Jumia Reports $20 Million Operating Loss in Q3 2024 Amid Revenue Decline

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Jumia

Increased Loss Despite Efforts
Jumia Technologies AG reported a $20.1 million operating loss in Q3 2024, a 10% increase compared to the $18.3 million loss in Q3 2023. The company’s revenue fell to $36.4 million, a 13% year-over-year decline, though it showed a 9% rise in constant currency terms. This reflects resilience in key markets despite currency devaluation in Nigeria and Egypt.

Mixed Performance Indicators

Despite lower revenue, Jumia’s Gross Merchandise Value (GMV) stood at $162.9 million, down 1% year-over-year but up 29% in constant currency. The company saw a 1% growth in its active customer base and a 4% increase in orders, indicating stable user engagement amid economic challenges.

Improved Liquidity and Strategic Changes

Jumia’s liquidity improved to $164.6 million, supported by its August 2024 At-the-Market (ATM) offering. This is a sharp turnaround from the $19 million liquidity decline in Q3 2023. The company remains focused on optimizing its spending while accelerating growth.

CEO’s Optimistic Outlook

CEO Francis Dufay expressed optimism:
“We’re seeing resilience in usage despite currency challenges in Nigeria and Egypt. Operational improvements, such as logistics upgrades and warehouse consolidation, will drive efficiencies as we expand beyond major cities.”

Strategic Market Exits

Jumia exited South Africa and Tunisia to focus on high-growth markets like Nigeria. These markets contributed only a small fraction to Jumia’s total orders and GMV. This strategic repositioning aims to enhance operational efficiency and profitability.

Future Growth Plans
After reducing its 2023 operating loss by 64% to $73 million, Jumia aims to return to growth in 2024. CEO Dufay remains confident in the company’s ongoing strategic initiatives to drive profitability and optimize cash utilization.

Key Takeaways

  • Q3 2024 operating loss: $20.1 million.
  • Revenue: $36.4 million, down 13%.
  • Improved liquidity to $164.6 million.
  • Strategic exits in South Africa and Tunisia to focus on higher-growth markets.

Jumia continues to refine its strategies to reduce losses and position itself for sustainable growth in Africa’s competitive e-commerce landscape.

Source: Nairametrices

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