- E-commerce operator, Jumia, has recorded a 7% fall in its revenue for the First Quarter of the year 2020
- Its shares on the New York Stock Exchange also fell by 21% after its earnings call
- Jumia also recorded a drop in gross merchandise volume dropped by 11.3% to $230 million due to a drop in sales of consumer electronics and phones
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Africa’s largest e-commerce operator, Jumia, recorded a 7% drop in revenue in the First Quarter of 2020.
This, per reports available, has been linked to the outbreak of the coronavirus.
Jumia’s shares on the New York Stock Exchange fell by 21% after its earnings call, where it revealed an operating loss of $47.3 million, which is a decrease from 4% from a year ago.
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Per a report by qz.com, its gross merchandise volume dropped by 11.3% to €190 million due to a drop in sales of consumer electronics and phones.
Lockdown measures instituted in South Africa also resulted in the suspension of delivery of various items for weeks.
The company also faced capacity limitations following a reduction in the number of its staff at its warehouses.
The closure of some restaurants also resulted in a sharp decline in orders on its Jumia Food platform.
However, Jumia Pay, the fintech solution Jumia is betting on to become a key revenue source after a spin-off, remains a bright spot in its results as total payment volume reached $43 million in the First Quarter of 2020, which is a 71% year-over-year increase.
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