E-commerce giant Jumia Technologies AG posted a $20.1 million operating loss for Q3 2024, marking a 10% year-on-year increase in losses compared to $18.3 million in the same period last year. Revenues declined 13% year-over-year to $36.4 million, although constant currency growth showed a 9% improvement, indicating resilience in core markets despite ongoing challenges from currency depreciation in Nigeria and Egypt.
The company’s Gross Merchandise Value (GMV) dropped 1% year-over-year to $162.9 million but surged 29% in constant currency, reflecting improved operational efficiency. Jumia also recorded a marginal increase in its active customer base, up 1% year-over-year, while orders rose by 4%, signaling steady demand.
Despite the losses, Jumia strengthened its liquidity position with $164.6 million in cash, bolstered by its August 2024 ATM offering, up from a $19 million liquidity decrease in Q3 2023.
CEO Francis Dufay emphasized that the company’s operational adjustments, including logistical improvements and the consolidation of its warehouse footprint, are positioning Jumia for future growth, particularly in high-potential markets outside major cities. As part of its strategic repositioning, Jumia exited the South African and Tunisian markets to focus on higher-growth opportunities across the continent.
Dufay remains confident in Jumia’s path to profitability, highlighting the company’s recent focus on cost control and investment in scalable growth strategies.
