Jumia Reports Improved Operating Losses and Cash Flow in Q2 2024 Financial Results
Jumia Technologies AG, a leading e-commerce platform in Africa, has reported its financial results for the second quarter ending June 30, 2024. The company’s revenue for the quarter was $36.5 million, representing a 17% year-over-year decline, though it rose by 15% when adjusted for constant currency. Gross Merchandise Volume (GMV) stood at $170.1 million, down 5% year-over-year but up 35% in constant currency. The company recorded an operating loss of $20.2 million, showing an 8% improvement from the $22.1 million loss in Q2 2023.
Jumia’s adjusted EBITDA loss was $16.3 million, a 10% year-over-year improvement. Loss before income tax from continuing operations decreased by 27% to $22.5 million. The company’s liquidity position was $92.8 million, a reduction of $8.7 million from the previous quarter, reflecting a better cash flow management compared to a $39.1 million decrease in the same period last year. Net cash flows used in operating activities also improved, with $8.4 million used in Q2 2024 compared to $19.5 million in Q2 2023.
These results indicate Jumia’s ongoing efforts to optimize operations and manage losses, positioning itself for sustainable growth amidst challenging market conditions.
Jumia delivered another quarter of acceleration in its usage trends along with improved cash efficiency. Continued execution against our strategic priorities drove a 7% year-over-year increase in Orders, while Orders per Customer, excluding JumiaPay app Orders, which do not incur logistics costs, climbed to 2.1 Orders in the second quarter of 2024. GMV improved 35% year-over-year in constant currency and we delivered GMV growth in reported currency in six of our countries in the second quarter, up from five in the first quarter of 2024, a sign that the Jumia value proposition continues to resonate with the African consumer.
Francis Dufay, CEO, Jumia Technologies
Our quarterly cash burn1 declined 55%, or $10.4 million, quarter-over-quarter to $8.7 million in the second quarter of 2024 as a result of disciplined cost management and reductions in finance costs. Year-over-year our marketing spend declined 19% as we continued to invest in proven channels, such as CRM, SEO and local offline channels. These efforts delivered a 6% sequential increase in our active customer count and continued improvements in our 90 day repurchase rate.
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.
