Cote d'Ivoire-based executive Francis Dufay announces 8-percent reduction in Jumia's operating losses

Oluwatosin Racheal Alabi -

Key Points:

  • Jumia mitigated currency risks by holding 67 percent of its liquidity in USD.
  • The company ended its agreement with Mastercard Asia/Pacific to explore broader partnerships.
  • New Buy Now Pay Later partnerships in Nigeria will enhance financial services and consumer access.

Francis Dufay, the Cote d’Ivoire-based executive of Jumia Technologies AG, announced an eight-percent reduction in the company’s operating losses, despite the challenging economic environment.

In its latest financial report, Jumia revealed that its operating loss decreased year-over-year by eight percent to $20.2 million in Q2 2024. This reduction in losses was achieved even as the company faced economic headwinds, including currency devaluations in key markets and a 17-percent decline in revenue, which fell to $36.5 million.

However, on a constant currency basis, the company reported a 15-percent increase in revenue. Jumia attributed its performance to a strong underlying business, despite the volatile economic conditions. The gross merchandise value (GMV) for the e-commerce platform showed a 35-percent growth on a constant currency basis, although it experienced a five-percent decrease to $170.1 million in reported terms.

The company emphasized its focus on core strengths, such as optimizing product offerings and enhancing customer engagement, which helped mitigate the impact of economic challenges.

The company’s cost management played a role in the improved financials, leading to a 10-percent reduction in adjusted EBITDA loss to $16.3 million and a decrease in cash burn to $8.7 million.

Jumia also cut marketing expenses by 19 percent, redirecting efforts toward high-return channels such as customer relationship management (CRM), search engine optimization (SEO), and targeted offline campaigns. Jumia reported positive customer trends, with a 7 percent year-over-year increase in orders and a 31-percent rise in JumiaPay transactions. This growth was driven by greater penetration of JumiaPay on delivery and strategic cashback initiatives.

To support its asset-light business model, the company expanded its logistics network by opening new warehouses in Nigeria and Morocco. Despite regional currency devaluations affecting its GMV and total payment volume, which declined by seven percent, Jumia’s strategy to hold 67 percent of its liquidity in USD provided some protection against these risks.

Additionally, the company ended its commercial agreement with Mastercard Asia/Pacific to explore broader partnerships with other payment service providers, aiming to strengthen its JumiaPay platform. Jumia remains committed to reducing losses and driving toward profitability. The company plans to further enhance cash efficiency, targeting reductions in cash utilization compared to FY 2023.

One of its initiatives includes launching additional Buy Now Pay Later partnerships in Nigeria, which will expand its financial services offerings and improve consumer access to e-commerce. These efforts, along with disciplined financial management, position Jumia for continued growth in the future.