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Jumia’s GMV Drops 11% YoY At Operating Loss of €43.7M

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The future of Jumia is JumiaPay. I see the double play between Alibaba & Alipay, and Flipkart & PhonePe, developing here. Jumia is so confident of the promise of JumiaPay that it reports its numbers separately. JumiaPay hit €35.5 million TPV (total payment volume) over 2.3 million transactions in Q1 2020. The GMV dropped 11% to €190 million year on year indicating that Covid-19 did not provide any “advantage” to ecommerce operations in Jumia markets. No one can ascertain anything even with the shrinking of operating loss by 4%, year on year, to €43.7 million.

More below from the earnings report.

Adjusted EBITDA loss decreases by 10% year-over-year, reaching its lowest level in the past 6 quarters. Operating loss decreases by 4% year-over-year

Jumia Technologies AG (NYSE: JMIA) (“Jumia” or the “Company”) announced today its financial results for the quarter ended March 31, 2020.

Results highlights

  • Usage growth
    • Annual Active Consumers reached 6.4 million, a year-over-year increase of 51%.
    • Orders reached 6.4 million, a year-over-year increase of 28%.
    • GMV was €190 million, a year-over-year decrease of 11% compared to GMV adjusted for perimeter changes as well as previously reported improper sales practices of €214 million in the first quarter of 2019. This trajectory was attributable to the continued effects from the business mix rebalancing initiated in 2019 as well as the supply and logistics disruption caused by the COVID-19 pandemic.
  • JumiaPay development
    • TPV reached €35.5 million, a year-over-year increase of 71%, taking on-platform TPV penetration from 10% in the first quarter of 2019 to 19% in the first quarter of 2020.
    • JumiaPay Transactions reached 2.3 million, a year-over-year increase of 77%, representing 35% on-platform penetration in terms of Orders.
  • Monetization development
    • Gross profit reached €18.4 million, a year-over-year increase of 21%.
  • Cost efficiency
    • Gross profit after Fulfillment expense reached a record €2.5 million, compared to less than €0.1 million in the first quarter of 2019.
    • Sales & Advertising expense was €8.9 million, the lowest level since 2017, and a year-over-year decrease of 25%. 12-month Sales & Advertising expense per Annual Active Consumer decreased by 26% from €11 in the first quarter of 2019 to €8 in the first quarter of 2020.
    • Adjusted EBITDA loss was €35.6 million, the lowest level in the past 6 quarters and a year-over-year decrease of 10%.
    • Operating loss was €43.7 million, a 4% decrease year-over-year.

EU Commission Rolls Out Plan to Reopen European Tourism

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Amidst the receding numbers of COVID-19 cases in Europe, the European Commission is working on a strategy to reopen tourism business. The Commission is planning to work out a modality that will ensure safety measures as a way to sustain the plan.

The coronavirus pandemic has compelled European governments to initiate lockdowns that have nearly crippled the tourism sector of its economy. The EU leaders are counting on the receding number of cases to open as many sectors as possible. But it is a herculean task that requires an unusual strategy in order to avoid a second wave of the pandemic infection.

The Commission is looking at a three-phase approach to reopening the borders connecting member states. Considering the risk of infection, Europe’s disease control agency (ECDC) will be drafted to keep a list of areas with low infection rate. The idea is to use the circulation rate to determine if the “blanket quarantine measures” within Schengen can be scrapped.

As part of the strategy, member states will be required to enjoy some measure of freedom based on the non-discrimination on nationality rules. That means every EU citizen will enjoy the right of movement granted to a particular state.

With some European countries already in economic straits, the Commission appears determined to minimize as much as possible the impact of the pandemic on member states.

Tourism is a major source of revenue to EU nations and has been dampened by the safety restrictions aimed at curtailing the outbreak. The statement released by the Commission said the pandemic will cost the global tourism industry up to 400 billion euros this year.

Part of the goal of the EU Commission is to map out EU members and regions that will be most affected by the plunge, using the data from the Joint Research Center (JRC).

While there is unison between member states, challenges abound in critical areas that may jeopardize the progress that have been made so far in the fight against coronavirus. The areas include hygiene, social-distancing and transport services. The draft is aiming for a coordinated approach that prohibits discrimination against member states just as it is applicable in other areas.

According to the document, the hygiene, transport and social-distancing measures should be risk-based and proportionate.

“General principles will support prioritizing the resumption of transport services for all nodes. It should be limited in scope and duration to what is necessary to protect public health,” the document said.

The JRC interactive map will contain needed travel information which will include the latest border controls, measures and travel conditions. Travelers will be expected to consult the map to help them plan their journey efficiently, deciding whether to make a trip or not.

However, that poses another challenge that the Commission has made decisions on – flight cancellation and the use of vouchers. The draft made provision for refund in case of cancellation under the heading; “Preserving consumer protection while addressing the issue of reimbursement claims.”

The EU’s law said a total refund will be made to a passenger in the case of cancellation of flights. Though the rule offers room for vouchers, it is up to the passenger to decide whether or not to accept it.

Some Members of European Parliament (MEP) and most of the member states are asking that the Commission propose a temporary waiver for that tenet in order to help travel companies preserve liquidity and offer coupons instead.

But the EU executive said there must be a refund to serve as de facto safety net for passengers though the guidelines will suggest a common rulebook for vouchers so that companies can try to make them as attractive as possible.

Part of the common rulebook will include insolvency protection, transferability options and a guarantee that they will be valid for a cash refund at the end of a one-year expiry date. And as part of the measures, the Commission said that protection against company bankruptcies should be organized on national level.

“This will strengthen European citizens’ confidence on which the transport, travel and tourism industry should re-build their recovery,” the draft said.

The greatest fear however, remains that attempts to open the tourism sector will enable the spread of the crisis. With so many states in Europe still struggling to contain the pandemic, it will be a risk that may cost more than the EU Commission is trying to gain.

Exploring the World of a Multi-talented Young Woman Making Waves in a Male Dominated Profession

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Show me a man or woman diligent, they would dine with kings and stand before men and women of means. So goes this age long wise saying. This captures my own feelings when I encountered a young woman who is so many things wrapped into one piece. She is a student, an entrepreneur, a decorative painter, and an instrumentalist. That is the world of Bakare Adedolapo.

As a youth development advocate and journalist, the immediate instinct was to ask her for an introduction and a chat began.  Follow me to explore her world.

Getting to meet Dolapo

“I am Bakare Racheal Adedolapo. A native of Yaru in Kwara State. I am the CEO of Deteeblazer Global Limited. I am a law student of Lagos State University. I am a certified decorative painter. I am an inspirational speaker. I am an entrepreneur. I sell locust beans (dried, wet and powdered) in branded packaging. I sell to customers in Nigeria and abroad. I am into general contract. I am also an instrumentalist by talent and so many other things. I would love to leave it at just these few.”

Juggling all these together, how easy?

With that introduction, a careful listener would want to know how she does this with some seeming easiness that belies her stature. She responds. Her response speaks volume of her spirituality:

“The G-factor. Firstly I acknowledge God as the giver of all these wisdom, ideas etcetera. Then I don’t spend time on frivolities as I have lots to achieve in a very short while. I plan myself and allow God to fix the rest. When you have God at the centre of it all, things fall in place.”

When I felt I have not got enough, I probed further. I wanted to know which of her avowed skills and endeavours comes first. She explains further:

“Well, I will say in every ramifications, Law was birthed first then painting is the younger sibling and that is why I would always say that law is the dream while painting is more of what I’m passionate about. Even though passion can overwhelm a dream as most times you don’t get to have a control over your dreams but even when you want to control your passion at times, you get more passionate.”

Venturing into a male dominated job; its rigours and hazards

Operating in an arena could be daunting for a young lady, so I thought. I then nudged her further to share her experience on the job. She opened up:

“It’s a general phenomenon that men are strong beings while women are weaker versions of being. I want to establish a known phenomenon which I know not many people will agree with  but by the time I am a practical example, they would have no choice than to agree. Then I delved into a male dominated profession and knowing fully well that when a woman does something meant for men,she gets to be the best and beat the best and more of why I have been giving it my best shot.What is worth doing at all is worth not just doing well but dying for.  As a lady in a male dominated profession, it has never and I know it will never promise to be easy. I have lost contracts because I couldn’t compromise. I have lost contracts because some people couldn’t just phantom the fact that this small looking girl can be involved in such a hard job. But all through, God has been coming through.”

Her advice for African youths?

When asked to advise the African youths, the young lady harps on being relentless in the pursuit of  dreams.

“As an African youth, I am relentlessly and tirelessly working hard to achieve my life goals as I know I’m not there yet. For every human being, God has given potential(s). It is left for you to discover yours as you are saddled with the responsibility of doing things that will give you what you want in life,there is no shortcut to success, no one gets to the top without starting from the scratch except you jump,and even when you jump, the law of gravity applies. Locate your God given talent to harness it. Do not  allow your background to rub your back on the ground. Like I will always say, no matter the situation life may bring, I can fly and I also tell myself how can the sky be my limit when there are people’s footprints in the moon?”

Joined Board of A UK Firm

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It was massive – I signed paperworks today and joined the Board, and became a Shareholder of an amazing UK company on the path to IPO. To young people here, I challenge all of you to pursue excellence, packaged with decency, honour and values. Develop yourself and acquire multi-dimensional skills because in the age of disruption, leaders and companies will look for people that can make sense of complex matters. We will celebrate with zobo, nkwobi and amala when next in Lagos.

 

Tekedia Mini-MBA: Next Week Revision Sessions To Be LIVE

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Dear Member,

We are entering the concluding phase of the first edition of Tekedia Mini-MBA.  Next week will be a revision week. We will use it to trial Tekedia Live which we are exploring for the future. So, next week, we will review everything we have discussed since Feb 10, 2020 to date.

This was not part of the original plan and you do not need to attend. We are adding it to ensure those used to live learning are supported. The sessions will be recorded for replay later. Beginning Monday through Friday, we will be live at 11am-11. 30am Lagos time, daily, reviewing more than 12 weeks of study. If you have questions you want us to address, in generic formats, email Admin.

On the week of May 25, a former Chief of Contracting and Deputy Chief, Business Operations Division, US Army, will lead us on a session on global supply chain management and contracting even during abnormal moments.

As always, access everything through the Board.