Jumia, Rocket Internet’s eCommerce group in Nigeria and Africa has just released its 2016 half year consolidated result showing the company recorded EUR35.4 million loss within the period.
When compared to its net loss recorded in last year, the company has managed to reduce its loss by 19%. In the first half of 2015, the company recorded EUR43.7 million loss.
Also on the topline, Jumia’s revenue also fell by 56%. With the first half of this year, net revenue was EUR33.0 million compared to last year when it recorded EUR75.8 million f0r the first half of 2015.
Another metric that shows the company is facing tougher times it is EBITDA margin when compared on a year-on-year basis. For the first half of 2015, the Jumia’s margin fell by 57.6% compared to 107.5% for the first half of this year.
Three months ago, Rocket Internet had scrapped its Africa Internet Group holding company for all its eCommerce verticals in Africa, restructuring everything into Jumia.
Jumia will need additional cash funding company’s burn rate increased by 50%. Its cash position for the first half of the year fell to EUR5 million versus EUR10 million what it had same period last year.
The restructuring of AIG into Jumia has also helped to increase its customer base from by 92.2% from 1.0 million last to 2.0 million this year. Active customer base within the period are increased from 800,000 to 1,2 million for the first half of the year.
Rocket Internet also provided a detailed rationale for its restructuring of AIG:
- Single brand with significant operating advantages
- One brand across Africa
- Leveraging existing customer base across all business models
- One product and service search destination
- Seamless navigation from one service to another with one single login and password
- One-stop destination for sellers
As a group, Rocket Internet consolidated loss of EUR617 million. Also, the company said “as a result of deconsolidation effects group revenues in the first half of 2016 decreased to EUR29 million compared to EUR 71 million in first half of 2015”.