Jumia Reports Q4 & FY 2019: Gross profit up 64% in Q4 2019 and 72% for the full year 2019

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Jumia reports Q2 2020 results; Operating loss decreased by 44% year-over-year

JumiaPay Transactions accelerate 110% in Q4 2019 year-over-year and 278% for the full year 2019

LAGOS, Nigeria–(BUSINESS WIRE) – Jumia Technologies AG (NYSE: JMIA) (“Jumia” or the Company) announced today its financial results for the fourth quarter and full-year ended December 31, 2019.

“In the fourth quarter of 2019, we took a number of important actions to support our path to profitability while positioning the business for long term growth,” commented Sacha Poignonnec and Jeremy Hodara, Co-Chief Executive Officers of Jumia.

“We initiated a rebalancing of our business mix towards higher consumer lifetime value business, reducing promotional intensity on certain product categories while driving the growth of the more affordable, higher purchase frequency ones. While this led to a softer GMV growth trajectory, it has supported consumer acquisition and usage growth. Annual Active Consumers reached a record of 6.1 million and Orders increased by 49% in the fourth quarter of 2019 when compared with the fourth quarter of 2018.

This rebalancing, alongside gradual monetization, supported profitability as Gross profit reached €24.8 million, up 64% compared to the fourth quarter of 2018. Our Gross profit after Fulfillment expense was positive at €1.0 million in the fourth quarter of 2019 compared to a loss of €2.1 million in the fourth quarter of 2018.

We also undertook a portfolio optimization initiative to enhance our business focus and align our investments and resources with the opportunities that we believe the best support our long-term growth and path to profitability. We expect the impact of these initiatives to continue playing out in the coming quarters, with a more meaningful contribution to our path to profitability in 2020 and beyond.”

FOURTH QUARTER 2019 – PROGRESS ON STRATEGY

  • Marketplace growth: Driving profitable growth with a key focus on usage and consumer acquisition.
    • Annual Active Consumers reached a record of 6.1 million, a year-over-year increase of 54%.
    • Orders reached 8.3 million, a year-over-year increase of 49%.
    • GMV was €301 million, a year-over-year decrease of 3%. Adjusting for perimeter changes as a result of the portfolio optimization undertaken during the quarter, as well as previously reported improper sales practices, GMV of the fourth quarter of 2019 would have been €293 million, up 6% from €275 million in the fourth quarter of 2018.
  • JumiaPay development: Continued expansion of JumiaPay on-platform, with a view to offering payment and financial services off-platform in the future.
    • JumiaPay Total Payment Volume (“TPV”) was €45.6 million, a year-over-year increase of 57%, taking on-platform TPV penetration to 15%.
    • JumiaPay Transactions reached 2.4 million, a year-over-year increase of 110%, representing 29% of Orders on-platform.
  • Monetization development: Gradual monetization of usage and transactional activity, through diversified revenue streams.
    • Gross profit reached €24.8 million, a year-over-year increase of 64%.
    • Continued development of Marketing & Advertising revenue stream, up 120% on a year-over-year basis.
  • Cost efficiencies: Driving scale benefits on Fulfillment expense, increasing returns on Sales & Advertising expense, right-sizing General & Administrative cost base.
    • Gross profit after Fulfillment expense turned positive, reaching €1.0 million, compared to a loss of €2.1 million in the fourth quarter of 2018.
    • Sales & Advertising expense was €15.5 million, up 14% compared to the fourth quarter of 2018. Full-year 2019 Sales & Advertising expense per Annual Active Consumer decreased by 21% from €12 in 2018 to €9 in 2019.
    • Adjusted EBITDA loss, excluding restructuring G&A expense, was €51.2 million, compared to €48.6 million in the fourth quarter of 2018.

FOURTH QUARTER 2019 – BUSINESS HIGHLIGHTS

Marketplace Growth

  • Black Friday 2019 – Our Black Friday campaign ran over the course of 4 Fridays in November 2019. Jumia pioneered the Black Friday event on a pan-African basis in 2014 and, for its fifth edition, crossed a number of milestones.
    • During the event, we surpassed 1 billion pages viewed on our platforms, demonstrating our ability to engage our consumers in a compelling way. In Egypt, the soundtrack of the Jumia Black Friday commercial made it to the second position in the Arabic top charts with heavy rotation across major national radio channels. This illustrates our ability to create highly engaging, tailored content to local preferences.
    • In parallel, we ran 14 super-brand days during the campaign, offering participating brands enhanced visibility on our platforms with relevant social media and CRM activations. As a result of the commercial success of such days, a number of brands converted their marketing relationship with us from ad-hoc campaign contributions to annual marketing budgets for management by Jumia.
  • Driving inclusive growth is core to our mission. In the course of 2019, we established in Ivory Coast an improved model for last-mile delivery to reach consumers in secondary cities and rural areas. This model allows local entrepreneurs to open and operate pick-up stations that also serve as ordering points, earning a fee on packages delivered to, and a commission on orders placed from, the outlet.

JumiaPay Development

  • As of December 31, 2019, JumiaPay was available in 6 markets: Nigeria, Egypt, Morocco, Ivory Coast, Ghana and Kenya.
  • Continued expansion of digital services powered by JumiaPay. Our JumiaPay app offers consumers an increasing range of every-day digital services, such as utility bills payment, airtime recharge, transport ticketing, as well as financial services, provided by third-party partners. During the fourth quarter of 2019, we introduced an international top-up feature whereby JumiaPay app users have the possibility to send airtime recharges to pre-paid phone numbers internationally. We also expanded the range of consumer financial services into savings products with the launch of the AXA Money Market Fund in Nigeria.
  • Mastercard commercial activities kick-off. We rolled-out “Mastercard Tuesdays” on our platform in Kenya, Nigeria and Egypt, during which JumiaPay consumers who pay using Mastercard enjoy an additional discount. We also launched a campaign allowing Mastercard users to enter a raffle to win trips and tickets to watch UEFA Champions League matches.
  • JumiaPay Business platform. We piloted with a selected group of our sellers in Nigeria our JumiaPay Business platform which encompasses payment, financial services and marketing tools. While the payment and closed-loop wallet functionalities of JumiaPay have so far been consumer-facing, this initiative allows us to explore the merchant and Small and Mid-size Enterprise (“SMEs”) markets starting with the base of sellers active on our platform.

Portfolio Optimization

  • We regularly conduct portfolio reviews which assess the allocation of our resources to business verticals and geographies against multiple criteria, including financial performance, commercial environment as well as the ease and cost of doing business. As part of the 2019 portfolio review, a number of initiatives were implemented during the fourth quarter of 2019 with a view to enhancing our business focus and optimizing our capital allocation.
  • We took the decision to exit three geographies, Cameroon, Rwanda and Tanzania. While we continue to believe in the long-term potential of these countries, we decided to allocate our resources to the geographies that we currently believe present the best opportunities to support the Company’s long-term growth and the path to profitability. Our pan-African footprint and geographical diversification are key assets for us and we continue to invest across our 11 geographies of operation, which collectively represent more than 600 million people and approximately 70% of Africa’s internet users and GDP.
  • We also entered into a distribution and commercial agreement in relation to Jumia Travel’s flight and hotel booking portals. As part of this agreement, we will continue promoting flight and hotel booking services on our platform, redirecting the relevant traffic to our partner Travelstart, who will manage the sales, fulfilment and customer service aspects of the business.
  • The exited countries and the travel assets collectively accounted for less than 10% of our GMV, Gross profit and Operating loss for the full year 2019.

SELECTED OPERATIONAL KPIs

1. Marketplace KPIs

For the three months ended December 31

For the year ended December 31

2018

2019

2018

2019

GMV (€ mm)

311.0

301.2

828.2

1,097.6

Annual Active Consumers (mm)

4.0

6.1

4.0

6.1

Number of Orders (mm)

5.5

8.3

14.4

26.5

  • In the fourth quarter of 2019, GMV reached €301 million compared to €311 million over the same period in 2018, taking full-year 2019 GMV to €1.1 billion, up 33% compared to 2018. Adjusting for perimeter changes as a result of the portfolio optimization undertaken during the quarter, as well as previously reported improper sales practices, GMV of the fourth quarter of 2019 would have been €293 million, up 6% from €275 million in the fourth quarter of 2018.
  • The softer GMV growth in the fourth quarter of 2019 is a result of a business mix rebalancing we undertook to meet two key objectives, i) supporting our path to profitability and ii) driving long-term usage and consumer acquisition:
    • To support our path to profitability, we have reduced promotional intensity and consumer incentives on lower consumer lifetime value business. While most product categories experienced GMV growth in the 20 to 50% range, phones and consumer electronics contracted by approximately 20% on a year-over-year basis. This aspect of the business mix rebalancing will likely continue to negatively impact GMV development over the next two quarters. This dynamic may be further exacerbated by the Coronavirus outbreak, which causes challenges for our cross-border business and creates procurement issues for our sellers.
    • To drive long term usage and consumer adoption, we have increased our focus on every-day product categories such as Fast Moving Consumer Goods (“FMCG”), fashion, beauty and personal care as well as digital services which provide affordable entry points into the Jumia ecosystem while driving repeat purchase and consumer lifetime value.
  • Annual Active Consumers reached a record 6.1 million as of December 31, 2019, compared to 4.0 million as of December 31, 2018, a 54% increase. Our net consumer adds in 2019 totalled 2.1 million compared to 1.3 million in 2018, a 71% increase, as a result of our constant focus to drive consumer adoption, the record traffic on our platforms, which surpassed 1 billion visits in 2019 as well as improved conversion rates.
  • Orders reached 8.3 million during the fourth quarter of 2019, up 49% compared to the fourth quarter of 2018. On a full-year basis, Orders increased by 85% to 26.5 million in 2019 compared to 14.4 million in 2018 as our consumer cohorts continued to exhibit improving repurchase rates.
  • GMV, Annual Active Consumers and Orders are reported on a gross basis, irrespective of cancellations, failed deliveries and post transaction returns:
  • An order may be cancelled prior to shipping, either by the seller or by the consumer. After an order is shipped, instances of failed delivery can occur if the consumer is not available at the time of the delivery or returns the package upon delivery.
  • Post-delivery, returns are allowed within a specified period of time and subject to certain conditions.
  • The rates of cancellations failed deliveries and returns as a percentage of our GMV decreased from approximately 35% in 2018 to 32% in 2019.

2. JumiaPay KPIs

For the three months ended December 31

For the year ended December 31

2018

2019

2018

2019

TPV (€ million)

29.1

45.6

54.8

124.3

JumiaPay Transactions (million)

1.2

2.4

2.0

7.6

  • TPV increased by 57% from €29.1million in the fourth quarter of 2018 to €45.6 million in the fourth quarter of 2019 taking total TPV for the full year 2019 to €124.3 million, up 127% compared to 2018. On-platform penetration of JumiaPay as a percentage of GMV reached 15.2% in the fourth quarter of 2019 compared to 9.4% over the same period in 2018.
  • In the fourth quarter of 2019 alone, JumiaPay processed 2.4 million Transactions or more than the total number of JumiaPay Transactions for the full year 2018. On a full-year basis, JumiaPay Transactions increased by 278% from 2.0 million Transactions in 2018 to 7.6 million Transactions in 2019.
  • The ramp-up of JumiaPay on-platform is attributable to our continuing education efforts of consumers, the expanding range of digital services offered as part of our JumiaPay app as well as a number of newly introduced marketing initiatives. These include Mastercard Tuesdays discounts, cash-backs funded by card-issuing banks or the possibility to pay for purchases in 12-month instalments at no interest, offered by partner banks.

SELECTED FINANCIAL INFORMATION

1. Revenue

  For the three months ended December 31

 YoY 

  For the year ended December 31

 YoY 

(€ million)

20181

2019

Change

20181

2019

Change

  Marketplace revenue

17.3

26.0

50%

46.2

78.5

70%

Commissions

5.2

8.4

62%

14.4

25.0

74%

Fulfilment

5.8

8.9

52%

15.0

26.9

79%

Marketing & Advertising

1.1

2.3

120%

2.3

6.1

169%

Value-Added Services

5.3

6.4

22%

14.6

20.5

41%

  First Party revenue

25.7

23.0

(10%)

81.3

81.2

(0%)

Platform revenue

43.0

49.1

14%

127.5

159.6

25%

Non-Platform revenue

0.2

0.2

(19%)

1.5

0.8

(50%)

Total Revenue

43.3

49.3

14%

129.1

160.4

24%

12018 periods have been restated to reflect the impact of the reclassification of certain types of vouchers, consumer and partner incentives from Sales & Advertising expense to Revenue. This reclassification amounted to €0.5 million in the fourth quarter of 2018 and €1.5 million for the full year 2018. The cumulative effect for the nine months ended September 30, 2019 was included in the results for the three months ended September 30, 2019. Reclassification details have been provided in our report on third-quarter results, dated November 12, 2019.

  • Marketplace revenue increased by 50% in the fourth quarter of 2019 compared to the fourth quarter of 2018 and by 70% for the full year 2019 compared to 2018. In parallel with increased usage of our platform, we seek to build diversified streams of monetization:
    • Commissions, which are charged to our sellers, grew by 62% in the fourth quarter of 2019 and by 74% on a full-year basis. Commissions growth outpaced GMV growth as a result of an increase in the share of product categories with higher average commission rates, notably fashion and beauty as well as enhanced promotional discipline and reduced deployment of consumer incentives, some of which are accounted for as deductions from commission revenue.
    • Fulfilment, which comprises delivery fees charged to consumers, increased by 52% in the fourth quarter of 2019 and by 79% on a full-year basis in parallel with Order growth. Changes in the packages mix, notably an increased proportion of packages shipped from overseas sellers and increased deliveries outside primary cities, contributed to the increase in the Fulfillment revenue.
    • Marketing & Advertising, which corresponds to the revenue generated from the sale of a diversified range of ad solutions to sellers and advertisers, increased by 120% in the fourth quarter of 2019 reaching €2.3 million or as much as the entire Marketing & Advertising revenue amount for the full year 2018. The sustained momentum in this revenue stream shows the relevance of Jumia as a digital advertising channel to reach consumers across Africa in a targeted manner with tailored content, driving measurable performance.
    • Value-Added Services, which includes revenue from services charged to our sellers, such as logistics services, packaging, or content creation, increased by 22% in the fourth quarter of 2019 and by 41% on a full-year basis.
  • First Party revenue decreased by 10% in the fourth quarter of 2019 compared to the fourth quarter of 2018 and was stable on a full-year basis, as a result of lower share of first-party sales in our business. We undertake our first-party sales in an opportunistic manner to complement the breadth of the product assortment on our platform, usually in areas where we see unmet consumer demand. Over time, it is our goal to reduce the share of first-party sales in favour of third-party sales at the group level. This strategy may, however, vary from quarter to quarter and from country to country.
  • Shifts in the mix between first-party and marketplace activities trigger substantial variations in our Revenue as we record the full sales price net of returns as First Party revenue and only commissions and fees in the case of Marketplace revenue. Accordingly, we steer our operations not on the basis of our total revenue, but rather on the basis of Gross profit, as changes between third-party and first-party sales are largely eliminated at the Gross profit level.
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2. Gross Profit

For the three months ended December 31

YoY

For the year ended December 31

YoY

(€ million)

20181

2019

Change

20181

2019

Change

Gross Profit

15.2

24.8

64%

44.2

75.9

72%

12018 periods have been restated to reflect the impact of the reclassification of certain types of vouchers, consumer and partner incentives from Sales & Advertising expense to Revenue. This reclassification amounted to €0.5 million in the fourth quarter of 2018 and €1.5 million for the full year 2018. The cumulative effect for the nine months ended September 30, 2019 was included in the results for the three months ended September 30, 2019. Reclassification details have been provided in our report on third-quarter results, dated November 12, 2019.

Gross profit increased by 64% to €24.8 million in the fourth quarter of 2019 from €15.2 million in the fourth quarter of 2018, taking Gross profit to €75.9 million for the full year 2019, up 72% compared to 2018. The increase in Gross profit is a result of increased platform monetization as well as enhanced promotional discipline and reduced emphasis on consumer incentives, which supported margins.

3. Fulfilment Expense

For the three months ended December 31

YoY

For the year ended December 31

YoY

(€ million)

2018

2019

Change

2018

2019

Change

Fulfilment expense

17.2

23.9

38%

50.5

77.4

53%

Fulfilment expense includes expenses related to services of third-party logistics providers, expenses related to our network of warehouses and pick-up stations, including employee benefit expenses. Fulfilment expense grew by 38% in the fourth quarter of 2019 compared to the fourth quarter of 2018 and by 53% on a full-year basis.

Fulfilment expense is influenced by a number of factors including:

  • The origin of the goods, for example, the cost of shipping a product from a cross-border seller based overseas is higher than shipping from a local seller;
  • The destination of the package and type of delivery, for example, the cost of delivery to a secondary city or a rural area is higher than the cost of delivery to the main city and the cost of home delivery is higher than for pick-up station delivery;
  • The type of goods, for example, the cost of delivery is higher for a large home appliance than a fashion accessory.

Fulfilment expense was impacted in 2019 by a higher proportion of cross-border packages shipped from overseas sellers as well as a higher proportion of packages delivered outside primary cities. However, we continue to drive Fulfillment expense efficiencies as our order volumes grow.

During the fourth quarter of 2019, Gross profit after Fulfillment expense was positive and reached €1.0 million compared to a loss of €2.1 million in the fourth quarter of 2018 demonstrating continued progress on our path to profitability.

4. Sales & Advertising Expense

For the three months ended December 31

YoY

For the year ended December 31

YoY

(€ million)

20181

2019

Change

20181

2019

Change

Sales & Advertising

13.6

15.5

14%

46.0

56.0

22%

2018 periods have been restated to reflect the impact of the reclassification of certain types of vouchers, consumer and partner incentives from Sales & Advertising expense to Revenue. This reclassification amounted to €0.5 million in the fourth quarter of 2018 and €1.5 million for the full year 2018. The cumulative effect for the nine months ended September 30, 2019 was included in the results for the three months ended September 30, 2019. Reclassification details have been provided in our report on third-quarter results, dated November 12, 2019.

Our Sales & Advertising expense increased by 14% to €15.5 million in the fourth quarter of 2019 from €13.6 million in the fourth quarter of 2018, and by 22% on a full-year basis as we increased our Annual Active Consumers by 54% and Orders by 85% over the same period. Our Sales & Advertising expense per Annual Active Consumer decreased by 21% from €11.6 per Annual Active Consumer in 2018 to €9.2 in 2019, as a result of continued marketing efficiencies, increased share of traffic on the app, which helps reduce re-engagement costs, and more effective search marketing investments.

5. General and Administrative Expense, Technology and Content Expense

For the three months ended December 31

YoY

For the year ended December 31

YoY

(€ million)

2018

2019

Change

2018

2019

Change

General and Administrative (“G&A”)

30.6

39.2

28%

94.9

144.5

52%

of which Share Based Compensation (“SBC”)

3.7

5.3

44%

17.4

37.3

114%

of which restructuring G&A

2.2

n.m

2.2

n.m

G&A, excluding SBC and restructuring G&A

26.9

31.7

18%

77.5

105.1

36%

Technology & Content (“Tech”)

6.6

7.7

18%

22.4

27.3

22%

G&A, Tech, excluding SBC and restructuring

33.5

39.4

18%

99.9

132.3

32%

In the fourth quarter of 2019, we incurred €2.2 million of restructuring G&A expenses as part of our portfolio optimization and headcount rationalization initiatives, including redundancy benefits, provisions and other business termination costs. G&A excluding SBC and restructuring G&A increased by 18% in the fourth quarter of 2019 compared to the same period the previous year.

The following table provides a breakdown of the G&A, excluding SBC and restructuring G&A, for the full years 2018 and 2019.

For the year ended December 31

YoY

(€ million)

2018

2019

Change

Staff costs, excluding SBC

30.2

41.9

39%

Professional fees and sub-contracts

12.7

19.4

53%

Other G&A

23.1

24.5

6%

D&A, provisions and other non-cash expenses

11.5

19.3

67%

G&A, excluding SBC and restructuring G&A

77.5

105.1

36%

Staff costs, excluding SBC, represented approximately 40% of G&A, excluding SBC and restructuring G&A, for the full year 2019 and increased by 39% on a yearly basis. This was mostly as a result of organizational enhancements undertaken in the first half of the year to operate the business as a listed company.

Professional fees and sub-contracts, which include expenses related to legal and audit services, represented approximately 18% of G&A expense excluding SBC and restructuring G&A expense for the full year 2019 and increased by 53% in 2019 compared to 2018 following our public listing.

Other G&A expense represented approximately 23% of the G&A, excluding SBC and restructuring G&A, for the full year 2019. Other G&A expense includes office and infrastructure costs and was affected in 2019 by the adoption of IFRS 16, which led to changes in lease accounting, as detailed in the section “Operating Loss and Adjusted EBITDA”.

Lastly, Depreciation & Amortization, Provisions and other non-cash expenses represented approximately 18% of the G&A, excluding SBC and restructuring G&A for the full year 2019. While the adoption of IFRS 16 contributed to a reduction in occupancy costs, it also led to an increase in Depreciation & Amortization.

6. Operating Loss and Adjusted EBITDA

For the three months ended December 31

YoY

For the year ended December 31

YoY

(€ million)

2018

2019

Change

2018

2019

Change

Operating loss

(52.9)

(61.1)

15%

(169.7)

(227.9)

34%

Depreciation and Amortization

0.6

2.3

268%

2.2

7.9

265%

Share-Based Compensation (“SBC”)

3.7

5.3

44%

17.4

37.3

114%

Restructuring G&A1

2.2

n.m

2.2

n.m

Adjusted EBITDA, excluding restructuring G&A

(48.6)

(51.2)

5%

(150.2)

(180.5)

20%

1Restructuring G&A relates to our portfolio optimization and headcount rationalization initiatives and includes redundancy benefits, provisions and other business termination costs.

Operating loss increased by 15% to €61.1 million in the fourth quarter of 2019 from €52.9 million in the fourth quarter of 2018, taking Operating loss for the full year 2019 to €227.9 million, up 34% from the prior year. This is attributable to an increase in G&A expense, which includes SBC expense, as well as an increase in Fulfillment expense.

Adjusted EBITDA loss, excluding restructuring G&A, increased by 5% to €51.2 million in the fourth quarter of 2019 from €48.6 million in the fourth quarter of 2018.

On January 1, 2019, we adopted IFRS 16, which changed the accounting for leases. This led to a reduction in G&A – rental charges – expense by approximately €1.4 million in the fourth quarter of 2019, an increase in D&A by approximately €1.2 million and an increase in finance costs by approximately €0.3 million resulting in a positive impact on Adjusted EBITDA of approximately €1.4 million in the fourth quarter of 2019, a positive impact on Operating loss of €0.2 million and a negative impact on Net loss of €0.1 million. Prior period amounts were not retrospectively adjusted.

7. Cash Position

At the end of December 31, 2019, we had €232.4 million of cash on our balance sheet, including Cash & cash equivalents of €170.0 million and €62.4 million of Term deposits.

Sales Practices Review

The sales practices review, which we launched in the second quarter of 2019, has now been completed. In late 2019, we identified a small number of improper orders, mostly placed in the second quarter of 2019, in addition to the improper orders disclosed in our report on second quarter results. In aggregate, the improper orders identified generated less than 3% of our GMV in 2018, concentrated in the fourth quarter of 2018, and less than 2% of our GMV in 2019. Remedial measures have been taken. We have also implemented measures designed to prevent similar conduct in the future and, more broadly, to strengthen our internal controls and corporate governance. As part of our normal business, we continually take steps to strengthen our control environment and enhance our transaction monitoring procedures.

Legal Proceedings

In 2019, several putative class action lawsuits were filed in the U.S. District Court for the Southern District of New York and the New York County Supreme Court against us, certain of our officers, the members of our Supervisory Board, the underwriters of our initial public offering and, in New York State court, our auditors and our authorized representative. The cases assert claims under federal securities laws based on alleged misstatements and omissions in connection with and following our initial public offering. These actions remain in their preliminary stages. Two similar putative class action lawsuits filed in the Kings County Supreme Court were voluntarily dismissed in late 2019.

Conference Call and Webcast information

Jumia will host a conference call today, February 25, 2020 at 8:30 a.m.U.S. Eastern Time to discuss Jumia’s results. Details of the conference call are as follows:

Participant Dial in (Toll Free): 1-888-317-6016

Participant International Dial in: 1-412-317-6016

Canada Toll Free: 1-855-669-9657

A live webcast of the earnings conference call can be accessed on the Jumia Investor Relations website: https://investor.jumia.com/

An archived webcast will be available following the call.

(UNAUDITED)

 

Consolidated statement of comprehensive income as of December 31, 2019 and 2018 

 For the three months ended

 For the year ended

 December 31

 December 31

 December 31

 December 31

 In thousands of EUR

2019

2018

(as restated) (a)

2019

2018

(as restated) (a)

 Revenue

 49,276

 43,280(a)

 160,408

 129,058(a)

 Cost of revenue

 24,440

 28,098

 84,506

 84,849

 Gross profit

 24,836

 15,182

 75,902

 44,209

 Fulfillment expense

 23,880

 17,245

 77,392

 50,466

 Sale and advertising expense

 15,490

 13,603(a)

 56,019

 46,016(a)

 Technology and content expense

 7,728

 6,576

 27,272

 22,432

 General and administrative expense

 39,200

 30,633

 144,525

 94,925

 Other operating income

 537

 (262)

 1,929

 172

 Other operating expense

 188

 (188)

 496

 277

 Operating loss

 (61,113)

 (52,949)

 (227,873)

 (169,735)

 Finance income

 (953)

 469

 3,959

 1,590

 Finance costs

 1,003

 213

 2,576

 1,349

 Loss before Income tax

 (63,069)

 (52,693)

 (226,490)

 (169,494)

 Income tax expense

 522

 384

 575

 887

 Loss for the period

 (63,591)

 (53,077)

 (227,065)

 (170,381)

 Attributable to:

 Equity holders of the Company

 (63,461)

 (54,643)

 (226,689)

 (170,071)

 Non-controlling interests

 (130)

 1,566

 (376)

 (310)

 Loss for the period

 (63,591)

 (53,077)

 (227,065)

 (170,381)

 Other comprehensive income/loss to be classified to profit or loss in subsequent periods

 Exchange differences on translation of foreign operations – net of tax

 10,829

 (2,652)

 (19,449)

 (9,312)

 Other comprehensive income / (loss) on net investment in foreign operations – net of tax

 (11,131)

 2,218

 20,179

 9,072

 Other comprehensive income / (loss)

 (302)

 (434)

 730

 (240)

 Total comprehensive loss for the period

 (63,893)

 (53,511)

 (226,335)

 (170,621)

 Attributable to:

 Equity holders of the Company

 (63,763)

 (54,996)

 (225,959)

 (170,247)

 Non-controlling interests

 (130)

 1,485

 (376)

 (374)

 Total comprehensive loss for the period

 (63,893)

 (53,511)

 (226,335)

 (170,621)

(a)Restatement of consumer and partner incentives

 Revenue

 (516)

 (1,511)

 Gross profit

 (516)

 (1,511)

 Sale and Advertising expense

 (516)

 (1,511)

 Operating loss

 –

 –

(UNAUDITED)

Consolidated statement of financial position as of December 31, 2019 and December 31, 2018

As of

December 31

December 31

In thousands of EUR

2019

2018

Assets

Non-current assets

Property and equipment

17,434

5,020

Intangible assets

47

180

Deferred tax assets

109

175

Other non-current assets

1,508

1,263

Total Non-current assets

19,098

6,638

Current assets

Inventories

9,996

9,431

Trade and other receivables

16,936

13,034

Income tax receivables

725

726

Other taxes receivable

5,395

4,172

Prepaid expenses and other current assets

12,593

7,384

Term deposits

62,418

Cash and cash equivalents

170,021

100,635

Total Current assets

278,084

135,382

Total Assets

297,182

142,020

Equity and Liabilities

Equity

Share capital

156,816

133

Share premium

1,018,276

845,787

Other reserves

104,114

66,093

Accumulated losses

(1,096,134)

(862,048)

Equity attributable to the equity holders of the Company

183,072

49,965

Non-controlling interests

(498)

(117)

Total Equity

182,574

49,848

Liabilities

Non-current liabilities

Non-current borrowings

6,127

Provisions for liabilities and other charges – non-current

226

389(a)

Deferred income – non-current

1,201

Total Non-current liabilities

7,554

389

Current liabilities

Current borrowings

3,056

Trade and other payables

56,438

47,292(a)

Income tax payables

10,056

10,882

Other taxes payable

4,473

7,425(b)

Provisions for liabilities and other charges

27,040

19,692(b)

Deferred income

5,991

6,492

Total Current liabilities

107,054

91,783

Total Liabilities

114,608

92,172

Total Equity and Liabilities

297,182

142,020

 (a)reclassification of provision for termination benefits

Provisions for liabilities and other charges – non-current

389

Trade and other payables

(389)

(b)adoption of IFRIC 23

Income tax payables

10,735

Trade and other payables

(10,735)