Jumia Posts $97 million Loss as Revenue Declines
Jumia Technologies AG pretax loss moderated by 1% to $97.559 million in financial year 2024 as the company’s revenue declined, according to an audited financial statement released today.
The company loss was relatively flattish year on year amidst strong costs savings culture and move to ramped up revenue generating activities. For 2025, the company expect loss to moderate further. “We forecast Loss before Income Tax to be in the range of negative $65 million to negative $70 million, a year-over-year decrease of 33% and 28%, respectively”, Jumia said in its outlook for 2025.
Revenue printed at $167. 486 million, down 10% year-over-year from $186.402 million in 2023. Costs of revenue reduced by 14.30% to $67.958 million from $79.298 million in the comparable period.
This left gross profit at $99.528 million in 2024, 7% decline from $107.104 million reported in 2023.
With tight costs management, Jumia reduced operating loss to $66 million from $73.30 million in the comparable year. Loss before Income tax from continuing operations was relatively flat at $97.6 million compared to $98.6 million in 2023.
A steep increase in finance costs in the period kept loss from continuing operations at near par year on year. The company gross merchandise value (GMV) settled at $720.6 million, down 4% year-over-year.
“GMV is projected to be between $795 million and $830 million in 2025, a year-over-year increase of 10% and 15%, respectively, excluding foreign exchange impacts”. Its adjusted EBITDA loss printed at $51.3 million compared to $58.2 million in 2023, down 12% year-over-year.
Liquidity position settled at $133.9 million marking an increase of $13.4 million in 2024, includes the net proceeds from the August 2024 At-the-Market (ATM) offering, compared to a decrease of $106.9 million in 2023.
Net cash flows used in operating activities of $57.2 million compared to $73.0 million in 2023 Jumia’s marketplace revenue, comprised of third-party sales, marketing and advertising, and value-added services, was $22.8 million, down 31% year-over-year or 11% year-over-year.
The decline was primarily driven by the impact of currency devaluations and lower commissions from third-party corporate sales in Egypt.
These corporate sales began contributing to Jumia’s revenue in the fourth quarter of 2023.
“I am proud of what we have accomplished in 2024. We saw robust growth in secondary cities, expanded our supply from international sellers, and further improved marketing efficiency.
“In the fourth quarter, excluding South Africa and Tunisia, we achieved strong acceleration in our key usage metrics, with Physical Goods Orders and Quarterly Active Customers increasing by 18% and 8% year-over-year, respectively, without an increase in marketing costs.
“We closed the year on a high note with strong Black Friday sales, underscoring that our strategy is working. As we look ahead to 2025, I am optimistic about Jumia’s future.
“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.
“We plan to double down on expansion outside the main urban centers, expand our product assortment with competitive pricing, and strengthen relationships with international sellers.
“To improve our path to profitability, we will continue to enforce cost discipline and enhance operational and marketing efficiency. I am confident that we are well-positioned to deliver sustainable growth and achieve profitability.” –CEO, Francis Dufay
“We are currently observing favorable trends in the first quarter, giving us confidence in establishing our full-year 2025 guidance as follows: We anticipate physical goods Orders to grow between 15% and 20% year-over-year”, Jumia said. #Jumia Posts $97 million Loss as Revenue Declines Nigerian Exchange Shrinks as Equities Investors Lose N166bn
