Jumia’s 2020 revenue dropped by 12.9% – Report

Jumia recorded a 12.9 percent revenue shortfall in 2020.

In the company’s financial report for the year ended December 31, 2020, obtained by Ripples Nigeria on Wednesday, Jumia’s revenue dropped from €160.4 million in 2019 to €139.6 million last year.

Revenue also declined in the fourth quarter of 2020 by 16.3 percent despite the e-commerce giant’s “Black Friday” promotion.

The promotion which was held in November increased Jumia’s page views to 1.5 billion.

Revenue generated during Q4 last year was €41.8 million, lower than the €49.3 million recorded in 2019.

Ripples Nigeria gathered that supply orders declined during Q4 2020 by 2.6 percent when compared to the corresponding period of 2019.

However, this increased in the full year.

Gross profit, however, increased by 22.3 percent in full-year 2020 despite the crash in revenue.

Jumia’s reported gross profit increased from €75.9 million in 2019 to €92.8 million in 2020.

READ ALSO: Again, JUMIA shrinks as Jumia Travel sold to Travelstart

The company also suffered operating losses during the period under review, recording €149.2 million in 2020.

However, this was lower than the €227.9 million Jumia recorded during the same period in 2019.

The e-commerce giant’s Marketplace revenue avoided the drop, increasing by 19.6 percent from €78.5million recorded in 2019 to €93.8 million in 2020.

With revenue in decline, and operating losses hanging over its head, the company launched a fundraising in the fourth quarter of last year and generated €203 million by December.

“We raised approximately €203 million in a primary offering in December 2020. This strengthened our balance sheet, enhanced our unit economics and positioned Jumia to scale efficiently towards profitability,” Jumia’s Co-Chief Executive Officers, Jeremy Hodara and Sacha Poignonnec said in a joint statement.

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