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