Jumia Technologies : Reports Second Quarter 2022 Results

Exhibit 99.1

Jumia reports Second Quarter 2022 results

Continued usage growth and accelerating monetization

Orders increased by 35% year-over-year

GMV increased by 21% year-over-year

Revenue increased by 42% year-over-year

Lagos, August 10, 2022 -Jumia Technologies AG (NYSE: JMIA) ("Jumia" or the "Company") announced today its financial results for the second quarter ended June 30, 2022.

Results highlights for the second quarter 2022

					For the three months ended June 30
		As reported	YoY	As reported	Constant	YoY
		currency
In USD million, unless otherwise stated						Change				Change
2021		2022		2021		2022
Quarterly Active Consumers
(million)		2.7		3.4		24.9	%	n.a.	n.a.	n.a.
Orders (million)	7.6		10.3		35.0 %	n.a.	n.a.	n.a.
Gross Merchandise Value ("GMV")	223.5		271.1		21.3 %	223.5		299.5		34.0 %
Total Payment Value ("TPV")	56.6		74.2		31.0 %	56.6		82.1		45.0 %
TPV as % of GMV		25.3 %	27.4 %			25.3 %	27.4 %
Revenue	40.2		57.3		42.5 %	40.2		62.8		56.0 %
Gross Profit	26.8		30.4		13.6 %	26.8		33.1		23.7 %
Fulfillment expense	(19.1)		(27.8)		45.8 %	(19.1)		(30.8)		61.6 %
Sales and Advertising expense	(17.1)		(22.2)		29.7 %	(17.1)		(23.2)		36.0 %
Technology and Content expense	(8.4)		(14.3)		70.5	%	(8.4)		(15.4)		83.5 %
G&A expense, excluding SBC	(26.6)		(26.6)		0.0%	(26.6)		(29.5)		10.8 %
Adjusted EBITDA	(41.6)		(57.2)		37.4	%	(41.6)		(62.2)		49.3 %
Operating Loss	(51.6)		(67.7)		31.3 %	(51.6)		(73.9)		43.4 %

"We remain focused on scaling the business towards profitability. In the second quarter of 2022, we have successfully delivered on each building block of our path to profitability: usage growth momentum, monetization acceleration and cost discipline.

Despite a deteriorating macro environment, we maintained a strong pace of usage growth. Orders, Quarterly Active Consumers and GMV grew by 35%, 25% and 21% respectively, on a year-over-year basis. Leveraging robust usage growth, we further accelerated monetization. Gross Profit and Marketplace revenue were up 14% and 17% year-over-year respectively, the fastest growth rates of the past 5 quarters.

In the context of rising inflation and input cost pressure, cost discipline remains a top priority for us. We drove usage growth and monetization acceleration with lower-than-expected marketing investments with Sales & Advertising expense of $41.0 million in the first half of 2022 compared to our guidance of $50-55 million." commented Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia.

"We believe we are now past the peak of quarterly Adjusted EBITDA losses reached in the fourth quarter of 2021 and intend to redouble our efforts to reach profitability, leveraging our strong business fundamentals. We intend to reduce Adjusted EBITDA losses starting from the second half of 2022 with a 12% to 29% decrease year-over-year. We are confident our consistent and disciplined execution will help us reach profitability and build an even stronger and more relevant platform."

SECOND QUARTER 2022- BUSINESS HIGHLIGHTS

USAGE GROWTH MOMENTUM

The second quarter of 2022 was marked by the 10th edition of the Jumia Anniversary campaign, which saw record levels of consumer engagement. We recorded 28 million unique visitors on the platform, up 15% year- over-year, while our video content went viral reaching a record of 116 million views, up 55% year-over-year. This demonstrates our ability to produce highly relevant and engaging content for our consumers across Africa. In parallel, we remained focused on enhancing the convenience of our services and speed of delivery. We handled over 3 million packages during the event, up 18% year-over-year, while our average end-to-end delivery time (excluding Zando in South Africa) was 1.6 business days, down 17% year-over-year, demonstrating the increasing efficiency of our logistics services as we scale volumes.

MONETIZATION ACCELERATION

As we grow usage, we are accelerating monetization with diversified revenue streams. In the second quarter of 2022, 86% of the yearly growth in marketplace revenue came from Marketing & Advertising and Value-Added Services, which are newer revenue streams compared to commissions and fulfillment revenue.

In particular, Marketing & Advertising revenue reached an all-time high of $4.6 million, surpassing the previous record of $4.2 million reached in the fourth quarter of 2021. This is a result of our sustained efforts over the past couple of years to build a comprehensive suite of solutions for sellers and third-party advertisers. We are also working on increasing the take-up by our sellers of our ad solutions, through a combination of seller education campaigns and data analytics to support campaign performance. This drove an increase of sponsored products take-up by sellers by over 80% year-over-year during the quarter, while the return on seller ad spend increased by 44% over the same period.

INCREASING COST EFFICIENCY

In the context of increasing cost inflation, we are maintaining strong discipline across the full cost structure and are focused on driving efficiency gains. Outlined below are selected examples of ongoing logistics efficiency initiatives aimed at offsetting the impact of fuel and wage inflation.

• Freight & Shipping initiatives: The broaderroll-out of next-day free shipping is driving robust volume growth, allowing us to negotiate volume rebates with our third-party logistics partners in the relevant areas. We are also leveraging our increased network of pick-up stations to drive more pick-up stations deliveries, which are cheaper than door delivery. Lastly, we are leveraging technology to further optimize volume allocation, particularly in food delivery with a view to reducing rider waiting time and overall rider capacity needs.

• Process optimization in warehouses: We are making significant enhancements to our fulfillment center operations. We are working to reduce consumption of packaging in both inbound and outbound logistics and implementing specific initiatives at category level. In grocery for example, we are replacing packaging material by reusable bins in which customer orders are placed. In parallel, we have updated our cycle count methodology in warehouses, adjusting the cycle count frequency to the average item value, with more frequent cycle counts for the highest value items. This is allowing us to both enhance controls on the highest value inventory and drive savings in overall handling and inventory costs.

IMPACT INITIATIVES

We have outlined below selected sustainability initiatives, in line with our objective to minimize environmental impact, which is one of the material themes highlighted in our inaugural ESG report released in May 2022.

In Nigeria, we partnered with Errand360 to offer eco-friendly,bicycle-powered meal deliveries to our customers. This partnership will help us reduce our carbon emissions and delivery costs thanks to lower maintenance costs and zero spend on fuel. In Morocco, we partnered with TotalEnergies to allow customers to pick up their orders across 50 petrol stations in the country by the end of 2022. This will help us reduce carbon emissions vs door delivery while offering a cheaper and convenient delivery solution to consumers.

SELECTED OPERATIONAL KPIs

1. Marketplace KPIs

	For the three months ended				For the six months ended
	June 30,			YoY	June 30,			YoY
	2021			2022		Change		2021			2022		Change
Quarterly Active Consumers (million)	2.7			3.4	24.9 %	n.a.	n.a.		n.a.
Orders (million)	7.6			10.3	35.0 %	14.3			19.6	37.5 %
GMV (USD million)	223.5			271.1		21.3 %	422.4			523.7	24.0 %

• Quarterly Active Consumers reached 3.4 million, up 25%year-over-year, supported by continued momentum in both customer acquisition and repurchase. Our consumer cohorts are exhibiting much stronger repurchase momentum as a result of the growth acceleration initiatives undertaken over the past year. The average 90-day repurchase rate of the cohort of new consumers acquired in the first quarter of 2022 reached 44%, compared to 38% for the first quarter of 2021 cohort. Similarly, we are seeing an improvement in the quarterly purchase frequency, which reached 3.1 orders in the second quarter of 2022 compared to 2.8 orders in the second quarter of 2021.
• Orders reached 10.3 million, up 35%year-over-year. The growth trends by product category illustrate the success of the strategic focus on everyday product categories, supported by sustained marketing investments:
  oThe fastest growing category in terms of items sold was FMCG, which increased by 95% year- over-year, supported by the momentum of the grocery sub-category, which we are currently developing. The second fastest growing category in terms of items sold was Food Delivery, which maintained very strong momentum, growing by 67% year-over-year. Food Delivery was the second-largest category in terms of items sold after Fashion, accounting for 17% of items sold in the second quarter of 2022, compared to 14% in the second quarter of 2021.
  oDespite continued supply chain volatility and FX headwinds, volume growth momentum accelerated in the Phones and Electronics categories. Items sold across these two categories were up 25% year-over-year in the second quarter of 2022, compared to 19% and 10% in the first quarter of 2022 and fourth quarter of 2021, respectively.
• GMV reached $271.1 million, up 21% on ayear-over-year basis and 34% on a constant currency basis. oFX was a headwind to GMV performance in the second quarter of 2022 with 10 of our 11 local
  currencies depreciating against the USD. In particular, in the first half of 2022 compared to the first half of 2021, the Egyptian Pound and the West African CFA Franc both depreciated by 10% against the USD while the Nigerian Naira depreciated by 7%.
  oIn terms of category trends, we observed continued year-over-year diversification of GMV in favor of everyday categories, and in particular, the increased GMV contribution from non-physical goods. The GMV contribution of food delivery and JumiaPay app services increased from 14% in the second quarter of 2021 to 18% in the second quarter of 2022 as a result of strong growth across these categories reaching 55% year-over-year in the second quarter of 2022. The fastest growing