Jumia debunks Citron report

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…state reasons for listing on NYSE

By Bukola Olanrewaju

The widely known African e- commerce Company, Jumia has debunked Citron Report of being Fraudulent as an unverifiable Claim.

The assertion which was by Jumia in its corporate office while discussing with newsmen in Lagos.

This was coming after the report from a controversial stock seller, Citron Research alleged that Jumia Listing on New York Stock Exchange (NYSE) was fraudulent and also claiming its equity worthless.

After debuting its share at $14.50 for its historic initial public offering (IPO) on Apr. 12, Jumia’s stock initially soared, peaking at a closing price of $46.99 last week. It was one of the 10 best performing IPO stocks on the NYSE in 2019.

The aftermath made its share go downhill since with the stock recording six straight days of decline.

However, the e-commerce strongly argued that they stands by our prospectus and audited financials.

“We will not be distracted by those who look to create doubt, to profit at our expense and that of our long-term stakeholders.

In its report on Jumia, Citron repeatedly refers to Jumia as a “Nigerian company” involved in fraud and notes “not even that elusive Nigerian prince can cover this one up.”

Reacting to this, the Chief Executive Officer of Jumia,  Mrs Juliet Anammah combated that being tagged as a Nigerian Company does not make us a fraud.

Anammah equally noted that even though the unverified information has damaged the company’s reputation, the company remains transparent.

Explaining this, Jumia said, its Gross Merchandise Value grows by 58 per cent in Q1 2019 to €240 million.

“Other highlights included marketplace revenue growth of 102% to €16 million, and gross profits as a percentage of GMV growth of 6.5% in Q1 2019 versus the same period in 2018.

“Overall, Jumia’s operating losses for the period widened to €45.4 million from €34.3 and negative EBITDA increased to €39.5 million from €30.2”, Anammah said.

Basing its (Citron) claim on finding “major discrepancies in the key performance metrics, the amount of customers, also the amount of vendors [reported], which, when you’re talking about e-commerce, are the most important things

Anammah clearly expressed the company added 1.3 million active users between the first quarter of 2018 and first quarter of 2019

“Citron Report is misleading and mischievous because it focus on a month  period as against the 12 months stretch.

“We look at our GMV the same Alibaba looks at theirs.

Gross Merchandise Value is gross prior to cancellation and return in a twelve month look back period and that’s the way we disclosed this”, she noted.

She also stated that Jumia GMV was been looked at before cancellations and return as against after cancellations and report being looked at by Citron.

Speaking further, Anammah said the company chose to list on the New York Stock Exchange over any of the 14 African countries’ stock exchange where it is operating because it needs long-term investors.

“To find those people, you need people who are well experienced in your field, your industry, at this point in time we don’t have them in Africa.

“The industry is just seven years old, so you are likely to get financial investors that will come in and out and that can be very destructive”, according to her.

The Jumia boss, however, did not rule out an African listing, saying that it may happen by 2022 when investors must have understood the dynamics of the industry.

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