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Nairaland Forum / Nairaland / General / Business / Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months (17759 Views)
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Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by Nobody: 11:17am On Sep 28, 2017 |
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. their own words, “The impairments are attributable to the deteriorated business outlook for some regionally operated business models. Growing competition and increasing pressure on margins can be observed in the local markets. A prominent example of this development is the purchase of Souq.com (eCommerce platform based in Dubai) by Amazon in the first half of 2017”. With its coterie of bluechip investors such as Orange, MTN, Millicom, AXA; it is safe to say Jumia has a strong backing from local and regional investors, but these investors are keeping mute with their pocket to save the company from imploding under the weight of debt. The last raising achieved by Jumia was when CDC staked about GBP50 million to get a stake in the company. The cash from stake sale would soon dry up if the company does not go on an initial public offering in the next 12 months. However, without reaching profitability, the IPO idea might be dead on arrival as investors would worry that Jumia has not developed a strong business model that can guarantee its sustainable existence. SOURCE: https://brandspurng.com/jumia-moves-farther-from-profit-posts-usd61-million-loss-in-six-months/
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Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by CosmeticChemist(m): 2:14pm On Sep 28, 2017 |
They spend so much money on advertisement. Instead of Google's Pay per click, why not look for local website with heavy traffic that does flat rate advert for a month ? 53 Likes 4 Shares |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by mastercee(m): 3:11pm On Sep 28, 2017 |
This is definitely Jumia worldwide, It can't be Jumia Nigeria 65 Likes 2 Shares |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by froz(m): 6:26am On Sep 29, 2017 |
This is serious. |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by rodeo0070(m): 6:54am On Sep 29, 2017 |
CosmeticChemist: A taya o 5 Likes 1 Share |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by chibike69: 7:36am On Sep 29, 2017 |
Aliexpress all the way jumia can go to hell 11 Likes |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by holluwai(m): 7:36am On Sep 29, 2017 |
$61 million dollars? What’s the networth of the company as a whole? I guess it’s jumia worldwide 21 Likes 3 Shares |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by Naziridamos: 7:37am On Sep 29, 2017 |
Ok |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by Nobody: 7:37am On Sep 29, 2017 |
When every naija boy and girl is an importer now. Who needs Jumia. Weda na one chain or flash drive you buy from aliexpress, you're an importer. And if you work for Jumia, be proactive. Start sending out CVs again. Cutting down workforce is a classical response to loss of profit in any setup. 47 Likes 2 Shares |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by cogbuagu: 7:38am On Sep 29, 2017 |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by wickyyolo: 7:38am On Sep 29, 2017 |
They will only show you loss rather than profit also Thieves 2 Likes 1 Share |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by DatLagboi(m): 7:38am On Sep 29, 2017 |
Not jumia Nigeria |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by nototribalist: 7:38am On Sep 29, 2017 |
Buhari is a failure. The only special one that brings recession whenever he's coming. 15 Likes 2 Shares
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Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by onlyonechid84(m): 7:39am On Sep 29, 2017 |
For Me konga has more customers and have better service tripleY: 3 Likes 1 Share |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by ekems2017(f): 7:39am On Sep 29, 2017 |
Why won't they suffer loss when you order for something and the bring what is not even close to what you saw online. 13 Likes 1 Share |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by rozayx5(m): 7:39am On Sep 29, 2017 |
Jumia should just disband and leave Nigeria Nigerians are no longer friendly with online shopping too many bad stories why buy something and wait days , when i can just get it same day from a store and confirm if its ok 4 Likes 1 Share |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by jeeqaa7(m): 7:39am On Sep 29, 2017 |
Jumia down.. Dstv next 27 Likes 2 Shares |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by nototribalist: 7:40am On Sep 29, 2017 |
DatLagboi:No o, it's Jumia west Germany 8 Likes |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by Alphasoar(m): 7:41am On Sep 29, 2017 |
Why and how will they make profit, when they allow sellers to post and sell defective products to customers. Go to their pick up centers, you will find defective and unclaimed goods lying there like abandoned warehouse Well, its kuku not my handwriting sha . . . . 12 Likes 1 Share |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by JaffyJoe(m): 7:41am On Sep 29, 2017 |
CosmeticChemist: Exactly, for every 3 websites I log on, there's a Jumia ad lurking around somewhere. 1 Like 2 Shares |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by Opistorincos(m): 7:44am On Sep 29, 2017 |
Aliexpress don kill their market |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by okerekeikpo: 7:44am On Sep 29, 2017 |
Now wey I don begin sale on Jumia u people are now talking rubbish pls pay me my money o Jumia |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by cepha4: 7:44am On Sep 29, 2017 |
CosmeticChemist:I see them in almost every site I visit. 1 Like |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by martineverest(m): 7:45am On Sep 29, 2017 |
good 4 dem...rogues |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by elitejosef: 7:46am On Sep 29, 2017 |
See what Nigeria exchange rate can cause |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by femi4: 7:47am On Sep 29, 2017 |
Won sese bere ni 1 Like |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by seangy4konji: 7:47am On Sep 29, 2017 |
May God help us all. |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by KINGwax007(m): 7:48am On Sep 29, 2017 |
How much dem get wey dem dey loose $61m. They sha no wan pay tax 1 Like |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by wristbangle: 7:49am On Sep 29, 2017 |
mastercee: Exactly because Jumia Nigeria is making profit. Jumia Travels profit alone is huge let alone Jumia stores, real estate, online shopping, etc 2 Likes |
Re: Jumia Moves Farther From Profit, Posts USD 61 Million Loss In Six Months by lonelydora: 7:52am On Sep 29, 2017 |
Upon all the stuffs i buy from them? Oya nah make them close shop |
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