It used to be almost impossible to know how Nigerian tech companies are doing. But thanks to the openness of some of the foreign investors, we are now able to have a better understanding of how they are performing. This time, it is ecommerce giant Jumia.
Rocket Internet recently released its results for the first half and second quarter of the year. It also published figures that gave an idea of how Jumia is performing.
Jumia sold goods worth EUR 74.5 million in the second quarter of the year which is great when compared to the Q2 of last year when it sold EUR 58.1 million worth of goods and services. The report also revealed that more people are using Jumia’s services for purchases among others as the company recorded over 64% growth in the number of completed orders that rose to 1.5 million in the quarter against 900,000 in the same period last year.
As the end of the first half of the year, Jumia said it has 1.8 million online shoppers against 1.6 million the previous year.
The company’s revenue also grew within the period to over EUR 18 million from EUR 14.6 million the previous year.
Jumia’s capital expenditure reduced just EUR 400,000. It is worthy to note that capital expenditure is calculated as purchase of property, plant and equipment plus acquisition of intangible assets. Within the same period last year, Jumia spent EUR 600,000. The company has successfully cut down on its expenses in a bid to minimize loss and approach profitability.
The company’s net working capital also increased marginally to EUR 12.2 million from EUR 11.1 million the previous year. Net working capital by the way, is calculated as inventories plus trade and other receivables plus prepaid expenses minus trade and other payables.
Even though the company recorded 25% revenue growth, its gross profit reduced. But expert analyses concluded that the company is in a good shape and should continue to lower its expenses while rolling out new ways to generate more revenues, maximise and increase profits.
