Jumia Loses N17bn To COVID 19 |The Source

By Tosin Olatokunbo

Africa’s top online shop, Jumia has reported a whopping after tax profit loss of N17 billion in the second quarter of the year. The disclosure formed part of its second quarter report published on its website.

The loss has therefore wiped out Jumia’s revenue of Eur 34.9 million reported in the quarter under review, analysts say.

In spite of the loss, the online shopping platform said the number of its customers have increased by over 40 per cent compared with the same period last year.

The report came despite suggestions that the ravaging COVID 19 will help e-commerce this year, as customers try to reduce their physical contacts with shopping outlets.

E-commerce firms will benefit from the pandemic, analysts say.

The online outlet also recorded  revenue of Eur 34.9 million compared to Eur 38.8 million same period in 2019, while First Party revenue fell to Eur 11 million compared to Eur 21.6 million the same period in 2019. Gross profit also rose to Eur 23.3 million, Jumia management said.

The firm’s top executives Jeremy Hodara and Sacha Poignonnec said“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.”