics, excluding currency effects.
Constant currency metrics are calculated using the average monthly exchange rates for each month during 2020 and applying them to the corresponding months in 2021, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. Constant currency information is not a measure calculated in accordance with IFRS. While we believe that constant currency information may be useful to investors in understanding and evaluating our results of operations in the same manner as our management, our use of constant currency metrics has limitations as an analytical tool, and you should not consider it in isolation, or as an alternative to, or a substitute for analysis of our financial results as reported under IFRS. Further, other companies, including companies in our industry, may report the impact of fluctuations in foreign currency exchange rates differently, which may reduce the value of our constant currency information as a comparative measure.
The following table sets forth the constant currency data for selected metrics.
For the three months ended December 31 | ||||||||||||||||||||||||
As reported | YoY | As reported | Constant currency | YoY | ||||||||||||||||||||
In USD million, except percentages | 2020 | 2021 | Change | 2020 | 2021 | Change | ||||||||||||||||||
GMV | 274.6 | 330.1 | 20.2 | % | 274.6 | 339.2 | 23.5 | % | ||||||||||||||||
TPV | 70.1 | 90.5 | 29.1 | % | 70.1 | 93.4 | 33.2 | % | ||||||||||||||||
TPV as % of GMV | 25.5 | % | 27.4 | % | 25.5 | % | 27.5 | % | ||||||||||||||||
Gross Profit | 33.0 | 33.7 | 2.1 | % | 33.0 | 34.7 | 5.1 | % | ||||||||||||||||
Fulfillment expense | (23.1 | ) | (30.5 | ) | 31.8 | % | (23.1 | ) | (31.2 | ) | 34.9 | % | ||||||||||||
Gross Profit after Fulfillment expense | 9.9 | 3.2 | (67.5) | % | 9.9 | 3.5 | (64.5) | % | ||||||||||||||||
Sales and Advertising expense | (12.0 | ) | (31.1 | ) | 159.1 | % | (12.0 | ) | (31.4 | ) | 161.3 | % | ||||||||||||
Technology and Content expense | (8.7 | ) | (13.1 | ) | 50.8 | % | (8.7 | ) | (13.3 | ) | 52.5 | % | ||||||||||||
G&A expense, excluding SBC | (26.2 | ) | (32.0 | ) | 22.2 | % | (26.2 | ) | (36.2 | ) | 38.6 | % | ||||||||||||
Adjusted EBITDA | (33.8 | ) | (70.0 | ) | 106.9 | % | (33.8 | ) | (71.7 | ) | 111.8 | % | ||||||||||||
Operating Loss | (47.5 | ) | (84.7 | ) | 78.3 | % | (47.5 | ) | (86.0 | ) | 81.2 | % |
CONTACT:
Safae Damir
Head of Investor Relations
investor-relations@jumia.com
Abdesslam Benzitouni
Head of PR and Communications
press@jumia.com
SOURCE: Jumia Technologies AG