Jumia Technologies, Africa’s e-commerce platform, has recorded a 17 percent decline in reported revenue to $36.5 million and 15 percent increase on a constant currency basis in second quarter, 2024.
According to the company, the report indicates strong underlying performance masked by currency devaluations in key markets as they continue to show resilience and strategic progress amidst a volatile economic landscape.
“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 metrics improvements,” the company stated.
Also the report showed that Gross Merchandise Value (GMV) experienced a similar pattern, with a 5 percent decrease in reported terms and 35 percent growth in constant currency, reaching $170.1 million in reported currency.
“These metrics reflect Jumia’s adaptive strategies and its emphasis on core business strengths, such as optimizing its product assortment and improving customer engagement.”
The company stated that it reduced its operating cost by 8 percent year-over-year to $20.2 million and its Adjusted EBITDA loss by 10 percent to $16.3 million which yielded significant
“Notably, the company’s cash burn was cut by more than half, declining to $8.7 million, demonstrating a disciplined approach to expenditure and efficient use of resources. This was partly achieved through a 19 percent reduction in marketing expenses, focusing on high-return channels like CRM, SEO, and targeted offline initiatives,” Jumia stated.
The report also stated that the regional currency devaluation affected the company’s financial performance both GMV and Total Payment Volume (TPV).
The TPV saw a 7 percent decline, largely mirroring the decrease in GMV. However, Jumia said the decision to hold 67 percent of its liquidity in USD mitigated some currency risks, illustrating a prudent approach to financial management.
The company explained that the Q2 2024 results underscore a period of careful yet determined execution against its strategic priorities, adding that as the company continues to successfully navigate market challenges and drive sustainable growth, it remains a pivotal player in connecting millions of African consumers with a diverse range of products and services.
Meanwhile, Jumia stated that the company’s logistics network expanded with new warehouses in Nigeria and Morocco which remain important for increasing storage capacity and improving supply chain management, without significantly impacting the balance sheet due to a focus on leasing rather than owning facilities.
