Looking through the Jumia Q3 result, the outlook seems positive overall. I believe it is safe to say Jumia’s global business has continued to show an improvement quarter on as the Company recorded significant increase across its major financial indices in its Q3 2019 financial result as released yesterday.
From the almost 18-page document on its website, revenue grew by 52% even as it closed its Gross Profit with a 45% increase year-over-year. The Gross profit increased from €12.5 million in the third quarter of 2018 to €18.1 million in the third quarter of 2019, because of increased platform monetization.
While the Company’s Gross Merchandising Volume (GMV) increased by 39% this quarter compared to the third quarter of 2018, the Annual Active Consumers for the 12-month period ending September 30, 2019, grew by 56% and number of Orders for the quarter grew by 95% on a year-on-year basis.
Flipping through the report, from €198 million in the third quarter of 2018, the GMV increased to €275 million in the third quarter of 2019. It also stated that the results were affected by changes in commercial calendar dates, particularly the Jumia Anniversary campaign which is a Tier 1 campaign that took place in its entirety in the third quarter of 2018 while approximately half of it took place in 2019 during the second quarter.
The Co-Chief Executive Officer, Jumia, Sacha Poignonnec and Jeremy Hodara stated in the report that the company is determined to use technology to drive financial inclusion among its consumers even as it keeps reinventing itself to meet up with stakeholder demand. They said they were making significant progress in the usage and relevance of their platform for consumers and sellers and are positioning Jumia as the digital destination of choice for everyday needs in Africa.
They also highlighted the huge success they had recorded with their payment and fintech business with JumiaPay, which according to them, has shown very strong growth momentum on both volume and transaction metrics.
According to the partners, for their financial strategy, their goal is to be able to balance growth, JumiaPay development, monetization and cost efficiencies, with even greater emphasis on cash discipline and efficiency. For their growth strategy, Jumia favours business verticals and product categories that drive adoption, repeat purchase and usage. On the cost efficiency front, the company says it seeks to optimize portfolio of assets and geographies to ensure efficient capital allocation.
According to the report, this strategy is expected to enhance Jumia’s focus on its core assets and contribute to building a healthy foundation for the long-term growth and success of Jumia.
There were particular highlights about JumiaPay as a key focus area to expand into off-platform payments in the future. The report stated that innovation has started witnessing significant appreciation among Jumia consumers as the Total Payment Volume (“TPV”) reached €32 million in the third quarter of 2019. This represents a 95% increase compared to the same period in 2018. Notably, the number of JumiaPay Transactions reached 2.1 million, representing a 262% increase from the same period last year. JumiaPay presently exists in Nigeria, Egypt, Ivory Coast, Ghana, Morocco and Kenya.
As a business enthusiast, although the numbers may not look like it at this time, one thing that warms my heart though is the fact that Jumia is making long-term investment in Africa and charting the future of e-commerce on the continent. It may take a while; probably some long winding years and the road might really be long, however, I think it will be a worthwhile investment in the end.
Toheeb Adeyeju is a financial and business enthusiast, and he writes from Lagos.
Lafarge Africa Plc. announces its board meeting and closed period for Q2 2020
The notification which was duly signed by General Counsel & Company Secretary.
Lafarge Africa Plc. notified the Nigerian Stock Exchange and the investing public that he closed period will commence on Wednesday, 8th July 2020 until the unaudited financial statement for the second quarter ended 30th June 2020, is released to the Nigerian Stock Exchange.
In a disclosure on the Nigerian Stock Exchange, it wrote: “We hereby notify the Nigerian Stock Exchange and the investing public that a meeting of the Board of Directors of Lafarge Africa Plc has been scheduled to hold on Thursday, 23rd July 2020 to consider the second quarter financial results of the Company for the quarter ended 30th June 2020.”
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The notification which was duly signed by General Counsel & Company Secretary, Mrs. Adewunmi Alode explained further stating that “Accordingly, no Director, employee, persons discharging managerial responsibility and Advisers of the Company and their connected persons may directly or indirectly deal in the shares of the Company in any manner during the closed period.”
Over the past few months, it made a few board changes with the retirement of two of its Non-Executive Directors, as well as the appointment of three new Directors. It had also spun off its South African subsidiary, Lafarge South Africa Holdings (LSAH), last year.
Lafarge Africa’s Q1 2020 revenue was up 9.8% year-on-year to N63.7 billion, driven by higher Cement Sales (a figure up 11% year-on-year to N62.3 billion) which offset the weakness in Aggregate and Concrete (down 21% y/y to N1.4bn). Its EBITDA grew by 2.4% year-on-year to N19.3 billion as well. As at Tuesday the 7th of July, the share price of the company was N10.00.
AXA Mansard Insurance Plc gives notice of Annual General Meeting
The AGM will be live-streamed to enable shareholders and stakeholders participate.
Insurance firm, AXA Mansard Insurance Plc., has given notice of its board of its Annual General Meeting (AGM) scheduled for Wednesday, July 29, 2020, at 10:00 a.m.
The announcement which was disclosed by Nigerian Stock Exchange (NSE) in a corporate disclosure on July 7th, 2020 and signed by Company Secretary, Omowunmi Mabel Adewusi read, “Notice is hereby given that the twenty-eighth annual general meeting of AXA Mansard Insurance Plc. will hold at the Oriental Hotel, no. 3, Lekki Road, Victoria Island, Lagos on Wednesday, July 29, 2020, at 10:00 a.m.”
As noted, the purpose of the AGM is to transact the following business:
- To receive the Audited Financial Statements for the year ended December 31, 2019, and the Reports of the Directors, Auditors and Statutory Audit Committee thereon
- To authorise Directors to fix the remuneration of the Auditors
- To elect Directors and
- To elect members of the Statutory Audit Committee.
In order to ensure that all relevant stakeholders can be a part of the AGM, the company will also be streaming the AGM live. It noted that “This will enable shareholders and other stakeholders who will not be attending physically to follow the proceedings.”
The link for the live streaming of the Meeting will be made available on the Company’s website at www.axamansard.com.
Recall that a few months ago, in March, the company’s Board of Directors announced the appointment of John Dickson as the company’s new Non-Executive Director. A month earlier, it also disclosed its plan to sell its pension management subsidiary (AXA Mansard Pensions Ltd) and some undisclosed real estate investments.
Its unaudited financials for the period Q1 2020 reveal a growth across revenue and profit lines. Gross written premium grew by 21% from N17.4 billion earned in Q1 2019 to N21 billion in Q1 2020. Profit for the year for the group grew by a commendable 120% from N890 million in Q1 2019 to N1.9 billion in Q1 2020.
As at Tuesday, the 7th of July when markets closed, the share price of the company was N1.59. The company’s EPS stood at 0.33 while its price to book ratio stood at 0.6082.
NSITF board to investigate suspended MD and others over financial misconduct
The board of directors of the Nigerian Social Insurance Trust Fund (NSITF) has revealed that it will investigate the activities of the suspended Managing Director, 3 Executive Directors, and 8 other senior management staff over financial breaches and gross misconduct.
This was disclosed by the Chairman of the board of NSITF, Mr. Austin Enajemo-Isire, in a statement in Enugu on Sunday July 5, 2020.
Enajemo-Isire said that the Managing Director and other top management staff of the organization would have the opportunity to clear themselves of any wrongdoing with the probe panel which was being set up.
While reacting to claims that the suspension did not follow due process as President Muhammadu Buhari did not approve it, Enajemo-Isire said that the approval for the suspension of the affected staff had been conveyed to the Labour Minister in a correspondence referenced SGF. 47/511/T/99 of June 30, 2020.
According to the Chairman, “The minister has conveyed this approval and directives to me for necessary action in terms of setting up a board-driven investigative panel.
“This is to give the affected officers the opportunity to clear themselves of the financial and procurement breaches and acts of gross misconduct and other infractions that gave rise to their prima facie indictment.
“It is in this light that I have decided to call a virtual meeting of the management board on Tuesday, July 7, 2020, to consider the modalities for our action.”
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He, therefore, appealed to staffers of NSITF and their social partners to keep calm and exercise restraint.
A few days ago, Nairametrics reported the suspension of the Managing Director and some senior management staff over corruption allegations. However, the management in its reaction debunked that claim and said that the President did not approve their suspension but that rather, it was the sole decision of the Labour Minister, Chris Ngige, who they said was overreaching himself.