Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Jumia's results conference call for the first quarter of 2021. [Operator Instructions] I would now like to turn the call over to Safae Damir, Head of Investor Relations for Jumia. Please go ahead.

Thank you. Good morning, everyone. Thank you for joining us today for our first quarter 2021 earnings call. With us today are Sacha Poignonnec and Jeremy Hodara, Co-Founders and Co-CEOs of Jumia; as well as Antoine Maillet-Mezeray, CFO. This call is also being webcast on the IR section of our corporate website. We will start by covering the safe harbor. We would like to remind you that our discussions today will include forward-looking statements. Actual results may differ materially from those indicated in the forward-looking statements. Moreover, these forward-looking statements may speak only to our expectations as of today. We undertake no obligation to publicly update or revise these statements. For a discussion of some of the risk factors that could cause actual results to differ from the forward-looking statements expressed today, please see the Risk Factors section of our annual report on Form 20-F as published on March 12, 2021. In addition, on this call, we will refer to certain financial measures not reported in accordance with IFRS. You can find reconciliations of these non-IFRS financial measures to the corresponding IFRS financial measures in our earnings press release, which is available on our Investor Relations website. With that, I'll hand over to Sacha.

Thank you. Thank you very much, and welcome, everyone. Thank you for joining us today. Before we go into the details of Q1 performance, we would like to talk about our strategy. We know that following our recent offering, this is an important question for our shareholders, and we would like to address it upfront. We founded Jumia in 2012, 9 years ago, with the vision to connect consumers and sellers and make commerce easier in Africa. We spent the first few years understanding the dynamics of our markets, consumers, the sellers, logistics, payments, and we then built the Jumia platform, which we think is uniquely adapted to the specifics of our markets. About 3 years ago, we decided to set the business on a clear path towards profitability. And we chose to do that instead of growing and scaling as fast as we can because we wanted to make sure that as the business scales, it turns profitable. I believe we've made very good progress on this over the past 18 months. We have significantly diversified our category mix and increased our exposure to product categories that are very relevant to consumers as part of their daily lives. We have also increased the penetration of JumiaPay to 26% of GMV, 37% of orders. On profitability, we've now posted 6 consecutive quarters of positive gross profit after fulfillment. I think we can now confidently say that we are making money after logistics. For 5 consecutive quarters, we have been reducing our adjusted EBITDA loss in absolute terms year-over-year. And we have also multiple countries, which are breakeven before tech and G&A expenses in a number of quarters. And as you are well aware, all this progress has been achieved with no particular tailwind from COVID-19. Finally, of course, we have…

Thanks, Sacha. Hello, everyone. So our focus in Q1 was to drive the usage in a selective and thoughtful manner with a robust level of marketing efficiency. And that was and is made possible by the strength of the Jumia brand in the countries where we operate. And we had a very good illustration of the Jumia brand strength with the result of the 2020 most influential brand survey in Egypt that was released by IPSOS in March this year. The survey is a global initiative. Was conducted in Egypt for the first time in 2020. And it assessed the brand's impact on Egyptian consumers based on multiple dimensions, such as trustworthiness, leadership presence, leading edge. Jumia ranked 7th among 120 national and international brands in Egypt and ranked number one in the digital and e-commerce category in Egypt. This high level of recognition by the consumer is a key enabler of our marketing efficiency, while our annual sales and advertising per annual active consumer declined by 46%, annual active consumers reached 6.9 million, up 7% year-over-year as we continue to acquire new consumers and engage existing ones. In the context of a decrease in the sales and advertising expense per order of 12%, total orders for the quarter reached EUR 6.6 million, up 3% year-over-year. This is a reversal of the declining trend observed over the prior 2 quarters. The fastest-growing categories in terms of volumes continue to be everyday product category, such as beauty, food delivery, fashion, while we continue to see volume declines in electronics albeit with a modest recovery observed in the phone category. As we reduced our sales and advertising spend by 9% year-over-year, GMV was down 13%, reaching EUR 165 million in Q1. It's also worth noting that the FX impact this quarter was…

Thank you, Jeremy. Hello, everyone. Let's start with our monetization metrics. In Q1 '21, marketplace revenue was up 6% and gross profit up 11%. FX headwinds mentioned earlier by Jeremy affected materially these figures. On a constant currency basis, marketplace revenue was up 16%, while gross profit was up 21% year-over-year. Taking a closer look at our various marketplace revenue streams on Slide 18, we can see that commissions increased by 9% year-over-year due to an increase in the share of higher commission rate categories, including fashion, beauty or food delivery. Fulfillment revenue increased by 11% as a result of pricing changes within our cross-border logistics, where we were initiated in the second half of 2020. As part of these changes, part of the international shipping fees that were previously charged to sellers were instead passed on to consumers. This change resulted in some of our international logistics revenue being recorded as fulfillment revenue instead of revenue from value-added services. That is also what drove the 13% decline in value-added services. Marketing and advertising revenue increased by 36% year-over-year. This is a result of the robust takeup by advertisers, both Jumia sellers and third parties of Jumia advertising solutions as we continue to improve the relevance and user experience of our ad solutions. As part as our efforts to continuously diversify our monetization streams and extract value from the broader asset of our platform, we piloted last year the opening of Jumia Logistics to third parties. On the back of the positive result of this pilot, we rolled out these services more broadly in Q1 '21. During the quarter -- I am now on Page 19, over 750,000 packages were delivered more than the total handled in 2020 as part of the pilot. We worked with over 250 logistics as…

Thank you, Antoine. Thank you, guys. Just final thoughts before questions. Everything we've done over the past couple of years and what we intend to do going forward is geared towards capturing this huge market opportunity we see in e-commerce and payment in Africa. We're very focused on the long term, and we strongly believe that the platform we have built is uniquely adapted to our markets to win in the long term. We're constantly improving and strengthening our value proposition to better serve the consumers and the sellers. Today, we talked about the pickup station network, which I think many of you may not know about. Also, our food delivery business, which probably some of you did not know about and both of which are great illustrations of the strategic assets that we have and how we can offer more convenience to our consumers, bring Jumia even closer to them and be at the heart of the communities. The situation is pretty simple. Our unit economics in Q1 are very good. They are outstanding, I think. All the work that we've done on monetization, cost efficiency is really paying off. We've been making money now for 6 consecutive quarters after fulfillment. We're seeing many countries getting closer to breakeven at local level. We've been consistently reducing our adjusted EBITDA loss in absolute terms, on a year-over-year basis, and that's for 5 quarters now. And all this is what we said we would do, and we are pleased with those results. And the path ahead is also very clear, we want to accelerate growth across the platform to take the business further on its path to profitability. And I think as we have said a little bit in the call, we are quite clear on what we will do and…

[Operator Instructions] Our first question is from Aaron Kessler from Raymond James.

A couple of questions. First, just maybe on the seasonality. It looks like it's a little bit more than we expected from Q4 to Q1 in terms of marketplace revenues. Is that -- was that primarily just seasonality? Or was there other headwinds, whether it's COVID or something else in the quarter? And then the 1P revenues as well was a little bit lower. I know that's kind of an intentional shift away from 1P revenues. Is that kind of a new base level we should be looking at for those revenues? Or do you think that continues to drift down from where it is really shifting out of 1P at this point? And then finally, just maybe just use of cash, and congrats on the recent equity raises. I know you talked about maybe it gives you some flexibility to invest in some new areas or continue to invest. Any specific areas you would call out that you're focused on investing with that increased cash position.

Thanks, Aaron. Thank you very much. Look, no particular seasonality in Q1, I would say, right? It's a quarter that is obviously the beginning of the year. And this year, nothing really special. So I think that's on that. I think the Ramadan this year started sometime in mid-April, and at some point, it's coming earlier every year. So maybe next year, there will be an impact from that because sometimes it drives a specific consumer behavior. But I would say, nothing special to call out this year, honestly. On the 1P, it's interesting. It's a very good question. We've been very clear that for us, there's no particular objective in terms of how small or how big do we want 1P to be, and we are primarily focused on building a marketplace. But 1P is very useful and very important for us because it's a strategic way sometimes to engage in certain categories. And for example, sometimes if there is a shortage of supply, or if there is a seller who does not carry certain goods, which are very relevant to the consumers, we are able to act as the seller, right? And it's a very helpful tool, if you will, for us to address the consumer relevance. And we feel pretty good about where we are, right? For now a number of quarters, it's been anywhere around 10%, plus or minus, right, of our GMV. And it's a level that is -- that we are comfortable with. And it may increase in the future as well, right? We're not solving to make it particularly lower than this. And it could be that if we see a shortage of supplies or supply disruptions, that we decide to drive a little bit more 1P. So again, for us, what's important…

Got it. Maybe finally, just can you briefly talk about the overlap. You mentioned the food delivery and on-demand, the overlap between food delivery and core retail that you're seeing or maybe how that's increasing?

Yes, very much, it's fascinating to see the overlap growing with time. And you can see -- you can take a few angles to think about this overlap. You see, one, more consumers are starting to use both, right? And in the past, for us, we were observing that the food delivery business tended to be for the upper middle class. The people who can afford to go to a restaurant, right? And of course, then they can afford to order a restaurant at home. And we're seeing more and more of our historical consumers from the physical goods marketplace also discovering that service as they find it attractive. And also as we have more and more restaurants, which -- to choose from. There is a big overlap also in terms of vendors, right? We have many of our vendors want to be able to offer a 30-minute delivery, and they want to be able to also offer e-commerce nationwide, right? Many of the FMCG grocery players, they think about newcomers in a way to where you can reach consumers and give them something that is immediate, a purchase that maybe is unplanned and more impulsive and a convenience purchase, right? So it's a great channel for the vendors to address this impulse, convenience and instant delivery. But of course, you also want to be shipping goods on the other side of the country with a few days' delay and we want to be able to serve the needs of the consumers who are not in the big cities, they're outside the big cities. And also for purchases, which are maybe less planned -- or maybe more planned, I should say, and more prepared, right? So the vendors are extremely eager to explore both platforms as a way to address 2 different consumer needs. And then from a logistics perspective, obviously, having the ability to deliver very, very fast in the big cities is a very strong competitive advantage for us to use for the e-commerce deliveries, but also to use for the monetization of Jumia Logistics. And today, we offer the Jumia Logistics as a service to third parties, and we mainly focus today on giving them those clients last-mile delivery and more e-commerce traditional deliveries and which time we will expand this to instant delivery. So it's overall very attractive. And last but not least, it makes our subscription program very attractive, right, which is a competitive advantage as well because the members of the Jumia Prime program they have advantages both for the e-commerce but also for the food delivery. And that is, of course, very attractive because then it creates more reasons for consumers to use both.

[Operator Instructions] Our next question is from Lamont Williams from Stifel.

First question I had was on this food delivery unit economics. Can you talk a little bit about how the unit economics on the food delivery and on-demand compares with some of the traditional e-commerce business? And then could you also just talk about the competitive landscape in food delivery?

Yes, of course. I think the unit economics for us have been pretty attractive, I would say, and definitely contributing to the good results that you have seen in our unit economics over the last few quarters. The average basket size is -- it differs by country, but even the, let's say, low double digit, right? So between EUR 10 and EUR 15 depending on the month, depending on the cities, et cetera, but that's more or less what we're talking about. And then you have commission levels, which have been varying, of course, by countries, but they are generally above -- or around 20%, right? So that's more or less what we've been seeing. And then the logistic costs are, of course, tend to be lower than e-commerce, right? So because it's more instant delivery. In e-commerce, we have quite a significant share of the businesses outside the big cities. And it's also sometimes in the rural area, right? So you have to deleverage it. When we look at the average in the big city, you have a cost which is pretty similar, right? So when we look at the cost of delivering a pair of shoes on a next-day basis in Lagos, for example. And when we look at the cost of delivering a pizza in 30 minutes, it's pretty comparable, right? And generally, most of the orders they include what we call a shipping fees. So the consumers are participating to this logistic cost. So all in all, it's an attractive business from a unit economic perspective. And in terms of competition, there's quite a number of players who are acting in our countries of operations. In some of them, you have some historical player who have been there even before we were there. You have a few international players who are active in certain markets like Uber Eats or Glovo. And you have also a lot of the ride-hailing companies who have tried to enter into ride hailing some local companies doing better are attempting to expand into food delivery because it's obviously a very natural expansion as we all know. And so yes, it's a rather competitive offering. But I think we're very well positioned because we have the Jumia brand, obviously, which is huge, and we benefit from all those investments. We've been doing this business for 10 years, which is a lot. I don't know any player multi-country who has done it for longer than us. And we've got a lot of experience and we've got the scale of the infrastructure of Jumia to leverage, right, the brand, the logistics, the payments, the consumer base, the relationship with advertisers, the relationship with the restaurants, the Jumia Prime subscription model. So it's -- for us, it's something that we feel very strong about. And we think that we have a very competitive and very effective value position for consumers and for restaurants.

Our next question is from [Edgar Durke] from Blackrock.

I've got only two quick questions. The first is, can you just explain your increase in trade and other receivables from EUR 10 million to roughly EUR 100 million. And then the second is on your GMV, it's just a technical question. Does the EUR 165 million you quote, is that gross of returns, discounts and vouchers or net? And if it's gross, please, can you provide the net number?

Thank you for the question. Probably Antoine, you should take those, please?

Yes, I can take both. In the increase of receivable includes the third tranche of the offering that we made in May, and that was collected received in April. It accounts for USD 88 million. The revenues we are showing all net of vouchers.

I think maybe your question. The first one is like cash basically. And.

Yes. It's no cash for sure. No, it's not cash.

This concludes our question-and-answer session. I would like to turn the conference back to Sacha for closing remarks.

Great. Thank you very much, everyone, for attending, as always, Very happy to take follow-up questions and very much looking forward to next steps. Thank you very much, and take care. All the best.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.