One of the largest online eCommerce platform in Africa, Jumia on Tuesday, April 17, announced its financial results for the fourth quarter ended December 31, 2017 and for the full year 2017, with Adjusted EBITDA standing at a negative 120.1 million EUR for the full year despite Gross merchandise volume (GMV) increase of 41,8 % year over year from 357.5 million EUR in 2016 to 507million EUR.
Adjusted EBITDA was calculated as operating profit or loss before depreciation of property, plant and equipment, amortization of intangible assets and share-based compensation expenses.
GMV growth was mainly driven by improved macro-economic conditions, as well as a stronger relevance of the marketplace, notably with a significant increase in the number of active merchants as well as products and services available, according to the report made available to WorldStage Newsonline showed that the
Highlights of the report showed that Jumia reached the threshold of 550 million visits across Africa in 2017 with the number of products available on the platform skyrocketing from 50,000 in 2012 to over 5 million in 2017; Jumia saw a huge success of Black Friday with more than 100 million visits, breaking all previous sales records across all topline drivers (new customers, orders, items sold, visits).
The company launched its own payment platform, JumiaPay, to further facilitate transactions between merchants and consumers and tailor its solutions to specific local needs and requirements.
Jumia launched a consumer-facing payment mobile application (`Jumia One´), enabling customers to easily access digital services such as Airtime/Data, TV, Utilities. Jumia One is gradually integrating more online and financial solutions to help consumers save time and money and access a large set of different services from a one stop shop App; and Over 8 million packages were handled through the Jumia logistic platform, a unique achievement.
The company maintains close control over its logistics through a fully integrated network of local providers, using Jumia technology and data.
Jumia said it was increasingly addressing daily needs of consumers across its markets, resulting in a strong increase in the number of orders and growth of customer base.
Sacha Poignonnec and Jeremy Hodara, Jumia co-CEOs was quoted as saying, “We made great progress in 2017 with significant growth of the business, driven by technological innovations and improved relevance of the offering of goods and services. This growth is demonstrating the robust momentum in our core businesses and markets, and the increased adoption of online services by African consumers.