Jumia Cuts Costs, Hopes For Lockdown Boost
Struggling e-commerce platform Jumia Technologies reported an almost 7 percent fall in first-quarter revenue due to supply chain disruptions, particularly in China, but saw lower cash burn and signs that lockdowns were hastening a shift towards online shopping in Africa.
Jumia was the first Africa-focused tech start-up to go public on the New York Stock Exchange and reached a market capitalisation of over $1.5 billion just days after it listed last April.
But the company has struggled to find its way, and its share price has tumbled some 90 per cent from its peak a year ago. On Wednesday, its shares traded down around 24 per cent from the previous close, at $3.98 at 1159 EST.
The results, which caught the beginning of the coronavirus outbreak on the African continent, showed the lowest losses in earnings before interest, taxes, depreciation and amortization in six quarters, at 35.6 million euros ($38.5m).
But revenue fell to 29.3 million euros ($31.7m). China is a key supplier of electronics and mobile phones sold on the platform.
Still, during an earnings call on Wednesday, founders Sacha Poignonnec and Jeremy Hodara said they saw opportunities amid the pandemic.
(Theeastafrican)
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