What is Jumia Technologies (JMIA)? Future Prospects and Stock Price Outlook

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

We will explore in detail Jumia Technologies (JMIA), an e-commerce company that has skillfully penetrated the African market and is experiencing tremendous growth.

Personally, I have not paid much attention to the African market as an investment target, but Jumia Technologies is slowly gaining attention and I am seeing more and more of its name.

We will take a closer look at the fast-growing Jumia Technologies' business, its unique strengths, and its future prospects.

What is Jumia Technologies (JMIA)?

• Jumia Technologies AG, a Jumia Technologies Inc,An e-commerce company with a focus on Africa.
• Jumia operates online marketplaces in various African countries, providing a platform for consumers to purchase a variety of products and services online.
• Jumia is,Leading e-commerce platform across Africa with operations in 11 countriesKnown as the
• Jumia is,Africa's Alibaa, Africa's Amazonand its business model is similar, and it is aiming for success in the African market.

Jumia Technologies (JMIA) company information is as follows

• Year of establishment: April 1, 19492012
• Headquarter Location: Tokyo, JapanBerlin, Germany
• Founder:.Sacha Poignonnec and Jeremy Hodara
• CEO: Mr. T. H. HuangSashi Oakland and Jeremy Hodara, Co-CEOs
• Official website:.https://group.jumia.com/

What kind of business does Jumia Technologies (JMIA) do?

Jumia Technologies (JMIA) is an integrated e-commerce company with a focus on Africa and the following key businesses

online marketplace

Jumia's online marketplace is a platform that connects consumers and sellers.
This marketplace offers a wide range of categories of products, including

• fashion
• electronics
• household articles
• foodstuff
• Beauty Products

The platform is designed to allow consumers to easily search for and purchase products.

Jumia Logistics

Jumia operates its own logistics service, Jumia Logistics.
This service is designed to streamline the delivery of goods from the seller to the consumer.
Jumia Logistics offers the following features

• Warehouse operations
• Distribution center operations
• Collaboration with local logistics partners

This allows for quick and reliable product delivery.

JumiaPay

Jumia Pay is Jumia's electronic payment service.
This service supports secure and fast online payments and enhances user convenience. JumiaPay offers the following services

• online payment
• Mobile Phone Charge
• Payment of utility bills

Jumia Pay is closely integrated with Jumia's e-commerce platform to ensure a smooth transaction experience for users.

JumiaFood

Jumia Food is a food and beverage delivery service.
Through this service, users can order food from restaurants and grocery stores and have it delivered to their homes. Jumia Food meets the demand, especially in urban areas.

• Delivery Fee: This service charges a fee for delivery orders from restaurants and grocery stores.

Advertising and Promotions

Jumia provides advertising space and promotional services to sellers to generate additional revenue.

• Promotional Packages:.Sellers can purchase promotional packages to increase exposure of their products on the Jumia platform.

Other Services

In addition to the main businesses listed above, Jumia also offers the following additional services

• Travel Reservation Service
• Job Posting Service
• Real Estate Listing Services

These services support users in their daily lives through the Jumia platform. Through these services, the company has secured multiple revenue streams and increased business stability.

Jumia is a member of theseEstablishing itself as an e-commerce leader in the African market through diverse businessesThe company is doing so.
The company has achieved rapid growth with a business model tailored to the characteristics of the region and is attracting attention as a company that is expected to continue to grow.

In how many countries on the African continent does JMIA operate?

As of 2024, the company operates in 11 African countries.
Specifically, the company provides services in the following countries

Countries in which Jumia operates

• Nigeria
• Egypt
• Kenya
• South Africa
• Morocco
• Côte d'Ivoire
• Tunisia
• Algeria
• Ghana
• Senegal
• Uganda

These countries account for about 70% of Africa's population and a large share in terms of GDP and Internet users.Jumia is leveraging its presence in these markets to pursue economic diversification and economies of scale.

Why is Jumia Technologies (JMIA) called the Alibaba of Africa?

There are several reasons why Jumia Technologies (JMIA) is known as the "Alibaba of Africa.

• Business Model Similarities:.Jumia, like Alibaba, offers an online marketplace and operates a platform that connects consumers and sellers.
•  Logistics Network:.Jumia operates its own logistics service, Jumia Logistics, to ensure efficient delivery of goods. This is also similar to Alibaba's Cainiao Network, which helps ensure fast and reliable delivery from seller to consumer.
• Electronic Payment Services:.Jumia offers an electronic payment service called "JumiaPay," which supports e-commerce transactions with secure and fast online payments. Alibaba also offers a similar payment service through Alipay, which is common to Jumia's service.
• Market size and growth potential:.Just as Alibaba has had great success in the Chinese market, Jumia is looking to grow in the African market. Africa's rapidly growing economies and increasing Internet penetration are expected to provide significant growth opportunities for Jumia's business.
• Strategic Partnerships and InvestmentsLike Alibaba, Jumia is expanding its business through strategic partnerships and investments. For example, just as Alibaba has partnered with many companies, Jumia is working with regional logistics and technology partners to strengthen its business.

For these reasons, Jumia is often referred to as the "Alibaba of Africa". This comparison is made because of the similarities between the two companies' business models, strategies, and positioning in growing markets.

What's so great about Jumia Technologies (JMIA)?

Jumia Technologies (JMIA) lies in its unique business model and market strategy, its contribution to the African digital economy, and its rapid growth.

Jumia operates a comprehensive e-commerce platform that operates throughout the African continent. This not only allows African consumers to purchase a wide variety of products via the Internet,Provides an opportunity for local sellers to market their products to a wider audienceshall be made. This kind ofThe two-way platform plays a major role in Africa's economic growth and infrastructure improvements.

Jumia also integrates logistics and payment services to ensure fast and efficient delivery of goods to consumers through Jumia Logistics.
from thisConsumers receive a reliable delivery experience, and in addition, JumiaPay offers secure and convenient online payments, facilitating cashless transactions in a market dominated by cash transactions.

Jumia's greatest strength is its specialization in the African market.The first is.
Africa.Internet penetration is rising rapidly, with a large number of young people and a growing demand for digital services.Jumia is an early entrant into this growing market and has established a competitive advantage by offering services tailored to the specific characteristics of each region.

In addition, Jumia has developed marketing strategies that are tailored to local characteristics. For example, it has built trusting relationships with consumers by adapting its marketing activities to local languages and cultures. By doing this,Jumia is recognized as a familiar and trusted brand for African consumers.

Jumia's success depends not only on its flexible business model and region-specific strategy, but also on its strong partnerships.Jumia has partnered with local logistics companies and technology partners to strengthen its infrastructure, and the collaboration has enabled Jumia to operate efficiently and sustainably.

Overall, Jumia Technologies is strengthening its presence by contributing to the development of Africa's digital economy and providing new value to consumers and sellers.
In the rapidly growing African market, Jumia is seen as a pioneer.

What is the background of Jumia Technologies (JMIA)?

Jumia Technologies (JMIA) was founded in 2012, and its founding background is largely due to Africa's rapid economic growth and increasing digitalization.
Jumia was founded in anticipation of the untapped potential of the African e-commerce market.

Founders and Initial Goals

Jumia was founded by Sacha Poignonnec and Jeremy Hodara.Both consultants were from McKinsey, and they saw the potential of the African market to offer the convenience of online shopping to consumers in the region.

Background of Establishment

• African Market Potential: Africa had a young population and rapid Internet and mobile device penetration. This led to a growing e-commerce market, and the founders of Jumia planned to take advantage of this growth opportunity to offer a wide range of products and services to African consumers.
• Lack of logistics and payment infrastructure: The logistics and payment infrastructure in Africa was not well developed, making efficient product delivery and secure online payments difficult in many areas. Jumia developed its own logistics network and electronic payment system (Jumia Pay) to address these challenges.
• Economic diversification needs: Many African countries encouraged the growth of new industries to promote economic diversification. Jumia aimed to stimulate the local economy and create new job opportunities through e-commerce.

Early Development and Partnerships

After its establishment, Jumia quickly expanded its operations and entered key markets such as Nigeria, Egypt, Kenya, and South Africa. It also formed a number of strategic partnerships in its early stages, working with local logistics companies and technology partners to strengthen its infrastructure.

The background of Jumia's establishment is largely due to the development of Africa's digital economy and the resulting changes in consumer needs.

What is the trading market?

• listed exchange: New York Stock Exchange (NYSE)
• ticker symbolJMIA : JMIA
• Listing Date: April 12, 2019

Jumia's listing on the New York Stock Exchange was the first for an African e-commerce company and attracted international attention.

What are Jumia Technologies' (JMIA) sectors, industries, and themes to which it belongs?

sector

Consumer Discretionary: Jumia Technologies is part of the General Consumer Goods sector. This sector primarily targets consumers' discretionary spending and includes e-commerce and retail. Jumia provides a platform for consumers to purchase goods online across Africa, responding to changes in consumer lifestyles and purchasing behavior.

type of industry

Internet Retail: Jumia is classified as an Internet retailer. This industry consists of companies that sell products and services through online platforms. Jumia's marketplace offers a wide range of categories, including fashion, electronics, housewares, food, and beauty products, providing convenience and choice for African consumers.

Themes belonging to

E-commerce and Digital Transformation: Jumia's business is dedicated to e-commerce and digital transformation. This theme aims to leverage digital technology to innovate traditional business processes and expand online transactions. Jumia contributes to the economic development of the region by providing an e-commerce platform against the backdrop of increasing Internet penetration and mobile devices in African markets, and through services such as Jumia Logistics and Jumia Pay, Jumia provides efficient logistics and secure payments, and promotes consumer digital The company promotes the digitalization of consumers.

Dividends?

Jumia Technologies has not paid a dividend.

As part of the company's business strategy and financial structure, profits are reinvested and focused on business expansion.

What is the size and growth potential of the industry to which Jumia Technologies (JMIA) belongs?

The industry to which Jumia Technologies (JMIA) belongs is the African e-commerce market, and the size and growth potential of this market is described below.

market scale

Africa's e-commerce market is growing rapidly, and according to several studies, that growth is expected to continue.
In 2020, e-commerce market sales across Africa are estimated to be about $16 billion, and by 2025 its size is projected to reach $75 billion.
This isIndicates a compound annual growth rate (CAGR) of approximately 30%.

growth factor

• Increased Internet penetration: Internet penetration is growing rapidly in Africa, with the number of Internet users reaching approximately 400 million by 2020. This is equivalent to about 40% of the total population. Increasing Internet penetration is a major driver of growth in the e-commerce market.
• Widespread use of smartphones: The proliferation of smartphones is also supporting the growth of the e-commerce market. Many people in Africa are using smartphones as their first means of accessing the Internet. This has made online shopping easier, contributing to the growth of the e-commerce market.
• Urbanization: Increasing urbanization has led to the development of logistics infrastructure and payment systems, which has facilitated the use of e-commerce. The growing middle class in urban areas is also increasing their spending power, which is supporting the growth of the market.

growth potential

The African e-commerce market is expected to continue to show high growth potential due to the following factors

• Large population of young people: Africa is the youngest continent in the world, with about 60% under the age of 25. This young population is digitally savvy and is a key customer segment for e-commerce.
• Expansion of digital payments: Mobile money and electronic payment services are becoming increasingly popular, and there is a shift from cash transactions to digital payments. This makes online shopping more convenient and is driving growth in the e-commerce market.
• Increased international investment: Many international investors are looking at the African e-commerce market and are increasingly injecting money into companies like Jumia. This has led to the development of infrastructure and expansion of services.

In general, the African e-commerce market is growing rapidly and is expected to maintain a high growth rate. As a leader in this market, Jumia Technologies is expected to further expand and grow.

Who are some of Jumia Technologies' (JMIA) competitors?

Jumia Technologies' (JMIA) competitors include several major players in the African e-commerce market. The following is a list of the major competitors and a description of their characteristics and competitive relationship with Jumia.

Konga

Konga is a Nigerian-based e-commerce company and one of Jumia's direct competitors. 

• The company offers a wide range of product categories, including fashion, electronics, and household goods.
• It has its own electronic payment system called KongaPay and offers a fast delivery service.

Takealot

South Africa-based Takealot is one of the largest online retailers in Africa. 

• It offers a diverse range of product categories and has a particularly strong presence in the South African market.
• Known for its efficient logistics system and excellent customer service.

Kilimall.

Based in Kenya, Kilimall is an e-commerce company with a large market share in the East African region. 

• The company has close ties with China and offers a diverse range of products at affordable prices.
• The local logistics network has been strengthened to ensure prompt delivery.

Masoko.

An e-commerce platform operated by Safaricom, a Kenyan telecommunications company.

• It is integrated with a widely used mobile payment system called M-Pesa.
• Utilizing its telecommunications infrastructure, the company has a strong customer base and logistics network.

Alibaba and Aliexpress

Alibaba Group is a global e-commerce giant based in China that also influences African markets through Aliexpress.

• Extensive product line and competitive prices.
• Efficient global delivery network.

What are Jumia Technologies' (JMIA) differentiators and advantages over the competition?

Jumia Technologies (JMIA) has differentiators and competitive advantages in the African e-commerce market. Below are Jumia's key differentiators and competitive advantages.

differentiator

• Region-specific approach: Jumia has developed a business model that focuses on the African market, offering services tailored to each country's culture and consumer needs. It implements region-specific marketing strategies and builds strong relationships of trust with local consumers.
• Integrated logistics and payment systems: Jumia Logistics has a logistics network that extends throughout Africa, enabling fast and efficient delivery of goods. It also offers a unique electronic payment system called Jumia Pay, which supports secure and convenient online payments. This enhances the consumer's purchasing experience.
• Wide range of product categories: Jumia's marketplace offers a wide range of product categories, including fashion, electronics, housewares, food, and beauty products, catering to a variety of consumer needs.

predominance

• Strong Partnerships: Jumia has strong cooperative relationships with regional logistics and technology partners. This has led to the development of infrastructure and expansion of services, increasing competitiveness.
• Brand recognition and credibility: Jumia is known as the "Alibaba of Africa" and has established itself as a top brand in the African market. It has high brand recognition and credibility among consumers, which helps differentiate it from its competitors.
• Innovation and Technology: Jumia maintains its competitive advantage through technological innovation. For example, services such as Jumia Pay and Jumia Logistics utilize the latest technology to enhance convenience for consumers and sellers, and have a technological edge over competitors.

These factors allow Jumia Technologies to continue to hold a strong competitive advantage in the African e-commerce market.

What is Jumia's growth strategy and vision?

Jumia Technologies' (JMIA) growth strategy and vision focuses on driving Africa's digital economy and delivering new value to consumers and businesses in the region.

growth strategy

• Jumia is a pan-AfricanExpansion of online marketplaceThe company aims to This is being done by adding new product categories and enhancing existing categories to provide the variety of products consumers are seeking and to expand the user base.
• Jumia is,Creating an efficient logistics networkBy doing so, the company is improving the speed and reliability of product delivery. The company is optimizing its delivery infrastructure by expanding its own distribution centers and strengthening cooperation with regional logistics partners.
• As an electronic payment service,We aim to promote Jumiapei andand allowing more transactions to be conducted securely online. This facilitates cashless transactions and increases convenience for consumers and sellers.
• Jumia is,Develop marketing strategies tailored to each country's market characteristics and consumer behaviorThe company is doing so. Through localized promotions and advertising campaigns, the company is increasing brand awareness and building trust with consumers.
• Jumia is,Partnerships with local businesses and international investorsThe company is accelerating its business expansion through a number of partnerships, including those in the areas of logistics, technology, and financial services.

vision

Jumia's vision is to contribute to the development of Africa's digital economy and provide new value to consumers and businesses. Specifically, the company has the following goals

• Building a Digital Infrastructure: The goal is to promote Internet access and digital technology throughout Africa and to develop a digital infrastructure so that more people can enjoy the convenience of online shopping.
• Economic Growth and Job Creation: Jumia aims to promote local economic growth and create new job opportunities. It supports the diversification and development of the economy by allowing local businesses and small and medium-sized enterprises to participate in the online marketplace.
• Sustainable Growth: The Jumia is pursuing sustainable growth and an environmentally friendly business model. The company is committed to reducing its environmental impact through the use of recyclable packaging and the operation of an efficient logistics network.

Jumia's growth strategy and vision is to drive Africa's digital economy and positively impact local communities.

Jumia Technologies (JMIA) Financial Results

Jumia Technologies' (JMIA) financial year ended December 31, and its quarterly results are presented in the following schedule.

• First quarter results (around the beginning of May):First quarter results typically focus on New Year sales trends from the end of the previous year, marketplace growth, and the efficiency of logistics services.

• Second quarter results (around early August):The second quarter financial report will reflect Jumia's major sale events and seasonal sales trends.
• Third quarter results (around the beginning of November):The third quarter financial report will include preparations for the year-end sales season and holiday season sales forecasts.
• Fourth quarter and full year results (around early February):The fourth quarter and full year results will summarize holiday season sales performance and the results of the company's growth strategy throughout the year.

First, we will review the following four indicators to perform a minimum performance analysis of Jumia Technologies (JMIA).

1. Sales:An indicator of a company's performance and growth.
2. Operating cash flow and operating cash flow margin:An indicator that looks at how much cash a company generates from its services. Margins are considered excellent when they are 15% of that ratio.
3. Operating Income:Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. EPS:An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the profitability.

Each data is,Investing.com, ,TradingViewSee from

Jumia Technologies (JMIA) Stock Price

View a real-time stock price chart (TradingView) showing the current stock price of Jumia Technologies (JMIA).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

Jumia (JMIA) Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

Jumia (JMIA) Quarterly: Operating Cash Flow Trends

Quarterly operating cash flow and operating cash flow margin.

Each transition is shown in the graph below.

Jumia (JMIA) Quarterly: Operating Income Trends

Quarterly operating income.

Each transition is shown in the graph below.

Jumia (JMIA) Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

Jumia (JMIA) Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

Jumia (JMIA) Full Year: Operating Cash Flow Trends

Operating cash flow for the full year and operating cash flow margin.

Each transition is shown in the graph below.

Jumia (JMIA) Full Year: Operating Income Trends

Operating income for the full year.

Each transition is shown in the graph below.

Jumia (JMIA) Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

What is the future life of Jumia Technologies (JMIA)? What are the future developments?

The following points are important for the future of Jumia Technologies (JMIA) and its future development.

promise

• Market Growth Potential: The e-commerce market in Africa is growing rapidly, and Jumia is well positioned to drive this growth. Internet penetration is increasing in Africa, especially mobile internet usage. This trend is a driver for Jumia's user base and transaction volume growth.
• Widespread use of digital payments: The widespread use of JumiaPay is expected to increase transaction volume and revenue by facilitating the shift from cash transactions to digital transactions and improving the security and convenience of transactions.
• Diverse product lineup: Jumia offers a wide range of product categories, which can be a factor in improving customer retention rates by meeting a variety of consumer needs.

Future Development

• Jumia will also strengthen its presence in existing markets,The company aims to grow further by entering new markets and expanding its services in major and emerging African cities, increasing its logistics network and the number of distribution centers.
• Jumia plans to leverage artificial intelligence (AI) and data analytics to improve the customer experience. For example, it is increasing customer satisfaction by providing personalized product recommendations and prompt customer support. In addition, through enhanced digital infrastructure, the company is achieving efficient transactions and logistics.
• Jumia is,In order to build a sustainable business model, the company places a high priority on environmental friendliness and is working to reduce its environmental footprint by using recyclable packaging and introducing eco-friendly delivery methods.
• Jumia is,Working with local and international partners, the company is strengthening its technical, logistical, and marketing capabilities. By doing so, the company aims to expand its business and increase its market share.

Jumia Technologies is expected to continue to grow while contributing to the development of the local economy.

Jumia Technologies (JMIA) Q2 2024 Financial Summary

• Net sales: $364.7 million, a decrease of 171 TP3T from the same period last year. However, in fixed currency terms, the increase was 151 TP3T.
• Gross Commodity Value Transactions (GMV): $170.1 million, a decrease of 51 TP3T from the same period last year. Increase of 35% in fixed currency terms.
• Operating loss: $20.2 million, down 8% from $22.1 million in the same period last year.
• Adjusted EBITDA loss: $16.3 million, a 10% improvement from $18.2 million in the same period last year.
• Loss before income taxes: $22.5M, a decrease of 27% from the same period last year.

Business Progress

• Number of Orders: 4.8 million, an increase of 71 TP3T over the same period last year. This is due to a stronger product assortment and improved value proposition to customers.
• JumiaPay Transaction: 1.9 million, an increase of 311 TP3T over the same period last year. Efforts to increase cashless orders continue.
• Marketing Expenditures: Decreased 19% over the year and focused on investments in efficient channels, including SEO, CRM, offline channels, etc.

cash position

• liquidity: $92.8 million, down $8.7 million from the previous quarter.
• Net cash used in operating activities: $8.39 million, down from $19.5 million in the same period last year.

Management's Comments

• Francis Dufay, CEO of Jumia, confirmed that "our strategy is working and usage trends are accelerating. We continue to grow by leveraging our deep understanding of the African e-commerce market and our unique assets".

Future Outlook

• growth strategy: Jumia expects order volume and GMV to increase throughout 2024, and is focused on reducing losses and improving cash efficiency.
• Excluding local currency fluctuations: Focus is on improving performance excluding the impact of foreign exchange rates.

Although Jumia's sales and GMV declined in the second quarter, the loss was reduced by improved cost control and marketing efficiencies. The company plans to continue to improve its competitiveness in the African market based on its growth strategy.

Which brokerage firms can I buy shares of Jumia Technologies (JMIA)?

The following is a list of major brokerages that offer Jumia Technologies (JMIA) shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of Jumia Technologies' (JMIA) business, its unique characteristics, competitive advantages, and earnings growth.

Jumia has skillfully entered the fast-growing African market and has achieved growth by accurately identifying local needs. Through efficient operations and rapid market expansion similar to Alibaba's growth model, Jumia is expected to continue to grow further.

In terms of business performance, cost reduction and efficiency improvement efforts have been successful, and the company is now on track to return to profitability.

The timing of the investment is attractive, and I have personally picked up a steady stream of shares, judging that it is worth proceeding with the investment in anticipation of long-term growth.