Revenues for African e-commerce heavyweight Jumia slid by 10% in the second quarter, dashing hopes that lockdowns aimed at stemming the spread of the new coronavirus would lead to a flood of online orders. Revenue for the quarter fell to $41.1 million, the company said while there were surges in demand in markets that went into total lockdown, this only happened in four countries, which hold 24% of its adjustable market. The company also said it would pay $5 million to settle class action lawsuits alleging misstatements and omissions related to its initial public offering. Softer restrictions elsewhere led to “less drastic changes in consumer behaviour”, Jumia co-founder Sacha Poignonnec said. Still, Poignonnec pointed to encouraging signs including a 26% drop in its adjusted loss before interest, tax, depreciation and amortization, a rise in gross profits per order, and higher orders of the fast-moving consumer goods it hopes will yield more frequent orders.
SOURCE: BUSINESS DAY LIVE