Nigeria headquartered online marketplace Jumia is on a path to profitability. Jumia has announced its financial results for the quarter ended June 30, 2020, with its gross profit after fulfilment expense reaching a record €6 million.
Explaining why Jumia is on a path to profitability, co-CEOs Jeremy Hodara and Sacha Poignonnec said, “We have made significant progress on our path to profitability in the second quarter of 2020, with operating loss decreasing 44% year-over-year to €37.6 million. This was achieved thanks to an all-time high gross profit after fulfilment expense of €6 million and record levels of marketing efficiency with sales & advertising expense decreasing by 51% year-over-year.”
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During the said quarter, Jumia’s orders reached 6.8 million, a year-over-year increase of 8%, and GMV (gross merchandise value) was €228 million, a year-over-year decrease of 13% compared to the second quarter of 2019.
“We are navigating these uncertain times of COVID-19 pandemic with strong financial discipline and operational agility which positions us to emerge from this crisis stronger and even more relevant to our consumers, sellers and communities,” Hodara and Poignonnec concluded.