If there is anything Jumia is close to meeting, it is certainly not profit. Early this morning, Rocket Internet, the parent company of Jumia said the company suffered a net loss of USD61 million loss in six months.

To understand the extent of the number, a conversion using the real-time exchange rate to Naira (NGN) shows that Jumia made a net loss of NGN22 billion.

In context, it is more than the net revenue of three of Nigeria’s commercial banks with over NGN3 trillion in assets.

A review of the company’s performance in the first six months in comparison to its last year period shows that the company’s fortune dwindled despite the easing in Nigeria’s economic hardship. Last year within the first six months, Jumia reported a net loss of EUR38 million compared to EUR52 million reported this year.

While Rocket Internet has reclassified Jumia as Jumia from the general merchandise grouping it carried in its portfolio. The parent company is also trying to recapitalise the local unit by putting more cash into its operations. As at last year, Jumia only had EUR4 million left in cash and cash equivalents. This year, about EUR24 million was said to be left in its books as cash.

As a rationale for the dwindling fortunes of the company, Rocket Internet has finally taken the bull by the horn. For the first time in a long while, Rocket Internet is now facing reality. The group said it recorded net impairments of EUR10 million on its Jumia operations.


READ MORE HERE: https://pageone.ng/2017/09/28/jumia-moves-farther-from-profit-posts-usd61-million-loss-in-six-months/