Q1 2024 Jumia Technologies AG Earnings Call

Operator: Good morning, ladies and gentlemen. Thank you for standing by.

Good morning, ladies and gentlemen, thank you for standing by welcome to <unk> results Conference call for the first quarter of 2024.

Operator: Welcome to Jumia's Results Conference Call for the first quarter of 2024. At this time, all participants are in a listen-only mode. 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-Mesurier, Executive Vice President, Finance and Operations.

At this time all participants are in a listen only mode.

After managements prepared remarks, there will be a question and answer session.

Francis Dufay: With us today are Francis do face CEO of Julia and Antoine Maillet, Missouri, Executive Vice President Finance and operations.

Operator: We'll start by covering the safe harbor. But we would 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 statement. 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 from the forward-looking statements expressed today, please see the Risk Factor section of our annual report on Form 20-F as published on March 28, 2024, as well as our other filings with the SEC.

Francis Dufay: We'll start by covering the safe Harbor.

Operator: In addition, on this call, we will refer to certain financial measures not reported in accordance with IFRS. 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 website. With that, I'll hand the call over to Francis.

Francis Dufay: We would like to remind you that our discussions today will include forward looking statements.

Francis Dufay: Actual results may differ materially from those indicated in the forward looking statements.

Francis Dufay: Moreover, these forward looking statements may speak only to our expectations as of today.

Francis Dufay: We undertake no obligation to publicly update or revise these statements.

Francis Dufay: 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 March 28, 2024, as well as our other submissions with the S E C.

Francis Dufay: In addition on this call we will refer to certain financial measures not reported in accordance with I F. R. S.

Francis Dufay: You can find reconciliations of these non I S. 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.

Francis Dufay: With that I'll hand, the call over to Francis.

Francis Dufay: Hello everyone, and thank you for joining us this morning. I want to begin today's call with a review of our performance and an update on progress against our strategic growth objectives. I will then turn the call over to Antoine for a more in-depth review of our financials, and we'll conclude with a Q&A session. Jumia is off to a strong start this year.

Francis Dufay: Hello, everyone and thank you for joining us this morning.

Francis Dufay: I want to begin today's call with a review of our performance and an update on progress against our strategic growth objectives.

Francis Dufay: I will then turn the call over to Walt one or more in depth review of our financials and we'll conclude with a Q&A session.

Francis Dufay: Jimmy <unk> is off to a strong start of the year.

Francis Dufay: After a transformational 2023, we have continued to work diligently to reduce costs and improve cash efficiency while establishing a leaner and more agile organization primed for growth. In the first quarter... We saw tangible results that our strategy is working. In line with expectations, GMV improved to $181.5 million, up 5% year-over-year, or 39% on a constant currency basis. This was driven by continued efforts to enhance our product assortment. By more efficient marketing spend and a reduction in consumer discounts, AOV also expanded by 3% year-over-year to $39.6 in the quarter, while order growth climbed 1.9%. Combined,

Francis Dufay: After a transformational 2023.

Walt: We have continued to work diligently to reduce costs and improve cash efficiency.

Walt: While establishing a leaner and more agile organization for golf.

Walt: In the first quarter.

Francis Dufay: We saw tangible results that the strategy is working.

Francis Dufay: In line with expectations.

Francis Dufay: Jim G improved $281.5 million.

Francis Dufay: 5% year over year.

Francis Dufay: All such a 9% on a constant currency basis.

Francis Dufay: This was driven by continued efforts to enhance our product assortment.

Francis Dufay: You mentioned, the more efficient marketing spend and the reduction in consumer discounts.

Francis Dufay: He also extended by 3% year over year to $39 $6 in the quarter.

Francis Dufay: While all the growth climbed 1.9 persons.

Francis Dufay: Combined.

Francis Dufay: These results help drive top-line revenue of $48.9 million, up 19% year-over-year or 57% on a constant currency basis. At the same time, we are delivering greater efficiencies across our cost base. Here, we are targeting more efficient marketing channels, streamlining our logistics network, while reducing G&A and tech expenses. These efforts reduced our quarterly cash burn from $22 million to $19.1 million in Q1, illustrating that we can still grow at scale without spending heavily.

Francis Dufay: These results helped drive topline revenue of $48 $9 million up 19% year over year or 57% on a constant currency basis.

Francis Dufay: At the same time.

Francis Dufay: We are delivering greater efficiencies across all cost base.

Speaker Change: Yeah, we are targeting more efficient marketing channels streamlining our logistics network, while reducing G&A and tech expenses.

Speaker Change: These efforts reduced our quarterly cash burn from $22 million to $19 1 million tourists in Q1.

Speaker Change: <unk> that we can still grow at scale without spending heavily.

Francis Dufay: Our loss before income tax increased to $39.6 million, from $29.2 million a year ago, due in large part to outside finance costs, driven by a significant FX impact in the quarter, mostly without a cash impact. Adjusted EBITDA loss, which excludes this cost, declined to $4.3 million in the first quarter, or 94% on a constant currency basis. Our results are more notable when considered against the challenging macro backdrop in some of our markets. For example, in the first quarter.

Speaker Change: Our loss before income tax increased to $39 $6 million from $29 $2 million a year ago due in large parts to outsized finance costs, driven by significant FX impact in the quarter, mostly without the cash impact.

Speaker Change: Adjusted EBITDA loss, which excludes discuss <unk>.

Speaker Change: <unk> declined to $43 million into the first quarter or.

Speaker Change: 94% on a constant currency basis.

Speaker Change: Our results are more notable when considered against the challenging macro backdrop in some of our markets.

Speaker Change: In the first quarter.

Francis Dufay: We saw further currency devaluations in Egypt and Nigeria, two of our largest markets. The Nigerian Naira devalued to $1,396 from $461 Naira to $1 USD, or roughly 200% year-over-year devaluation. In Egypt, the Egyptian pound devalued from 47 to 31 pounds to one US dollar, or approximately 50% over its devaluation. This has a significant impact on consumer purchasing power, as well as supply availability. However... Jumia's ability to secure sufficient inventory and offer a diversified product assortment at competitive prices continues to keep customers engaged on our platform.

Speaker Change: We saw further currency devaluation in Egypt, and the J.

Speaker Change: Two of our largest markets.

Speaker Change: The Nigerian naira devaluation to the 1396 from 461 there are two one you were still at all.

Speaker Change: Roughly 200% year over year devaluation.

Speaker Change: In Egypt, the Egyptian pounds devaluated from 47 to two one times to one U S. Total.

Speaker Change: Or an approximate 50% year over year devaluation.

Speaker Change: This has a significant impact on consumer purchasing power.

Speaker Change: As well as supply availabilities.

Speaker Change: However.

Speaker Change: Jim you have the ability to secure sufficient inventory and also the diversified product assortment at competitive prices continues to keep customers engaged on our platform.

Francis Dufay: For example, despite volatile market conditions... We are seeing positive order growth in countries like Nigeria and Ghana, illustrating the strength of Jumia's value proposition. On the other hand, we also saw positive movement in selected currencies against the U.S. dollar, and some policy changes that we believe indicate macro improvements in selected countries. For example, After the Egyptian government floated the Egyptian pounds and significantly increased interest rates, the country has experienced a large influx of U.S. dollars from foreign investors, and in Nigeria, there are early signs of macro-improvement. While in Kenya, the shilling gained almost 19% in the first quarter.

Speaker Change: For example, <unk>.

Speaker Change: By volatile market conditions.

Speaker Change: We're seeing positive oldest growth in countries like Nigeria and Ghana.

Speaker Change: Illustrating the strength of genius value proposition.

Speaker Change: On the other hands.

Speaker Change: We also so positive movement in Citic did currencies against the U S. At all and some policy changes that we believe indicates a macro improvements in selected countries.

Speaker Change: For example.

Speaker Change: After the Egyptian government float to give chips in pounds and significantly increased interest rates.

Speaker Change: The country has experienced a large influx of U S totals from for investors.

Speaker Change: In Nigeria.

Speaker Change: The early signs of macro improvement what in Kenya the shoe.

Speaker Change: <unk> has gained almost 19% in the first quarter.

Francis Dufay: We are actively monitoring conditions on the ground and remain hopeful that the environment will improve as we continue executing against our core strategy. As a reminder, our growth strategy is centered around three key pillars. First, we are focused on strengthening our core business while simplifying our operating model to create nimbler and more efficient operations. Thicken, we are committed to improving cash efficiency by optimizing marketing spend and reducing our overall cost base.

Speaker Change: Well actively monitoring conditions undergrounds and remain hopeful that the environment will improve as we continue executing against our growth strategy.

Francis Dufay: And third... We are building strong operating fundamentals by improving supply and assortment and expanding outside of the main urban centers. Beginning with strengthening our core business, we believe that by simplifying the bank experience and focusing on the basics, we can better serve our customers and drive growth. As the leading Pan-African e-commerce player, We have a well-developed strategy informed by our first-mover advantage and extensive local knowledge of the logistics and payment landscape. In late 23... We move to exit businesses deemed non-strategic, including JumiaFood, while also reducing headcount across multiple areas to deliver greater operating efficiency.

Speaker Change: As a reminder, our growth strategy is centered around three key pillars.

Speaker Change: First we are focused on strengthening our core business, which simplifying our operating model to create nimbler and more efficient operations.

Speaker Change: Second.

Speaker Change: We are committed to improving cost efficiency, but pretty amazing marketing spend and reducing overall cost base.

Speaker Change: And search.

Speaker Change: We're building strong operating fundamentals, but improving supply in the assortments and extending outside of the menu urban centers.

Francis Dufay: Additionally, we are focused on making JumiaPay a stronger enabler of our e-commerce platform. We are streamlining the user experience to reduce processing times and the number of steps needed to validate payment, and we continue to roll out JumiaPay on delivery in some of our largest markets to increase the number of cashless orders. We already had a successful rollout in Kenya and are in the process of implementing this in Nigeria. And we believe that over half of all transactions could be cashless by the end of 2021.

Speaker Change: Beginning with strengthening our core business, we believe that they simply saying the bank experience and focusing on the basics, we can better serve our customers and drive growth.

Speaker Change: As the leading Pan African E Commerce player.

Speaker Change: We have a well developed strategy informed by your first mover advantage and extensive local knowledge of the logistics and payments landscape.

Speaker Change: In late 'twenty three.

Speaker Change: We move to exit businesses deemed nonstrategic, including junior foods, while also reducing head count across multiple areas to deliver greater operating efficiencies.

Speaker Change: Additionally, we are focused on making Jimmy if they are stronger enabler of our E Commerce platform.

Speaker Change: We are streamlining the user experience to reduce processing times and a number of steps needed to validate the payments continued to rollout junior pay on delivery in some of our largest markets to increase the number of cashless oldest.

Speaker Change: We already had a successful rollout in Kenya and are in the process of implementing this in agile and.

Speaker Change: And we believe that sort of a hassle to transactions could be cashless by the end of 2024.

Speaker Change: Combined.

Speaker Change: These efforts have increased the shelf physical goods transactions and Jeanette baby by 12, 6% Joe for you.

Francis Dufay: Combined, these efforts have increased the share of physical goods transactions on JumiaPay by 12.6% year-over-year. In addition to JumiaPay... Our vast logistics network also serves as a powerful enabler of our e-commerce platform. Our localized, integrated logistics network is effective in harnessing the power of local partners to expand our footprint and drive commerce beyond major urban markets to improve our network optimization and reach more underserved communities. We have increased the number of pick-up station deliveries by 18% here in the first quarter.

Speaker Change: In addition to junior P.

Speaker Change: Our vast logistics network also serves as a powerful enabler of our E Commerce platform.

Speaker Change: Our localized integrated logistics network is effectively harnessing the power of local partners to extend our footprint and drive commerce beyond major urban markets.

Speaker Change: To improve our network optimization and reach more in the system you just.

Speaker Change: We have increased the number of pickup station deliveries by 18% jewelry during the first quarter.

Francis Dufay: We are also improving our proprietary systems to drive scalability, enhance warehouse staff efficiencies, and reduce packaging costs. These efforts are delivering real, tangible results. As a percentage of GMV, fulfillment expense improved from 7% to 5%, while fulfillment expense per order, excluding JumiaPay app orders, decreased by 20% year-over-year to $2.41. Turning to our second group pillar,

Speaker Change: We're also improving el appropriate systems to drive scalability, and hence warehouse efficiencies and reduced packaging costs.

Speaker Change: These efforts are delivering real tangible results.

Speaker Change: As a percentage of G. M D fulfillment expense improved from 7% to 5%, while sushi men's extents to older excluding jeanette they at the oldest.

Speaker Change: Decreased by 20% year over year to $2 $41.

Speaker Change: Turning to our second growth pillar.

Francis Dufay: Here, we are focused on improving cash efficiency through optimization of marketing spends. In Q1, we reduced marketing spend by 30% year-over-year and focused attention on more efficient marketing channels, including CRM and SEO. For example, we have enhanced SEO and customized our marketing notifications and newsletters to target the specific needs and preferences of local marketers. Our more disciplined and targeted approach is also attracting a stickier and higher quality customer base, as evidenced by the growth in GMV, orders per customer, and the repurchase rate this quarter.

Speaker Change: Here, we are focused on improving cash efficiencies for optimization of marketing expense.

Speaker Change: In Q1 will.

Speaker Change: We reduced marketing spend by 30% year over year and focused attention on more efficient marketing channels in.

Speaker Change: <unk> share of an issue.

Speaker Change: For example.

Speaker Change: We have enhanced su and customize our marketing education simulators to target specific needs and preferences of local markets.

Speaker Change: Our more disciplined and targeted approach is also attracting a secure and higher quality customer base as evidenced by the grocery G. N V oldest book customer and the repurchase rate this quarter.

Francis Dufay: No longer are we attracting customers based on promotions or discounts, where they tend to order once and then leave the platform. Rather, our cohort data shows that roughly 39% of people in our Q423 cohort of new customers completed a second purchase within 90 days. This compares to 36% of people in the Q4 2022 cohort reordering in Q1 2022.

Speaker Change: No longer are we attracting customers based on promotional discounts, where they tend to order once and then leave the platform.

Speaker Change: Rather our cohort data shows that's roughly 39% of people in our Q4 'twenty three cohort of new customers completed a second purchase within 90 days.

Speaker Change: This compares to 36% of people put into Q4 2022 cohort reordering in Q1 2023.

Francis Dufay: This 300 basis point improvement is significant for an e-commerce company like Jumia, where we have ended many vouchers and free shipping offerings and begun moving away from categories like groceries, which have high repurchase rates but poor economics. On the expense side, we continue to take a disciplined approach to cost management. To date, we have reduced overall headcount by 43% since the end of 2020. In Q1, we made further reductions, helping to deliver a 31% year-over-year decline in GNA expenses.

Speaker Change: These 300 basis points improvement is significant for an E Commerce company like junior.

Speaker Change: Well, we have ended many virtuous and free shipping offerings and began moving away from categories like groceries, which have high repurchase rates, but poor economics.

Speaker Change: On the expense side.

Speaker Change: We continue to take a disciplined approach to cost management.

Speaker Change: To date, we have reduced overall headcount by 43% since the end of 'twenty to 'twenty two.

Speaker Change: In Q1, we made further reductions helping to deliver a 31% year over year decline in G&A expenses.

Francis Dufay: These actions enable a leaner and nimbler organization that can move quickly and react faster to support future profitable growth. Additionally, we are refining our cash repatriation and foreign exchange strategy. Over the last four quarters, we have repatriated cash from several of our main African markets to Germany. As of Q1... 79% of our liquidity position was held in U.S. dollars.

Speaker Change: These actions enabled a leaner and Nimbler organization that can move quickly and react faster to support future profitable growth.

Speaker Change: Additionally.

Speaker Change: While refining our cash repatriation and foreign exchange strategy.

Speaker Change: Over the last four quarters, we have repatriated cash from several of our main African markets two Germans.

Speaker Change: As of Q1 17.

Speaker Change: Seven 9% of our liquidity position was held in U S dollars.

Francis Dufay: We know from years of operating in Africa that these efforts help limit our risk as well as our exposure to fluctuating local currency valuations. We will continue to be disciplined in this area as we move forward in order to effectively manage our cash position. We are building strong business fundamentals with a focus on securing the supply of in-demand products. The chaser behavior in Africa is quite unique.

Speaker Change: We know from years of operating in Africa. The D E sports help limit our risk as well as all exposure to FIC trading local currency valuations.

Speaker Change: We will continue to be disciplined in this area as we move forward in order to effectively manage our cash position.

Speaker Change: Our final growth pillar.

Speaker Change: We are building strong business fundamentals with a focus on securing the supply of independent products.

Speaker Change: The change of behavior in Africa is quite unique.

Francis Dufay: DPCIED is characterised by relatively low incomes and a strong focus on affordability. At the same time, there is a significant amount of pent-up demand that is poorly served by the current retail network. At Jumia, we are uniquely positioned to capitalize on this market gap by prioritizing high-demand products in categories including electronics, phones, home, and living, as well as fashion and beauty. By offering the right products at affordable price points and leveraging our reliable logistics network, we are well positioned to serve the African e-commerce market. Our success is evidenced by the continued growth in the AOV of physical goods, which climbed to $46.2 in Q1 versus $41.9 in the prior year.

Speaker Change: Besides by Relatedly, low incomes and a strong focus on affordability.

Speaker Change: At the same time.

There's a significant amount of pent up demand. That's 40 served by the <unk> networks.

Speaker Change: At junior well uniquely positioned to capitalize on this market gets by prioritizing high demand products and categories, including electronics phones woman living as well as fashion and beauty.

Speaker Change: By offering the right products at affordable price points, and leveraging a reliable logistics network, we are well positioned to service the African E Commerce buckets.

Speaker Change: Our success is evidenced by the continued growth in J O V. A physical goods, which climbed to 46.2 doors in Q1 was $41 nine in the prior year.

Francis Dufay: The ability to deliver the right assortment is a direct result of our continued effort to broaden our supply base. In the first quarter, we expanded relationships with new brands, as well as with local and international vendors. On the brain front, we are developing partnerships with notable international players to further consumer engagement in our market. In Egypt, for example, we are working with Samsung and LG to expand the availability of their goods to the Egyptian market, where there is strong demand for their electronics and phones.

Speaker Change: JBT to deliver the right assortment is a direct result of our continued efforts to broaden our supply base.

Speaker Change: In the first quarter, we extended relationships with new brands as well as with local and international vendors.

Francis Dufay: On the print fronts, we are developing partnerships with multiple international players to further consumer engagement on our marketplace.

Francis Dufay: In Egypt for example.

Francis Dufay: We are working with Samsung and LG to expand the availability of their goods to gypsum market, where there is strong demand for the electronics influence.

Francis Dufay: Having obtained importation licenses in Egypt, we were able to move quickly to unlock demand from both individuals and corporate customers. We are also empowering local merchants and sellers by offering them access to the Jumia marketplace with low barriers to entry and access to millions of customers. Whereas, in many cases, currency devaluation or importation barriers make it cost prohibitive for consumers to purchase international brands, onboarding local vendors and African brands.

Francis Dufay: Having obtained importation licenses in Egypt.

Francis Dufay: We're able to move quickly to a no demands from both individuals and corporate customers.

Francis Dufay: We're also empowering local merchants instead of by offering them access to the junior marketplace with low barriers to entry and access to millions of customers.

Francis Dufay: While in many cases currency devaluation of importation barriers makes it cost prohibitive for consumers to purchase international brands by.

Francis Dufay: By Onboarding local vendors and African brands.

Francis Dufay: Customers have greater choices and are ensured more competitive pricing thanks to a more flexible supply chain. To help vendors and brands reach more consumers, we are expanding our geographic footprint beyond major urban centers. While the opportunity in large metropolitan areas remains important, opportunities outside the cities are significant, and capturing that market will be an important growth driver. Today, roughly 51% of our orders are outside capital cities, versus 48% a year ago.

Francis Dufay: Customers have greater choices and our insureds more competitive pricing, thanks to a more flexible supply chain.

Francis Dufay: Two had vendors and brands reach more consumers.

Francis Dufay: We're expanding our geographic footprint beyond major urban centers.

Francis Dufay: Well, Joe Poultry Teton Lodge Mitchell pretty tough areas remains important okay.

Francis Dufay: Opportunities outside the cities of significance and capturing that market will be an important growth driver.

Francis Dufay: Today.

Francis Dufay: Roughly 51% of our oldest of outside capital cities versus 48% a year ago.

Francis Dufay: For example, in Nigeria, we are revamping our logistics capabilities to reach even more cities with shorter lead times and at a lower cost. Our network of boots-on-the-ground agents, known as J-Force, is a key asset to this expansion effort. By serving as an intermediary between customers and Jumia, our J-Force is a key enabler of e-commerce adoption. By the end of 2014, our goal is to have improved our efficiency and cost base across nearly 400 cities to effectively reach a broader customer base while getting the most out of the markets in which we currently operate.

Francis Dufay: For example in Nigeria, we are revamping, our logistics capabilities to reach even more cities with shorter lead times and at a lower cost.

Francis Dufay: Our network of boots on the ground agents Lunesta J force is a key asset to does the extension efforts.

Francis Dufay: By serving as an intermediary between customers and junior.

Francis Dufay: L. J force is a key enabler of e-commerce adoption.

Francis Dufay: By the end of 'twenty four.

Francis Dufay: Our goal is to have improved our efficiency and cost base across nearly 400 cities.

Francis Dufay: Effectively reach a broader customer base, while getting the most out of the markets in which we currently operate.

Francis Dufay: As we look to the rest of 2024 and beyond, we remain excited about Jumia's future. Our strategy is working, and is driven by our deep local knowledge and over a decade of experience in Africa. We are acquiring higher quality, more profitable customers while spending less and growing our business amidst a challenging macro environment. We are confident that we have the right strategy in place and are beginning to see a real, tangible return on investment. We are committed to continuing to execute and look forward to providing updates on our progress in the coming months. With that, I will turn it over to Antoine for a review of our financials. Antoine

Francis Dufay: As we look to the rest of 2024 and beyond we remain excited about genius future.

Antoine: Our strategy is working and it's driven by our deep local knowledge and over a decade of experience in Africa.

Antoine: We are acquiring higher quality more profitable customers, we're spending less and growing our business amidst the challenging macro environment.

Antoine: We are confident that we have the right strategy in place and are beginning to see real tangible return on investment.

Antoine: We are committed to continuing to execute and look forward to providing updates on our progress in the coming months.

Antoine: What is that.

Francis Dufay: I will turn it over to Antoine for a review of our financials.

Antoine Maillet: Thank you, Francis, and thank you, everyone, for joining us today. I will now give an in-depth look at our first quarter results. Starting with the top line, total revenue was $48.9 million USD, up 19% year-over-year or 57% on a constant currency basis. Marketplace revenue was $25.9 million USD, up 11% year-over-year or 48% on a constant currency basis, driven by higher commissions and corporate sales, partially offset by the impact of foreign exchange.

Antoine: Thank you Frank and thank you everyone for joining us today, and we know give an in depth look at our first quarter results.

Antoine Maillet: Revenue from first-party sales was $22.4 million, up 29% year-over-year, or 69% on a constant currency basis, driven by sales of larger ticket items, such as electronics and home and living, partially offset by the impact of foreign exchange.

Antoine Maillet: Gross profit was $31.2 million USD, up 25% year-over-year, or 67% on a constant currency basis. Gross profit margin as a percentage of GMV was 17.2% compared to 14.4% in Q1'23. These improvements were driven by corporate sales, improved marketplace margins, and a reduction in spending on customer incentives and promotions as part of our improved marketing spend efficiency. On the expense side, we continue to improve our cost base, with fulfillment expenses of 9.4 million USD down 21% year-over-year or up 5% on a constant currency basis.

Antoine Maillet: Starting with the top line total revenue was $48 9 million USD at 19% year over year or 57% on a constant currency basis.

Antoine Maillet: Marketplace revenue was 25.9 million USD.

Antoine Maillet: 11% year over year, or 48% on a constant currency basis, driven by higher commissions and incorporate sales.

Antoine Maillet: Actually offset by the impact of foreign exchange.

Antoine Maillet: Revenue from first party sales was $22 4 million at 29% year over year or 69% on a constant currency basis, driven by sales of larger ticket items, such as electronics and Golden living partially offset by the impact of foreign exchange.

Antoine Maillet: Gross profit was 31.2 million USD, 25% year over year or 67% on a constant currency basis.

Antoine Maillet: Gross profit margin as a percentage of G. M. D was 17, 2% compared to 14, 4% in Q1 'twenty three.

Antoine Maillet: These improvements were driven by corporate sales <unk>.

Antoine Maillet: Improved marketplace margins and a reduction in spending on customer incentives and promotions as part of our improved marketing spend decisions.

Antoine Maillet: On the expense side, we continue to improve our cost base with fulfillment expenses of $9 4 million USD down 21% year over year or up 5% on a constant currency basis.

Antoine Maillet: Fulfillment expense per order, excluding JumiaPay app orders, which do not enter logistics costs, increased 20% year-over-year, but increased 7% on a constant currency basis. Fulfillment expenses as a percentage of GMV improved from 6.8% in Q1'23 to 5.2% this quarter, illustrating the importance of our logistics transformation to Jumia's growth. Not only are we continuing to expand our logistics footprint outside of major cities, but we have also been successful in reducing packaging costs and enhancing the customer experience, all of which are helping to optimize our cost base.

Antoine Maillet: Fulfillment expense per order, excluding Jimmy I pay up orders, which do not incur logistics cost decreased 20% year over year, but increased 7% on a constant currency basis.

Antoine Maillet: Fulfillment expenses as a percentage of G. M D improved from six 8% in Q1, 'twenty, 3% to 5.2% this quarter illustrating the importance of our logistics transformation to Julius growth.

Antoine Maillet: Tony we are continuing to expand our logistics footprint outside of major cities.

Antoine Maillet: But we have also been successful in reducing packaging cost and then seeing the customer experience all of which are helping to optimize our cost base.

Antoine Maillet: Sales and advertising expense was 3.7 million USD, down 30% year-over-year and up 3% on a constant currency basis, driven by more efficient marketing spending. Advertising efficiency has improved, as evidenced by advertising expense per order decreasing from 1.2 USD in Q1'23 to 0.8 in Q1'24. As a percentage of GMV, sales and advertising expense was 2.1%, an improvement of 102 basis points from Q1'23, reflecting the success of our strategy to drive order growth through supply improvement versus increased marketing spend.

Antoine Maillet: Sales and advertising expense was $3 7 million USD 30 per cent yellow lawyer and up 3% on a constant currency basis.

Antoine Maillet: Driven by more efficient marketing spend.

Antoine Maillet: Advertising efficiency has improved as evidenced by advertising expense per order.

Antoine Maillet: Christine from one point to you in Q1, 'twenty three to zero point agent in Q1 'twenty four.

Antoine Maillet: As a percentage of G. M D sales and advertising expense was two 1%.

Antoine Maillet: Improvement of Wonder then two basis points from Q1, 'twenty three reflecting the success of our strategy to drive order growth through supply improvement nurses increased marketing spend.

Antoine Maillet: Turning to technology, our tech and content expense was 9.1 million this quarter, down 19% year-over-year or 17% on a constant currency basis. This was driven by savings achieved through better management of hosting infrastructure, operational tools, and reductions in overhead. We have also relocated a broader share of our developers and tech personnel to markets closer to our customers and sellers in Africa. As we move forward, we remain disciplined in our approach to cost in this area while balancing the need to develop new features to improve the customer experience.

Antoine Maillet: Turning to technology, our tech and content expense was $9 1 million this quarter down 19% year over year or 17% on a constant currency basis.

Antoine Maillet: This was driven by savings achieved through better management of posting infrastructure operational tools and redemptions you know their end.

Antoine Maillet: We have also relocated a broader share of our developers and tech personnel to markets closer to our customers on centers in Africa.

Antoine Maillet: As we move forward, while we remain disciplined approach to cost in this area, while balancing the need to develop new features do we improve the customer experience.

Antoine Maillet: The GNA expense, excluding share-based compensation, was $15.3 million, down 37% year-over-year and 23% on a constant currency basis. This decrease was driven mainly by a reduction in tax provision and by a decline in staff costs during the quarter. Staff Cost Components of G&A Expense, excluding share-based compensation expense, decreased to 16% as a result of reductions in headcount.

Antoine Maillet: G&A expense, excluding share based compensation was $15 3 million down 37% year over year and 23% on a constant currency basis.

Antoine Maillet: This decrease was driven mainly by a reduction in that provision by a decline in staff costs during the quarter.

Antoine Maillet: Staff cost component of G&A expense.

Antoine Maillet: Excluding share based compensation expense decreased to 16% as a result of predictions and Ed gowns.

Antoine Maillet: Turning to profitability, adjusted EBDLF declined to $4.3M or $1.4M on a constant currency basis. For greater clarity and visibility, let me quickly touch on how our finance costs impact our income statement. Specifically, finance costs and the income statement increase when we consolidate our earnings from areas experiencing currency devaluations as the conversion is done at a lower rate. Looking at loss before income tax from continued operations, it totaled 39.6 million USD in the quarter, a 36% increase year-over-year, or 12% on a constant currency basis.

Antoine Maillet: Turning to profitability adjusted EBITDA loss declined to 4.3 and Lillian.

Antoine Maillet: 1.4 million on a constant currency basis.

Antoine Maillet: For greater clarity and visibility, let me quickly touch on our final discussed impact our income statement.

Antoine Maillet: Specifically finding cost in the income statement increase when we consolidate our earnings from areas experiencing currency devaluations as the conversion is done at the lower rates.

Antoine Maillet: Looking at loss before income tax from continuing operations totaled $39 6 million anyway in the quarter, and 36% increase year over year or 12% on a constant currency basis.

Antoine Maillet: The increase was largely driven by a $12 million increase in net foreign exchange losses, mostly without cash impacts, as a result of currency devaluations in Nigeria and Egypt and an increase in finance costs related to our treasury activities. The increase also reflects losses associated with our investment portfolio management activities. Adjusting for this outsized currency translation effect, our loss before income tax would have been $26.4 million as compared to $27.3 million in the first quarter of 2023, representing a 3% improvement year-over-year.

Antoine Maillet: The increase was largely driven by a $12 million increase net foreign exchange losses, mostly without cashing back.

Antoine Maillet: As a result of currency devaluations in Nigeria, and Egypt, and an increase in finance costs related to our treasury activities.

Antoine Maillet: The increase also reflect losses associated with our investment portfolio management activities.

Antoine Maillet: Adjusting from these outsized currency translation effect.

Antoine Maillet: Our loss before income tax would have been $26 4 million.

Antoine Maillet: As compared to 27 3 million in the first quarter of 2023, representing a 3% improvement year over year.

Antoine Maillet: Looking at the balance sheet and cash flow, CapEx in Q1'24 was $0.8 million. Our liquidity position was US$101.5 million, comprised of US$28.6 million in cash and cash equivalents, with cash impacted by currency devaluations in several of our top markets, and $72.8 million in term deposits and other financial assets. This compares to term deposits and other financial assets of $118.6 million in Q1'23 and $85.1 million in Q4'23. Net cash flow from operating activities was $4.5 million, and working capital was $10.8 million in the first quarter of 2020.

Antoine Maillet: Looking at the balance sheet and cash flow Capex in Q1, 'twenty four it was 0.8 million our liquidity position was 101.5 million USD.

Antoine Maillet: Comprised of $28 6 million in cash and cash equivalents, we had cash impacted by currency devaluations in several of our top markets.

Antoine Maillet: $72 8 million in time deposits and other financial assets.

Antoine Maillet: This compares to down deposit another financial assets of $118 6 million in Q1 'twenty three.

Antoine Maillet: And $85 1 million in Q4 23.

Antoine Maillet: Net cash flow from our breaking activities was $4 5 million in working capital was $10 8 million in the first quarter of 2024.

Antoine Maillet: Similar to all earnings, our cash balance is at times impacted by one-time non-cash expenses, primarily foreign exchange-related. From a cash flow perspective, in addition to the sizable non-cash expenses, we also incurred a $5.9 million loss on currency translation due to the aforementioned devaluations in some of our largest markets, which negatively impacted our liquidity position in Q1. As Francis noted, we are actively refining our cash repatriation and foreign exchange strategy, having already repatriated cash from several of our main African markets to Germany. As a reminder, 79% of our liquidity position in Q1 was held in USD, helping to limit our exposure to shifts in local currency valuations. I will now turn it back to Francis for the Delon guide.

Antoine Maillet: Similar to earnings our cash balance is at times impacted by one time non cash expenses.

Antoine Maillet: They're really foreign exchange related.

Antoine Maillet: From a cash flow perspective.

Antoine Maillet: <unk> to the sizable noncash expenses, we also incurred $5 9 million loss on currency translation due to the aforementioned devaluations in some of all I'll, just small goods, which negatively impacted our liquidity position in Q1.

Antoine Maillet: That's all she has noted we are keeping in refining all cash repatriation and foreign exchange strategy, having already repatriated get from several of our main African markets to Germany.

Antoine Maillet: As a reminder, 79% of our liquidity position in Q1 was Ellen USD, helping to lead our exposure to shifts in local currency evaluations.

Antoine Maillet: I will note done it back to France is false it dead on guidance.

Francis Dufay: Thanks Alton.

Francis Dufay: based on our strong performance and operational improvements in recent quarters. We are reiterating our previously announced guidance for 2020, which aims to further reduce cash utilization compared to the full year 2020. We are also projecting an increase in both orders and GMV, excluding the impact of foreign exchange, based on the positive impact of our growth trend. As we move forward, We believe our strategy is strong and that we have the right team in place to drive us towards profitability. Our results from the first quarter demonstrate that we are making progress on implementing our strategic plan and advancing on our path to. We can now open the call for questions.

Speaker Change: Based on our strong performance I know personally on improvements in recent quarters.

Francis Dufay: We are reiterating our previously announced guidance for 'twenty 'twenty, four which aims to further reduce cash utilization compared to the food Euro 2023.

Francis Dufay: We're also projecting an increase in both oldest N G M D. Excluding the impact of foreign exchange.

Francis Dufay: Based on the positive impact of our growth strategy.

Francis Dufay: As we move forwards.

Francis Dufay: We believe our strategies shrunk and that's we have the right team in place to drive towards profitability.

Francis Dufay: Our results from the first quarter demonstrate that we're making progress on implementing our strategic plan and advancing on our past approach to beach.

Speaker Change: We can now open the call for Q&A.

Operator: At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you 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. There are no questions in queue. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Speaker Change: At this time, we will be conducting a question and answer session.

Operator: If you would like to ask a question. Please press star one on your telephone keypad.

Operator: Confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: One moment, please while we poll for questions.

Operator: There are no questions in queue.

Operator: This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.