Jumia Technologies AG JMIA reported a second-quarter FY23 sales decline of 15.4% year-on-year to $48.50 million, missing the analyst consensus of $48.70 million.
Orders decreased by 36.5% Y/Y to 6.5 million, and quarterly active consumers fell 28.1% to 2.4 million.
Total payment value (TPV) decreased 23.3% to $56.9 million. The gross merchandise value (GMV) plunged 25.4% Y/Y to $202.3 million.
Gross profit dropped 13.2% Y/Y to $26 million with a profit margin of 53.6%. Operating loss narrowed to $(23.3) million.
The company held $61.0 million of cash and cash equivalents and $105.3 million of term deposits and other financial assets as of June 30, 2023.
Adjusted EBITDA loss narrowed 66.2% Y/Y to $(19.3) million.
"Usage performance continued to be affected by the difficult operating environment with record levels of inflation impacting consumers' spend as well as sellers' ability to source goods," said CEO Francis Dufay.
Outlook: Jumia updated its FY23 adjusted EBITDA loss guidance from $(100) million - $(120) million to $(90) million - $(100) million.
The company expects continued cost discipline to drive efficiencies throughout 2023.
Price Action: JMIA shares are trading lower by 9.43% at $3.37 on the last check Tuesday.
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