In the Rocket Internet Q3 results published today, Jumia recorded a 40% increase in gross margin despite a decrease in net revenue and cost of goods sold.
It posted a gross profit of 21.8 million Euros compared to 18.3 million Euros last year. However net revenue decreased to 54.4 million Euros from 114.2 million Euros last year. The total value of “total transactions” sold in period, including taxes, including shipping costs also decreased by 14.5%; from 227 million Euros last year to 194.2 million Euros this year. (Number of customers having made at least one transaction as defined in “total transactions” within the last 12 months before end of period.)
The company explained that the improvement in gross margin, including decrease in net revenue and cost of goods sold respectively, was due to a continued shift from retail sales towards a marketplace business model.
On August 30, 2016 Africa eCommerce Holding GmbH, the holding company of Jumia, was merged into Africa Internet Holding GmbH (formerly trading under Africa Internet Group). In June 2016, all business models of Africa Internet Group were renamed around the Jumia brand. The figures shown for all periods refer to Africa Internet Holding GmbH.
