Q4 2023 Jumia Technologies AG Earnings Call
Operator: Transcribed by https://otter.ai Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Jumia's results conference call for the fourth quarter and full year 2022. At this time, all participants are in a listen-only mode.
Good morning, ladies and gentlemen, thank you for standing by welcome to Jimmy is results conference call for the fourth quarter and full year 2023.
At this time all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session.
Operator: After management's prepared remarks, there will be a question and answer session. With us today are Francis Dufay, CEO of Jumia, and Antoine Maillet-Meseret, Executive Vice President, Finance and Operations. We'll start by discussing the Safe Harbor.
With us today are Francis do say CEO of Julia and call My a Miss I Executive Vice President Finance and operations will start by covering the safe harbour.
Operator: We would like to remind you that our discussions today will include forward-looking statements. The actual results may differ materially from those indicated in the forward-looking statement. Moreover, these forward-looking statements may speak only to our expectations as of today, and we undertake no obligation to publicly update or revise these statements.
Speaker Change: We would like to remind you that our discussions today will include forward looking statements.
Speaker Change: 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 undertake 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.
Operator: 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 report on Form 20-F, as published on May 16, 2023, as well as our other submissions with the FDIC. In addition, on this call, we will refer to certain financial measures not reported in accordance with the IFR. You can find reconciliations of these non-IFRS financial measures to the corresponding IFRS financial measures in our earnings press release, which is available on our Investor Relations page. With that, I will hand over to... Thank you.
Speaker Change: From the forward looking statements expressed today. Please see the risk factors section of our annual report on form 20-F as published on May 16 2023.
Speaker Change: As well as all other submissions with the S E C.
Speaker Change: In addition on this call we will refer to certain financial measures not reported in accordance with the I F. R. S. You can find reconciliations of these non I F. R. S financial measures to the corresponding I F. R. S financial measures in our earnings press release, which is available on our Investor relations website with that.
Speaker Change: I will hand over to Francis.
Francis: Thank you welcome everyone and thanks for joining us today.
Francis Dufay: Welcome, everyone, and thanks for joining us today. 2023 has been a transformative year for Jumia. Upheavals on the global stage have had a significant impact on African economies and their people. High inflation rates and currency depreciations have led to a scarcity of supply and adversely impacted the purchasing power of consumers. These have been very challenging times for tech and retail businesses across the whole country. Against that unsettling backdrop, we embarked on a fundamental transformation of our company in order to rapidly improve our financials and establish a stronger foundation for our e-commerce business. This transformation obviously came with a painful short-term impact, as we discontinued activities with poor growth prospects.
Francis: 2023 has been a transformative year for Trulia.
Francis: It's always on the global stage I had a significant impact on the African economies are these people.
Francis: Based on the rates.
Francis: Currency depreciation have led to scarcity of supply.
Francis: Thats adversely impacted the purchasing power of consumers.
Francis: This have been very challenging times for thick and retail businesses across the whole continent.
Francis: Against that unsettling backdrop.
Francis: We embarked on a sudden done untold transformation of our company in order to rapidly improve our financials and establish a stronger foundation for E Commerce business.
Francis: This transformation, obviously came with the painful short term impact as we discontinued activities with full growth prospects.
Francis Dufay: We stopped expensive marketing practices and a radically streamlined organization. These bold and early decisions have paid off in 2023, yet we still have some way to go. We close 2023 in a much stronger position, looking at both financials and business fundamentals. Our adjusted EBITDA loss for the full year of 2023 decreased to $58.2 million.
Francis: Stopped expensive marketing practices on the ridiculous streamline the organization.
Francis: This bold and early decisions have paid off in 2023, yes, we still have some way to go.
Francis: We closed 2023, and a much stronger position looking at the both financials and business fundamentals.
Francis: Our adjusted EBITDA loss for the food you have 23 decreased to 58 $2 million. This is $182 1 million barrels into 'twenty two.
Francis Dufay: This is $182.1 million in 2020 and steadily improving quarter after quarter. Our loss before tax from continuing operations for the full year of 2023 decreased to $98.6 million from $206.2 million in 2018. Most importantly, we saw a reduction in the pace of the decrease in our liquidity, from $227.4 million in 2022 to $106.9 million in 2023, leaving us with a liquidity position of $120.6 million at the end of 2023. Although GMV for the full year of 2023 declined by 20%, and all those by 22% year-over-year. We have undergone a deep transformation of the company, and we believe that this transformation will enable us to achieve growth again during 2024 with improved unit economics and lower cash utilization. We believe that we can meet these goals in 2024 thanks to the lessons we learned in 2023, particularly in the two following areas.
Francis: Steadily improving quarter after quarter.
Francis: Our loss before tax from continuing operations for the full year of 2000, <unk> decreased to $98 $6 million from $206 $2 million in 'twenty two.
Francis: Most importantly.
Francis: We saw a reduction in the base of the decrease of four liquidity.
Francis: From 'twenty $227 $4 million in 2020 to 200 $206 nine.
Francis: $9 million in 2023.
Francis: Leaving us with a liquidity position of $126 million at the end of 2023.
Francis: Although Jim V for the full year of 2003 declined by 20% and orders by 22% year over year.
We have undergone a deep transformation of the company.
Francis: We believe that this transformation will enable us to achieve growth again during 2024 with improved they couldnt unions, who couldn't make some lower cash utilization.
Francis: We believe that we can meet these goals in 2024, thanks to the lessons we learned in 2022 and 2023, particularly into two following areas first.
Francis Dufay: First, we have seen that efficiency and better unit economics do not come at the expense of future growth. We believe that Jumia is now a much cleaner, more agile, and more focused company. We have re-evaluated our portfolio and made tough decisions regarding business activities that did not bring the right value. Recently, we discontinued our food delivery operations as we concluded that the growth prospects did not justify the complexity it created.
Francis: Yes.
Francis: We have seen that the efficiency and better you mean, they couldnt mix do not come at the expense of future growth.
Francis: We believe that <unk> is now a much leaner more agile and more focused company.
Francis: We have reevaluated all portfolio have made tough decisions regarding business activities that did not bring the right value.
Francis: Recently, we discontinue the food delivery operations as we concluded that the growth prospects did not justify the complexities created weed.
Francis Dufay: We believe our focus and resources will be better invested in our physical goods business, where we see more opportunity for revenue growth and higher margins. We have achieved savings across the whole organization by shrinking general and administrative expenses, as well as significantly improving operational efficiency. We believe that these changes are enabling better output and laying the foundation for growth in 24. We experienced positive year-over-year growth in GMV of physical goods in 5 of our 11 operating countries over the full year of 2023. Accelerating over the second half while significantly improving our unit economics. Overall, year-over-year GMV growth trends are improving quarter after quarter, and we expect to be back to GMV and order growth in 2020. Second important lesson, lesson, sorry, that we've learned.
We believe our focus on our resources would be better invested you know physical goods business, where we see more of a poultry Nancy for revenue growth and higher margins.
Francis: We have achieved savings across the organization by shrinking general and administrative expense as what are significantly improving operational efficiency.
Francis: We believe that these changes are enabling better output and laying the foundation for growth in 'twenty four.
Francis: We experienced positive year over year growth in Jim via physical goods and five of 11 operating countries over the full year of 'twenty three.
Francis: Accelerate single or the second half while significantly improving our unit economics.
Francis: Overall.
Francis: Zero Virgil Jimmy the growth trends are improving quarter after quarter, and we expect to be back to Jimmy and the oldest growth in 2020.
Speaker Change: Second important listen listen I'm, sorry that we've learned.
Speaker Change: I think we have proved that we can grow without disproportionate as marketing expense.
Francis Dufay: I think we have proved that we can grow without disproportionate marketing spend. Based on our experience across 11 operating countries for over 10 years at Jumia, we believe that there is a lot of demand from African customers. However, this demand remains poorly served due to inconsistent supply and prices across different countries and cities.
Based on our experience across 11 operating countries for over 10 years at Jim Yeah. We believe that there is a lot of demand from African customers.
Speaker Change: However, this demand remains fully served due to inconsistent supply and prices across different countries and cities.
Francis Dufay: Our mission at Jumia is to bridge this gap between brands and suppliers on the one hand and customers on the other. We are committed to building better supply in our priority categories, which are phones, electronics, home and living, fashion, and beauty, by working closely with local and international sellers and global brands, along with our strategic focus to improve supply in those priority categories. We have deliberately reduced our sales and advertising expenses by 68% in the full year of 2022 and cut Customer Incentives, such as vouchers and free shipping. This strategy has come across as quite unusual, as many take for granted that growth in the e-commerce business is more or less a function of marketing costs.
Speaker Change: Our mission at Jimmy I used to bridge this gap between brands and suppliers on the one hand and customers on the other hands. We're committed to building bits of supply you know a priority categories, which all phones electronics home and living.
Speaker Change: One on beauty.
Speaker Change: By working closely with local and international visitors and global brands.
Speaker Change: Along with our strategic focus to improve supply and those probably two categories.
Speaker Change: We have deliberately reduced they'll say isn't the advertising expense by 68% in the full year of 2023 and get customers incentives such as vouchers and free shipping.
Speaker Change: This strategy has come across that's quite unusual.
Speaker Change: As mainly took for granted that growth in the e-commerce business is more or less a function of marketing costs.
Francis Dufay: We believe that 2023 results, and more specifically the improvement over the latest quarters, have shown that our strategy to reduce marketing expenditure while also pursuing top-line growth is working in our African markets. Indeed, now looking at Q4-23. After four consecutive quarters of consistently low marketing expenditure, we believe that we have proven our case.
Speaker Change: We believe that 2023 results and more specifically the improvement over the latest quarters.
Speaker Change: As shown that our strategy to reduce marketing expenditure, while also pursuing top line growth.
Speaker Change: Is working you know African buckets.
Speaker Change: Now looking at Q4 'twenty three.
Speaker Change: After four consecutive quarters of consistently low marketing expenditure.
Speaker Change: We believe that we have proven okay.
Francis Dufay: In addition to GMB growth in selected countries, we have successfully run our usual Black Friday promotional events with a very lean marketing budget. This led to a significant quarter-over-quarter uplift in GMV orders and the number of active customers. GMV reached $233 million, down 8% year over year but growing significantly on a constant currency basis by 21%. Similarly, revenue reached $69 million, down 2% year-over-year but up 28%
Speaker Change: In addition to Jimmy growth in selected countries, we have successfully run the our usual black Friday promotional events with very lean marketing budgets. This led to a significant quarter over quarter uplifts and Jim if he orders and number of active customers.
Speaker Change: G M V reached $263 million down 8% year over year, but growing significantly on a constant currency basis by 21%.
Speaker Change: Similarly.
Speaker Change: Revenue reached $59 million down 2% year over year, but up 28% in constant currency.
Speaker Change: On an important note.
Francis Dufay: On an important note, the sales trends were achieved while reducing sales and advertising expenditure by 63% versus Q4 2020. Economics have shown further improvement in Q4, with loss before tax income from continuing operations down to $17 million, decreasing by 62% year-over-year and 66% on a constant currency basis. The adjusted EBITDA loss was positively impacted by a significant reduction in tax provisions. Thank you.
Speaker Change: The sales trends.
Speaker Change: She's the way, reducing saves and advertising expenditure by 63% versus Q4 of 'twenty two.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: It Couldnt mix I've shown further improvements in Q4.
Speaker Change: With love before tax income from continuing operations down to $16 million to $17 million.
Speaker Change: Leasing by 62% year over year, and 66% on a constant currency basis.
Speaker Change: The adjusted EBITDA loss was positively impacted by significant reduction in tax provisions in Q4.
Speaker Change: Our liquidity position decreased by $27 million or truffle compared to $57 million reduction in Q4 2002.
Francis Dufay: Our liquidity position decreased by $27 million in Q4, compared to a $57 million reduction in Q4-22. The Q4 variation includes a negative $3.2 million impact from foreign exchange earnings. Continued improvement in growth trends quarter after quarter in 2023, combined with further reduction in operational losses, gives us confidence that our strategic choices are paying off. Looking at 24, we are fully committed to further reducing cash utilization versus 23, while following our strategy of bringing our business back to top-line growth in both orders and GMV, excluding potential foreign exchange impact, to implement our strategy. We will continue to focus on our growth priorities in 2024, which are consistent with our efforts in 2023, in particular. We believe that there is still a significant amount of untapped potential for growth in all of our priority categories over the next several years. By executing consistently over time, we believe that we will be able to unlock substantial amounts of value. We see on the ground that the macro situation in several of our African markets is starting to recover.
Speaker Change: Q4 evaluation includes a negative $3 $2 million impact from foreign exchange.
Speaker Change: Continued improvement in growth trends quarter after quarter and 23 combined with further reduction in our press the losses give us confidence that the whole threat, that's our strategic choices Soria operating golf.
Speaker Change: Looking at 'twenty four we are fully committed to further reducing cash utilization versus 'twenty three.
Speaker Change: Following our strategy of bringing that business back to top line growth in both oldest N G M P. Excluding potential foreign exchange impact.
Speaker Change: So we implemented a strategy.
Speaker Change: We will continue to focus on our growth priorities and 24, which are consistent with what you've folds in 'twenty three in.
Speaker Change: In particular.
Speaker Change: We believe that there is still a significant amount of potential for growth in all of our privacy categories over the next several years.
Speaker Change: By executing consistently overtime, we believe that we will be able to unlock substantial amounts of edu.
Speaker Change: We see on the grounds that the macro situation instead of a waterfall African market is starting to recover and the latest IMF forecasts confirm improving GDP growth trends across all footprints in 'twenty four and 'twenty five.
Francis Dufay: And the latest IMF forecasts confirm improving GDP growth trends across our footprint in 2024 and 2025. In this context, we are confident that Jumia has never been in a better position to capture the unique opportunity of e-commerce in Africa. Moving on now, let's look into our user strengths in Q4 on page 6. Quarterly active customers reached 2.3 million, down compared to Q4 2022, but growing quarter over quarter by 16%.
Speaker Change: In this context, we are confident that zoom there has never been in a better position to capture the unique opportunity of E Commerce in Africa.
Speaker Change: Yeah.
Speaker Change: Moving on now lets looking towards usage trends in Q4 on page six.
Speaker Change: Quarterly active customers reached two 3 million down compared to Q4, 'twenty, two but growing quarter over quarter by 16%.
Francis Dufay: The company received a total of 6.6 million orders in Q4'23, which is down 4% compared to Q4'22 but up by 17% compared to Q3'23. Quarter-over-quarter growth was driven by physical goods orders during our successful 2023 Black Friday campaign and during the holiday period, while digital services remained stable quarter-over-quarter. GMV reached $233 million, down by 8% year-over-year, but significantly increasing on a constant currency basis by 21% and growing by 42% compared to the previous quarter.
Speaker Change: The company received a total of $6 6 million or dosing truffle 23, which is down 4% compared to Q4 'twenty two.
Speaker Change: But up by 17% compared to Q3 'twenty three.
Speaker Change: Quarter over quarter growth was driven by physical goods sodas Durango successful 2000, Twenty's pre black Friday campaign, and zero and the holiday period, while digital services remains stable quarter over quarter.
Speaker Change: Jim if he had reached $263 million down by 8% year over year, but significantly increasing on a constant currency basis by 21% and growing by 42% compared to the previous quarter.
Francis Dufay: The overall decrease in both quarterly active customers and orders is mostly driven by actions taken to improve our economics and re-focus. We moved away from the most unprofitable categories and some expensive consumer incentives, such as free shipping, which would typically drive lots of low-value orders. This refocus has impacted usage, but it was the right thing to do since we want to drive profitable growth. Looking at GMV, the year-over-year decrease is primarily due to Essex's impact.
Speaker Change: Year over year decrease in both quarterly active customers and the oldest is mostly driven by actions taken to improve our economics and refocus.
Speaker Change: We moved away from the most and profitable categories and some expensive consumer incentives such as free shipping, which would typically drive lots of low value oldest.
Speaker Change: This refocus has impacted usage, but it was the right thing to do since we want to drive profitable growth.
Speaker Change: Looking at G M D.
The year over year decrease is primarily due to FX impact.
Francis Dufay: And we think our GMB growth in constant currency is an important measure of our performance, looking at the evolution of usage over the last two quarters. We see very positive developments. Year-over-year growth rates in quarterly active customers, orders, and GMV have been consistently improving over the last two quarters, reflecting the impact of the actions taken to build what we believe to be the right, long-term, fundamentals of our business. Q4 performance in particular provides an important data point for us. Five countries were growing their GMV year-over-year in physical goods, both in actual dollars and on a constant currency basis, for the second quarter in a row.
And we and we think our GMP growth in constant currency is an important measure of our performance.
Speaker Change: Looking at the evolution of Skus age over the last two quarters.
Speaker Change: We see very positive developments.
Speaker Change: Zero for your growth rates in the quarter do you have to keep customers older than Jim if he had been consistently improving over the last two quarters, reflecting the impact of the actions taken to build what we believe to be the right long term fundamentals of our business.
Speaker Change: Q4 performance in particular.
Speaker Change: <unk> is an important data point for us.
Speaker Change: Five countries, where green dot generated year over year in physical goods, both in actual dollars and on a constant currency basis for the second quarter.
Francis Dufay: These countries accounted for over half of our GMV from physical goods in Q4. Most importantly, we have delivered SigniScan growth versus Q3 of 2023 across all usage metrics, clearly showing our ability to drive sales uplifts thanks to our new strategy. We managed to run a successful end-of-year season with the much-awaited Black Friday campaign and the ensuing Christmas season.
Speaker Change: These countries accounted for over half of our GMP from physical goods in Q4.
Speaker Change: Most importantly.
Speaker Change: We have delivered significant growth versus Q3 of 'twenty three.
Speaker Change: Across all usage metrics clearly show wingo, our ability to drive safely place thanks to our new strategy.
Speaker Change: We manage to run a successful end of season with dementia with dementia weighted Black Friday campaign, and then shrink Christmas season.
Speaker Change: This saves uplift achieved during black Friday 23 is.
Francis Dufay: The sales uplift achieved during Black Friday 23 is in line with past Black Friday events, proving that we can drive significant growth thanks to better supply while maintaining very conservative marketing expenditure. This improving usage trend throughout 2023 combined with much healthier economics... gives us confidence for 2020. Indeed, many strategy choices made in 23 will remain at the top of our agenda for 23, as we see them delivering more impact every quarter. We are not planning a major strategic pivot, as we will mostly focus on executing consistently things that we know are working. The main highlights of our 24th strategy will be the following. Our primary focus is to execute our growth strategy and achieve healthy growth for the business. Building better supply in our priority categories, improving marketing efficiency, and reaching out to customers in secondary cities are the fundamental areas we will remain focused on. These require consistent and strong execution over time.
Speaker Change: This is in line with past Black Friday events, proving that we can drive significant.
Speaker Change: Growth thanks to the bid thanks, two bits of supply, while maintaining very conservative marketing expenditure.
Speaker Change: These improving trends throughout 'twenty three combined was much central it because it makes good.
Speaker Change: It gives us confidence for 2024.
Speaker Change: Yeah.
Speaker Change: And its many strategic choices made in 'twenty three will remain at the top of our agenda for 'twenty four.
Speaker Change: As we see them delivering more impact every quarter.
Speaker Change: We're not planning a major strategic pivots as we will mostly focus on executing consistently things that we know are working.
Speaker Change: The main highlight the main highlights of our 24 strategy would be the following.
Speaker Change: Our primary focus is to execute our growth strategy and achieved healthy growth for the business building bits of supply in our priority categories, improving marketing efficiency and reaching out to customers and secondary cities.
Speaker Change: The fundamental areas, we will remain focused on.
Speaker Change: This required does require consistent strong execution of the time.
Speaker Change: We will also have a special focus on our two biggest potential markets, Nigeria and Egypt.
Francis Dufay: We will also have a special focus on our two biggest potential markets, Nigeria and Egypt, where we believe that we are well positioned for growth in 2024. We made a few management changes in 2023 in those countries, and we are now fully reorganizing supply chain operations in both countries to become more efficient in our logistics and to be able to reach out to more customers. For example, we are soon moving warehouses in both countries.
Speaker Change: Well, we believe that we are well positioned for growth in 'twenty four.
Speaker Change: We made a few management changes in 'twenty three in those countries and we are now fully reorganizing so patriot operations in both countries to become more efficient logistics and to be able to reach out to more customers.
Speaker Change: For example, with some moving warehouses in both countries.
Francis Dufay: On the growth side, we have the same focus on supply in priority categories in Nigeria and Egypt as we have elsewhere, with strong commitment from brands, local distributors, and international sellers. Despite macroeconomic challenges in 2023 and 2024, we believe that Nigeria and Egypt will still present massive opportunities for e-commerce and Jumia in Africa due to very high consumer demand. Let's now take a quick look at microeconomic trends across our footprint. As we have discussed over the past quarters, macroeconomic trends remain challenging across Africa.
Speaker Change: On the growth side.
Speaker Change: We have the same focus on supply and protein categories in Nigeria, and Egypt, as we have elsewhere with strong commitments from brands local distributors and international citizen.
Speaker Change: Despite macroeconomic challenges in 2023, and 2024, we believe that Nigeria, and Egypt still presents a massive opportunities for E Commerce and junior in Africa.
Due to very large consumer demands.
Speaker Change: Let's now take a quick look at microeconomic trends across our footprints.
Speaker Change: As explained over the past quarters microeconomic trends remained challenging across Africa.
Francis Dufay: However, we are increasingly confident now in our ability to operate, grow, and reduce losses even in challenging environments. I shared three months ago the example of Ghana, with one of the highest inflation rates across the continent, where we are now growing double digits year-over-year in both orders and GMV in Q424. Looking ahead to 2024.
Speaker Change: However.
Speaker Change: We're increasingly confident in our ability to operate grow and reduce losses, even in challenging environments.
Speaker Change: I said three months ago. The example of Jenna.
Speaker Change: One of the highest inflation rates across the continent.
Speaker Change: Well, we are now growing double digits year over year in both orders and Jim V. In Q4 2004.
Speaker Change: Looking at 2024 wells.
Francis Dufay: We are starting to see signs of stabilization and recovery in several markets. This should, over time, make it easier for Jumia to source goods and should improve our customers' purchasing power. For example, in Nigeria.
Speaker Change: We're starting to see signs of stabilization and recovery and civil markets.
Speaker Change: This should overtime make it easier for generics with schools goods and should improve our customers' purchasing power.
Speaker Change: For example in that jail.
Francis Dufay: The government took a number of bold decisions over the past months on critical topics such as exchange rates and fuel subsidies that are expected to be net positive for the economy in the medium term. The IMF forecasts an improvement in GDP growth in Nigeria in 2024, from 2.8% GDP growth in 2023 to 3% in 24. Looking at the whole of Sub-Saharan Africa,
Speaker Change: The government took a number of bold decisions over the best months on critical topics such as exchange rates since June says it is.
Speaker Change: But I expect it to be net positive for the economy in the medium term.
I M S forecasted an improvement in GDP growth, So reenergizing 2024.
Speaker Change: Two points to 8% GDP growth in 2003 two.
Speaker Change: Two 3% and 24.
Speaker Change: Looking at the whole sub Saharan Africa Yeah.
Francis Dufay: The IMF is forecasting an acceleration from 3.3% to 3.8% GDP growth in 2024. Let's now look at our progress in building stronger priority categories in physical goods on page 7. We have identified priority categories in which we want to succeed and become the top choice for consumers across our markets, such as phones, electronics, home and living, fashion, and beauty.
Speaker Change: Yeah, Yeah, I mean, if you're forecasting an acceleration from 333 points, 8% GDP growth in 2024.
Speaker Change: It is now.
Speaker Change: Let's now look at our progress in building stronger priority categories and physical goods on page seven.
Speaker Change: We have identified priority categories in which we want to succeed and become the top choice for consumers across all markets phones electronics home and living fashion and beauty.
Francis Dufay: These categories were selected back in late 22 based on simple criteria, relevance to our consumers and market size, ability for Jumia to source supply based on our experience across the 11 countries, and expected profitability of each segment, especially taking into consideration challenges in logistics. This exercise led to the deprioritization of some categories, such as groceries, where sourcing is complex and the economics are very challenging for e-commerce. Our focus in 2023 was on developing a better supply chain across these categories, using the most relevant methods in each market. Our main topics of attention, as explained last quarter, were our seller experience improvement. Better planning with key partners, more partnership with international brands such as Starlink, and better collaboration with our sellers based in China. In the last quarters of 2023, we also captured a number of opportunities to import directly from key international brands in home and living and electronics, mainly in Egypt but also in Morocco.
Speaker Change: These categories with Citic did back in late 'twenty, two based on simple criteria.
Speaker Change: Relevance to our consumers and market size and ability for Jimmy that's with full supply.
Speaker Change: Based on our experience across different countries and expected profitability of each segments, especially taking into consideration certain diseases and logistics.
Speaker Change: This exercise led to the D prioritization of some categories such as groceries.
Speaker Change: We're sourcing is complex and it couldnt makes a very challenging for e-commerce.
Speaker Change: Our focus in 2023 was on developing a better supply chain across these categories using the most relevant tomatoes in each market.
Speaker Change: The peaks of attention as explained last quarter, all set of experience improvements better planning with keep baldness.
Speaker Change: Our partnership with international brands, such a starlink and better collaboration with all set is based in China.
Speaker Change: In the last quarters of 'twenty three.
Speaker Change: We also captured a number of opportunities to import directly from key international brands in the home and living in electronics.
Speaker Change: Mainly in Egypt, but also in Morocco.
Francis Dufay: This gave us an edge in supply and pricing for B2C consumers as well as the opportunity to make corporate sales to distributors and smaller retailers. We are seeing the impact of these actions with a significant shift in our category mix over the course of 2023. The share of GMV from home and living and electronics has significantly increased.
Speaker Change: It gave us an edge in supply and pricing for B to C consumers as well as the opportunity to make corporate sales to distributors and smaller retail does.
Speaker Change: We are seeing the impact of these actions was a significant shift in our category mix over the course of 2023.
Speaker Change: The show G Magee from home and living and it certainly has significantly increased.
Francis Dufay: This is the result of clear focus, consistent execution, and strong relationships with both international brands and local distributors. Fashion and beauty categories account for over half of our items sold and are instrumental in driving more frequent usage with healthy margins. We believe that there is still significant upside potential in improving supply, mainly from China via Jumia Global, as well as from several international fashion brands expanding across Africa with Jumia. This shift in mix has led to an increase in average order value from $40.6 in Q4'22 to $45.5 in Q4'23. Although we do not set specific AOV targets.
Speaker Change: This is the result of clear focus.
Speaker Change: System things that Houston has strong relationships with both international brands and local distributors.
Speaker Change: Fashion and beauty categories accounts, we'll have a handful of items sold and are instrumental in driving more frequent usage with healthy margins.
Speaker Change: We believe that there is still significant upside potential in improving supply mainly from China. They are Jim edible ads.
Speaker Change: With us from Intuit from Civil International fashion brands, extending across Africa with junior.
Speaker Change: This shift in mix has led to an increase in average order value from fall from $46 in Q4, 22% to $45 $5 in Q4 23.
Speaker Change: Although we do nuts set specific targets. This increase is helping us to generate a greater profits per older after logistics.
Francis Dufay: This increase is helping us to generate a greater profit per order after logistics. We're happy to see the early impact of our actions on supply. The priorities set for 2023 to improve our value proposition in priority categories will remain at the top of the agenda for 2024 as well.
Speaker Change: We're happy to see the early impact of four actions and stuff like that.
Speaker Change: Probably just central twenty-three to improve our value proposition and priority categories.
Speaker Change: We'll remain at the top of the agenda for 2024 as well.
Francis Dufay: Moving on to marketing efficiency, now on page 8. Improving our value propositions, in particular thanks to progress made with respect to our supply chain, allows us to drive growth in more healthy ways, especially on the marketing side. As explained in the previous course... We have made significant changes in the way we use marketing at Jumia. Back in December 22, we decided to sharply reduce our expenditure on marketing and the various consumer incentives such as free shipping. This decision might have come across as very unusual in the e-commerce industry, and many believed that we would start feeling the pain later in 2023 when the delayed impact of high marketing expenditure in 2022 would fade away. However, after four full quarters of greatly reduced marketing expenditure, the picture is becoming quite clear. First,
Speaker Change: Moving on to marketing efficiency now on page eight.
Speaker Change: Improvement of our value proposition in particular, thanks to the progress made with respect to our supply chain.
Speaker Change: Allows us to drive growth and more healthy ways, especially on the marketing side.
Speaker Change: As explained in previous calls we have made significant changes.
Speaker Change: And the way, we use marketing a junior.
Speaker Change: Back in December 'twenty two.
Speaker Change: We decided to reduce sharply already spend Detroit and marketing and the values consumer incentives such as free shipping.
Speaker Change: This decision might have come across a very unusual in the e-commerce industry.
Speaker Change: And the main he believes that that we would stop seating debate later in 'twenty three with the delayed impact of high marketing spend in 'twenty two would fade away.
Speaker Change: However.
Speaker Change: After four full quarters of greatly reduced marketing expenditure.
Speaker Change: The picture is becoming quite clear.
Speaker Change: First the repurchase rates of new customers in physical goods has increased.
Francis Dufay: The repurchase rate of new customers and physical goods has increased because of its reduced amounts of consumer incentives, and this is very important because consumer incentives, such as vouchers and free shipping, used to be used a lot to stimulate more frequent purchases. The 30 days repurchase rate of our Q423 cohorts for new customers across all categories has increased by 1 percentage point compared to the same cohort of 20,000. Even better, the 90 days repurchase rate for our Q3'23 cohort for new customers across all categories has increased by 3 percentage points compared to the same cohort of 2020. While in Q4-22, 43% of our orders benefited from consumer incentives, mainly vouchers, free shipping, or direct price subsidies, only 28% benefited from such schemes in Q420. Second,
Speaker Change: <unk> reduced amounts of cost of consumer incentives.
Speaker Change: And this is very important.
Speaker Change: Because consumer incentives such as vouchers and free shipping.
Speaker Change: He used to be used lots to stimulate more frequent purchases.
Speaker Change: The 30 days, we pitched as rates of all Q4, 'twenty three cohorts four new customers.
Speaker Change: Across all categories has.
Speaker Change: <unk> has increased by one percentage points compared to the same cohort of 22.
Speaker Change: Even better than.
Speaker Change: The 90 days repurchase rates for a cohort of Q3 23, new.
Speaker Change: New customers across all categories has increased by three percentage points compared to the same cohorts of 2022.
Speaker Change: While in Q4 22, 43% of our oldest benefited from consumer incentive many vouchers free shipping or direct price subsidies.
Speaker Change: Only 28% benefited from such schemes in Q4 23.
Speaker Change: Second.
Francis Dufay: Our share of visits from what we call free channels on physical goods has consistently increased, reaching 49% in Q4'23 versus 41% in Q4'22. Pre-channels include Customer Relationship Management, Search Engine Optimization, and Direct Traffic. This is the result of several quarters of focus on beta CRM and SEO execution. And finally... We have secured significant savings. Sales and advertising expenses decreased from $16.8 million in Q4'22 to $6.2 million in Q4'23, and consumer incentives decreased from $5.3 to $2.5 billion.
Speaker Change: Our shelf visits from from what we call free channels on physical goods has consistently increased reaching 49% in Q4 23 versus <unk> 41 in Q4 22.
Speaker Change: Free channels include customer relationship management search engine optimization and direct traffic.
Speaker Change: This.
Speaker Change: As a result of several quarters of focus on bits of CRM and issue execution.
Speaker Change: And finally.
Speaker Change: We have secured significant savings.
Speaker Change: Isn't that surprising expensive expense decreased from $16 million to $18 million in Q4, 'twenty two to $6 2 million Daus in Q4 23.
Speaker Change: And consumer incentives decreased from $5 three to $2 $5 million.
Francis Dufay: Most importantly, overall usage trends kept on improving while we maintained a low level of marketing expenditure. We expect to continue on the same path in 2024 and reap the benefits of consistent execution on assortment and efficient marketing channels. Thank you.
Speaker Change: Most importantly, overall usage trends kept on improving while we maintained a low level of marketing expenditure.
Speaker Change: We expect to continue on the same path in 2024, and reap the benefits of consistent execution on the assortments and efficient marketing channels.
Speaker Change: Yes.
Francis Dufay: Let's now look at recent developments on JumiaPay on page 9. As explained previously, we have decided to focus primarily on making JumiaPay an effective enabler of our e-commerce business. We are working towards this objective in several ways. First,
Speaker Change: Let's now look at recent developments in <unk> on page nine of them.
Speaker Change: As explained previously we.
Speaker Change: We have decided to focus primarily on making junior pay you on effective enabler of our E Commerce business.
Speaker Change: We're working towards this objective in several ways.
Speaker Change: <unk>.
Francis Dufay: We are integrating more relevant payment methods for customers to complete their orders on Jumia platforms and continuously improving user experience. For example, we are working on reducing the number of steps to validate a payment, reducing processing time, and increasing success rate. Second, we are rolling out JumiaPay on delivery. This feature allows customers to pay digitally upon delivery of their order, thus reducing the need for cash.
Speaker Change: We are integrating more relevant payment methods for customers to complete their oldest julia platforms and continuously improving user experience.
Speaker Change: For example, we work on reducing the number of steps to validate the payments reducing processes time processing time, sorry, and increasing success rates.
Speaker Change: Second we are rolling out Jimmy I pay undelivered.
Speaker Change: Feature allows customers to pay digitally up on delivery of the older thus, reducing the need for cash.
Francis Dufay: After successful implementation in Kenya, we are rolling it out in Nigeria, where we believe that over 50% of transactions could become cashless by the end of the year. These are developments with far-reaching consequences, helping us to simplify our operations by reducing the amount of cash that we have to manage. And third, we are developing what we call Buy Now, Pay Later solutions in partnership with third-party credit providers to support purchases on our platform. Through JumiaPay, our customers can access consumer finance options offered by third-party partners who are responsible for credit underwriting and loan disbursement.
Speaker Change: After a successful implementation in Kenya, we are rolling out in that Georgia, where we believe that over 50% of transactions could become cashless by the end of the year.
Speaker Change: These are developments with far reaching consequences.
Speaker Change: Helping us to simplify our operations by reducing the amount of cash that we have to manage.
Speaker Change: And third we are developing what we call buy now pay later solutions.
Speaker Change: In partnership with third party credit providers to support but safety is on the old platform.
Speaker Change: Through time, you pay all customers can access consumer finance options offered by third party partners, who are responsible for credit underwriting and loan disbursements.
Francis Dufay: Such payment methods are already easily available in Egypt, and we believe that there is great potential across Sub-Saharan Africa to boost categories with high-value items such as phones and larger appliances. As a result, we have seen constant progress in the share of physical goods transactions paid through JumiaPay, from 18.8% in Q4'22 to 27.7% in Q4'23. We see this evolution as an indicator of the progress made in developing a better payment experience for our customers. Total JumiaPay transactions increased their value by 41% in Q4'23, driven by an increase in orders on the JumiaPay app thanks to some promotional activities. Jumia Pay TPV is down 10% year-over-year and up 32% on a constant currency basis, reflecting FX variations in Nigerian Naira. I will now hand over to Antoine, who will walk you through our financials. Thanks, Francis. Hello, everyone.
Speaker Change: Such payment methods are already easily available in Egypt, and we believe that there is great potential across sub Saharan Africa, two booths categories with high value items, such as phones and large appliances.
Speaker Change: As a results we have seen constant progress in the shelf physical goods transactions paid us for doing that but.
Speaker Change: From 18, 8% in Q4 22 to 27, 7% in Q4 23.
Speaker Change: We see this evolution is an indicator of the progress made in developing better payment experience focused on this.
Speaker Change: Total doesn't get paid transactions increased year over year by 41% in Q4 23.
Speaker Change: And by an increase in orders on the Jamaica Yep, Thanks to some promotional activities Jimmy.
Speaker Change: Jimmy up a T. P. G is dumped into central Roger and up 32% on a constant currency basis, reflecting variations in Nigeria and Egypt.
Speaker Change: I will now hand over to Antoine who will walk you through our financials.
Antoine: Thanks, Brent Hello, everyone.
Antoine Maillet-Meseret: Let's start with a review of our top-line performance. Revenue Breakdown, Revenue Recap: 59.4 million in Q4'23, down 2% year-on-year and up 28% on a constant currency basis. Revenue from first party sales was $26.1 million, up 16% year-on-year and 44% on a constant currency basis.
Antoine: Let's start with a review of our topline performance.
Antoine: Revenue breakdown revenue reached.
$59 4 million in Q4 than Q3 down 2% year on year and 28% on a constant currency basis.
Antoine: Revenue from first party sales was $26 1 million up 16% year on year and 44% on a constant currency basis.
Antoine Maillet-Meseret: Market base revenue reached $32.9 million in Q4'23, down 10% year-on-year and up 22% on a constant currency basis. While foreign exchange effects were a significant headwind to revenue performance, we experienced growth in commissions within our marketplace revenue and in first-party sales driven by growth in corporate sales to local and regional retailers, distributors, and other corporate buyers in selected countries, primarily Egypt. Turning now to Gross Profit, gross profit reached $37.1 million in Q4'23, down 1% year-on-year and up 36% on a constant currency basis. Gross profit as a percentage of GMV reached 16% compared to 15% in Q4-22, supported by improved margins and reduced spending on customer incentives and promotions. Let's now move to cost, where we continue making significant progress. Fulfillment expense amounted to $11.7 million, down 37% year-on-year and 16% on a constant currency basis. Fulfillment expense per order, excluding JumiaPay app orders, which do not incur logistics costs, decreased by 26% year-on-year from $3.2 USD in Q4 2022 to $2.3 USD in Q4 2023, reflecting a decrease of 2% on a constant currency basis.
Antoine: Market based revenue reached 32.9 million in Q4, 23 down 10% year on year and up 22% on a constant currency basis.
Antoine: While foreign exchange effect, where a significant edwin through revenue both on than we experienced growth in commissions, we they know our marketplace revenue and in first body sales driven by growth incorporate sale to local and regional retailers distributors and know they'll cut grade buyers in selected countries.
Already Egypt.
Antoine: Turning now to gross profit.
Antoine: Gross profit reached $37 1 million in Q4, 23 down 1% year on year and 36% on a constant currency basis.
Antoine: Gross profit as a percentage of G. M. D reached 16% compared to 15 in Q4 22 supported by improved margins and reduced spending on consumer incentives and promotions.
Antoine: Let's now move to cost, where we continue making significant progress.
Antoine: Fulfillment expense amounted to $11 7 million down 37% year on year, and 16% on a constant currency basis.
Antoine: Fulfillment expense per order, excluding Juliet at orders, which do not eat or logistics costs decreased by 26% Yellen there.
Antoine: 3.2 U S D in Q4 'twenty to.
Antoine: Two to three in Q4, two in Q3, reflecting a decrease of 2% that had been done currency basis.
Antoine Maillet-Meseret: As a percentage of DMV, fulfillment expense improved from 7.4% to 5%. This consistent improvement reaffirms the significance of our ongoing logistics transformation as we continue to build upon the success of our Logistics Optimization Initiative. These include a higher share of pickup station deliveries, which increased from 37% of shipped physical goods orders in Q4 22 to 48% in Q4 23. We persist in our strategic expansion of the pickup station network to penetrate under-tapped arrears of the market in a cost-effective manner.
Antoine: As a percentage of a D. M. D C. We've seen month expense improved from seven 4% to 5%.
Antoine: These consistent improvement reaffirm the significance of our ongoing logistics transformation.
Antoine: We continue to build upon the success of our logistics optimization initiatives.
Antoine: These include a higher share I'll speak up station deliveries, which increased from 37% of ship physical goods orders in Q4 of 22% to 48% in Q4 of 23.
Antoine: We persist in our strategic expansion of the pickup station network to penetrate under that areas of the market in a cost effective manner.
Antoine Maillet-Meseret: We've expanded our footprint beyond the main cities, enhanced warehousing staff productivity, and reduced packaging costs, along with many other initiatives. This improvement in efficiency illustrates our ability to capture savings across our logistics chain while strategically expanding our logistics footprint outside of the main cities and improving our customer experience. Sales and advertising expense amounted to $6.2 million in Q4'23, down 63% year-on-year and 49% on a constant currency basis, as we continue bringing discipline to our marketing spending. We see a clear improvement in our marketing efficiency ratios, with sales and advertising expense per order decreasing by 61% from 2.4 in Q4'22 to 0.9 in Q4'23. As a percentage of the MV, sales and advertising expense reached 2.7% in Q4'23, which is almost a 400 basis-point improvement year-on-year.
Antoine: We've expanded our footprint beyond 90 days.
Antoine: And then warehousing stuff, but activity reduced hedging cost along with many other initiatives.
Antoine: This improvement in efficiency illustrates our ability to get through savings across all logistics chain.
Antoine: Widespread <unk>, expanding our logistics footprint outside of the main cities and improving our customer experience.
Antoine: Sales and advertising expense amounted to $6 2 million in Q4 of $23, 63% year on year and 49% on a constant currency basis.
Antoine: We continue bringing discipline into our marketing spending.
Antoine: We see a clear improvement in our marketing efficiency ratios with sales and marketing and advertising expense per order decreasing by 61% from two four in Q4 20 220.9 in Q4 23.
Antoine: As a percentage of D. M D sales and advertising expense reached 2.7% in Q4 23.
Antoine: Which is almost a 400 basis points improvement year on year.
Antoine Maillet-Meseret: This reduction in sales and advertising expenses reflects our strategy to build a stronger customer value proposition that emphasizes better supply of physical goods and geographical reach over costly market campaigns and promotions. We believe that this is the most relevant and viable approach to our African market. We have already experienced positive developments across five markets where physical goods GMV is growing year-on-year for two consecutive quarters despite significantly reduced marketing expenditure. Moving on to technology and content. Tech and content expense reached $9.9 million in Q4'23, down 28% year-on-year, both as reported and on a constant currency basis.
Antoine: This reduction in sales and advertising expense reflect our strategy to build a stronger customer value proposition that emphasize better supply of physical goods and geographical reach over coast clean market campaigns and promotions.
Antoine: We believe that this is the most relevant and viable blow through all African market.
Antoine: We have already experienced positive developments across five markets, where physical goods.
Antoine: Dnb is growing year on year for two consecutive quarters.
Antoine: Despite significantly reduced marketing expenditures.
Antoine: Moving on to technology.
Antoine: And content Tech and content expense reached $9 9 million in Q4, 'twenty three down 28% Joe in your both as reported and then the stun currency basis.
Antoine: Why do we have meaningfully reduce cost in the last year, we remain committed to driving further savings in the future.
Antoine Maillet-Meseret: While we have meaningfully reduced costs in the last year, we remain committed to driving further savings in the future. Our efforts to rationalize infrastructure and software costs and staff structure are ongoing, and we see additional opportunities for efficiency. These include locating an increased share of our developers and tech personnel in Africa, closer to our customers and sellers. Technology is a core part of our DNA, and we remain committed to developing better products and features to improve the experience of all participants on our platform. GNX fans, excluding... Share-based compensation reached $12.3 million in Q4'23, down 62% year-on-year and 54% on a constant currency basis. This decrease was primarily driven by a significant reduction in tax provisions, including a $9 million beneficial impact from the provision released during the quarter.
Antoine: Our efforts to rationalize infrastructure and software costs and staff structure ongoing and we see additional opportunities for efficiency.
Antoine: These include locating an increase here of our developers and take personally in Africa cross sell to our customers and centers.
Antoine: Technology is a core part of the DNA and we remain committed to developing better products and features to improve the experience of old but it depends on all of that film.
Antoine: G&A expense excluding.
Antoine: Yeah based on months Asian reached $12 3 million in Q4, 23 down 62% year on year.
Antoine: And 54% on a constant currency basis.
Antoine: This decrease was primarily driven by a significant reduction in tax provision, including a 9 million beneficial impact from the provision released during the quarter.
Antoine Maillet-Meseret: The staff costs within our G&A expense, excluding fair-based compensation expense, decreased by 17% year-on-year as we captured further efficiency gains through the organizational changes that have been implemented. Moving on to balance sheet and cash flow items, CAPEX in Q4'23 was 0.8, as we remain committed to an asset-light model. Our liquidity position reached $120.6 million, comprised of $35.5 million in cash and cash equivalents and $85.1 million in term deposits and other financial assets. Our liquidity position in Q3'23 amounted to $147.4 million, which marks a decrease of $26.8 million in Q4'23 compared to a decrease of $57.3 million in Q4'22 and a decrease of $18.9 million in Q3'23. Our liquidity position at the end of 2022 was $227.4 million, which marks a decrease of $106.9 million in 2023 compared to a decrease of $285.4 million in 2022.
The staff costs within all G&A expense.
Antoine: Excluding share based compensation expense decreased by 17% year on year as we get through further efficiency gains to the Oems.
Antoine: The bold changes that have been implemented.
Antoine: We went to the balance sheet and cash flow items.
Antoine: Capex in Q4 23 was 0.8.
Antoine: As we remain committed to an asset light my dad our.
Antoine: Liquidity position reached $126 million comprised of $35 5 million in cash and cash equivalents and $85 1 million in time deposits and other findings. So that's it.
Antoine: Our liquidity position in Q3 twenty-three amounted to 147.4 million, which marks a decrease of $26 8 million in Q4 23 compared to a decrease of $57 3 million in Q4, 22, and a decrease of $18.
Antoine: 9 million in Q3 23.
Our liquidity position at the end of 'twenty, two was $227 4 million, which marks a decrease of $106 9 million in 2023 compared to a decrease of $285 4 million and 22.
Antoine Maillet-Meseret: The reduction in the pace of the decrease in our liquidity illustrates our efforts to preserve our available cash resources. Foreign exchange has been a significant headwind to our liquidity position, contributing to a negative impact of $3.2 million in Q4'23 compared to a negative impact of $2.1 million in Q4'22. The negative impact of foreign exchange movements on our reported liquidity position amounted to $18.2 million in 2023 compared to $8.8 million in 2020. Net cash flow used in operating activities reached $10.3 million in Q4'23, down by 80% compared to the same period in Q2'22.
Antoine: The reduction in the base of the decrease of our liquidity illustrates our ethanol to preserve or available cat food sources.
Antoine: Foreign exchange has been a significant edwin to our liquidity position contributing to a negative impact of seaborne 2 million in Q4 23 compared to a negative impact of $2 1 million in Q4 of 22.
Antoine: The negative impact of foreign exchange movements on our reported liquidity position amounted to $18 2 million and 23 compared to $8 8 million in 2002.
Antoine: And then it gets so using operating activities reached $10 3 million in Q4, two in Q3 down by 18% compared to the same period in 2002.
I know endo at the policy, who will walk you through our guidance.
Antoine Maillet-Meseret: I now hand over to Francis, who will walk you through our guidance. Thanks, Antoine. Considering the strong progress made over the latest quarters, we are committed to reducing our losses and accelerating our progress towards cash efficiency and profitability, looking ahead to 2020. First, we aim to further reduce our cash utilization compared to 2020. They can't, based on the positive impact of our growth strategy. We project an increase in both orders and gross merchandise value, GMV, in 2024, excluding potential foreign exchange impact. In a nutshell, our medium-term strategy remains focused on getting to the appropriate cost base, with a view to breaking even with top-line growth that we can attain. Top-line growth will come from building a stronger value proposition and will not happen at the expense of competition. We believe that our strategy is the most relevant for our markets and that consistent and quick execution is key. More than ever, we believe that we are well-positioned to capture the opportunity of e-commerce on the African continent in a profitable manner.
Endo: Thanks Anton.
Speaker Change: Considering the strong progress made over the last the latest quarters, we're committed to reduce single losses, and accelerating our progress towards cash efficiency and profitable growth.
Speaker Change: Looking at 2024.
Speaker Change: First we aim to further reduce our cash utilization compared to 2023.
Speaker Change: The Kent.
Speaker Change: Based on the positive impact of our growth strategy.
Speaker Change: We project an increase in both orders and gross merchandise value Jim G. In 2024.
Speaker Change: Excluding potential foreign exchange impacts.
Speaker Change: In a nutshell, our medium term strategy remains focused on getting to the appropriate cost base with a view to breakeven with top line growth that we can attain.
Speaker Change: Top line growth will come from building, a stronger value proposition and will not happen at the expense of efficiency we'd.
Speaker Change: We believe that that strategy is the most of them small markets and that consistent and quick execution is critical.
Speaker Change: More than ever we believe that we're well positioned to capture the opportunity of E Commerce and the African continents in the profitable minutes.
Speaker Change: With that we're ready to take questions.
Francis Dufay: With that, we're ready. Today, we will open the floor. If you have any questions, please press star 1 on your phone. Confirmation time will indicate that your line is active. You may press star 2 if you would like to remove your... For anyone using speaker equipment, to pick up your hand. Please hold a moment while we... We don't appear to have any questions in the queue. Now hand back over. Thank you very much, everybody. This does conclude today's program... You may disconnect your phone lines at this time. Thank you for your attention.
Speaker Change: Okay.
Speaker Change: Floor for questions. If you have any questions. Please.
Speaker Change: One on your keypad.
Speaker Change: Your line is Nicky you May press star two if you'd like to relieve your question from Nicky anyone using speaker equipment. It may be necessary to pick up your handset before pressing Ricky please hold a moment for any questions.
Speaker Change: Okay.
Speaker Change: Any questions in the queue.
Nicky: I can now.
Nicky: One for any closing.
Speaker Change: I think we're done.
Speaker Change: Sure thing.
Speaker Change: Thank you very much everybody. This does conclude today's conference you may disconnect. Your phone lines at this time and have a wonderful day.
Speaker Change: Participation.