JMIA - Jumia Technologies tumbles on slowing sales trends

2023-05-23 07:45:55 ET

Jumia Technologies ( NYSE: JMIA ) stock slid sharply before the bell on Tuesday after reporting declining revenue and order trends.

For the first quarter, the African e-commerce leader disclosed a 2.7% drop in revenue to $46.3M year over year as quarterly active consumers, orders, and GMV declined by 22%, 26% and 22%, respectively, in that same span. That said, operating losses were cut 49% in constant currency from Q1 2022 to $31M.

"We are committed to taking the business to profitability and the first quarter of 2023 results demonstrate very good progress towards this goal. Operating loss decreased by 54% year-over-year to $31M, its lowest quarterly level in over 4 years. Our cost reduction initiatives are clearly bearing fruit, with all operating costs decreasing in the first quarter of 2023, both sequentially and on a year-over-year basis,” CEO Francis Dufay said. “The macro environment has been challenging over the past few quarters, which negatively impacted our growth trajectory. Notwithstanding these temporary headwinds, we have a significant growth runway in our markets and are strengthening the fundamentals of our business and consumer value proposition to capture this vast opportunity.”

The company’s earnings release highlights a 34% cut in fulfillment costs and a 69% reduction in

Sales and Advertising expenses for the improved bottom line result. Moving forward, the company indicated a continued focus on spending cuts will help drive the company toward profitability. Management expects an adjusted EBITDA loss for the full year 2023 of $100M to $120M, as compared to a loss of $207M in 2022.

Elsewhere, the online retailer said that director Gilles Bogaert has resigned from the company’s board . Shares of Jumia Technologies ( JMIA ) slumped 5.36% before Tuesday’s market open.

More on Jumia Technologies:

Jumia: There's Still A Lot Of Uncertainties

More Optimistic About Jumia Technologies After Discussing Business Changes With The CEO

Jumia Technologies AG reports Q1 results

For further details see: