Jumia’s Q3 2024 Results Show Strategic Focus on Core Markets and Operational Efficiency

Jumia Technologies AG has announced its financial results for the third quarter that ended on September 30, 2024 .

The results highlight for the third quarter 2024 are as follows:

• Revenue of $36.4 million, down 13% year-over-year, or up 9% in constant currency.
• GMV of $162.9 million, down 1% year-over-year, or up 29% in constant currency.
• Operating loss of $20.1 million compared to $18.3 million in the third quarter of 2023, up 10% yearover-year, and up 6% in constant currency.
• Adjusted EBITDA loss of $17.0 million compared to $14.8 million in the third quarter of 2023, up 15% year-over-year, and up 10% in constant currency.
• Loss before income tax from continuing operations of $17.8 million in the third quarter of 2024, down 17% year-over-year or down 2% in constant currency.
• Liquidity position of $164.6 million, an increase of $71.8 million in the third quarter of 2024, that includes the net proceeds from the August 2024 At-the-Market (ATM) offering, compared to a decrease of $19.0 million in the third quarter of 2023.
• Net cash flows used in operating activities of $26.8 million compared to $24.0 million in the third quarter of 2023.

In the third quarter we continued to strengthen the underlying fundamentals of the business. We saw growth in both Quarterly Active Customers, up 1% year-over-year, and Orders, up 4% over the prior year, as we continue to focus on diversifying our supply and strengthening the Jumia value proposition. We are encouraged to see continued resilience in our usage and business fundamentals despite the significant first quarter currency depreciation headwinds in Nigeria and Egypt that continue to impact reported GMV and topline revenue.

We undertook several major operational steps in the quarter, including improvements to our logistics network and the consolidation of our warehouse footprint to enable greater efficiencies and increase supply capacity. While these changes negatively impacted operations and expenses in the third quarter, we believe that these efforts position us well to scale and drive profitable growth as we expand our footprint beyond the major cities (“upcountry”). We also recently decided to cease operations in South Africa and Tunisia in order to better allocate our resources to markets with stronger growth potential. While these updates will have a near-term impact on our operations and financial performance, we believe that our efforts position the business well to scale on our path to profitability.

As we move forward, we are committed to taking a disciplined approach to managing our operations. The proceeds of our recent capital raise will help to accelerate our growth trajectory. However, we are committed to accelerating our strategy in a disciplined manner that avoids excess spending and will position the business for profitable growth over the long term.

– Francis Dufay, CEO, Jumia