Jumia records lowest loss since IPO launch
Jumia Technologies, a leading Pan-African e-commerce company, continues its journey towards financial resilience and sustained growth, reporting its lowest Adjusted EBITDA losses since its IPO in 2019.
The company’s relentless focus on strategic growth initiatives has yielded promising results, evident in the Q3 2023 earnings report.
Under the stewardship of Group CEO Francis Dufay, Jumia’s commitment to a transformative blueprint initiated in Q4 2022 has proven pivotal. Notably, the quarter showcased substantial advancements across key metrics.
The resolute focus on core categories—Phones, Electronics, Home & Living, Fashion, and Beauty—has yielded tangible improvements. Jumia’s emphasis on tailoring offerings to meet customer needs in these key markets has notably enhanced repurchase rates among new customers.
Additionally, there’s a discernible uptick in the average order value (AOV) for physical goods, signaling an evolving customer engagement strategy that resonates with the market’s demands. This strategic pivot, evident in the considerable 74 percent year-over-year reduction in Sales and Advertising expenses, amounting to $4.3 million, aligns with the company’s pursuit of creating a stronger value proposition.
Furthermore, the 67 percent year-over-year decrease in Adjusted EBITDA loss, reaching $14.9 million, stands as a testament to Jumia’s concerted efforts toward profitability.
The most significant highlight of Q3 2023, according to CEO Francis Dufay, is the encouraging growth in GMV of physical goods across five countries. This growth reflects a pivot towards more efficient economics and sustained growth, aligning with Jumia’s core business strategy.
Jumia’s relentless pursuit of operational efficiency has been underscored by a remarkable achievement—a Fulfillment expense per order reaching $2.1, marking a significant 26 percent year-over-year reduction. Notably, these efficiencies have been realised concurrently with the company’s strategic expansion into secondary cities across Africa, emphasizing the commitment to reach underserved regions.
