Table of Contents
Key Points
- Jumia reported a $20.1-million operating loss in Q3 2024, a 10% increase from the $18.3-million loss in Q3 2023.
- Revenue declined by 13% year-over-year to $36.4 million, though it rose by 9% in constant currency terms.
- Gross Merchandise Value (GMV) increased by 29% in constant currency, despite a 1% decline in reported terms.
Jumia Technologies, Africa's leading e-commerce platform, faced a challenging third quarter in 2024, reporting a $20.1-million operating loss, a ten percent increase from the $18.3-million loss in the same period last year. This downturn is attributed to macroeconomic pressures affecting consumer demand and operational costs across Jumia's markets.
Revenue declined thirteen percent year-over-year to $36.4 million, although it rose by nine percent in constant currency terms, showing stability in core markets despite significant currency depreciation in Nigeria and Egypt. Gross Merchandise Value (GMV) grew by twenty-nine percent in constant currency, even as it dropped by one percent in reported terms.
Strengthening finances and operational efficiency
To counter economic headwinds, Jumia raised $71.8 million through an at-the-market offering in August, bolstering its liquidity to $164.6 million. Operational adjustments include improving the logistics network and consolidating warehouse capacity, moves intended to enhance efficiencies and support future growth. However, these adjustments raised short-term operational costs. As part of rural expansion, Sunil Natraj leads Jumia Nigeria’s efforts to reach underserved areas, expanding beyond major cities to broaden market reach.
Focused market strategy and disciplined growth
Jumia has exited South Africa and Tunisia to better allocate resources to high-growth markets, a strategy aimed at sustainable expansion and profitability. With proceeds from the capital raise, Jumia plans to accelerate growth carefully, emphasizing disciplined spending to strengthen its financial position for long-term profitability.
While Jumia's Q3 performance reflects the challenges of a complex economic environment, its proactive financial and operational strategies underscore a commitment to sustainable growth and improved profitability.
