Q2 2023 Jumia Technologies AG Earnings Call
Good morning, ladies and gentlemen, thank you for standing by.
Welcome to <unk> results conference call for the second quarter of 2023.
At this time all participants are in a listen only mode.
After managements prepared remarks, there will be a question and answer session.
I would now like to turn the call over to suffer Damir head of Investor Relations for <unk>. Please go ahead.
Thank you.
Good morning, everyone. Thank you for joining us today for our second quarter 2023 earnings call with US today are policies did you say, you, obviously ONEOK and ultra and Magnum is executive Vice President Finance and operations, we will start by covering the safe harbor, but 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, we end to take no obligation to publicly update or revise.
These statements for a discussion of some of the risk factors that could cause actual results to differ from the forward looking statements expressed today. Please see the risk factors section of our annual reports on form 20-F as published on May 16, 2020 treat isolated there were other submissions with the SEC.
In addition on this call we refer to certain financial measures not reported in accordance with I afraid you can find reconciliations of these none of your fresh financial measures to the corresponding <unk> financial measures in our earnings press release, which is available on our Investor Relations website.
With that I'll hand over to policies.
Thank you Sir.
Welcome everyone. Thanks for joining us today.
And I'm pleased to report another quarter of significant reduction in losses, as we execute on our strategy with discipline and focus.
Q2, 2003 was the fourth consecutive quarter of last prediction on a year over year basis with a material acceleration in the base of last prediction.
In Q2, 'twenty three we got to both adjusted EBITDA and operating losses by two thirds, reaching the lowest levels in over four years.
This was achieved thanks to significant savings of close to <unk> of torture.
We kept our operating expenses by almost half in Q2 2003 compared to Q2 'twenty two.
We are reaching record levels of efficiency, particularly in fulfillment and citizen advertising expenses.
While improving our customer value proposition.
That's a very important point, we are not driving cost savings at the expense of all standards of operation.
We're operating more efficiently with a leaner cost structure, while improving the quality of full supply extending our logistics reach and providing your customers instead of us with a better value proposition overall.
Having successfully right sized the cost base of our top priorities and outgrowth.
And here, we're taking no shortcuts to drive growth, we're doing the heavy lifting on fundamentals to build what we believe to be a sustainable foundation for long term profitable growth agenda.
We are now in the middle of this transition.
Due to the complexity of a very challenging macro environment, which is heavily affecting <unk> performance.
Let's now review the details of usage in Q2 the industry.
Quarterly active consumers holders and Jim if it declines by 28, so it's 725% year over year, respectively.
This was driven by a combination of factors.
First I've already mentioned the macro environment remains extremely challenging the average inflation level across our footprint reached 40 14, 1% in June 23, with highs of $42 five and so it's five seven <unk> respectively.
In Nigeria, our largest markets inflation reached an 18 year high.
On June 28 persons.
This is affecting consumer spending power and overall sentiment.
And it's all sorts of <unk> goods.
The second driver was two such performance isn't alone.
We continue to recalibrate, our product and service portfolio moving away from the most of and profitable categories with limited consumer lifetime value.
This is currently impacting growth, but is the right thing to do to set the business on what we believe to be a solid foundation for growth.
The most severely affected categories, where grocery and Jimmy I pay up services.
We have now suspended first party grocery offering in most countries and we have de emphasized the most promotional intensity of services of the JV up.
Jeanette the App services combined with defense did your category.
Which includes grocery products.
[noise] accounted for 45% of the volume decline this quarter and 31% of the Jimmy decrease.
Income trusts.
Early signs of growth in some of the protein categories, such as appliance well efforts to rebuild supply all starting to payoff.
The third driver of <unk> performance specific to Jimmy is foreign exchange.
<unk> was a significant headwinds and contribute to contributed sorry to 14 points to the 25.
Since Jimmy decrease in Q2 'twenty three.
Nine out of 10 local currency depreciating depreciated against the total <unk> compared to the same period last year.
With respect to the Nigerian naira.
Pictures of their library realization of fixed Virgin mid June .
<unk> dropped by over 60% against the U S. There are injured.
Clearly there are lots of moving pieces and usage fronts, which are adversely affecting your performance for them.
However, we remain confident that we have the right strategy to drive long term profitable growth for our business.
I would not spend too much time on the details of our growth strategy. We have gone through that at lengths play earnings call I will briefly remind you of the key levers.
Okay.
One supplier.
We are focused on improving the quality of supply on our platform.
Are you seeing on the core categories.
And these are phones electronics woman living along with fashion and beauty.
Sure well, we're kingdom penetrating our addressable markets more effectively.
And this means stepping into the large consumer pools located outside of the main cities, which are usually under served by retailer.
We're currently doing a lot of work on the logistics and marketing fronts to penetrate these areas in a cost effective manner.
Third world and single UI, and UX to make whole platform easier and more intuitive to use.
And last but not least Jimmy IP.
Is a key enabler for e-commerce growth to add more convenience and remove friction for consumers at the checkouts.
A good example of that is the Jimmy <unk> and delivery, which we're rolling out in a number of countries to further reduce reduce the use of cash.
So these are very structural improvements on our platform.
No tax to drive quick growth.
We expect these efforts to pay out over time.
We are encouraged to see early signs of success, what you're supposed to rebuild supply prior to categories.
Then looking at the gym gimmicks evolution over the over the past two.
We clearly saw an uptick in the share of phones electronics and women link, which we call general merchandise categories.
They went from 52% of Jim for you in Q2, 'twenty to 259 with central jumped in Q2 'twenty three.
You might recall that between 2020 in 2020 to the prior management team was heavily focused on expanding everyday categories in particular since the gym grocery categories.
And this proved to be complex, so personally with very challenging economics.
Unfortunately.
Everyday categories drive came to a large extent.
<unk> of the general merchandise categories.
Three clearly the bread and butter of our platform.
It was therefore isn't sure for us to build or rebuild these categories and strengthen that will position them to.
We are very pleased to see growing momentum in these categories again.
For example in Senegal.
For next category was the fastest growing category in Jimmy turns in Q2.
58% year over year, followed a home and living upsets, 9% year over year.
Similarly in Gatineau.
<unk> was the fastest category.
<unk> category of 25% year over year, followed by home and living.
15% year over year.
The increased share in general merchandise categories is driving an increase in average order value.
It was up 18%, reaching $61 in <unk> history.
This is an important aspect of unit economics.
Smaller baskets are much more challenging economic liana require very large scale and operating leverage on close to breakeven.
We're confident that our commercial strategy, along with our successful cost cutting efforts.
We will help with help us accelerate our path to profitability.
Yeah.
And this is clearly reflected already in the exploration of flood prediction.
Let's now move on to Jimmy Baker.
I would like to stop here and by reiterating that the development of <unk> remains a priority for us.
And we have outlined several ongoing initiatives to support this development, both on and off platform.
On platform, we are focused on making Jimmy up an even more effective enabler of e-commerce.
First.
We are integrating more relevant payment methods to complete the payments using Jimmy up a for the first time.
System is linked that Jimmy I paid accounts.
Underlying payments methods of their choice.
It can be a debit or credit card a bank account or thoughts that you want it.
We are in the process of extending the range of payment methods that can be linked to admit their accounts to support <unk> adoption.
Dickens.
We are rolling out Jimmy I bet on deliveries.
This new feature allows customers to pay digitally upon delivery of the older.
Payment link or truckload.
Thus, reducing the need for cash.
After a successful initial pilots in Kenya, and Nigeria in Q1.
We are now deploying Jimmy I pay on delivery in Morocco, Ghana and Uganda.
While we are in the early days of the project Rollouts. The initial results are encouraging.
A third of postpaid transactions in Q2 23 were completed using gene therapy.
20% in March 'twenty three.
Serge.
We are developing buy now pay later solutions.
Partnership with third party partners.
Pulp purchases on our platform.
Switching up a oh customers can assess consumer finance options.
The third party partners, who are responsible for credit underwriting and loan disbursements.
And last but not least.
We intend to be very disciplined in terms of initiatives that we pursue.
We are focusing on what brings tangible value to our ecosystem, while supporting your pastor pushed to beat.
For instance, we.
We have been rationalizing the digital services offered under dramatically up and focus on the ones that drive healthy repeat purchase behavior.
What offering attractive economics.
As part of that we have suspended our number of services, that's where historically promotional intensive.
Such as airtime recharge services virtual isn't anymore.
This has negatively impacted <unk> performance in the first half of 'twenty three.
And do you expect it to continue affecting <unk> performance for the rest of the year.
Off platform.
We believe that Jimmy I pay you have strong development potential to process payments on behalf of third party merchants.
Here again, we plan to drive off platform development in a disciplined manner starting in the countries, where we already have.
I've already obtained the relevant licenses.
Hey, Jay you and digits.
A number of improvements to our own platform solutions.
Transferable to off platform, including the buy now pay later solutions.
We're also developing specific products and features to support our off platform development. For instance, we are developing a white labeled checkout solution for third party merchants.
Moving them to accept payments trough of payments under their own brand name on their platforms.
Yeah.
Let's now review the performance of <unk> in Q2, 'twenty three in more detail in.
In line with our objective of making Jeanette pay and even more effective E. Commerce enabler, we are significantly increasing the penetration of <unk> in both our physical goods and food delivery platforms.
Let's start with TPG.
C P V.
$56 $9 million down, 23% silver and down 6% on a constant currency basis.
Essex was again, a significant headwind to depict with TPG performance in particular, the seven 6% depreciation of Egyptian pound versus the dollar.
The decline in Jimmy I pay apathy accounted for almost 90% of the total TPG to claim.
This was a result of our decision to move away from highly promotional digital services on the App does right for limited consumer lifetime value.
This is in line with this opinion imperative that I outlined earlier as well as all focused as a focus on profitable growth.
On a sequential basis.
<unk> was up 12% supported by the strong growth of Juniper on delivery.
Does your penetration as a percentage of Jimmy increased from 27, 4% in Q2 22 to 28, 1% in Q2 'twenty three.
Supported by increased PD penetration in both physical goods and food delivery platforms.
And physical goods Pvp interest increased from 21 to 18% to 22% to 26, 3% in Q2 of dentistry.
Food delivery to increase was even more significant from 24, 8% to 32, 3% over the same period.
Now moving on to Jimmy page transactions.
Jimmy I pay transactions reached $2 $1 million.
In Q2, 'twenty, three down 38% year over year.
Here again, the decline is largely attributable to Jimmy <unk>, App, which accounted for over 90% of the overall just got paid transaction for the client.
Since sanctions penetration as a percentage of orders on both a physical goods and food delivery platforms increased significantly.
Physical goods transactions penetration increased from 19, 3% in Q2 22 to 26, 1% in Q2, 'twenty three and from 23, 2% to switching.
1% food delivery over the same period.
Overall, 32% of orders placed in the junior platform in Q2 2003 were completed using Jimmy I P.
Compared to 32, 7% in the second quarter of 'twenty.
You too.
The slight decline in overall penetration is due to the reduction of <unk> services into transactions mix.
Wrap up and Jimmy I P.
Despite mixed effects impacting headline performance.
We're making good progress on penetration, we are strengthening the quality and relevance of our products to better serve e-commerce merchants, both on and off platform.
I will now hand over to Antoine who will walk you through our financials.
Okay.
Thank you Hello, everyone.
Let's start with a review of false topline performance on page 12.
Okay.
First off the revenue, whereas that was 21.9 million USD down 12% year over year.
But 19% on a constant currency basis.
FX was a significant headwind to first of all.
The revenue performance in particular, all of the Egyptian pound depreciation y'all or y'all.
On a constant currency basis, we saw a strong growth in the first bucket of revenue in the gym.
Due to strong momentum in first bulky general merchandise sales.
We always aim to get the right supply for our customers and therefore, my do retail business No party music mother to breach temporarily India saltman gaps in our platform.
Let's now and back the performance of all marketplace revenue.
Marketplace revenue reached 26.1 million USD.
115% year over year and stable on a constant currency basis.
Commissions revenue was up 7% you already are and.
24% on a constant currency basis.
This was mostly due to commission take rate increases implemented in mid 2022.
Marketing and advertising revenue was down 18% Jell O that yeah, but up 5% on a constant currency basis.
The challenging macro context. It goes you can get advertisers to be more cautious with their ad spend.
Value added services revenue, which mainly includes logistics revenue from centers and 14 months revenue, which includes shipping fees from consumers decreased by $36 23 per cent gel over Europe in parallel with the decline in volumes.
That said, we are significantly improving the monetization of our logistics services and the pass through of all fulfillment costs.
The ratio of the Sim of Fusin meant and value added services revenue will golf related rent expense increased from 56% in Q2, 'twenty two to a record idle 80% in Q2 'twenty three.
These support our unit economics and apps reduce all losses.
Gross profit reached 26 million USD.
In Q2, 'twenty, three down 13% year over year, and 2% on a constant currency basis.
Commission take rate increases drove an expansion in gross profit margin, which went from 11% in Q2 'twenty two.
<unk>, 12.9% in Q2 'twenty three.
Let's now move to cost, where we have been making very significant progress.
Fulfillment expense reached 13.7 million USD down, 50%, you're all in Europe , and 42% on a constant currency basis in parallel with the decline in orders.
Importantly, we are reaching record levels of logistics efficiency.
What's the demand expense they'll order, excluding Jimmy at Bay at orders, which do not incur logistics cost decreased by 30% from 3.2 dollars.
In Q2 22 to 2.2 in Q2 'twenty three.
As a percentage of G. M D fulfillment expense improved from 10, 2% to 6.8%.
This is a very important transformation of all logistics Academy and reflect the success of the initiatives we have been working on across all logistics chain.
These include a higher shelf pickup station deliveries, which increased by 33% of ship physical goods others in Q2, 'twenty due to 42% in Q2 'twenty three.
We are strategically expanding all pickup station network to penetrate under depth areas of the market.
Cost effective manner.
We have also been optimizing our footprint and logistics routes improving warehousing staff productivity read you think packaging costs along with many other initiatives.
Okay.
And advertising expense reached $5 8 million down.
74% Yao on Europe , and 71% on a constant currency basis, as we continue to bring more discipline to our marketing investments.
We see a clear improvement in marketing efficiency ratio, we sell and advertising expense per order decreasing by 59% from 2.2 in Q2 20 220.9 in Q2 'twenty three.
As a percentage of G. M D sales and advertising expense reached two 9% in Q2, 'twenty, three which is more than five points improvement John here.
I want to stretch here, that's why we are reducing all marketing budgets, we remain committed to driving profitable long term growth of Jim Yeah. We believe that the primary driver to unlock demand at this stage is not marketing spend but rather a fundamental announcement of select.
<unk>.
And convenience.
All priority today is on improving decent denim towards with a particular focus on capturing deeper and either quality supply.
Moving on to technology and G&A costs.
Second content expense reached $11 1 million down, 22%, you're all about Europe and down 21% on a constant currency basis.
While this is a meaningful reduction.
We have room to drive further savings as we continue rationalizing all self to our guests and staff structure.
As Buffalo that we intend to locate an increased share of our developers and that person's money now freak out gross up to all customers and centers.
Technology is a core part of our DNA and we remain committed to developing better products and teachers can we improve the experience of all participants on our platform.
G&A expense, excluding share based compensation reached 17.7 million USD in Q2, 'twenty, three down 33% yard by yard and down 20% on a constant currency basis.
G&A expense included a full point 1 million USD beneficial impact from a tax provision release.
Excluding the impact of this provision release and share based compensation G&A was 21.8 million into 'twenty three.
The staff cost component of G&A, excluding share based compensation.
Decreased by 32% year over year due to the organizational changes we have been undertaking.
In less than a year, we have completed a major although all of our organization. We have removed significant players of managerial complexity and largely reduced our presents in Dubai in favor of Africa.
Importantly, thanks to a deep understanding of operations, we drove major staff cost savings without affecting our ability to serve our customers and centers.
I want you in the late year, the hard work and resilience of our teams.
I've made this possible.
Moving on to balance sheet and cash flow items.
Capex in Q2, 23 awards 0.3 million U S. Yes, we remain committed to an asset light model the expansion of our logistics and pickup station network that we referred to earlier is old down leveraging third party partners, allowing us to scale faster and into <unk>.
Capex light manner.
Net change in working capital at the cash flow impact of two point you mean in USB supported by a $2 4 million increase in payables related did you mean anniversary campaign.
Cash utilization for the quarter was 38 million this.
This included a 19 million adverse currency effect on cash.
13 million USD related to the Nigerian devaluation in June 23.
Notwithstanding FX headwind cash utilization was down 42% year over year in Q2 than Q3.
At the end of June 2023, we had a liquidity position of 166 million USD comprised of 61 million in cash and cash equivalents and $105 3 million of term deposits and other financial assets.
Of this total liquidity position nearly 70% of U L in USD, and therefore, not exposed to local currency risk.
We feel comfortable with all the liquidity position and our successful efforts to reduce losses and guests utilization the lowest materially extending our cash runway.
I know Andy over to Francis who will walk you through our guidance.
Thank you Allison.
We have a clear objective of reducing losses and accelerating our path to profitability and we are delivering strongly on that.
Considering the good progress made on another prediction H 123, we are not updating.
<unk> guidance for the full year 2023.
We expect adjusted EBITDA loss of 90 million to $100 million compared to the previous communicated range of 100 $220 million.
This implies over 50% year over your prediction and there just seems to be jealous.
We expect also cost efficiency efforts to continue paying us in 2023.
Well, if they think it'll citizen as a tasting expense guidance to reflect lower marketing expense as I mentioned earlier, we are focused on enhancing business fundamentals to drive growth.
Right directing our marketing spend towards the most relevant and cost effective tenants.
As such for the full year 2023.
We expect citizen and advertising expense of $20 million to $30 million versus the previously communicated range of $30 million to $40 million.
This compares to 76 million thrills and twins to Institute.
That's what at least given the good progress made in each one two and three.
Well also updating old Ginny guidance.
Excluding share based compensation, we expect G&A expense of 85 million to $95 million with 90.
<unk> 90 to 100 and seismic on those previously.
This compares to $118 million in 2023.
It is essentially a reflection of the contradiction.
We remain committed to driving the business towards profitability.
We have made good progress on cost savings so far existing very strongly despite the very challenging macroeconomic backdrop.
We intend to maintain very strong discipline, as we work and getting back to growth.
As part of that we will continue making fundamental enhancements will a platform.
And this means securing bits of supply and pricing, while offering a more convenient experience to customers instead of <unk>.
We're confident that this approach will pay off in the medium term and we can see encouraging signs already of the country and category levels to support that.
Overall.
We remained very can feed into the long term growth potential of fall markets and our ability to capture this opportunity in a profitable manner.
With that we're ready to take your questions.
Thank you at this time, we will be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue.
You May press star two if he would like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Thank you.
Our first question is coming from Luke Holbrook with Morgan Stanley Your line is life.
Yeah.
Two questions from me.
Orders were down 37% in Q2 that.
Watson from 28% in Q1, so I'm just wondering if you can just comment on why the trends were heading during the quarter and why the accident.
It was for the decline and by the end of the quarter or maybe on a high school to tread.
And the second one is have you seen much in parcel on kind of a higher commission rate that youll now charging them at too.
You can see that that maybe weekends.
Yes.
Proposition and demand not size. Thank you very much.
Thanks, Luke So let me take your questions. So Josef on the oldest transfer.
So the civil things to beam to be taken separately, yet I would say.
A lot of it is due to the very deliberate actions alright, we redeemed that's sort of the business was not sustainable it was health economics and.
And that's why we've been sharply reducing categories. That's required is very high promotional intensity in all yielded very bad economics.
For example, Jimmy I pay App services or groceries in its infancy just.
Just that's SMC, Jim Schmidt they absolutely are.
The two segments are responsible for 45% after declining item sold which is driving which is a good proxy for orders decline. So nearly half of the loss is coming from very deliberate action and sustainable segments.
Most of the rest is heavily driven I would say by the macro environments.
I think I mean, one thing that I will never be stressed enough.
Is that we're facing right now in emerging markets and especially in Africa.
Usually the worst macroeconomic situation in a decade or more high inflation, they restricted as it couldn't be policies, our predictions and install them.
Have you been affected impacting the supply the quality the quantity and quality of supply that we can get and the purchasing power of consumers.
So all that is sharply driving the trends in usage as you can see.
Then when Jim when we look at the intra quarter trends there was no meaningful difference.
Defense sorry between the months when.
When we look at the post quarter trends.
We are starting to see some encouraging signs on the volumes in a number of countries. After you know starting in Q3.
I, we I cannot comment very much in detail yet, but we're seeing that countries are starting to transformation a bit earlier and that's have now.
Stabilize the microenvironment I wouldn't have said great member of its stabilized microenvironment, all starting to to Sydney Infliction point I'm talking for example, I recall small call Sidney Gautam Khanna.
So this includes quite a few really big markets for us and these are very encouraging signs in that I'd be happy to come into people want that's doing.
The next time the next three months.
Then to your last question on on merchants, that's in going to the higher commissions rates consumers.
So we've seen a bit of that in some categories. So it's it's really depends on market. Some categories are in.
Some categories.
Do you expect with re neutral I mean, there was no impact on consumer prices and some other categories a bit of the pricing of the commissions increase were passed them with best selling to consumers.
But we try to make it to the recent small twice or the bigger increases were in categories, where price competitiveness.
<unk> is a bit less relevant and I mean, and what selection and assortment a more relevance.
As I kept degrees. So for example in categories like home and session with.
We see more when we see the consumer is just more important to choice and selection.
And vendors, we're able to pass on the slides not all of it but to slice.
Of the commissions increase with no meaningful impact, we still managed to stabilize the volumes in those categories.
Okay, alright that answers your questions.
Hey, Doug.
But basically this is this is not the main driver I mean this is not the key driver for Williams decrease.
Thank you Sir our next question is coming from Catherine O'neill with Citi. Your line of sight.
Yeah.
Great. Thanks very much.
I've got.
A few questions actually eat Betsy.
I just wondered if you could provide a bit more detail.
What you're doing when you about the.
High quality and lower priced supply that you're talking about is a key.
<unk> for the business Okay.
And why you weren't particularly you'll see it and they've got a lot of geographic kale or by category.
Hello, not places might take.
That's the first question and second and I guess sort of linked to that is.
When do you think we should start to see maybe categorize getting patent if the number is.
Active customers.
And then thirdly on TBA pay what you were talking about somebody off platform opportunities.
If you're able to provide a bit more detail on how you think about the size of these opportunities in the instead of laughing because I think email to let's say 53 days and then finally just on your cash balance I just wanted to understand a bit little about whether there's any cap cash hidden while the competition is.
Sorry, I didn't catch the last question kitchen.
And on your current cash balance of cash and equivalents.
More detail is that any sort of cap cash it gets about the competition of that cash balances and the accessibility of that.
Okay. So alright, let me try to take the first three questions on the auto and if you don't mind I'll leave you to the fourth question, so under concept of improving supply and prices which is.
Huge part of our plan to return to growth.
Let me try to give you a multi phase your usual first sub question was where do we have a gap we had gaps pretty much I mean in many places I can put it this way so in most countries and most categories.
What happens is that in the best Jimmy I relied heavily on stimulating demands.
Mosquito marketing actions and promotions.
We actually operate in markets with them.
The most challenging part of the question is actually supply.
There is demands in order of haul market. There's plenty of demands are just pretty soft and you need to I mean, we need to figure out a.
World, where you can buy everything you're like at any time.
You need a fridge this new one brand in the market. So you need the truth, well, there's only one Colorado ship, although on behalf of the sizes.
So all consumers in the market for opioids must be faced with you choose to access supply.
So the right way to growth that's my belief in this then that's how we shaped the plan is to work on supply rather than demands we have terrific.
Half demands, we need a bit of supply for our consumers and this is what has worked and the best in the citizens of countries a junior.
So we ended up in cases, where we were.
Just some quite severe in marketing on categories, where clearly we didn't have the right assortment what competition offline and online at better prices more brands more selections.
And at this point you can spend any amount of marketing is not going to make up for the gap in selection.
So and this was pretty much across the board I mean, some countries. We're flaring bits are I think we gave the examples of us in Ghana, and Ivory coast to name a few.
Physical <unk>.
But but that's the way we do the tenants across all countries.
So what we're doing for that is we I mean.
We're working with the people who have the power in the market and you have to supply so all suppliers merchants vendors, where they put the name.
The exist I mean, there are many of them in all markets that there are those who have access to brands access to industrial supply can import them have the financial power to bringing sufficient quantities and we need I mean, that's what we that's what they've been doing for a while we need to convince them.
To come back to Jim Yeah at least all of the Assortments.
Give us a better prices than the other distributors in the rest of the market. So we can start.
Generating volumes interesting for them, it's a long process, sometimes it means rebuilding relationships, sometimes it means building them from scratch.
Sometimes it means regrowing accounts that had been with us for a while but with a smaller and smaller in full force them. It's a it's a lot of personal relationships as well in many of the markets, where we operate is three and a good and bad history plays a role so it takes time.
But it's definitely the right thing to do and we see that's where the relationships are rebuilt in volume stops flowing again.
We off to a very very very positive trends.
So to your question around them they have time.
It's very hard to put a number on that but what we see I mean, it takes six to 12 months to fully turn around the country to put it this way to turn around the customer.
The suppliers' relationships released everyone rebuilt categories one by one.
<unk> marketing on the rights categories, where we rebuild our reputation in those categories and get the customers coming back and then get to them.
So I could have a so called a free enforcement with more stages more supply insulin.
Yeah, but I.
I mean, I said six to 12 months. So we should we should do the math.
You cannot stand up a large part of our countries have been in this transformation for more than two at a more than six or 12 months. So we should start seeing the impact at the country level already.
And this is what I wasn't trying to starting to see an inflection in many countries. So the impact is coming.
And that's it's impacting to the whole group trajectory.
We're starting to see very positive signs.
So that was to your first question second question is when does the when do we return to growth. So I cannot put a care figure on that unfortunately.
We're working very hard on that.
Youll, probably see I mean, you can see that we have delivered quite.
I mean quite effectively under on cost reduction and cash preservation, our top priority is clearly growth at this stage.
And we know that we do.
Getting back to it.
Hard to tell you whether it's in one two or three quarters, it's very hard to put an exact number on that.
Then of platform revenues for junior pay so what's the size of the opportunity.
So it's very hard to size what are we doing now is that when you go she can keep improving the product and negotiating with keep up in this city.
Selected contracts in it in.
In a very selective way.
We can prove the concept of happy customers and then expand again, so we were not at a stage, where we can see exactly how many median a billion dollars is going to generate a really.
So it goes to improving yeah venue scalability are in in Nigeria, and Egypt, specifically.
And then to your fourth question Tonight is that through your own fine.
Yes, but can you. Please repeat the question because my my 19th and underwrite good and it wasn't clear to me.
Yeah, No problem and I was just wondering if you could give a bit more detail on the current cash.
And whether there's any cash and you add in what the competition is yes. Okay.
Yeah, Yeah yeah.
Yeah. So you know that we operating in a 11 different jurisdictions and they all have their own four extra regulation.
Some of them in some of them, it's very easy to repatriate cash some of them or a bit more difficult to deal with because the regulation is a bit complex. What I can tell you is that as we speak we have they all know countries, where we have material amounts of cash.
From which we cannot repatriate and we have already started to repatriate for more than a couple of other countries. There is no guest drop at any time.
Well, we would have to guess that we are not going to use.
Yeah.
Recently, but Houston in Nigeria, which is a couple of years.
Moving down to the macro.
Albert to rest of our confidence in that.
Fluids market.
And makes it easier to repatriate cash from the country.
Yeah.
Alright, thank you.
Thank you ladies and gentlemen.
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