Jumia, a leading e-commerce platform in Africa, has shared its financial performance for the first quarter of 2022. While the company posted year-over-year growth in key areas, it also highlighted challenges compared to its Q4 2021 results.
Key Performance Highlights
Compared to Q1 2021, Jumia achieved:
40% increase in orders, rising from 6.6 million to 9.3 million.
27% growth in Gross Merchandise Value (GMV), which climbed from $198.9 million to $252.7 million.
44% rise in revenue, reaching $47.6 million, up from $33 million.
The company reported its strongest GMV, order, and revenue growth rates in the last nine quarters. However, these metrics were down from Q4 2021, when Jumia recorded $330 million in GMV, $62 million in revenue, and 11.3 million orders. This drop is unsurprising, as Q4 typically benefits from holiday shopping and Black Friday sales.Jumia’s shares responded positively, climbing 16% despite sequential declines, reflecting investor confidence in its year-over-year growth trajectory.
Category Growth Trends
Fast-moving consumer goods (FMCG) and food delivery services drove much of Jumia’s growth:
FMCG became the second-largest category, growing by 180% year-over-year, supported by the expansion of its grocery sub-category.
Food delivery saw an 86% year-over-year increase.
Electronics and phones grew 19%, despite global supply chain disruptions.
Jumia has also been piloting a quick-commerce model in Lagos, targeting grocery delivery within an hour, signaling its commitment to further diversifying its offerings.
JumiaPay and Logistics Performance
JumiaPay, the company’s fintech arm, achieved robust growth:
36.7% increase in Total Payment Volume (TPV), reaching $70.7 million.
32% rise in transactions, totaling 3.2 million.
A significant milestone for JumiaPay was obtaining a Payment Service Solution Provider (PSSP) license from Nigeria’s Central Bank, allowing it to process payments for third-party businesses. This development positions JumiaPay for long-term growth.
The logistics division also achieved new highs, shipping over 3.5 million packages for 1,250 clients, up from 3.3 million packages for 996 clients in Q4 2021.
Financial Challenges
Despite the positive growth metrics, Jumia’s financial losses continue to mount:
Adjusted EBITDA losses reached $53 million in Q1 2022, a 70% year-over-year increase.
Sales and advertising expenses rose by 94%, totaling $18.8 million.
The company ended Q1 2022 with $421.2 million in financial resources, down from $512.8 million at the end of Q4 2021.
Outlook
Jumia’s performance reflects its ability to expand its market share and diversify offerings despite challenges. While profitability remains distant, its growth in orders, GMV, and revenue underscores its resilience and potential in Africa’s growing e-commerce sector.
