Economic Issues
Any Hope for Jumia -By Udeze Daniel Jr.
The company’s operating loss was 61.1 million euros in the fourth quarter, 15% higher than the 2018 quarter, and it lost 51 million euros in operating cash, a 17-million-euro increase year over year”.
Jumia is bleeding in market cap after this week’s quarterly report. It is now worth $310 million, down from $3.9 billion. It is indeed very painful that this ecommerce pioneer in Nigeria has dropped from $49 to $4.10 per share since IPO last year.
This is the summary: “The concern with Jumia is that it’s not cutting its losses quickly enough, and could run out of cash before it gets to profitability. The company’s operating loss was 61.1 million euros in the fourth quarter, 15% higher than the 2018 quarter, and it lost 51 million euros in operating cash, a 17-million-euro increase year over year”. If Jumia manages its costs better, the numbers are actually promising.
I took time to peruse the entire report, Jumia has a future, irrespective of their loss-making dance currently; but they need to act fast in many key areas to be able to enter profitability mode, before the cash runs out. The JumiaPay holds good promise.
Udeze a seasoned Tax Attorney and writes from Lagos, Nigeria.
Contact: arinzeudeze@ymail.com
