Africa’s leading e-commerce company, Jumia lost €60.2 million in revenue last year, according to Rocket Internet’s recently released financial report for 2016.
The e-commerce giant saw its revenue drop by 41.7 percent from €144.6 million in 2015 to €84.4 million last year due to decrease of its gross merchandise volume and the shift from retail to marketplace model.
Specifically, the company’s gross merchandise volume decreased by 13.6 percent from €320.5 million in 2015 to €276.9 million in 2016. This was attributed to downturn in the macro-economic environment in Nigeria and Egypt, Jumia’s largest markets.
As for Gross profit margin, it amounted to 36.5 percent in 2016, an increase of 19.5 percentage points compared to 17.0 percent in 2015 while Adjusted EBITDA improved from €-161.3 million in 2015 to €-91.9 million in 2016.
The table below provides an overview of the company’s consolidated key financials and its key performance indicators, which are based on management reports.
The report further showed Rocket Internet’s revenue dwindled by 61 percent from €128.5 million in 2015 to €50.4 million last year, and recorded a loss of €741.5 million as against €197.8 million in 2015. All its other companies recorded increase in revenue, except Jumia.
Last year, all Africa Internet Group’s subsidiaries, including Jumia, were rebranded to Jumia, leveraging the latter’s massive success on the continent.
This rebrand led to improved efficiency and increased focus, incremental value for customers, as they can now access all services through one platform, and added value for sellers through increased exposure to the African market.
“Our business model remains unchanged. We build and invest in great Internet companies around the globe and support our companies with operational expertise and capital over their development lifecycle, thereby enabling entrepreneurship and providing our shareholders with a diversified exposure to the global Internet sector,” said Oliver Samwer, Rocket Internet’s Chief Executive Officer.