JMIA - Jumia: Why Management Needs To Stop Penny-Pinching And Start Investing In Growth Again

• This article represents our third article on Jumia as we continue to follow the business closely. We continue to own shares in Jumia and have no plans to sell.
• In our last recent article, we argued that it will be key to watch the continued impact from the business mix shift and cost efficiency measures that management has implemented.
• We also argued that management should not solely focus on such cost-cutting at the detriment of its growth opportunities.
• The most recent Q1 results are concerning as top-line growth rates across the business continued to decline.
• Management needs to stop penny-pinching and needs to start investing aggressively to fuel growth and build out its leadership position in African E-Commerce.

For further details see: