Jumia Technologies released its first-quarter 2020 earnings report earlier today, and it was unimpressive, although the startup saw its losses narrow slightly, the struggling e-commerce platform reported an almost 7pc fall in first-quarter revenue due to supply chain disruptions, particularly in China, but saw lower cash burn and signs that lockdowns were hastening a shift towards online shopping in Africa.
But Jumia has struggled to find its way, and its share price has tumbled some 90pc from its peak a year ago. Shares on the New York Stock Exchange tumbled 21% after its earnings call where it revealed an operating loss of €43.7 million ($47.3 million), a decrease of 4% from a year ago
The results, which caught the beginning of the coronavirus outbreak on the African continent, showed that Jumia recorded the lowest losses in earnings before interest, taxes, depreciation, and amortization in six quarters.
But revenue fell to Sh3.3 billion ($31.7million). China is a key supplier of electronics and mobile phones sold on the platform.
Still, during an earnings call on Wednesday, founders Sacha Poignonnec and Jeremy Hodara said they saw opportunities amid the pandemic. The coronavirus affected “stock availability for the mobile phones and consumer electronics categories as well as fashion,” Jumia said Wednesday.
The supply problems contributed to an 11% decline in gross merchandise value, or the total value of orders for products and services bought on the platform, in the first quarter.