Jumia Technologies, an e-commerce platform centred in Africa, reported a US$99.1 million loss after taxes in 2024, a slight decline from the US$99.3 million loss in 2023. The company’s customer base shrank by roughly 0.2 million due to market departures.
Orders for goods and services on the platform totalled US$720.6 million in 2024, down four percent from $749.8 million in 2023.
The company cites the 10 percent drop in revenue to currency devaluations in its regions and a downturn in corporate sales in Egypt, which caused revenue to drop from US$186.4 million in 2023 to US$167.5 million.
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Jumia’s share price fell 27.5 percent in a single day on Thursday as a result of the news, as the firm revealed a larger loss and lesser sales in the fourth quarter.
“The business is stronger and more efficient than it was just two years ago, and I believe we have a good opportunity ahead of us. Our priorities for the year are to build on this momentum by driving top-line growth and improving operational efficiencies,” Jumia CEO Francis Dufay said in a statement.
Surge in Black Friday sales
During the Black Friday week in November, Jumia’s sales increased by 83 percent, and the daily average in Kenya and Nigeria surpassed 2023 figures.
The e-commerce behemoth reduced its operating deficit from US$73.3 million in 2023 to US$66.0 million, a 10 percent decrease.
Strong consumer demand and ongoing product expansion drove an 18 percent increase in physical products orders, excluding South Africa and Tunisia, without raising marketing expenses.
In keeping with its aggressive cost-cutting strategies, Jumia announced plans in October 2024 to withdraw from South Africa and Tunisia in order to concentrate on markets with higher growth. The exits resulted in termination charges for the company of US$10 million.
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Jumia’s liquidity position improved by US$13.4 million to $133.9 million
With the aid of net proceeds from an August 2024 at-the-market sale, Jumia’s liquidity position increased by US$13.4 million to $133.9 million, reversing a US$106.9 million drop that occurred in 2023.
Due to a rise in JumiaPay’s delivery penetration in 2024, JumiaPay transactions reached 3.3 million, an 11 percent year-over-year gain.
Jumia’s customer base reduced by 300,000
Jumia’s active client base, however, decreased from 5.7 million in 2023 to 5.4 million due to market departures and economic challenges.
Although currency devaluation affected Jumia’s profitability in important regions like Egypt and Nigeria, the company was able to reduce the risks by keeping roughly 67% of its cash in US dollars.
Without accounting for foreign exchange effects, Jumia forecasts a 10–15 percent increase in gross merchandise value in 2025, or between US$795 million and US$830 million.
In 2019, Jumia went public on the New York Stock Exchange after beginning operations in 2012.