Africa’s leading e-commerce group, Jumia, reported a $20.2 million operating loss for the second quarter of 2024, reflecting an 8% reduction in losses compared to the same period last year.
The company’s Q2 revenue fell by 17% to $36.5 million, down from $44 million in Q2 2023. Despite this decline, Jumia’s gross merchandise value (GMV) – the total amount customers paid before deductions – decreased by only 5% year-over-year to $170.1 million.
The company attributed this drop to currency devaluations in some of its operating countries.
Jumia’s Group CEO, Francis Dufay, highlighted the company’s progress towards profitability.
“Our performance this quarter reinforces our belief that our strategy is working. Our deep understanding of the African e-commerce market as well as our unique asset base and strategy position Jumia for growth as we progress on the path towards profitability,” Dufay stated.
Since assuming his role, Dufay has focused on reducing costs, including cutting approximately 900 jobs and shutting down Jumia Foods in 2023. These measures have helped the company reduce its losses.
Jumia continues to adopt a disciplined approach to marketing, focusing on more efficient channels like search engine optimization (SEO), customer relationship management (CRM), and relevant offline local channels, while also leveraging its JForce network.
“As a result of these efforts, Jumia is attracting a stickier and higher quality customer base as evidenced by a 262 basis point year-over-year improvement in repurchase rates in the first quarter of 2024,” Dufay added.
JumiaPay transactions rose by 31% year-over-year to 1.9 million in Q2 2024. This growth was driven by increased penetration of JumiaPay on delivery and the implementation of cashback campaigns and incentives.
The company is also working to streamline the user experience and increase cashless orders, positioning JumiaPay as a strong enabler of its e-commerce platform.
Despite tough economic conditions, including significant currency devaluations in some of its largest markets, Jumia has managed to secure sufficient inventory and offer a diversified product assortment at competitive prices. Dufay emphasized the company’s resilience, noting growth in major markets like Nigeria and Ghana against the challenging macro environment in Africa.
