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Jumia Technologies (New York stock market :JMIA) shares fell sharply ahead of Tuesday’s bell after reporting weaker revenue and order trends.
For the first quarter, the African e-commerce leader reported a 2.7% drop in revenue to $46.3 million year-on-year, as quarterly active consumers, orders and GMV have decreased. 22%, 26% and 22%, respectively, over the same period. That said, operating losses were reduced by 49% in constant currency from Q1 2022 to $31m.
“We are committed to bringing the business to profitability and the results for the first quarter of 2023 demonstrate very good progress towards this objective. Cost reduction initiatives are clearly paying off, with all operating costs decreasing in the first quarter of 2023, both sequentially and year-over-year,” CEO Francis Dufay said. has been difficult in recent quarters. “, which has had a negative impact on our growth trajectory. Despite these temporary headwinds, we have a significant growth track in our markets and are strengthening the fundamentals of our commercial and consumer value proposition to seize this vast opportunity. “
The company’s earnings release shows a 34% reduction in fulfillment costs and a 69% reduction in
Selling and advertising expenses for improving the bottom line. Going forward, the company said a continued focus on expense reductions will help drive the company toward profitability. Management expects a full-year 2023 adjusted EBITDA loss of $100-120 million, compared to a loss of $207 million in 2022.
Separately, the online retailer said director Gilles Bogaert resigned from the company’s board of directors. Jumia Technologies Shares (JMIA) fell 5.36% ahead of Tuesday’s market open.
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