The third-quarter earnings from e-commerce powerhouse Jumia have been released. Despite significant operating deficits, the African nation generated outstanding earnings. Gross profits for the third quarter were $25.5 million, while operating losses increased to $64 million, according to the business.
For the quarter, operating losses were over 250 percent higher than gross profits. In comparison to the same quarter the previous year, Jumia’s gross profit fell by 5.7 percent YoY.
Jumia had considerable growth during the quarter, despite the data it provided and the huge operating losses it incurred. All key pointer indicators showed that the company grew during the quarter.
Jumia set a new all-time high order record of 8.5 million, representing a 28 percent year-over-year increase and the company’s fastest growth rate in the prior seven quarters.
According to Africa’s e-commerce platform’s co-CEOs, Jeremy Hodara and Sacha Poignonnec, the company’s growth acceleration strategy, which began at the end of the second quarter, had a significant impact on the third quarter.
“Our growth acceleration strategy, initiated at the end of the second quarter of 2021 is starting to pay off. We are making investments in Sales & Advertising and Technology to further enhance consumer education, brand consideration as well as the relevance and convenience of our platform”, they said.
They also stated that while the growth rate is beginning to shift, there is still more to come and that this is only the beginning, and that these changes will become more apparent in the coming months.
“We believe that these investments are long-term in nature and that accelerating growth will ultimately contribute to profitability, leveraging the strong efficiency gains achieved throughout 2020 and the first half of 2021. We are more confident than ever about the strong growth potential of our markets and our ability to build a growing business across e-commerce and fintech activities”, they added.