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Jumia’s Q1 2021 report shows increase in gross profit

…as cost discipline, monetization drives growth



Jumia, Q1 2021
Jumia, Q1 2021

Africa’s ecommerce market leader, Jumia has released its 2021 quarter one report (Q1 2021), recording 11% year-on-year gross profit increase, as adjusted EBITDA loss decreased by 24% year-over-year.

The report by the company also showed a sixth consecutive quarter of positive Gross Profit After Fulfillment Expense, which reached €6.2 million, more than doubling YoY.

According to Jumia, the Q1 2021 report is a reflection of a solid progress towards profitability, with gradual monetization and cost discipline as major drivers.

“Our first quarter results reflect solid progress towards profitability. The drivers remain consistent: selective and disciplined usage growth, gradual monetization and continued cost discipline. The first quarter of 2021 was the sixth consecutive quarter of positive gross profit after fulfillment expense, which reached €6.2million, more than doubling year-over-year, while Adjusted EBITDA loss contracted by 24% year-over-year, reaching €27.0 million. Our strategy to increase our exposure to everyday product categories continues to yield positive results, enhancing the relevance of our marketplace for consumers”, commented the Co-Chief Executive Officers of Jumia, Jeremy Hodara and Sacha Poignonnec.

Jumia also disclosed that it made significant steps towards the $10billion market capitalization. “We have raised over $570m over the past 6 months, strengthening our balance sheet & increasing our strategic flexibility. We are confident we have all the right ingredients to continue to build a growing business across both our e-commerce and fintech activities.”

As contained in the report, Jumia is making significant inroads in payment and fintech, with 37% of Orders in the Q1 of 2021 completed using JumiaPay.

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The report revealed that Total Payment Volume on JumiaPay increased by 21% from €35.5million in the first quarter of 2020 to €42.9million in the first quarter of 2021. On a constant currency basis, TPV increased by 35% year-over-year.

On-platform penetration of JumiaPay as a percentage of GMV increased to 26.0% in the first quarter of 2021 from18.7% in the first quarter of 2020.

JumiaPay Transactions increased by 7% from 2.3 million in the first quarter of 2020 to 2.4million in the first quarter of202.

Overall, 36.7% of Orders placed on the Jumia platform in the first quarter of 2021 were completed using JumiaPay, compared to 35.5% in the first quarter of 2020. Jumia Food and on-demand services accounted for 22% of orders and 9% of GMV in the first quarter of 2021.

Likewise, annual active consumers reached 6.9 million in the first quarter of 2021, up 7% year-over-year, as the platform continued to acquire new consumers and engage existing ones.


Orders reached 6.6 million, up 3% year-over-year, a reversal of the declining trend observed over the prior two quarters.

Jumia also recorded operating loss of €33.7million in the first quarter of 2021 decreasing by 23% on a year-over-year basis demonstrating meaningful progress on the brand’s path to profitability. GMV was €165.0 million, down 13% on a year-over-year basis and 5% on a constant currency basis.

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