How FMCG Aided Over $57 Million Revenue for Jumia

By Tolulope Oke

Jumia Technologies has released its unaudited financial results for the second quarter (Q2) ended June 30, 2022, showing revenue of $57.3 million, up 43% from the reported second quarter ($40.2 million) ended June 30, 2021.

According to a statement from the company, the growth in revenue was driven by the strong growth in First Party revenue, which increased by 92% in the Q2 of 2022 when compared to the same quarter the previous year. This growth was also aided by the strong momentum in the Fast-Moving Consumer Goods (FMCG) and grocery sub-category in particular.

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The statement said, “To support usage growth, we continue to deploy consumer incentives in the form of promotional discounts, which are accounted for as revenue deductions. Strategic use of consumer incentives on selected products or categories helps us drive conversion and is a core part of our strategy to scale the business towards profitability.

“Revenue is presented net of consumer incentives, which reached $8.2 million in the Q2 2022 compared to $4.5 million in the second quarter of 2021. Consumer incentives related to First Party revenue reached $2.0 million in the Q2 2022, compared to $0.9 million in the Q2 2021.

“We are currently focused on enhancing the efficiency of our promotional investments. The ratio of consumer incentives as a percentage of revenue has been improving sequentially from 18per cent in the fourth quarter of 2021 to 15per cent in the Q1 2022 and 14per cent in the Q2 2022.”

Jumia’s operating loss for the second quarter of 2022 was $67.7 million, up 31% year over year and 43% in constant currency terms, as a result of rising operating expenses that were somewhat offset by rising gross profits.