Jumia, Africa’s e-commerce group, recently announced a $20.2 million operating loss for the second quarter of 2024, reflecting a 17% decline in revenue. This loss represents an improvement from the $22.1 million operating loss recorded in the same period last year, a decline of 8%.
The group’s revenue for Q2 2024 was $36.5 million, down from $44 million in Q2 2023. The company attributes this setback to currency devaluation. Despite the losses, CEO Francis Dufay indicated that the company’s cost-cutting measures are progressing as planned.
“Our performance for this quarter reinforces our belief that our strategy is working. Our deep understanding of the African e-commerce market, along with our unique asset base and strategy, positions Jumia for growth as we move towards profitability,” Dufay stated.
Since Dufay’s appointment, significant cost-cutting initiatives have included the elimination of over 800 jobs and the shutdown of Jumia Foods in 2023. The company has also focused on efficiency improvements through targeted marketing, including search engine optimization (SEO), customer relationship management (CRM), and local offline channels.
Jumia has attracted a higher quality customer base, evident from a 262-basis-point improvement in purchase rates in the first quarter. Additionally, Jumia Pay transactions reached 1.9 million in Q2 2024, marking a 31% increase year-over-year. The growth is attributed to enhanced market penetration, cash-back incentives, and the expansion of Jumia Pay on delivery.
Looking ahead, Jumia is committed to further streamlining user experience and expanding cashless order options to strengthen its e-commerce position.
