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Companies

Jumia is optimistic of COVID-19 boost, despite poor Q1 2020 earnings report

“We are seeing unprecedented demand to join the Jumia platform, especially for named brands. We believe those dynamics will help accelerate the shift toward online.”

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Jumia is optimistic of COVID-19 boost, despite poor Q1 2020 earnings report

Jumia Technologies released its first-quarter 2020 earnings report earlier today, and it was unimpressive.

This notwithstanding, the company said it is optimistic that the COVID-19 situation has presented an opportunity for growth. This comes as more people across the markets where the company operates (including Nigeria) are now resorting to e-commerce for safer shopping amid the virus scare.

The financial statement showed that revenue for the period declined by 6.9%  to €29.2 million, down from €31.4 million in Q1 2019. Similarly, Jumia’s EBITDA for the period (i.e., Earnings Before Interest, Taxes, Depreciation and Amortization) dropped to €35.6 million. This marks a 9.8% decline when compared to EBITDA of  €39.5 million in Q1 2019. The company also reported a loss of €42.2 million according to the financial statement which was seen by Nairametrics.

 

Note that the financial report covers the month of March, which marked the onset of the pandemic in countries like Nigeria where Jumia operates. Unfortunately, the e-commerce giant said it could not fully take advantage of the situation due to disruptions in its supply chain. Note that a sizable portion of the goods sold on Jumia is supplied from China.

READ ALSO: Nigerian Breweries’ Q1 earnings report shows profit decreased by 31.4% to N5.5 billion

Meanwhile, Jumia is still optimistic that it can take advantage of the pandemic to grow. Reuters quoted one of the company’s founders (Sacha Poignonnec) as saying this during an earnings call earlier today:

Deal book 300 x 250

We are seeing unprecedented demand to join the Jumia platform, especially for named brands. We believe those dynamics will help accelerate the shift toward online.”

Recall that Jumia made history last year when it listed on the New York Stock Exchange. Its market capitalisation was valued at some $1.5 billion as of August last year. But the honeymoon phase for the stock soon faded away when the e-commerce company was rocked by fraud allegations.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Companies

Arvind Pathak, Deputy GMD of Dangote Cement resigns

The Deputy Group Managing Director of Dangote Cement has resigned his role on the Board of the company.

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Arvind Pathak, Deputy GMD of Dangote Cement resigns

Dangote Cement Plc has announced the resignation of its Deputy Group Managing Director, Arvind Pathak.

In line with the disclosure issued by the company, the Board of Directors of Dangote Cement after accepting Pathak’s request disclosed that his resignation will take effect from the 25th of February 2021.

The Board of Dangote Cement appreciates him for his commitment and contributions to the Board, and also wishes him well in his future endeavours.

READ: Dangote Cement shares gain N605 billion in a week amid share buyback plans

What you should know

  • Pathak was appointed to the Board of Dangote Cement Plc on October 29, 2019, as Deputy Group Managing Director.
  • Prior to his appointment as Deputy GMD, he was the Chief Operating Officer of Dangote Cement, a position he held between 2018 and 2019.
  • Prior to joining DCP, he has worked in various leadership roles in the cement industry, he has 30 years of experience in the cement industry.

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Companies

Africa Prudential Plc declares N1 billion dividend for shareholders

The Board of Directors of Africa Prudential Plc has proposed the payment of N1 billion as dividend to qualifying shareholders.

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Obong Idiong, Africa Prudential Plc

The Board of Directors of Africa Prudential Plc, Nigeria’s leading registrar and a key player in the capital market, has proposed the payment of N1 billion as dividend to qualifying shareholders of the company.

This is in line with the resolution made at the Company’s Board meeting which held on Thursday, February 18, 2021, as the Board resolved to pay a dividend of 50 Kobo per ordinary share, amounting to N1,0000,000,000 (One billion Naira only).

It is essential to understand that the dividend recommended by AfriPrud’s Board is subject to appropriate Withholding Tax, and the approval of shareholders at the Company’s Annual General Meeting.

What you should know

  • The dividend recommended by the board of AfriPrud in 2020 is 28.57% lower when compared to the total dividend of 70 kobo per share paid to shareholders last year for 2019.
  • It is important to note that the dividend declared is subject to appropriate withholding tax and the approval of shareholders at the Company’s next Annual General Meeting.
  • However, with a share price of N7.3 per share at the close of trading activities on the floor of NSE for last week, the dividend yield of the company stands at 6.85%.

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