Jumia Technologies AG posted a 12% increase worth US$ 33.8 Million in gross profit for the period ended December 31st, 2020. This was according to the company’s Q4 financials, not forgetting the 2020 end year earnings.
The total value of the merchandise sold on Jumia’s platform in the past three months reached $280.2 million, a quarterly 23% acceleration. This was largely boosted by Black Friday’s event in November 2020.
Since then the value of merchandise has dropped by 21% year on end. The drop is attributed to the company doing rebalancing in late 2019 which played out in the fourth quarter of 2020. $12.4 million in sales and advertising expenses were recorded – a 34% overall decline. General administration expenses reached $26.4 million (excluding share-based compensation expenses).
Jumia co-CEOs Jeremy Hodara and Sacha Poignonnec described 2020 as a challenging year operationally due to the Covid-19 pandemic. Inconveniences in the supply and logistics distribution have resulted in the transformation of the company’s economic model. They disclosed that the company raised €203 million a primary offering last December.