JMIA - Earnings call transcript Q1 2022

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Jumia’s Results Conference Call for the First Quarter of 2022. At this time, all participants are in a listen-only mode. After management’s prepared remarks, there will be a question-and-answer session. to Investor call Relations like Damir, to now of Head for would turn over the Safae I Jumia. Please go ahead.

Safae Damir

Thank corporate for call being IR joining as well quarter everyone. is Hodara, Co-Founders Thank also for and Antoine website. of Sacha morning, of With section first Jumia Co-CEOs are call. XXXX you. our the earnings Maillet-Mezeray, Jeremy webcast today Poignonnec as on and us our Good today us you CFO. This

the safe you statements. covering those these to obligation We today. would today We include speak remind by or will the update Actual Moreover, publicly from harbor. like to statements of may We differ only that will undertake forward-looking start forward-looking indicated statements. revise in materially discussions to no our these as results our forward-looking statements. may expectations

risk of report our on see could from XXXX, as forward-looking other statements the For expressed to as the April section submissions a our actual of factors differ please factors as SEC. discussion well published results Form risk XX-F of the that today, XX, some with cause on the annual

accordance addition, certain financial in refer on will with to IFRS. this reported not In measures call, we

financial measures to Sacha. measures can reconciliations these which that, hand over the our With I’ll of You our Investor corresponding IFRS on find financial earnings available to non-IFRS in is release, press Relations website.

Sacha Poignonnec

much. very joining everyone, today. and you Welcome, for Thank thanks us

would specifics I strategy you of like the page our Before performance, on briefly into to current going of X. remind

Africa. in e-commerce a platform order in build business growing on fast and our scaling We fintech profitable focused in are currently and to

the beginning JumiaPay, markets of position marketplace, logistics us played economics on long-term wanted building before the we Africa, tailored been thirds And and it’s built strengthened balance parallel, long solutions. growth; for the the is worked of number $XXX diversity very on have GMV economics. first The contribution growth number building for set product strong We towards we place, million everyday fintech and the On our platform, and number are raising usage sheet, The that the quarters. consecutive XXXX We cost business key and platform, we categories. unit strong after efficiency. economics, very for In We for from our one, in logistic reached game in our payment now accelerating scaling milestone And we important. profitability. of marketplace. accelerating three relevance robust order the solid to We monetization; to here to specifics the two, and our cost, foundations accelerating XX important basis, profitability: is growth. positive two achieve With now, to very case this unit XXXX. the profitability. coming the in from focused of improving enhancing strong sequencing and unit now our business the blocks platform, three,

drive Of remains creation. us course, for value a to the JumiaPay long-term priority

In In Now, respectively. on those the QX growth blocks. and accelerating order quarters, we we’ve building X, strongly go quarterly growth. of the XX%, each our and GMV Page highlights. usage nine into let’s XX% year-on-year posted fastest QX, past delivered of

page, Next monetization. accelerating

XXXX. is this both we incentives of their four as of reached of GMV. are best accelerating order taking improving marketing per in we their the which then incentives what advertising and This that’s as growth. the XX%. quarters consumer a investments, focus reaching and is profit And cost $X and the Consumer we Back compared for rates Number quarters, the reached quarters efficiency. of XX% last Sales are GMV, QX. in and in improvement per would and that subsequent QX, and past the growth usage the is we what in to communicated year-over-year and three, are advertising for deduction. XX% improving also achieved efficiency. review. sales revenue Excluding And much sequentially, our revenue levels gross also while very incentives the over line place exactly XX% percentage X.X% with Consumer accounted past fourth nine highest efficiency This efficiency. page, said to quarters, be over order in market third to next levels increase

move going page adjusted before we X, details, more EBITDA loss. to into our Finally,

shifts, the months monitoring market few have the We have still place unfolding. macro which fundamental of taking been which course, been past closely and and over are

towards in confident profitability. We our and very path are execution

EBITDA, the reached was adjusted quarterly adjusted of XXXX. past EBITDA terms we we peak in QX that of are believe In loss

for reiterate starting also loss the $XXX million to basis. EBITDA XXXX, And begin of the year loss year-over-year the adjusted adjusted to XXXX. guidance EBITDA on We of from decreasing we full a million expect $XXX

to to and results. more Now, our Jeremy give color I’ll hand over highlights of QX

Jeremy Hodara

Thank Sacha. everyone. you, Hello

executing accelerate consistency growth. discipline with usage So, to X. page are we we and the are on And

to digital further markets. continues Jumia particularly as consumer destination objective overarching we levers. marketing, adoption retention. is and logistics our a Africa for be brand commercial, technology purchases and marketing, in as combination investments On awareness the occasional The and needs operate nascent continue of Our crucial, e-commerce everyday through enhancing in we

local a very Most six international Egypt total pleased see Brand of XXXX number XXX up in year seventh Ipsos in the source by out Influential are to position before. brands, the and of from We survey ranked Jumia

them the our team operate digital testimony strong year we the a salute to execution to is category where the came the e-commerce largest as This in second market one And Amazon. good I achievement, Egypt want in for the ground. we a of and is efforts. alongside is our on second for very one This number row. and a their Importantly,

very the SKUs commercial, everyday convenience trust, the our FMCG we product category, also category eight on On million the ‘XX, customers grateful relevance. the We’re bringing past them QX on work adds further focusing our quarters. we to more hard in SKU incredibly in for of X their penetrating continue and we’re to highest execution added categories. number in this In almost and

pan-African is Danone and delivery the our we logistics, of across On delivery We with example cost each execution the very work food platforms. e-commerce that and with partnerships continue focuses An to effectiveness. our both current its and Coca-Cola improving on speed of established closely of further brands.

For QX accelerating were this Last in example, development In above technology picked but sellers, service on our experience exactly we’re XXXX, revamped had see are running new a and result to the order can an out next-day version driving in year-over-year, basket in on and XX, The accelerate the XXXX, minimum logistics active Express Jumia is often. sizes on reached consistent In Quarterly feature million, the packed consumers execution easy warehouse is end tech free growth. usage a on shipping page we by enhancement key the consumers robust Express customers. platform. had levers you both, hours XX. placing. not more homepages of we X.X released items use four consumers days QX provided description and this already product versus more and of increases product while acceleration our we area QX and XX Thanks still engaging of for XX% is where stored rollout. growth our see QX packaging, of reaching page items more new early XXXX, pages headcount, as threshold. least, in rollout, first, That’s we that the Jumia. end returning to increased of to we kind On on to for strong and platform. within want to to up XXXX of we’re play shift buying XX% Jumia what’s

quarters, orders this over quarterly compared the consumer for been increase consistent a three in year, quarterly We five past X.X reaching purchase to have year same before. driving QX frequency others active quarter in the

and nine orders GMV the Second, million. accelerating rates year-over-year, by we growth in posted the of QX X.X past quarters, fastest reaching XX% order

a also a which We growth, currency $XXX.X posted the XX% FX year-over-year, million, seem up notwithstanding XX% GMV and with headwinds basis. on constant strange GMV,

contributed year-over-year, out quarter, years and drove you shift the I’d had really GMV which food is XX% in went strong against a and depreciating bit accounting of needs categories, FMCG the was both, everyday very everyday XX, be the of and year strong increase stood supply at everyday platforms X% all items respectively. in points the focus volatility page QX compared Just e-commerce of X% broad-based growing Regardless On QX in in of respectively food these is like see there by African FMCG food percentage XX% these FMCG with positive GMV page business. respectively the important year-over-year, that The product you you for to QX JumiaPay and our X we dirham, categories across XX food of delivery XXX% momentum two Nigerian call franc Despite in GMV from in both in QX fundamental phones see color dynamic out into while in situation against In volatility, volume contribution West Moroccan can to category both, currencies largest on in categories, XX in staples. food XXXX. XX% product our local leverage in phone by growth dollar past this FX growth. the QX XXXX. the dollar, saw up growth particular food by chain to On as delivery the that also we XXXX period The to The which service and in a items naira, product grows XXXX. and depreciating both terms over categories XX, GMV and CFA to QX the sold items to electronics give X%, the FX this the was GMV app growth to over and GMV. XX% consumers and categories in X% to and can XX%, in delivery the delivery this the translating and drivers, more contrast, sold delivery from continue to QX inflection are in volume drove XX% XXXX. growing we terms. meet and electronics, and the

value Within of faster, bigger, periods stood business largest a each one categories, GMV. mid going Average smaller more to affordable not product remained of that’s major in and at categories. more product consistently resilience QX in and $XX crucial ticket volatility, the home platform are staple strategy the through. And of penetrate our diversification as increased only as two of couple order growing, model share category size increase product categories. the which macro categories currently the we items, the also teens driver high in years of we favor in we is to further and a This resilient. everyday coming to everyday our fashion a Compared growth such is providing ago, acceleration, diversified of much our more exposure as categories, to

to now us achieved another or Central to the Let’s we on key Service in priority JumiaPay PSSP Bank are on Nigeria. a an off-platform is QX payment license start Nigeria, Payment which for We by move instrumental in major Solution milestone of processing This XX. a license Provider that is us, allow granted as solutions page offering license. JumiaPay will

both business now and markets, merchants the in obtained scale manner payments payment off-platform our ensure disciplined and quality a consumers, Egypt. the to to for and relevant We safety solutions start and two intend and of have off-platform. Nigeria processing We licensees to in on largest progressively

financial Over we’ll to merchants. environment range continue app. additional consumers the adapting and expanding on for the JumiaPay the build of product features on focused off-platform suite parallel, relevant an services few out third-party payment In months, and we for our available digital next be

the initiative Nigeria, This Meeting have of the as We service a remotely for partnership e-doctor well is partnership Group fee here a piloting to as of provided we’re example health monthly the development provider. a service access with in that organizations, Poor, XX allowing consumers leading CGAP, an Consultative subscription than digital of doctors global Doctors, in Assist to $X. more

focus rate JumiaPay TPV, XX% QX, quarters reached on XX% a in of terms page performance in XX% of year-over-year TPV the now starting the of and headwind, USD XX. platform, year before by on JumiaPay its GMV. posted and move Let’s new penetration we a FX TPV by of the of currency strong gradual manner. the basis. a growth TPV percentage XX% as in supported in penetration the past increased high in with growth on from QX to fastest the five GMV disciplined JumiaPay Despite up the constant increasing as on

XX. the transactions placed food compared volume page XX% in Overall, and on in were to reached particular. up JumiaPay in Turning category delivery in of year-over-year, supported X.X XX% business QX, across to XXXX XX% accelerating in the transactions completed JumiaPay million in growth QX by XXXX. QX using orders

our want on payments growth delivery platform. led hand did financial is JumiaPay transactions of transactions. our on JumiaPay we penetration momentum performance I transaction app, the Here, a you overall share delivery orders. food platforms off-platform. We app transaction very e-commerce our very XXX% Overall, in flag the in detail. Because percentage journey penetration percentage to e-commerce JumiaPay that very to good and the who food and reduced payment take mix is as where and growth are more JumiaPay to the embark the orders momentum next the a a our transaction phase over JumiaPay across robust, we in of solution increase will Antoine, decline penetration in to to the app JumiaPay platform the as JumiaPay on walk as we transactions Jumia of of growth of now prepare see I outpaced through of in excited JumiaPay

Antoine Maillet-Mezeray

in the we will Thank platform with we engine. the to and performance, accelerating monetization robust start diversified such of FX growth, Hello, second headwind usage the everyone. revenue illustrates to a monetization XX% and delivered our fastest what path balance the as QX rates you, marketing want see respectively. with are profit consumer ‘XX. in excluding exactly of which profitability, that monetization strong We years, monetization. I you can nature build building top-line posted two and our over Jeremy. gross growth usage to That’s achieved block incentives, this as we On growth was in growth which we page XX, investments XX% progress quarter. a at year-on-year,

XX% these basis, are even currency constant rates higher a XX% on respectively. So, year-on-year, at and

Let’s XX. now unpack revenue page growth dynamics on

components. we three have revenue main reminder, a As

one party that or on revenue on first earn The undertaken retail business is we party the the first first basis.

which various marketplace revenue, The fields the is our are second from activities. generate one the third-party we

will our third from this component The These revenue at revenue, and mainly which this revenue the includes once buckets include activity in payment XXXX. off-platform activity stage logistics-as-a-service launched other is in running. is from up processing, future

as from down in in business ‘XX. was Revenue strong strong grocery $XX.X million at basis constant supported In terms of revenue XX% up growth was our in growth, a trajectory, $XX category. year-on-year. retail stronger ‘XX things, a even by million on of the by we revenue up observed acceleration which more undertook X.X currency, was first QX party a factor three main growth to XX% we QX The first, within revenue, in

or very traction is are other streams, good seeing as which part major a logistics-as-a-service, in we newer advertising our of revenue. Second, monetization such

in discounts, shipping. the giving Third, discounts, this free revenue into growth sales consumer incentives, including is shipping momentum flexibility growth invest form us and to the of

on components the into deeper various dive page of now Let’s XX. marketplace revenue

and This revenue behalf was which consumer Unilever, Value up Coca-Cola, strong XX% many during Burger impacted on advertising of Excluding marketplace both more. currency a clients. we value by of the high Commissions campaigns by King in partners as fulfillment by campaigns, supported marketing Adidas, Krispy an incentives, almost of a added run included clients and by was as streams. Marketing L’Oréal, advertising Kreme, are partly supported advertising advertising the XX% up and the revenue revenue. in services year-on-year consumer logistics incentives. Advertising brand such revenue result constant year-on-year, basis. added of number international XX% an XX% was impact in Xiaomi, quarter and XX% profile as over services XXX increase up acceleration was on X,XXX year-on-year, year-on-year, the and and increased momentum

by Excluding Commission’s XX%, shipping revenue this as impact, while driven revenue fulfillments choose growth, reduce we was X% pass-through customers. was at at to to usage the

significant constant profit GMV which reached of XX.X%, step XX. gross page a in year-on-year of drove incentives as margin XX gross the before We currency, XX% in consumer while and accelerated bps the by up on percentage on profit year-on-year. to a impact Moving up almost XX%

to are and competitiveness QX $X.X from underlying in to level increase the ‘XX. monetization the incentives We to into allowing QX $X.X million million more us strong invest leveraging of discounts, amount of price shipping ‘XX in consumer

‘XX the monetization period growth QX growth strong. Between Going our is over monetization after reinvested will ‘XX, and in forward, up be to partly QX fund XX%. the consumer initiative. Even impact in two-year gross free very profit was the trajectory of shipping incentives,

streams challenging in of of was the aspects environment say even offering. logistics reliable can In to I on we’ve one the of our delivery, this by new such on. like all the are we multiple that lack on journey, excited cash our organized strong on we new logistics-as-a-service space confidently predominance the and with are with most storage these beginning capacity, and and At would more issues. of issues, lack are ‘XX into give as QX revenue the of you streams, revenue so and addresses most our of years pleased cracked color XX these of operating the of our journey, one XX monetization hurdles, performance developing. context, more We very page

operation. have logistics built a platform strong asset-light tech-rich across reach countries We with all of

through over that counts manage logistics XXX network Our a integrate and dedicated to partners we tech stack. our platform

are physical challenges collection payment and the our help end from of a full We by pick logistics of infrastructure warehousing of drop-off with journey package. and and end of overcome and we and extensive in services delivery logistics to to an the giving to to access tracking door these space, warehousing offer them square-meter packing platform. visibility X,XXX have have XX,XXX stations. pickup also We position Today, network we businesses other

account adjusted an to of can is suit needs on offering our clients. logistics be familiar Our the basis and

reached We generating new X.X more are $X.X number packages good million, shipped sales. in than demand record seeing very The revenue ‘XX over in of QX of from from the X,XXX a clients. million

now costs, in and evolved page QX is fulfillment line XX. on cost Let’s expense to with volumes starting Fulfillment largely viable on move in with ‘XX.

orders we a and XX% expense XX% by on constant up basis. year-on-year, As fulfillment currency XX% was grew

this from to with ‘XX. I QX in platform with associated cost to activity point expense includes QX offering. fulfillment million would ‘XX increased within cost of both, significantly like number Jumia Here associated that orders in the packages and The logistics-as-a-service the X.X our X.X million out

sales advertising page and to on XX. Moving expense,

year-on-year XX%. XX% with mix in investments, over nine When radio, pace months, and channel three-year in the by mentioned advertising, by fourth up growth. And drive to increased As year-on-year an XX% core of from and on investments basis line on in bases. investments a in a levels continued a ‘XX. marketing as we lever TV, the Jeremy low over advertising XXX% usage the in sales sequential of million, channels, year-on-year slowing investment That’s marketing XX% curtailed and years, year-on-year these video the QX marketing cetera, XX% constant we CAGR XXXX. the of ‘XX of earlier, look with ‘XX. the in advertising to XXX% expense take ‘XX $XX.X very at reached perspective, are ‘XX advertising the The a increases with such third and and middle is increasing et the to significantly amount modestly to see we QX Sales is QX in QX and can ‘XX. main we the pre-pandemic the quarters When change context of we of that XXXX XX% are until two three-year share above account past the above and sales QX past down up allocated trends expense currency base

move marketing of efficiency investments, per towards is in lowest order and phase are XX, HX of sequentially to stabilizing advertising Sales we and their generate beyond and of scaling both As the in page the improving levels in see expense metrics. now profitability, per GMV. development an can ramp-up This better our marketing progress important QX as ‘XX, efficiency. of we the ‘XX as and in we at significant while On initial marketing we improvements $X quarters starting of percentage business GMV, reached X.X% marketing are four levels efficiency. order marketing

on management increased constant of basis. mostly QX remain in and we believe reinforce we strengthen SBC to discipline to costs. expense is as Moving G&A on long-term a on payment basis, and the investment XX. growth million was our down going to On to area half the reached continues year-on-year the us in increase a be excluding XX% business. the We support on have e-commerce areas to page Technology the QX an of sequential hiring Technology to up cost headcount X% long-term we ‘XX, on to expect constant in fronts. both at development. of this due ‘XX ‘XX. growth G&A, product currency SBC, selected as overhead to the and forward G&A XX% and XX% an base G&A year-on-year team compared $XX This structure up support the reached strong business, QX on technology and for important of a support excluding relatively innovation million hiring second and and in $XX.X ‘XX, currency stage the to XX% team basis, right technology stable

in reached by ‘XX XX. Turning currency. ‘XX, was year-over-year where in a page loss, QX XX% up The XX% loss XX% now to million adjusted constant a EBITDA Adjusted $XX.X QX low EBITDA year-on-year and year-on-year. base is EBITDA on adjusted loss impacted down comparison

mentioned by was we the are losses, in past reached ‘XX. peak adjusted QX as Importantly, EBITDA believe of we which Sacha now earlier,

was $X.X now Let’s on sheet QX CapEx and items flow million. page move on balance to ‘XX in cash XX.

see was can for cash by the $XX which capacity during said, mostly better relatively are to and basis. yearly care working impacted capital impacted was the out guided of flow QX of ‘XX, towards million a [ph] working cap take in we the outflow effects yearly quarter. paid the upgrades, quarterly as an in logistics services $XX.X quarter in cost of and half second the ‘XX, XXXX the for be QX case outflow a Cash At resulted pricing. over expansion $XX capital $XX.X hosting be in we million upfront change the financial neutral effect cut end QX where and will of yet impact that, it upfront to a off ‘XX. investments I’ll This carried utilization $XX That we $XXX of term March That working logistics had million ‘XX, concluding ‘XX. in We assets. the Historically, had prepayment. of to other of of CapEx of by in million on million remarks. and comprised equivalents Sacha million, With deposits for liquidity cash cash and $XXX position of hand over million to of

Sacha Poignonnec

you, Thank Jeremy. Antoine. you, Thank

strategy scale execution I importantly, the building On see towards even more some one. to quarter the to very think no quick make our path quarter underway profitability, on where know, blocks clear to a we strong on on we And can of scale. profitability the business is growth, we progress have and results bigger each our initiatives of usage there without profitability. all three

dollars. of It’s us categories. continuing good delivery we’ve we the great not look their about to multiple we growth intend ahead, the And the going our we Jumia maintain been the investments nicely, fastest relevant continuing years. do profit by recorded course, that of past keeping in quarters. monetization just seamless It’s even and to it incentives, And On for and consumer gross offer QX, revenues We model is in work rollout growth, gross over growth have diversified engaging great the we party next growth be enhance to scale now and In further logistics the monetization, experience that nine This not two improving times doing next momentum efficiency. in You’ve fastest here, growth rate more shipping growth revenue party day, GMV volume free drive about negotiate the marketing usage with want allowing we believe accelerated on And heard built. margins. rates us a place. the profit over the front, over about the the business. have XX% we this to scale it’s in QX, that great a On and our of still first everyday to areas by on to with fastest robust bigger past we engine excluding more upsides very Express. And And that leveraging monetization, nine platform. currently order year-over-year, on In revenue, on our grew frontloads level say past. free consumers we technology regularly the on to all execution first accelerate months. without model rebates we have and it’s product the the maintaining of the revenue as suppliers. on

logic marketplace, same applies. On the

more we for brought enabler referred number the have started opportunities growth third in have us free last course, next is an nine earlier extract of of We’re the in on disciplined increase the of as in monetization lots And a take-rates delivery sellers. marketplace And always, party accelerating of day of growth gradual commission months to to We the rollout the Jumia lot revenue. room of so to to but categories. and manner. this Jumia increase as to a over already Express, monetization. usage Express, a our we leveraging that, the doing We’ve today

more a you growth pay and We basis seen. exciting quarters. upside breakeven, very on In our have four percentage still still Nigeria per overheads, meaningful very have the as improve, tech to even past also we’ve for we reinforced the the gains us good Egypt to today, now reach cost on addition, in marketing drive and potential to revenue potential efficiency it reaching platform cost JumiaPay this and give profitability. are monetization efficiency in and of obtained a efficiency third have seen optionality with here is in both And long to cost leverage in be advertising, and incremental path further which of traction QX, the on our for block, license have GMV, we It’s flexibility will further a upside and finally, in And prerequisite generate term order on us a but growth. to opportunity. level G&A lowest not a we the nascent operating lot have monetization discipline particular. across in logistics-as-a-service but structure of finally, marketing, And meaningful building

the provided the release, that we full on growth And continue we in take during quarter HX blocks. to expect focus XX%. where the the last saw the on last compared building three further in GMV For was what acceleration year, which that XXXX in opportunity we XXXX, here guidance to year to those year-on-year add growth we is we and reiterate of

We’re million million and the we million to the of between marketing XXXX. HX And and expect confirm with $XX first half in we for stabilizing of $XX and in invest that level XXXX. investment $XX this compares sales advertising of

would Then of -- CapEx -- similar a expect and this I we and year. $XX to expect very So, $XX to between why level we of million confirm call say this stabilization. this is investment, invest million we

investment also the consumers the reach, will EBITDA And well pursuing cost year-over-year we’re on CapEx just that we be and potential The adjusted of lot of a years, the opportunities hundreds of year. we the that huge before delivery focused QX. There and Of compared massive. who to most ahead efficiency and was last loss which we strength long-term amazing be our the the speed numbers And XXX loss and in XX quarterly basis, from to of will market. obviously, to here, China we’re planet going on Nigeria cash drive we we enter we this adjusted third logistic platform. decreasing basis. that of confirmed investing with the continent are the an populous XXXX, a growth have on begin to year loss now, very are the the will the ourselves disciplined believe us opportunity of And forward. We and decades adjusted is the on into market of between those on be in course, that is the millions Q&A, expect after going in impact the believe having we the And of as platform committed over us. a was Egypt second India. our as are peak beyond. also are but past increase just allow full XXX increase let’s EBITDA And coming market starting of we -- for that for a expect country great reached remind and will XXX XX, an decades.

platform have spent We a hard to this those is serve building very is unique. years consumers. This very and

seen one now and your lives ready the millions We and long-term our strong opportunity. ongoing our today consumers in And the number capture much last we’re for profitability we’re market but attention. ground we’re you’ve Egypt addressing you impacting both across is brand. continent. doing least, path have And to position very Thank lay not for a to of in e-commerce questions. very of What sellers and the

Operator

you. Instructions] [Operator Thank

with James. Our Aaron Kessler coming first from Raymond question is

Aaron Kessler

couple questions. Great. A Maybe of incentives. first, just Thank on you. consumer the

on cetera? step that just you. kind the just the of consumer seasonality? shopping, you’ve talk about sales quarters you of customers couple and the et that more then down repeat that versus the the kind can now, prior efficiencies Now maybe are or is and marketing effectiveness Thank finding incentives of spend running or terms due consumer a of And maybe QX conversion in in been maybe maybe ROI using rate a quarter, for that marketing maybe those to quarters, and incentives are more lower a you

Sacha Poignonnec

questions. Aaron, good very Thanks,

marketing repeat incentive products, types, for time drive distributed example, different integrated and and ultimately lower various So, have, free of Jumia segments there certain On customer objective there certain of in which purchase, are for the products, the lifetime And which completely to customer have There new of stages of into the our different we to form a of lower example, the to to which the us make the which drive consumers, on the the terms as we types to them engage adoption. drive can to awareness of right? And price where there. make consumer the are reductions which fee consumers, or the certain are then, we that adoption, trying funnel the we are -- tend price Jumia coupons the program. is incentives, the to to then, we the strategies lifetime consumer strategy, for the be shipping is to or course, that vouchers, incentives, we term, the of to repeat. drive is buy the And segments, from different adoption, value. product here, of through driving for course, consumer loyalty are incentives to right? the for have So, various of reduction category those, shipping discover consumer Express value driving of them existence first based for them make long for drive discover

we when are play, consumer with and range integral consumer the started to to investments strategies, an it said, And here, incentive. up strategy as you So, And ramp part wide have, the our in CLV. incentives drive I comes we sell out, together I the which of to of ramp-up advertising. in pointed would say, they’re, as long-term at

with optimize I more And it’s optimize, continue less here, we quite during And see efficiency. last think we we’re to and I of was of overall. year, we and So, it think I a we’re strong CLV right? have a QX happy lot or what lot learnings will driving of think the seeing. we

HX. so post post always But think standardizing the little year-end And we forth. Year, are from and It’s efficiency. is which Christmas, investments it’s and because advertising. and pretty more in sustain we and variation there’s confident think QX, in QX the are seasonality, so always we’re spend, of some that the here, gradually advertising sales New bit expect seeing them going little it’s some happening of or sales certainly to on the making improvement and good we’re seeing continue it’s I of can I terms but I some time. -- QX, a we’re efficiency of inflect them And here, level In to gradually actually always improve we a the spend amount bit certainly, will there in in to is be than -- over we that spend, think I that think

So, they that are think not we -- the increased in efficiency drive long-term is spending the and will we to not continue particularly related efficiency. to less

Operator

next is from with Stifel. Our Lamont Williams question coming

Lamont Williams

of year? the the you have the balance of high see of challenges, inflation are what on I I then, as you macro the have question first And some And through platform the the kind buyers follow-up. a The from your of go whatnot? in do midst you’ll seeing what is, and expect we

Sacha Poignonnec

at of unfolding daily consumers very offering I the the wide it’s And our categories, ways, mean, still because as prices, which very are positioned assortment. impacting things with there’s because basis we So, said, day, are a access position have in whatnot, good are offering well very the the think I everyday amazingly it’s are lot. very many you and Yes. think, Look, supply, right, on consumers, of and range happening, and prices. And of we solutions many and question. as we to right? the a the products, end important relevant almost say, I a in we and a are

the supply is the disruption happening on whatever day, a end at are of the we So, and the reflection of supply.

beauty we good we Jumia -- prices. supply disrupt assortment, bring that and very bring the But we amazing we’ll bring course, this is Of this the experience of everywhere. amazing

think when more whatever compare we So, will more still will happens, down we that would categories And they pressure, picky we’re everyday some more given our pretty need that are And some confident prices I do on is and very to value suffer, will their consumers I to wallets, consumer relevant purchases. consumers now, think that. and delay positioning will well, us relevant, categories, proposition. buy will and more. our I some will and So, need products, consumers And on given if are be say at course, right? all, positions there trade consumers still of right, and and

But year. will well, So, on categories on do categories we we this know everything and do well I will not everyday well think we are all because especially. positioned

Lamont Williams

Okay. then, of more question. on longer And term a

to You of of that over How to how can the of see thinking about time? a we any around JumiaPay. you develop that with expect what initiatives kind see couple Is there are about timing kind time? off-platform expect monetization over interesting talked to that, and we

Sacha Poignonnec

Yes.

an platforms and on have to two but on I advertising logistics see we think and have we -- we’re then have I then -- Jumia starting two, JumiaPay have advertising we have we of platform, more then the mean, advertising. we and

of real moving well. an I it’s to future. we advertise that to help And And continue. continue show see brands and the a good is We starting are growth in It’s the think impact this rolling some I quarter. will can think area rate on this lot out solutions Jumia. will

number The over to and is of we seen this we’ve have over course revenue. generate clients and X,XXX numbers million packages that second logistics. start start of of X that to that some the one we display quarter We we shipped

opportunity, this we is very see And think big I in moving is long-term So, well. which logistics. here the

think logistic exceptional. I a in that consumers XX% in custom And I reach Africa not unique. -- it’s mean, hard. our something very XX that mean, is, secret developed And, within is think Africa, I ship absolutely I course, of hours is right? this Of we’ve packages

we’re develop we guidance. bring and we’ll So, bring this on, so visibility asset, numbers. have I give more We the think more to it’s as it days. don’t you continue guidance to early still going because and specific And

to are. without continuing I think for numbers are we they we committed the now, giving to guidance. particular it And as grow bring

party And step area. to is huge third first long-term asset its this for on is us. I step a into -- achievement the own. starting is here, JumiaPay payments. JumiaPay, And a already license. is And don’t the important to think process, new lightly a go you on very get This

of which pass speaks of develop we it that rolling have get level execution a on. so central processes. to that a of to, of you have that are license, very the and to to the So, course, obtained And have we to And we’ve out. number of level the bank, our tailor those quality going to our a And have product licenses, audits built, JumiaPay. our on and highly verifications, and we of the number apply and compliance, start of you’ll merchants solution then now

So, are market. revenue, we meaningful product to away because showing the from to adapting quarters the several I in think are the it now of take still phase we

more I few something is least this will So, at start think quarters. a that in updating

Operator

you. Thank

Simon Berenberg. Sarah from coming is with question next Our

Sarah Simon

I’ve couple a got of questions.

how was I First the about working about capital. party I’m in in assume first them. you wondering one was first was before forward? think selling for should that inventories. goods got taking on comment just capital to going And Because there thing. a That start on release context we there more -- working the you you’ve pay the

your QX. else And Obviously, spend Can customers? remind on new said people are lot other in QX, customers, growth the us customers, of advertising on from or would the active just one was phasing which with final guidance there let’s Jumia? told maybe of of The be shopped if Or idea? the the percentage came something the if the it’s second event, terms previously customer give there’s completely us just to quite then, quarter, That promotional have to are of in your advertising. sort you What Can who don’t repeat current of the is was in an for in what the HX way, say, Because versus of implies kind ever do QX behind us weeks rate? proportion what of you’ve helpful. one think you phasing? purchase I this. a that increase in

Sacha Poignonnec

on. is some it season and in know, calendar country But We the you or this usually on easiest. to of in of June year, the Ramadan, one, the number so it’s Jumia depends in and as XX-year July, Jumia. because take the in June, start think anniversary dates sometimes place last around year things, do the kind I will this and rainy with of anniversary the

momentum prices, for So, is sellers bring of to just good good and this good good for our and a lots us opportunity consumers. typically deals, our

QX, So, in specific more you QX in anniversary. investment that’s is for see will this why

Sarah Simon

last year? Jumia the you year? last was When when did Okay. And anniversary anniversary

Sacha Poignonnec

Yes.

most You that say fully some to make of sure the sure effect. and provide we follow-up year QX can fall have the them but also June, in make June believe June, July. separately will comparison have that, when you was to such I to I some countries to countries refresh calendar of in would last July. in there’s date. overlapping We release anyway, and we that no exactly

On it’s think the market the I good conducting for working Well, think because capital, requires party, yes. are us. more first I a it opportunity we and it’s

points going see we on also inventory cash we’re on some compensated would buy right? think weeks, cycle. inventory working will We getting think something number net-net split payment year’s increased on to publishing selling tend on tend significant. buy for think, So, because to time, consumers. for points So, loyalty, will be at some see get are the in we payment a that of increase next let’s terms. buy, I the And some to sure the of capital right? some have like the increase, or terms SKUs, don’t yes. by would So, will fashion returning also on we the increased If new the inventory that, high we collection, or I we data here. think then, FMCG by or say, will retail to But do to I there’s data mean, on And few a right? turning increase. the I -- to the and over continue I meaningful, next was for just right? or electronics the not questions level the impact cohort, don’t payment I’m short would same We’ve increased terms time, XX-year be we past anniversary meaningful impact think I been

that good giving the loyalty. qualitatively we in hard publish to the the answer decide on seeing both And momentum will that the adoption point data. may numbers. It’s or I momentum, loyalty simply on without At just I some very on adoption. seeing we tell hope are you can and so, here, future, qualitatively, quantitatively, here to and But both, we’re good comment more we

Operator

next Morgan Holbrook Our from coming is with Stanley. question Luke

Luke Holbrook

to perspective. just economics on going the from unit was I ask you

efforts the you’re but On X% first making improve other in the consumer hand, has think declined, on the values quite frequency, hand, quarter. a one few I order to average year-on-year

after think And impacts where I’ve follow-up value you your roadmap that that. wondering just got to just Thank average that profitability, the starts a you. stabilize? how So basically order to

Sacha Poignonnec

Yes. Thank for you Luke. question, the

$X, the from profit. that right? of percentage to few managed almost X%. this economics continue to to despite predict. the XX the So profit years, it profits we’ve a gross going sustainable hard think we right, $X.X see I going think profit, predict is quite the is is average is AOV I I I to It’s value And will for to a to this is managed over you’re exactly this And keep to the think, I order trend at orders. same you now And unit where expected. now but the XX, as that build at down would that going from continue. speed, gross we’re gross mean, stand. time. down hard But positive to $X.X, last think XX% coming dollars AOV to the drive here, see the but of we I will continue And Maybe that see certainly, not I really think it’s over we and you’ll moved say of

by managed The as slight we down. going grow managed efficiency. points the order we value capture to we’ve saw fulfillment average So to X expense,

there Of at course, here, are which things play. lots are of

still generating after, of $XX so, we’re fulfillment. And the $X out

seeing tap model driving we’re that on out and rolling more these really our happening shifts I to the been pass-through mentioned even value marketing initiatives then the revenues have contributions very better retail, into Jumia towards of increase. to we the we the now gross And logistics adapt adaptive that roll on to better it’s that JumiaPay. logistics, profit after marketplace, Express, driving now, business everyday work revenues, of commissions on driving the as driving and and the categories. about So think we is margins to and manages those, all more And more that increasing those FMCG, opportunity dollar those have the out fulfillment all with and and suppliers advertising we need sellers, see monetization on also we

are not the worried I think we AOV. So, here, drop of certainly the by

are think driving. I we actually something it’s

We to want more in place are our that place. gross be monetization even to in we better drive an improve good a and we’re profit absolute continue fulfillment. to grow to But and dollars making after the

Luke Holbrook

the years, you been as you’ve sourcing resulted of forward? just acquire side buildup impact in And kind helpful. Can as comment result It impacted the another just the last this on chain reports that Will be as bid to the how goods on going point just supply issues, in couple a in local world, follow-up, you inventories? And would company? well. inflationary current the the bit environment across the a and possible by little have press issues does also, of of a in that

Sacha Poignonnec

Yes, of course.

the and on in disruptions supply I in believe like sellers or and issues think mean, continue COVID of of which like right? will were our chain, our everyday the local think supply able things been categories. see the was And happen. I the earlier negative well perspective, but not The that, having of things terms I logistics to the from we to or movements a supply arriving because have that being that are really, the not almost parts products I able China and move very I giving access around, really is chain of year not of not positioned lot and of that during with on chain, being to come leaving the are we the market, a deliver curfews like which we this restrictions about to question, is answer the impacted reflection was really warehouse, impacts a happening,

category, that if So, for look but that overall use right, people may will a and categories is expression, to to I the and function, relevant. need disruption extremely need the everyday you that on extremely impact still come they going are and category, for categories, whenever some and important there which it’s

think that. I expect is we for this So, what

securities known. the law, in rumors, comment X% to I who And has say do such of speculations. on not per terms market more U.S. Now, needs the shareholder any himself make would we as than

I we that’s So, expect. guess, what would

we here to if But like So, known. will themselves one that. the passes again, cannot speculations comment any they have make on X%,

Operator

no queue. closing comments be further Instructions] like [Operator any appear with? There questions Do to to you in you’d finish the have

Sacha Poignonnec

for in the everyone the I always forward we’ll support, QX, great just months. And thank great a looking you Take years. Jumia And connect. to and in want we three Thank anniversary, reconnect to discuss are to meantime, XX and available care. together everyone.

Operator

gentlemen. and This conclude ladies today’s you, conference Thank does call.

day. you your time. for this You Have Thank at disconnect a participation. lines may wonderful your

Jumia Technologies (JMIA) 17 May 222022 Q1 Earnings call transcript