Jumia Technologies AG (NYSE:JMIA) Q2 2023 Earnings Call Transcript

And at this point, you can spend any amount in marketing, it’s not going to make up for the gap in selection. And that was pretty much across the board. I mean, some countries were faring better, I think we gave the examples of Senegal and Ivory Coast a few quarters ago, but that was really the challenge across other countries. So, what we’re doing for that is we — I mean, we’re working with the people who have the power in the market and who have to supply. So, all suppliers, merchants, vendors, whatever the name, they exist. I mean, there are many of them in our markets. There are those who have access to brands, access to international supply, can import, have the financial power to bringing sufficient quantities, and we need — I mean, that’s what we’ve been doing for a while.

We need to convince them to come back to Jumia, at least all of their assortments, give us better prices than other distributors in the rest of the market, so we can start generating volumes and revenues for them. It’s a long process. Sometimes it means rebuilding relationships. Sometimes it means building them from scratch. Sometimes it means regrowing your account that have been with us a while, but were too small and so on and so forth. It’s a lot of personal relationships as well in many of the markets where we operate. History and — good and bad history plays a role. So it takes time, but it’s definitely the right thing to do and we see that when relationships are rebuilt and volume starts flowing again, we opt to a very, very positive trends.

So, to your question, around payoff time, it’s very hard to put a number on that. But what we see, I mean, it takes six to 12 months to fully turn around the country, to put it this way, to turn around the customer — the supplier’s relationships, re-lease everyone, rebuild categories one by one, invest marketing on the right categories, so we rebuild our reputation on those categories, and get the customers coming back and then get a positive cycle of reinforcement with more sales, more supply, and so on. But, as — I mean, I said six to 12 months, so if you do the math, you can understand that a large part of our countries have been in this transformation for more than six or 12 months. So, we should start seeing the impact at country level already.

And this is what I was mentioning. We’re starting to see an inflection in many countries. So, the impact is coming, not yet impacting the whole group trajectory, but we’re starting to see very, very positive signs. So, that was to your first question. Second question is, when do we return to growth? So I cannot put a clear figure on that, unfortunately. We’re working very hard on that. It’s fairly our priority. I mean, you can see that we have delivered quite effectively on cost reduction and cash preservation. Our top priority is clearly growth at this stage. And we know that we’re getting back to it. It’s very hard to tell you whether it’s in one, two or three quarters. It’s very hard to put an exact number on that. Then off platform revenues for JumiaPay, so what’s the size of the opportunity?

So, it’s very hard to size. What we’re doing now is that we’re negotiating — we’re improving the product and negotiating with key partners for a very selected contract in a very selective way, so we can prove the concept, have happy customers and then expand again. So, we’re not at the stage where we can say exactly how many million or billion dollars is going to generate. We’re really focused on proving the added value, the scalability in Nigeria and Egypt specifically. And then to your fourth question, can I leave that to you, Antoine?

Antoine Maillet-Mezeray: Yes. But can you please repeat the question? Because my line is not very good and it wasn’t clear to me.