Jumia's Financial Performance Shows Improvement in 2024

Jumia’s liquidity position improved to $133.9 million, helped by net proceeds from an at-the-market offering in August 2024. This reversed a decline of $106.9 million recorded in 2023.

Net cash flows used in operating activities also showed improvement, reducing to $57.2 million from $73.0 million in the previous year.

According to Jumia, key usage metrics improved in the fourth quarter, excluding South Africa and Tunisia. Physical Goods Orders increased by 18%, while Quarterly Active Customers grew by 8% year-over-year. These gains were achieved without increasing marketing costs. Strong sales during Black Friday further confirmed that the company’s strategy was yielding positive results.

Jumia’s CEO, Francis Dufay, stated that efforts would continue to focus on expanding beyond major cities, increasing the variety of products at competitive prices, and strengthening partnerships with international sellers.

“Our priorities for the year are to build on this progress by driving revenue growth and improving efficiency in operations,” Dufay said. “To move closer to profitability, we will continue to enforce cost discipline and optimize marketing and operational processes.”

The report showed that Jumia’s Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss improved to $51.3 million from $58.2 million in 2023. Loss before income tax from continuing operations remained nearly unchanged at $97.6 million, compared to $98.6 million in the previous year.

Despite revenue pressures, Jumia made notable progress in 2024. Dufay expressed pride in the company’s achievements, highlighting strong growth in secondary cities, increased supply from international sellers, and improved marketing efficiency.

For the full year ending December 31, 2024, Jumia reported a 10% reduction in its operating loss, bringing it down to $66 million. However, revenue declined by 10% to $167.5 million. Gross Merchandise Volume (GMV), which measures the total value of goods sold on the platform, fell by 4% to $720.6 million.

When adjusted for constant currency, GMV and revenue increased by 28% and 17%, respectively.  

Jumia, which is listed on the New York Stock Exchange, stated that cost-cutting measures and operational adjustments have been implemented to improve profitability.