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Section 1: 6-K (FORM 6-K)

Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of: August 2019

Commission File Number: 001-38863

 

 

Jumia Technologies AG

(Translation of registrant’s name into English)

 

 

Charlottenstraße 4

10969 Berlin, Germany

+49 (30) 398 20 34 51

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒                Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


On August 21, 2019, Jumia Technologies AG will hold a conference call regarding its unaudited financial results for the three months ended June 30, 2019. A copy of the related press release is furnished as Exhibit 99.1 hereto.


EXHIBIT INDEX

 

Exhibit No.

  

Description of Exhibit

99.1    Press release of Jumia Technologies AG dated August 21, 2019.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Jumia Technologies AG

By

 

/s/ Sacha Poignonnec

 

Name:

 

Sacha Poignonnec

 

Title:

  Co-Chief Executive Officer and Member of the Management Board

Date: August 21, 2019

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit 99.1

Exhibit 99.1

 

LOGO

Jumia reports Second Quarter 2019 Results

Continued strong growth of topline drivers and 94% increase in Gross profit

Continued delivery of cost efficiency improvements and focus on JumiaPay

Lagos, August 21, 2019 – Jumia Technologies AG (NYSE: JMIA) (“Jumia” or the Company) announced today its financial results for the quarter ended June 30, 2019.

“We continue to deliver on our financial strategy of generating strong growth of our topline drivers, while accelerating monetization, driving cost efficiencies and developing JumiaPay. During the second quarter of 2019, our GMV increased by 69% year-on-year and our Gross profit grew by 94%. Our Adjusted EBITDA loss as a percentage of GMV decreased by 562 basis points (5.62 percentage points) and our Operating loss, amounting to €66.7 million, decreased as a percentage of GMV by 148 basis points (1.48 percentage points)” commented Sacha Poignonnec and Jeremy Hodara, co-CEOs of Jumia. “These results reflect our continued focus on offering a relevant and engaging online shopping and lifestyle destination for consumers, while providing our sellers with an attractive value proposition and a platform to grow their businesses. We remain focused on all aspects of our growth strategy, particularly JumiaPay, as we continue to drive its usage in our markets.”

Business and Financial highlights

 

   

Growth momentum in topline drivers

 

     

GMV increased this quarter by 69% compared to the second quarter of 2018, due to a variety of factors, including strong marketplace growth and robust consumer acquisition and re-engagement momentum.

 

     

The number of Active Consumers at June 30, 2019 was 4.8 million, up from 3.2 million a year ago and 4.3 million at the end of the first quarter of 2019.

 

     

These increases are a result of our continued focus on selection, price and convenience, as we strive to be the preferred online shopping destination for consumers in Africa for all their daily needs. During the second quarter of 2019, we continued to increase the assortment available on our platform and to engage with consumers through relevant local commercial campaigns such as our “Mobile Week” and “Ramadan” campaigns.

 

1


   

Increased monetization

 

     

In parallel with the strong increase in GMV and Active Consumers, Marketplace revenue increased by 90% compared to the second quarter of 2018 as we continued to drive monetization from diversified streams of revenue including Commissions, Fulfillment, Value Added Services and Marketing & Advertising services.

 

     

Gross profit also grew faster than GMV, increasing by 94% compared to the second quarter of 2018, as a result of the increased monetization rate.

 

     

We continued to drive monetization in a gradual manner, introducing attractive services to our sellers aimed at supporting the growth of their businesses. In the second quarter of 2019, we placed a particular focus on our Marketing & Advertising revenue stream by continuing to develop an attractive suite of marketing products. Marketing & Advertising revenue grew by 490% year over year and represented 8% of Marketplace revenue in the second quarter of 2019 compared to 2% of Marketplace revenue in the second quarter of 2018.

 

   

Cost efficiencies

 

     

We continued to balance strong growth with cost discipline. While delivering strong growth of our topline drivers GMV and Active Consumers, our Sales & Advertising expense as a percentage of GMV decreased by 76 basis points (“bps”), from 6.2% of GMV in the second quarter of 2018 to 5.4% in the second quarter of 2019, reflecting the strong Jumia brand awareness and attractiveness of our platform to consumers.

 

     

Adjusted EBITDA loss as a percentage of GMV improved from negative 21.4% in the second quarter of 2018 to negative 15.8% in the second quarter of 2019.

 

   

Development of JumiaPay

 

     

JumiaPay remained a key focus area and it is now offered in six countries - Nigeria, Egypt, Ivory Coast, Ghana, Morocco and Kenya. Collectively, these six countries represented a combined population of almost 440 million people in 2018, according to data from the United Nations Population Division.

 

     

We have also expanded the scope of JumiaPay beyond our physical goods marketplace. As of December 31, 2018, JumiaPay was only available within our physical goods marketplace. It is now also available within our on-demand services, Jumia Food, and hotel booking portals, Jumia Travel, in selected countries.

 

     

Lastly, we continued to expand the range of financial and digital services available from third parties, powered by JumiaPay, offering our consumers an increasing range of relevant every day services. In Nigeria for instance, consumers can now access micro-loans offered by a local fintech startup, alongside event tickets offered by a local event ticketing provider.

 

2


 

In Egypt, in the second quarter of 2019, we started distributing services from a local deals provider allowing consumers to purchase their vouchers on the Jumia platform, using JumiaPay.

Selected Operational KPIs

 

     2018      2019  
     Second
Quarter
     Second
Quarter
 

GMV1 ( million)

     166.3        280.9  

Active Consumers2 (million)

     3.2        4.8  

 

1 

GMV corresponds to the total value of orders including shipping fees, value added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns.

2

Active Consumers means unique consumers who placed an order on our marketplace within the 12-month period preceding the relevant date (i.e., June 30, 2018 or June 30, 2019), irrespective of cancellations or returns

 

   

GMV increased by 68.9% from €166 million in the second quarter of 2018 to €281 million in the second quarter of 2019, on the back of the growth of Active Consumers and spend per Active Consumer.

 

   

The number of LTM Active Consumers as of June 30, 2019 was 4.8 million, up from 3.2 million a year ago and 4.3 million at the end of the first quarter of 2019. This corresponds to a quarterly net addition of 0.589 million consumers compared to a quarterly net addition of 0.211 million consumers over the same period last year. The acceleration in consumer growth is a reflection of the increasing relevance of our platform that drives continued consumer adoption and engagement.

Selected Financial Information

 

  1.

Revenue

The following table shows a breakdown of revenue, for the second quarters of 2018 and 2019.

 

     For the three months
ended June 30
     YoY
Change
 

(€ million)

   2018      2019  

Marketplace revenue

     9.2        17.5        89.7 % 
  

 

 

    

 

 

    

 

 

 

Commissions

     3.0        5.8        91.8 % 

Fulfillment

     2.8        5.7        102.6 % 

Marketing & Advertising

     0.2        1.3        489.5 % 

Value Added Services

     3.2        4.7        47.4 % 

First Party revenue

     15.5        21.6        39.2 % 
  

 

 

    

 

 

    

 

 

 

Platform revenue

     24.7        39.1        58.0 % 
  

 

 

    

 

 

    

 

 

 

Non-Platform revenue

     0.0        0.1        265.9 % 
  

 

 

    

 

 

    

 

 

 

Revenue

     24.8        39.2        58.3 % 
  

 

 

    

 

 

    

 

 

 

 

3


   

Marketplace revenue increased by 89.7% in the second quarter of 2019 compared to the second quarter of 2018, on the back of strong revenue growth across all components of Marketplace revenue, demonstrating our ability to monetize the platform as GMV and Active Consumers increase.

 

     

Commissions, which are charged to our sellers, grew by 91.8%.

 

     

Fulfillment, which are delivery fees charged to consumers, grew by 102.6%.

 

     

Marketing & Advertising, which include performance marketing campaigns, or the placement of banners on our platform, grew by 489.5%. This strong growth was driven by an acceleration in brand marketing contributions, aimed at promoting the visibility of their products on our platform.

 

     

Value Added Services, which include revenue from services charged to our sellers such as logistics services, packaging, or content creation, grew by 47.4%.

 

   

First Party revenue increased by 39.2% in the second quarter of 2019 compared to the second quarter of 2018. We undertake our first party activity in an opportunistic manner to complement the breadth of product assortment on our platform, usually in areas where we see unmet consumer demand.

 

   

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 mix are largely eliminated at the Gross profit level. Over time, it is our goal to reduce the proportion of first party activity in favor of third-party activity at group level. This strategy may however vary from quarter to quarter and from country to country.

 

  2.

Gross Profit

 

     For the three months
ended June 30
    YoY
Change
 

(€ million)

   2018     2019  

Gross profit

     8.9       17.3       93.6 % 
  

 

 

   

 

 

   

 

 

 

As % of GMV

     5.4 %      6.2 %   

Gross profit increased by 93.6% from €8.9 million in the second quarter of 2018 to €17.3 million in the second quarter of 2019, as a result of increased platform monetization.

 

4


  3.

Fulfillment Expense

 

     For the three months
ended June 30
    YoY
Change
 

(€ million)

   2018     2019  

Fulfillment expense

     (10.3     (17.6     69.8 % 
  

 

 

   

 

 

   

 

 

 

As % of GMV

     6.2 %      6.3 %   

Fulfillment 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. Fulfillment expense grew by 69.8% in the second quarter of 2019 compared to the second quarter of 2018.

Fulfillment 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 main city vs. secondary city vs. rural area, and home delivery vs. pick-up station

 

   

The type of goods, for example the cost of delivery is higher for a large home appliance than a fashion accessory

 

  4.

Sales & Advertising Expense

 

     For the three months
ended June 30
    YoY
Change
 

(€ million)

   2018     2019  

Sales & Advertising expense

     10.3       15.3       48.3 % 
  

 

 

   

 

 

   

 

 

 

As % of GMV

     6.2 %      5.4 %   

Our Sales & Advertising expense increased by 48.3% to €15.3 million in the second quarter of 2019 from €10.3 million in the second quarter of 2018, while we were able to increase our Active Consumers by 51.4% and our GMV by 68.9% over the same period. As a result, Sales & Advertising expense as a percentage of GMV, decreased from 6.2% in the second quarter of 2018 to 5.4% in the second quarter of 2019, demonstrating the relevance of our marketing strategy as well as the continued user adoption of our platform.

 

5


  5.

General and Administrative Expense, Technology and Content Expense

 

     For the three months
ended June 30
    YoY
Change
 

(€ million)

   2018     2019  

General and Administrative (“G&A”) expense

     24.5       44.9       83.5 % 

Share-Based Compensation (“SBC”) expense

     (5.8     (20.5     253.3 % 
  

 

 

   

 

 

   

 

 

 

G&A expense, excluding SBC

     18.6       24.4       30.6 % 
  

 

 

   

 

 

   

 

 

 

As % of GMV

     11.2 %      8.7 %   
  

 

 

   

 

 

   

 

 

 

Technology & Content expense

     5.4       6.7       22.8 % 
  

 

 

   

 

 

   

 

 

 

As % of GMV

     3.3 %      2.4 %   
  

 

 

   

 

 

   

 

 

 

G&A, Technology & Content expense, excluding SBC

     24.1       31.1       28.9 % 
  

 

 

   

 

 

   

 

 

 

As % of GMV

     14.5 %      11.1 %   

General and Administrative expense contains wages and benefits, including share-based payment expense of management, as well as seller management, commercial development, accounting and legal staff, consulting expense, audit expense, utilities cost, insurance and other overhead expense.

General and Administrative expense excluding SBC increased by 30.6% from €18.6 million in the second quarter of 2018 to €24.4 million in the second quarter of 2019. As a percentage of GMV, General and Administrative expense excluding SBC, decreased from 11.2% in the second quarter of 2018 to 8.7% in the second quarter of 2019 as a result of operating leverage.

Technology and Content expense increased by 22.8% from €5.4 million in the second quarter of 2018 to €6.7 million in the second quarter of 2019. As a percentage of GMV, Technology and Content expense decreased from 3.3% in the second quarter of 2018 to 2.4% in the second quarter of 2019.

 

  6.

Operating Loss and Adjusted EBITDA

 

     For the three months ended
June 30
 

(€ million)

   2018     2019  

Operating loss

     (41.9     (66.7

Depreciation and amortization

     0.5       1.8  

Share-Based Compensation (“SBC”) expense

     5.8       20.5  
  

 

 

   

 

 

 

Adjusted EBITDA

     (35.6     (44.4
  

 

 

   

 

 

 

As % of GMV

     (21.4 %)      (15.8 %) 

Operating loss increased from €41.9 million in the second quarter of 2018 to €66.7 million in the second quarter of 2019 mainly due to an increase in SBC expense.

 

6


Adjusted EBITDA loss, as a percentage of GMV decreased from negative 21.4% in the second quarter of 2018 to negative 15.8% in the second quarter of 2019 as a result of a higher Gross profit margin as a percentage of GMV, marketing efficiencies and operating leverage improving General and Administrative and Technology and Content expenses as a percentage of GMV.

On January 1, 2019, we adopted IFRS 16 which changed the accounting for leases. This led to a reduction in General and Administrative expense by approximately €1.2 million in the second quarter of 2019, an increase in Depreciation and amortization by approximately €1 million and an increase in finance costs by approximately €0.3 million resulting in a positive impact on Adjusted EBITDA of approximately €1.2 million in the second quarter of 2019, a positive impact on Operating loss of €0.1 million and a negative impact on Net loss of €0.2 million. Prior period amounts were not retrospectively adjusted.

SBC expense amounted to €20.5 million this quarter. The increase in SBC expense during the second quarter of 2019 is mainly related to the Jumia Initial Public Offering, completed in April 2019, triggering the vesting of some of the stock options granted under the 2016 Stock Option Plan. The SBC expense of the second quarter of 2019 also takes into account the 2019 grants.

The following table summarizes the forecasts of SBC expense over the coming quarters, based on the amortization of the 2016 and 2019 grants.

 

     2019  

(€ thousand)

   First
Quarter
     Second
Quarter
     Third
Quarter
     Fourth
Quarter
 

SBC expense

     4,312        20,522        6,400        6,400  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

7


Sales Practices Review

As disclosed in our prospectus dated April 11, 2019, we received information alleging that some of our independent sales consultants, members of our JForce program in Nigeria, may have engaged in improper sales practices. In response, we launched a review of sales practices covering all our countries of operation and data from January 1, 2017 to June 30, 2019.

In the course of this review, we identified several JForce agents and sellers who collaborated with employees in order to benefit from differences between commissions charged to sellers and higher commissions paid to JForce agents. The transactions in question generated approximately 1% of our GMV in each of 2018 and the first quarter of 2019 and had virtually no impact on our 2018 or 2019 financial statements. We have terminated the employees and JForce agents involved, removed the sellers implicated and implemented measures designed to prevent similar instances in the future. The review of this matter is closed.

More recently, we have also identified instances where improper orders were placed, including through the JForce program, and subsequently cancelled. Based on our findings to date, we believe that the transactions in question generated approximately 2% of our GMV in 2018, concentrated in the fourth quarter of 2018, approximately 4% in the first quarter of 2019 and approximately 0.1% in the second quarter of 2019. These 0.1% have already been adjusted for in the reported GMV figure for the second quarter of 2019. These transactions had no impact on our financial statements. We have suspended the employees involved pending the outcome of our review and are implementing measures designed to prevent similar instances in the future. We continue our review of this matter.

Legal Proceedings

Since May 2019, several class action lawsuits have been filed against us and certain of our officers in the U.S. District Court for the Southern District of New York and the Kings County Supreme Court in New York. The claims in these cases relate to alleged misstatements and omissions in our initial public offering prospectus and statements made by our company in connection with our initial public offering. These actions remain in their preliminary stages.

Conference Call and Webcast information

Jumia will host a conference call today, August 21, 2019 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

 

8


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.

 

9


(UNAUDITED)

Consolidated statement of comprehensive income as of June 30, 2019 and 2018

 

     For the three months ended     For the six months ended  

In thousands of EUR

   June 30
2019
    June 30
2018
    June 30
2019
    June 30
2018
 

Revenue

     39,234       24,786       71,076       53,134  

Cost of revenue

     21,954       15,858       38,130       35,611  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     17,280       8,928       32,946       17,523  

Fulfillment expense

     17,578       10,349       32,805       19,899  

Sales and advertising expense

     15,301       10,314       27,614       21,255  

Technology and content expense

     6,692       5,447       12,560       10,539  

General and administrative expense

     44,887       24,459       72,664       41,830  

Other operating income

     618       (4     679       101  

Other operating expense

     91       263       131       303  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (66,651     (41,908     (112,149     (76,202

Finance income

     (85     (28     521       556  

Finance costs

     845       141       1,676       416  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before Income tax

     (67,581     (42,077     (113,303     (76,062

Income tax expense

     181       228       261       342  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss for the period

     (67,761     (42,305     (113,565     (76,404
  

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

        

Equity holders of the Company

     (67,674     (41,789     (113,411     (75,390

Non-controlling interests

     (87     (516     (154     (1,014
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss for the period

     (67,761     (42,305     (113,565     (76,404
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Exchange differences on translation of foreign operations - net of tax

     1,366       (10,874     (10,506     (4,286

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

     (1,444     11,189       10,785       4,550  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income / (loss)

     (78     315       279       264  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss for the period

     (67,839     (41,990     (113,286     (76,140
  

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

        

Equity holders of the Company

     (67,753     (41,442     (113,133     (75,184

Non-controlling interests

     (86     (548     (153     (956
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss for the period

     (67,839     (41,990     (113,286     (76,140
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


(UNAUDITED)

Consolidated statement of financial position as of June 30, 2019 and December 31, 2018

 

     As of  

In thousands of EUR

   June 30
2019
    December 31
2018
 

Assets

    

Non-current assets

    

Property and equipment

     16,740       5,020  

Intangible assets

     70       180  

Deferred tax assets

     175       175  

Other non-current assets

     1,536       1,263  
  

 

 

   

 

 

 

Total Non-current assets

     18,521       6,638  
  

 

 

   

 

 

 

Current assets

    

Inventories

     14,057       9,431  

Trade and other receivables

     20,113       13,034  

Other taxes receivable

     6,083       4,898  

Prepaid expense and other current assets

     8,539       7,384  

Cash and cash equivalents

     332,980       100,635  
  

 

 

   

 

 

 

Total Current assets

     381,772       135,382  
  

 

 

   

 

 

 

Total Assets

     400,293       142,020  
  

 

 

   

 

 

 

Equity and Liabilities

    

Equity

    

Share capital

     156,816       133  

Share premium

     1,018,276       845,787  

Other reserves

     91,232       66,093  

Accumulated losses

     (983,871     (862,048
  

 

 

   

 

 

 

Equity attributable to the equity holders of the Company

     282,453       49,965  

Non-controlling interests

     (275     (117
  

 

 

   

 

 

 

Total Equity

     282,178       49,848  
  

 

 

   

 

 

 

Liabilities

    

Non-current liabilities

    

Non-current borrowings

     6,549       -  
  

 

 

   

 

 

 

Total Non-current liabilities

     6,549       -  
  

 

 

   

 

 

 

Current liabilities

    

Borrowings

     3,543       -  

Trade and other payables

     63,125       47,681  

Income tax payables

     10,055       10,882  

Other taxes payable

     5,752       7,288  

Provisions for liabilities and other charges

     21,472       19,829  

Deferred income

     7,619       6,492  
  

 

 

   

 

 

 

Total Current liabilities

     111,566       92,172  
  

 

 

   

 

 

 

Total Liabilities

     118,115       92,172  
  

 

 

   

 

 

 

Total Equity and Liablities

     400,293       142,020  
  

 

 

   

 

 

 

 

11


(UNAUDITED)

Consolidated statement of cash flows as of June 30, 2019 and 2018

 

     For the three months ended     For the six months ended  

In thousands of EUR

   June 30
2019
    June 30
2018
    June 30
2019
    June 30
2018
 

Loss before Income tax

     (67,581     (42,077     (113,303     (76,062

Depreciation and amortization

     1,778       496       3,473       976  

Impairment losses on loans, receivables and other assets

     1,588       1,226       2,048       1,544  

Impairment losses on obsolete inventories

     149       (35     353       (71

Share-based payment expense

     20,522       5,808       24,834       9,457  

Loss/(Gain) on disposal of property, equipments and intangible assets

     (169     5       (165     12  

(Gain)/Loss on disposal of financial assets

     -       -       6       -  

Net accrued interest and similar (income)/expense

     (48     (17     197       (26

Net unrealized foreign exchange (gain)/loss

     961       176       887       (218

(Increase)/Decrease in trade and other receivables, prepayments and VAT receivables

     (5,090     (969     (12,435     (375

(Increase)/Decrease in inventories

     (3,127     (455     (4,790     375  

Increase/(Decrease) in trade and other payables, prepayments and VAT payables

     1,480       523       9,526       (4,201

Change in provision for other liabilities and charges

     942       1,647       1,546       1,634  

Income taxes paid

     (1,073     (638     (1,126     (491
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows used in operating activities

     (49,667     (34,310     (88,951     (67,447
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

        

Purchase of property and equipment

     (1,449     (703     (2,127     (1,192

Proceeds from sale of property and equipment

     8       12       8       13  

Purchase of intangible assets

     (1     (10     (1     (35

Proceeds from sale of intangible assets

     219       -       219       -  

Consolidated securities investment

     23       -       -       -  

Purchase of financial assets

     22       -       (2     -  

Financial interest received

     488       -       488       -  

Movement in other non-current assets

     (237     147       (177     (107
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows used in investing activities

     (928     (554     (1,593     (1,321
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

        

Proceeds from borrowings

     (3     -       -       -  

Financial interest paid

     (444     -       (767     -  

Payment of lease liabilities

     (558     -       (1,336     -  

Capital contributions

     254,172       64,000       329,172       88,000  

Expenses reclassed to Equity

     (1,008     -       (3,747     -  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from financing activities

     252,159       64,000       323,322       88,000  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     201,564       29,136       232,778       19,232  
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (812     521       (432     108  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     132,229       19,411       100,635       29,728  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     332,980       49,068       332,980       49,068  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

12


Forward Looking Statements

This release includes forward-looking statements. All statements other than statements of historical facts contained in this release, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “believes,” “estimates”, “potential” or “continue” or the negative of these terms or other similar expressions that are intended to identify forward-looking statements. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements.

The forward-looking statements included in this release are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor our advisors nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Neither we nor our advisors undertake any obligation to update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations, except as may be required by law. You should read this release with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

 

13


Non-IFRS and Other Financial and Operating Metrics

Changes, percentages, ratios and aggregate amounts presented have been calculated on the basis of unrounded figures.

This release includes certain financial measures and metrics not based on IFRS, including Adjusted EBITDA, as well as operating metrics, including GMV and Active Consumers. We define GMV, Active Consumers and Adjusted EBITDA as follows:

GMV corresponds to the total value of orders including shipping fees, value added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns.

Active Consumers means unique consumers who placed an order on our marketplace within the 12-month period preceding the relevant date, irrespective of cancellations or returns.

Adjusted EBITDA corresponds to loss for the period, adjusted for income tax expense, finance income, finance costs, depreciation and amortization and share-based payment expense.

Adjusted EBITDA is a supplemental non-IFRS measure of our operating performance that is not required by, or presented in accordance with, IFRS. Adjusted EBITDA is not a measurement of our financial performance under IFRS and should not be considered as an alternative to loss for the period, loss before income tax or any other performance measure derived in accordance with IFRS. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate Adjusted EBITDA in the same manner. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance. Management believes that investors’ understanding of our performance is enhanced by including non-IFRS financial measures as a reasonable basis for comparing our ongoing results of operations. By providing this non-IFRS financial measure, together with a reconciliation to the nearest IFRS financial measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.

Management uses Adjusted EBITDA:

 

   

as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations;

 

   

for planning purposes, including the preparation of our internal annual operating budget and financial projections;

 

   

to evaluate the performance and effectiveness of our strategic initiatives; and

 

   

to evaluate our capacity to expand our business.

 

14


Items excluded from this non-IFRS measure are significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for analysis of our results reported in accordance with IFRS, including loss for the period. Some of the limitations are:

 

   

Adjusted EBITDA does not reflect our share-based payments, income tax expense or the amounts necessary to pay our taxes;

 

   

although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and

 

   

other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these and other limitations by providing a reconciliation of Adjusted EBITDA to the most directly comparable IFRS financial measure, loss for the period.

The following tables provide a reconciliation of loss for the period to Adjusted EBITDA for the periods indicated:

 

     For the three months
ended June 30
 

(€ million)

   2018     2019  

Loss for the period

     (42.3     (67.8
  

 

 

   

 

 

 

Income tax expense

     0.2       0.2  

Finance costs

     0.1       0.8  

Finance income

     0.0       0.1  

Depreciation and amortization

     0.5       1.8  

Share-based payment expense

     5.8       20.5  
  

 

 

   

 

 

 

Adjusted EBITDA

     (35.6     (44.4
  

 

 

   

 

 

 

 

15

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