Jumia Technologies, Africa’s leading e-commerce platform, reported a mixed financial performance for 2024, marked by a 10% decline in annual revenue to $167.5 million, down from $186.4 million in 2023.
Despite this revenue drop, the company demonstrated resilience through cost-cutting measures, improved operational efficiencies, and strategic expansion.
In Q2 2024, Jumia’s reported revenue decreased by 17% to $36.5 million, primarily due to currency devaluations.
However, on a constant currency basis, revenue actually increased by 15%.
This positive trend was mirrored in the company’s Gross Merchandise Value (GMV), which fell by 5% in reported terms but grew by 35% in constant currency, reaching $170.1 million in Q2 2024.
For the full year, GMV totaled $720.6 million, reflecting a 4% year-over-year decline.
Jumia’s operating loss was reduced to $66 million from $73.3 million in 2023, driven by cost management.
The adjusted EBITDA loss improved by 10% year-over-year to $16.3 million in Q2 2024.
Net cash flows saw a significant improvement, with cash burn cut by more than half to $8.7 million, due to a 19% reduction in marketing expenses and efficient resource utilization.
This led to an improved liquidity position of $133.9 million, an increase of $13.4 million, including proceeds from the August 2024 At-the-Market (ATM) offering.
Operating costs were also reduced by 8% year-over-year to $20.2 million.
Jumia’s marketplace revenue, which includes third-party sales, marketing, and value-added services, declined by 31% year-over-year to $22.8 million, primarily due to currency devaluations and lower commissions from corporate sales in Egypt.
However, the number of orders grew by 6% to 22.7 million, with orders from outskirt regions increasing to 56% of total orders in Q4 2024, up from 49% in Q4 2023.
Jumia also expanded its logistics network with new warehouses in Nigeria and Morocco.
In 2023, Jumia exited the South African and Tunisian markets to focus on larger markets like Nigeria, Morocco, and Egypt.
Currency devaluations significantly impacted Jumia’s financial performance, affecting both GMV and Total Payment Volume (TPV), which declined by 7%.
However, holding 67% of its liquidity in USD mitigated some of these risks.
Looking forward to 2025, Jumia forecasts a loss before income tax of between $65 million and $70 million, representing a year-over-year decrease of 33% and 28%, respectively.
The firm noted “Under the leadership of CEO Francis Dufay, the company has focused on enhancing cash efficiency, refining its customer value proposition, and leveraging strategic partnerships, resulting in notable operational and financial improvements.”
He added, “We plan to double down on expansion outside major urban centers, diversify our product assortment with competitive pricing, and strengthen relationships with international sellers. To improve our path to profitability, we will continue enforcing cost discipline and enhancing operational and marketing efficiency.”
Jumia anticipates physical goods orders to grow between 15% and 20% year-over-year in 2025.
