16 April 2018

Kenya: Jumia Sinks Into Sh14 Billion Loss

E-commerce company Jumia has sunk deeper in the red, posting a Sh14.9 billion loss before tax and other costs in the year ended December compared to Sh11.3 billion a year earlier.

The loss does not give an indication of the company's bottom-line as it excludes most of the standard business expenses including finance costs, depreciation and stock-based compensation.

The company, which operates in 23 African countries including Kenya, blamed the loss on increased investment in the business.

Jumia's sales grew 41.8 per cent to Sh62.95 billion on the back of higher customer numbers.

Its total number of orders grew 63.3 per cent to 8.3 million while the customer base increased 46.7 per cent to 2.2 million users.

The company increased its capital expenditure 46.67 per cent to Sh273.2 million (€2.2 million) in the review period, up from Sh186.2 million (€1.5 million) the year before.

"Jumia reached the threshold of 550 million visits across Africa in 2017. Other figures for 2017 include the number of products available on the platform which skyrocketed from 50,000 in 2012 to over five million in 2017," said Jumia.

Jumia opened shop in Kenya in March 2013, having been founded in Nigeria a year earlier.

Jumia's online brands include Jumia, Jumia Food, Jumia Travel, Jumia Deals, Jumia House, Jumia Jobs and Jumia Car.

Sacha Poignonnec and Jeremy Hodara, Jumia co-CEOs commented: "We made great progress in 2017 with significant growth of the business, driven by technological innovations and improved relevance of the offering of goods and services."


Nation Journalists Feted at Merck Foundation Media Awards

NTV's Namukabo Werungah, Doreen Magak, Antony Wabwoba and former station head Pamela Asigi were among the big winners at… Read more »

See What Everyone is Watching

Copyright © 2018 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.