Q1 2021 Jumia Technologies AG Earnings Call
Thank you good morning, everyone. Thank you for joining us today for our first quarter 2021 earnings call.
Yesterday, our cash that point and your neck, and yet and Rebecca co founders and of course, he was absolutely yeah I agree on price that give me great Yeah Cool and school.
Cool.
Being webcast on the IR section of our corporate website and will start by covering the safe Harbor.
We'd like to remind you that our discussions today will include forward looking statements actual results may differ materially from those indicated in the forward looking statements. Moreover, these forward looking statements may speak only to our expectations as of today and we undertake no obligation to publicly update or.
And he buys each day.
For a discussion of some of the risk factors that could cause actual results to differ from before taking statements expressed today. Please see the risk factors section of our annual reports on form 20-F, EIS published on March 12, 2021 in a day.
And on this call and we'd refer to search and finish and measures now reported in accordance with Ias right. You can find reconciliations of these non I have right and actually measures to the corresponding I have raised cash is measures and our earnings press release, which is available on our investor relations website with that and hand over to Sascha.
Yeah.
Thank you. Thank you very much and welcome everyone. Thank you for joining us today.
Before we go into the details of Q1 performance, we would like to talk about our strategy. We know that following our recent offering dishes and booking question for our shoulders, and we would like to address it.
With Tommy Junior and 2012.
Nine years ago.
With the vision to connect consumers and sellers and make commerce easier and Africa.
We spent the first few years understanding the dynamics of our markets.
Tumors, the salaries and logistics payment.
And we then Bill did you me a platform, which we think is uniquely adapted to the specifics of our markets.
And about three years ago, we decided to set the business on a clear path towards fast and easy.
And we chose to do that instead of growing and scaling as fast as we can because we wanted to make sure that as the business scales. It turns profitable.
I believe we've made very good progress and this over the past 18 months.
We have significantly diversified our category mix.
And increase our exposure to product categories that are very relevant to consumers as part of their daily lives.
We have also increased the penetration of junior paid to 26% of Jimmy 37 per cent of holders.
On profitability.
We've now posted six consecutive quarters of positive gross profit after fulfillment.
I think we can now confidently say that we are making money after logistics.
For five consecutive quarters, we have been reducing our adjusted EBITDA loss in absolute terms year over year.
And we have also multiple countries, which are breakeven before tech and G&A expenses and a number of soldiers.
And as you are well aware all this progress has been achieved with no particular tailwind from COVID-19.
Finally of course, we have significantly strengthened our balance sheet raising a total of.
$570 million and net proceeds over the past six months.
Which gives us very strong strategic Thanksgiving.
If we take and look at where we are today.
We have and Q1 and EBITDA loss.
27 million euros, which is 20% less than a year ago.
And if you look at the recent cultures and it can very much under control.
That's what you see on page four.
And if you turn to page five you can see that our unit economics have completely changed between 2019 two years ago and.
And 2020, a year ago, and where we are now.
You can see that as we continue to drive the business towards everyday product categories.
Our older value is smaller.
But the orders are much more profitable gross profit margin.
As a percentage of <unk> increased by 266 basis points.
Fulfillment expense has gone down by one almost one year old and the last two years.
Our older is now consistently generating positive contribution after fulfillment expenses.
And we have a gross profit after fulfillment, which is ending at 90 cents in Q1 2021.
<unk> continued to go down and use those.
Orders take much less marketing to generate we have increased the marketing efficiency the sales and advertising per older by a factor of two since 2019.
We are very pleased with this progress and unit economics.
And the new way, we are reaching now and Q1 and points where for US the focus and very clear we are now and a very good position to accelerate usage growth.
And thank you page six.
Our priorities are.
Our.
Accelerate usage growth.
Continued to deliver profitability milestones and.
And put more resources behind Jimmy ethane.
What that means for the next two cultures.
We will ramp up investments and sales and advertising as well as technology.
To support the usage growth and junior people.
We're going to do that gradually.
And with the same focus on categories that drives attractive consumer lifetime value and good economics, no Big Bang if you will.
In terms of use age.
It's pretty clear to us that we're going to go faster on older and consumers than on G. M D.
We believe that the everyday categories will continue to outgrow the overall categories and junior.
Also the economy tension.
Generated by COVID-19 on the consumer spending will.
Make consumers more focused when essentials, even more than they are now.
We also have some currency fluctuations all of those they will for sure way on GMB growth and as a result, the growth of older and consumers, we think will be greater than <unk>.
In terms of Foxconn AG.
Our focus is going to be on improving our cost and <unk> ratios.
And the next few quarters.
We're going to measure progress rather on EBITDA as a percentage of gmg.
EBITDA per older than in absolute terms.
Having said that we still think that the total loss for 2021 will be lower than 2020, our rebuy by a small margin.
And finally in the next few cultures, we will seek to bring the case study the geographical case study of breakeven at local adjusted EBITDA level.
And last but not least junior pay and where we intend to allocate more capital for the build outs of payment and <unk> and financial solutions, both for sellers and consumers.
We'll match and sleep to Capex, we will continue to be Capex light from this perspective, the driver additional marketing technology and G&A expenses are allocated to the development of juniper.
Our business model is.
And the success of companies like Mike and the Libre Alibaba woman and Augie over one that I don't think there's any doubt about that the potential of Africa is huge and.
So we think we're extremely well positioned to drive the adoption of E Commerce and payments E Commerce in Africa, and rerun events, and a continent, where the distribution of goods and services is very challenging offline.
And I think we have proven that we can operation and the overcome the major challenges and Africa payments logistics. He's built a very scalable marketplace for consumers and sellers today, we will tell you a bit more about our great food delivery business.
And we have now significantly improved our unit economics, our cost under control and it's time now to grow faster.
Now I hand over to Jeremy who is going to walk us through the performance of Q1 and more details.
Thanks, Vishal Hello, everyone and.
So our focus and our Q1 and what's the drive to use aging of citic, even thought for pneumonia with a robust level of marketing efficiency.
And that was and he's made possible by the strength of the junior brand and the countries, where we operate and we had a very good illustration of the juniper and strength with the result of the 2020 most influential brand survey and the Jeep.
And it was we used that you exhaust in March this year. The surveys are globally, and you should either Westland and TD in Egypt for the first time in 2020 and he does test the brand's impactful and Egyptian consumers based on multiple dimensions suggests trustworthiness, either she presents and leading edge.
And we are ranked seven among 120 national and international brands, and Egypt, and ranked number one and the digital and e-commerce get the Gorgon and shipped.
And the high level of recognition by the consumer is a key enabler of our marketing efficiencies.
While our annual state and advertising per annual active consumer declined by 46 per cent and you got to keep consumers reached explained and 9 million up 7% year over year as we continue to acquire new consumers and engage existing ones in the context also decreased and the season and advertising expense per order of 12% total orders for the quarter.
$6 6 million up 3% year over year, and she's a reversal of the declining trend observed over the prior two quarters the fastest growing categories in terms of volumes continue to be every day product category, such as beauty food delivery fashion, while we continue to see volume declines and electronics.
Total bytes with a modest recovery observed and to fund categories.
As we reduced our sales and advertising spend by 9% year over year, Jim V was down 13%, reaching 165 million Euro and Q1.
It's also worth noting that the FX impact this quarter was material with the Nigerian naira Egyptian pound and the Kenyan shooting declining 15, nine and 19% respectively against the euro.
In Q1, 2021 compared to Q1, 'twenty 'twenty and.
So on a constant currency basis, <unk> was down 5% year over year, while sales and advertising expense was $8 8 million down 1% year over year.
And our Jim he mix continues to shift towards lower ticket size and everyday product categories, which are affordable entry points into did you make with system wide and Jamaica supporting repurchase dynamics.
So on page nine of them.
Sorry.
You can see that phones, and electronics accounted for search and person searched and 7% sorry of Gmg and.
And Q1, 2021 compared to 45 per cent of gym be in Q1, 2020.
In parallel and average order value decreased by 16% from 29.5 Euro and Q1, 'twenty 'twenty to 'twenty, four nine and Euro and Q1, 2021 reflecting the shift towards those everyday categories.
While smaller in average value our orders also a more profitable as gross profit after fulfillment expense per order more than doubled from 40 cents in Q1 last year to 90 cents in Q1 this year.
In this context of this increased focus on every day and high frequency categories.
And I'd like to give you more color on the or food delivery and on demand the business.
The strategic component of our ecosystem, that's performed quite strongly over the past few years, and where we see significant potential for future growth.
On page 10, now and.
You see you can see that we have been operating this business and at the inception of junior and attention and she is now leading Pan African platform, covering 10 countries and fortune aegis.
It is very much and urban model, where we target two keys with heightened geopolitical and restaurant and supply.
For the 12 months period, ending March 31st we had over 5007 hundred restaurants, and also convenience outlets at <unk> on our platform.
We have longstanding relationships with blue chip SKU with all franchisees, such as Mcdonald's KFC Burger King Pizza Hut's subway alongside local restaurant concepts as well as convenience outlets such as grocery shops and hoses.
It's a meaningful part of our business and accounted for 22% of orders and 9% of the Gmg and Q1, 2021 and its share in the business has been growing over time, which speaks to the relevance of the food delivery for consumers.
On page 11, you can see that we built zoom yards, a comprehensive ecosystem of physical goods and digital services with multiple entry points for our consumers.
With an average order value of around 10 euro.
Delivery and under him and service have historic evening and entry point for the more Austria and consumer base that we seek to retain and reengage and across the other parts of our ecosystem.
We have observed that as we continue to expand our restaurant offering as well as the price point of this offering we are now able to attract a more diverse consumer base.
Our food delivery and on demand services have been growing very strongly over the past three years and Montreal doors on the platform have increased by a factor of more than four between January 2018, and March 2021.
Which demonstrates the relevance of this offering for consumers.
You can also see on the chalk and effect of the stock.
Out of dependent and in Africa, with a strong GP and orders around April may last year.
However, the business has been quite resilient, despite a significant disruption from the curfews and with all dose rebounding both pre pandemic levels starting from June last year.
Overall, the food delivery and on demand services are an important growth and Jane for the platform and a key asset in terms of consumer acquisition and Reengagement.
Also a key component of our programs and the prime but we have been testing over the past few quarters.
Prime is a loyalty program as part of which consumers and set up a monthly subscription to get treated and you've read and access to a number of other benefits within the junior ecosystem and from third Party partners.
It's a great value proposition for consumers to have within the same program, both the food delivery as well as the ecommerce and she is also a strong differentiator versus competition.
So that's the spike in relation to food did you read that I'd like to spend some time on page 12, you did did you get your logistics infrastructure that we've built for these business and that has meaningful synergy potential with the rest of the platform.
On page 12.
You can see we operated delivery enables marketplace model, where 90% plus of the orders placed are fulfilled through the Jim young human logistics infrastructure.
You mean alcohol, where physical good logistics, we operate and asset light model for on demand and you've re leveraging defeat and the drivers of around 143rd Party logistic partners.
We have a did you gave your tech stack that supports all on human logistics work shows, including restaurant and point of sales module smartwater assignment and deliver yet <expletive> scheduling customer interface etcetera.
The strength tech backbone alongside tried and tested logistics processes and infrastructure.
Ours to continuously reduce our average delivery time, which stood at 45 minutes and Q1.
She is a remarkable achievement when you keep in mind and trust you can do road conditions of the largest frequent cities where we operate.
And we intend to further decrease that every time as we continuously improve our machine learning algorithm to better manage each depot did did you free experience.
And as part of this focus on continuously improving customer experience, we can increase convergence of e-commerce and on demand delivery.
And and logistics infrastructure, we built is a tremendous asset to developed acute commerce proposition and offer consumers on demand delivery for a broader range of FMC G and everyday items.
We're already working with large retail chains as well as smaller outlets to offer grocery and fresh products delivery and we believed it and those are very exciting area for future books.
We're very excited by the momentum, we're seeing and our food delivery business as well as its future growth prospects.
I now like to move on and it was a strategic area of our business Juliet and page 14.
The TPG increased by 21 per cent from $35 5 million and Q1 last year to 42.9 million 20 share.
On a constant currency basis to PV and Q1. This year was up 45 per cent year over year.
[noise] doomed penetration as a percentage of G. M D increase from 18, 7% last year to 26% this year.
On the next page and junior per transactions increased by 7% from $2 3 million and Q1 last year to $2 4 million and Q1 this year.
And yet the transactions of both 10 year old which include prepaid per chase on the junior after you've got a good marketplace and junior free platforms increased by 30 per cent.
Junior per transactions below and euro, which mostly consist of transactions on June yet they declined by three per cent.
This trend was concentrated airtime recharge category as we reduced consumer incentives, we didn't just category, which has historically been promotion and intensive.
Overall, so just $6 seven per cent of older planes under junior platform and to win share were completed using junior day compared to $35 five last year.
Beyond the payment processing activity that we capture into G. P V and transactions and yet they also function as a financial services marketplace for both consumers and centers for free.
Failures and SME centers in particular.
Historically been underserved by financial institutions Junior day leverage their business their tougher credit, scoring proposed and connect them financial institution, who offered them short term loans and working capital financing and.
Q1, this year stringent and 80 loans were disbursed as part of this activity, 90% more than Q1 last year.
Loans were allocated to 291 unique set of 62% more than in Q1 last year.
Energetic with our market based activities and he had some inventory needs of our centers, but he's also very much in line with our mission of leveraging technology to empower Smes and help them grow their business.
I know hand over to Antoine who will walk you through our financial profile and went into more detail.
Thank you Jeremy Hello, everyone.
Let's start with our monetization metrics.
In Q1, 'twenty, one marketplace revenue was up 6% and gross profit up 11%.
Ethics, and Wayne mentioned earlier and by Jeremy affected and material lead. These figures on a constant currency basis market based revenue was up 16%, while gross profit was up 21% year over year.
Taking a closer look at all buyers marketplace revenue streams on slide 18, we can see that commissions increased by 9% year over year, Utah, and increasing the share of higher commission rate categories, including fashion and beauty food and delivery.
And then you Bree.
Fulfillment revenue increased by 11% as a result of pricing changes within all cross border logistics, where we were initiated in the second half of 2020.
As part of these changes part of the international shipping fees that were previously charged to centers, where instead passed onto consumers.
This change resulted in some of our international and logistics revenue being recorded as fulfillment revenue instead of revenue from value added services.
That is also what drove the 13% decline in value added services.
Marketing and advertising revenue increased by 36% year over year.
This is a result of the robust take up but by advertisers, both Julia centers and third parties or junior advertising solutions as we continue to improve the relevance and user experience of all AD solutions.
And stop at all efforts to continuously diversify our monetization streams.
And extract value from the broader sets of our platform, we piloted last year, the opening of junior logistics to third parties.
On the back and the blood is the result of these pilots we rolled out these services more broadly in Q1 'twenty one.
During the quarter I am now on page 19.
750, K packages were delivered more than the total unbilled and 2020, that's bothered the pilots.
We worked with over 250 logistics and salaries clients and I'd like to go through some examples to give you a sense.
The diversity of the clients we work with.
And Kenya Junior was appointed as preferred logistics partner for Weetabix to undertake their deliveries to modern trade across Kenya.
In Ivory Coast, we work for Vicki for a panel, which is a JV between rollout electric and American off grid electricity company and electricity the pulse the French utility company.
The JV provides sell a bottler to rural communities and the means to eradicating poverty.
Julia and logistics offered Vicki the storage and distribution of solar panels from Abbvie zone, two upcountry households.
In Nigeria, we work with Xyrem, which is a leading cosmetics brand in West Africa, Jimmy and logistics provides delivery services for their customer orders across Nigeria.
And whether these orders were placed within or outside the Giulia blood film.
We also do full truck load transportation to support Indian and distribution within logos and the southwest region.
The diversity of the client we work with speaks to the large addressable market, we have for logistics services.
Pretty much every industry and savvy sector faces logistics pain points and Africa, and we are uniquely positioned to address these pain points.
Which makes it a meaningful potential revenue stream going forward.
Moving onto cost on page 21.
We have done a lot of work on the cost although the past 18 months driving strong efficiencies throughout the P&L.
Gross profit after fulfillment expense reached 6.2 million euros, increasing by a factor of 2.5 compared to Q1 'twenty.
This is a six consecutive quarter of positive gross profit after fulfillment expense.
Fulfillment expense decreased by 11% and the currency adjusted basis, and by 3% and the constant currency basis, while orders increased by 3% and Q1 2021 compared to Q1 and 2020.
This was mostly a result of proofing and staff cost savings as well as the channel you know delivery pricing model from cost per package to cost per stock, which was implemented starting from the second quarter of 2020.
In addition, we were able to pass on an increasing proportion of all fulfillment expense and the combination of consumers and sellers.
Ill bluefield meant and value added services revenue streams, respectively.
The bathroom for fulfillment expense measured as the ratio of the sum of fulfillment and value added services revenue overall fulfillment expense.
Increased growth from 69% and Q1 'twenty, 278% in Q1 'twenty one.
I would like to spend a few minutes on the strategic asset platform, which is all pickup station network on page 22.
He kept station all physical locations, where consumers can come to collect their packages.
This growing network is a huge asset for us, which goes way beyond logistics.
I'll pick up stations are junior branded locations almost entirely operated by third party Bonkers. We asked two day over 1006 hundred stashed stations and our network and in Q1, and 2021, 23% of packages well deliver two pickup stations why is the red dog.
And then do it.
Let me tell you Oh this pick up stations drive convenience cost efficiency, while being a powerful asset for the development of an online to offline or O to O strategy as well as the development of <unk>.
In terms of convenience many consumers actually prefer to go and collect their packages rather than have someone come in with a package to their own all of it.
As a great alternative for consumers when ordering and Julia.
We owe so charmed cheaper than your brushy. So consumers can also save money under the refuse.
In terms of cost efficiency pickup stations are great as they are unafraid cheaper for us and our delivery.
With respect to O'toole pickup stations, Sir at the breach between the digital ecosystem.
And the offline daily life of all consumers.
They all touch points that brings the Giulia brand closer to consumers, while creating for all the trust and all bran because consumers start to see Giulia as an integral part of their local communities.
We are also increasingly leveraging them as ordering points, where consumers can place orders with the out of a pickup station stuff, which helps educate consumers in some cases day force agents and drive fruitful to be ordering point.
And as this would be an education process of consumers.
We have included and already a case study of old pickup stations and expand our penetration beyond primary cities in Ivory coast.
To support the Accretable economic development and the inclusion of secondary cities and rural areas.
We established a scalable pickup station mother in partnership with TD Bank.
UK development and finance institution.
These outlets Sam as both pickup stations and ordering points. They operated by local entrepreneurs, who found and income from the delivery fees and commissions on orders placed from the okay.
This is a great illustration of the impact, we can and inclusion of consumers and remote a reality as well as job creation.
Lastly, we intend to leverage our network of pickup stations for the future development of the E wallet activities of Juliet.
Whether its cash and cash out convictions or although the counter every day services, such as anti and recharge and utility Bill payments.
Moving onto sales and advertising costs.
Children and advertising growth expense decreased by 9% from $8 9 million euros in Q1, 'twenty two eight on the 1 million euros and Q1, 'twenty one and.
On a constant currency basis sales and advertising expense was under 1% year over year.
We continue to make progress on the marketing efficiency metrics.
Although sales and advertising as a percentage of <unk> increased by 21 basis points from $4 seven per cent to four 9%. We continued to make good progress on the per order and per consumer basis.
She has an advertising expense as the order decreased by 12% from one going for in Q1, 2020 212 per order in Q1 'twenty one.
And annual sales and advertising expense per annual active consumers degrees like 44 per cent from eight two per annual active consumer 246.
These efficiencies are a result of continued programmatic marketing improvement with better targeting and more engaging campaigns across social media and through 10 Giants.
As mentioned by Mr. Shah at the beginning of the call we expect to gradually increase our sales and advertising expense to drive further usage growth net.
Averaging the strong unit economics, we have achieved.
Finally.
And third major cost is technology and G&A.
G&A expense, excluding SBC reached 20.3 million euros down 17% year over year.
This decrease was attributable to staff cost savings as a result of the portfolio optimization and headcount restaurant realization initiatives launched in the first quarter of 2020, alongside a decrease in professional fees, including legal expense.
Moving on to the balance sheet and cash flow items, all path to profitability is further supported by our asset light business with it.
Back in Q1, 'twenty, one was 0.4 million euros, and we operate junior logistics as a platform with very limited capex requirements.
Net Tianjin and working capital resulted in an outflow of $4 8 million euros and Q1 'twenty one we've seen a decrease and payables and June 'twenty, one due to a shorter pay yellow.
Michael and the payment of.
In Q1 of Black Friday related and voices from Q4 'twenty.
Cash utilization for the quarter defined as cash used in operating and investing activities was $29 7 million and erosion joined and 21.
This compares to a cash utilization of 39 six in Q1, 'twenty and represents a 25 per cent decrease year over year.
Cash and cash equivalents position at the end of March 'twenty, one was formed route.
$85 6 million euros and this includes approximately 205 million euros.
The total gross proceeds from the offering completed on March purchased with the remaining 88 million euros of cash received in April 'twenty one.
Having significantly strengthened our balance sheet, we now have the flexibility to further invest behind growth and accelerate the development of some of our strategic initiatives, including payment and financial services for consumers and centers.
And in order to search out local and feeding remarks.
Thank you Angela and thank you guys.
Two final thoughts before questions.
And we're seeing we've done over the past couple of years and what we intend to do going forward is geared towards cash.
Capturing this huge market opportunity, we see and e-commerce and payment and Africa, we're very focused and and long term and we strongly believes that the platform. We have built is uniquely adapted to our markets to win and the long term.
And we're constantly improving and strengthening our value proposition to better serve the consumers and the sellers today, we talked about the pickup station network, which I think Kim many of you may not know.
No doubt also our food delivery business, which probably some of you did not know about and both of which are great illustrations of the strategic assets and we have.
And then how we can offer more convenience to our consumers bring junior even closer to them and be at the heart of the communities.
The situation is pretty simple our unit economics and Q1 are very.
Very good they're outstanding I think all the work that was done on monetization and cost efficiency is really paying off we've been making money now for six consecutive quarters. After fulfillment, we're seeing many countries getting closer to breakeven at local level, we've been consistent and reducing our interest.
EBITDA loss in absolute terms.
And the year over year basis, and that's for five quarters now.
And Bill. This is what we said we would do and we are we're pleased with those results and the past heads.
And so very clear, we want to accident and rates growth.
Across the platform to take the business further on and capacity across the region.
And I think as we have said, they're moving to Nicole we are quite clear and what we will do it and we will not do we will not seek to grow at any cost the way we will drive the growth will continue to be disciplined thoughtful guidance by the needs of our consumers the relevance and for our markets.
And we are focused on growing new users the holders.
Probably more than the jeans EBIT also the G&A and a very thoughtful manner and we're not and.
And going to do any big bank right, we're going to try and increase in sales and advertising and technology expenses and the gradual manner right before any large scale deployment of products or initiatives, we always conduct a b test pilot.
Pilots and.
And that's why you know and we have lots of countries, we can use and a handful of countries to test pilot and to establish proof proof of concept before we do any broader rollout.
And this framework.
Development and investment will remain unchanged and.
And mindset of discipline will also apply in the way, we develop Jimmy and pay and and important part of the investments and Jimmy and pay are allocated to compliance risk management processes.
And we view those investments as essential infrastructure to scale junior pay services.
And platform and off platform and as we introduce new services and solutions and.
Which we will do in that and a gradual manner, we will continue to drive those investments and.
In summary, we're very excited by the operating team and both on E Commerce and payments and we are very confident that we have the platform. The people the resources to capture this opportunity and.
And further strengthen the competitive moat that would do.
Thank you very much for the attention and we are now very happy to take questions.
We will now begin the question and answer session.
Ask a question you May press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing that case too.
We're trying a question just press Star then two.
And this time, we will pause momentarily to assemble our roster.
Our first question is from Aaron Kessler from Raymond James Go ahead.
Great. Thanks, guys.
Questions first just maybe on the seasonality.
It's like it's a little bit more than we expected from Q4 to Q1 in terms of marketplace.
Revenues.
Was that primarily just seasonality or is or was there other headwinds, whether COVID-19 or something else and a quarter and then the one P revenues as well was little bit lower I know, that's kind of an intentional shift away from one P revenues.
Exactly of a new base level, we should be looking out for those revenues or do you think that continues to drift down from where it isn't really shifting.
Out of one payer at this point and then.
Finally, just maybe just use of cash I, congrats Larry so equity raises.
I know you talked about maybe gives you some flexibility to invest and some new areas are and.
We continue to invest.
And you would call out that you're focused on investing with that our increased cash position. Thank you.
Thanks, Howard and thank you very much and.
Look no particular seasonality in Q1, and I would say right and it's a it's a culture that ease of juicy and the beginning of the year and and this year and nothing really special so and I think that's on that station. The Ramadan. This year has started and.
Sometime in mid April and at some point you know, it's coming earlier and earlier every year. So maybe next year that will be and impacts from both because sometimes it drives and specific consumer behavior.
Behavior, but I would say no nothing special to call out this year honestly.
And the one thing its interesting its a very good question, we've been very very clear that for US. There is no particular objective in terms of how smaller how big do we want one P to me and we are currently focused on building and marketplace than one P is a very and.
Useful and they're important for us because it's a it's a strategic way, sometimes do engage and silicon categories and 40.
Example, sometimes if there is a shortage of supply or if there is a seller who does not carry certain goods which are relevant.
Relative to the consumers were able to act as the seller right and it's a very helpful.
And tool if you will force to address the consumer relevance.
And.
We feel pretty good about where we are for now and number of quarters. It's been and you were around 10% plus or minus right of our GMB and it's it's a level that is that we are comfortable with and it.
And it may increase and the future as well right, where we're not solving to and to make it particularly lower than this and it could be that.
And we can see a shortage of supplies or supply disruptions that we decided to drive that a bit more one Pete so again for us what's important is that one P remains a minority of the transactions and the GMB and.
But we feel good with the current level for Q1 and the future. It may go up if we feel that's necessary and its something that we know how to do we have to.
And you know and we have good and Knowhow.
And didn't know how to operate a certain level of one piece flow I think it's a good day, good thing for us and be able to do that.
In terms of use of cash.
The next few quarters, we're going to be extremely focused on our core business right. So really e-commerce.
And by ecommerce we mean.
Physical goods marketplace and to a degree for us that's e-commerce and.
And then June right so.
All our resources are focused on those and in order to continue to drive good past and proximity and to accelerate the growth of the usage.
And develop some new services, Virginia P and within that of course, there's a lot of innovation and new products and new features and new services that we are working on but I would say clearly clearly clearly within this core and mandate right and same thing geographically and we're extremely focused and are in some countries with no intent.
And tooling to go anywhere in the in the near future.
And then as we see the growth accelerates and the fast and kitchen community continue we may reassess that but for the foreseeable future extremely focused on the core.
e-commerce for physical goods per delivery and Juliet P and of course, I don't mentioned logistics breath and is a core part of the platform, which which is empowering the core so.
And some investment there as well.
All our focus and the call.
Got it and then finally, just can you briefly talk about the overlap.
And if we deliver and on demand.
GAAP between her delivery and core retail that you're seeing or maybe how that's increasing.
Yeah very much it.
So it's a fascinating to see the overlap and growing with time and and.
You can see the can take a few angles to think about this overlap you see and one more consumers are starting to use both right and.
In the past for US we were observing that the food delivery business tended to be for the upper middle class people, who can afford to go to a restaurant right and of course, then they can afford to older restaurants at home and and we're seeing more and more of our historical consumers from the physical goods marketplace also.
Covering debt service and they are as they.
And the they find it attractive and also as we add more and more restaurants, which are.
To choose from there is a big overlap also in terms of.
Vendors right many of our vendors one.
And one to be able to offer a 30 minute delivery and they want to be able to also offer e-commerce nationwide right and many of the.
FMC AG grocery.
Players they think about e-commerce, and a way to where you can reach consumers and giving them some.
And that is immediate.
Purchase that maybe is and planned and more and calcium and.
And convenience purchase right. So it's a great channel for the vendors to address this impulse convenience and instant delivery, but of course, you also want to be shipping goods and the oversight of the country with a few days delay and you wanted to be able to to serve the needs of the consumers who.
Sure.
And the <unk> that outside the cities and also share purchases, which are and maybe.
Maybe less current or maybe more planned I should say and.
And then more prepared right. So the vendors are extremely eager to explore both platforms as a way to address different consumer needs.
And then.
From a logistics perspective, what you see.
Having the ability to de lever very very fast and the big cities.
He is a very strong competitive advantage for us to to use for the E Commerce and degree.
And I'd also to use for the monetization of junior and logistics and today, we offer the junior logistic as a service to third parties and we mainly focused today on keeping then those clients and you.
Now and.
And last mile delivery, and more ecommerce traditional deliveries and and which time, we will extend this to and delivery. So until it's overall very attractive and last but and at least it makes our subscription program very attractive right, which is a competitive advantage as well because.
And the members of the junior part time program. They have advantageous both for the E Commerce, but also for the food delivery and that is of course very attractive because then it creates.
And you know more reasons for consumers to use both.
Got it great. Thank you Sara.
Yeah.
Again, if you have a question. Please press Star then one.
Our next question is familiar Mark Williams from Stifel Go ahead.
Hi.
First question I had was.
On this food delivery.
And economics can you talk a little bit about how the unit economics for the food delivery and on demand and.
It compares with some of the traditional.
E Commerce business and then.
Could you also just talking about the competitive landscape and food delivery.
Yeah of course, and I think that you need it and it makes for us and have been.
And pretty attractive I would say and definitely contributing to the good results that you've seen and our unique economies over the last few quarters.
The the average basket size is.
Did he Thursday country, but you know with them.
Let's say low double digit range. So between 10 and 15 euros, depending on the mumps, depending on the C team et cetera.
That's more or less what we're talking about.
And then and.
And you'll have.
Commissions, and Herbals Commission levels, which have been bearing of course by countries, but they are generally above.
Or around 20% right, so that's and that's more or less with what.
With what we've been seeing and then the logistics.
Costs are of course are tend to be lower than ecommerce right. So because it's more instant delivery and E. Commerce, we have quite a significant share of the businesses outside the big cities and it's also sometimes and the rule around right. So you've got to be average at when we look at the average and the Big C. Do you have a cost which is pretty simple.
And so when we look at the cost of delivering and pair of shoes and the next day basis, and and Bagels for example, and when we look at the close of delivering and pizza in 30 minutes and.
And it's pretty comparable right and.
And generally.
Most of the older things, what we call and shipping fees. So the consumers are participating to this logistic costs. So all in all its and its an attractive business from the economic perspective and.
And in terms of competition there's.
Quite a number of players who are acting in a in our country and of operations and.
And some of them U S and historical.
And and player who have been there and even before we were there you have the shoe international players who are active and certain markets.
And like and over eats are global and you have also a lot of the ride hailing companies and.
And who have tried to enter into ride hailing and you know some local companies doing better are attempting to expand into predictory.
And because it's a it's obviously a very natural extension as we all know and.
And so yeah, it's a it's a.
And rather competitive offering, but and I think we're very well positioned because.
We have the junior brands of you see which is huge and we benefit from all those investments we've been doing this business for 10 years, which is a lot and I don't know any player multi country would have done it for longer than us and.
And we've had enough experience and we've got the.
And the scale of the infrastructure of junior to two.
To leverage right the brand that logistics the payment the consumer base that relationship with advertisers and the relationship with <unk>.
With the with the restaurants.
Junior Prime subscription model. So it's it's a it's for US it's something that we feel very strong and dump and you think that we have a very competitive.
And very effective position for.
Tumors and for restaurants.
Okay, great. Thank you.
Our next question is from Kurt turnkey from Black crack go ahead.
Okay.
Yeah.
Hello, and thanks for taking my question.
And two quick questions. The first and can you just explain your increase in trade and other receivables from 10 to roughly a 100 million.
And then the second is on your JV. It's just a technical question because the 165 million and your court.
Is that growth of returned this constant vouchers or.
Our net and if its growth piece can you provide the net number thanks.
And of course, thank you for the question and.
And on timing and you should take those please.
And I can take those.
And the increase the increase of receivable includes the third trench of the offering that we made and in May and that was collected received in April.
And for 88 million USD.
And the revenues, we are showing all net of vouchers.
Okay.
Thank you.
And the first one is it's like cash basically and yes. It is.
No cash flow.
And it's not exactly now it's noncash.
Thank you.
And of course.
This concludes our question and answer session I would like to turn the conference back to Sasha for closing remarks.
Great. Thank you very much everyone for attending as always very happy to take follow up questions and they're very much looking forward to two next steps. Thank you very much and take care all the best.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.