Unaffected by Covid-19, online sales platforms hit record profits | Dailytrust

Unaffected by Covid-19, online sales platforms hit record profits

One whole year after its initial public officer, Jumia’s first quarter report for 2020 shows the ecommerce outlet recorded a decent growth after a tough 2019.

For the first time in six quarters, its operational costs decreased, with Gross profit after Fulfillment expense reaching a record €2.5 million, compared to less than €0.1 million in the first quarter of 2019.

It is optimistic about the opportunity Covid-19 presents for growth, with shoppers maintaining social distancing and ordering online to avoid physical contact.

But its losses reached $47.4 million in the first quarter of the year, lower than losses from both the previous quarter ($69.2 million) and Q1 2019 ($49.4 million).

JumiaPay, the brand’s fintech platform has continued to show impressive growth since 2019.

Transactions in this quarter reached 2.3 million, a year-over-year increase of 77%, representing 35% on-platform penetration in terms of orders, almost matching the 2.4 million transaction volume it recorded in the very busy last quarter of 2019.

The company’s adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation losses decreased by 10 per cent year-over-year.

Orders on the platform grew to 6.4 million, which was 28 per cent higher than the same period in previous year.