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Jumia, the e-commerce giant in Africa, faced a $20.2 million operating loss in Q2 2024 alongside a 17% decline in revenue. While this might seem troubling, it actually represents a marked improvement compared to the $22.1 million operating loss in the same period last year. The company‘s gross merchandise value (GMV) showed a 5% year-over-year decrease to $170.1 million, attributed to currency devaluations in operating countries.
Francis Dufay, the CEO of Jumia, highlighted the company’s successful strategy in reducing losses and progressing toward profitability. This strategy involved significant cost-cutting measures, including the elimination of 900 jobs and the closure of Jumia Foods in 2023.
JumiaPay transactions grew to 1.9 million in Q2 2024, a 31% increase from the previous year, driven by improved penetration of JumiaPay on delivery and cashback campaigns.
Despite challenging macroeconomic conditions and currency devaluations in its major markets like Nigeria and Ghana, Jumia saw growth in these regions. The company’s ability to maintain supply availability and offer diverse products at competitive prices has kept consumers engaged on its platform despite these hardships.
Dufay’s comments underscore a more positive outlook for Jumia, emphasizing its potential for growth and profitability, despite the tough operating environment.
In summary, Jumia’s recent financial results indicate both difficulties and improvements, reflecting the company‘s efforts to navigate challenging economic conditions while moving toward a more stable and profitable position.