Sign in

Jumia Records $20.1m Loss In Third Quarter Of 2024

Published

Friday, November 8, 2024 at 02:05 PM

Written by Franca Ozini Abaianyanri

Jumia Records $20.1m Loss In Third Quarter Of 2024

Report shows that Africa’s leading e-commerce platform, Jumia technologies, concluded the third quarter of 2024 with a challenging loss of $20.1m.

This is coming from a financial report released on Thursday by the award winning e-commerce company.

Speaking on their recent loss, Jumia attributed its $20.1m loss to consistent macroeconomic pressures that have affected and impacted on consumer demand and operating costs across its market space.

This quarter’s results marked a slight deterioration from the $18.3m operating loss recorded in Q3 2023.

In as much as there was a year-over-year revenue decrease of 13 per cent to $36.4m, the company has continuously shown consistency in constant currency, thereby attaining a 9 per cent revenue increase as well as a 29 per cent growth in gross merchandise volume over 2023 figures.

Adjusted EBITDA, a measure of operating performance that excludes certain non-cash and non-operating items, reached a loss of $17m, a 15 per cent increase from the $14.8m shown recorded in the same quarter in 2023.

The company has continued to establish and execute strategies to strengthen its cash position, which has notably raised an additional $71.8m from an at-the-market offering in August.

This increase in their returns brought Jumia’s liquidity to $164.6m, underscoring its focus on facilitating economic headwinds while stabilizing its finances.

In his remarks, the Chief Executive Officer, Francis Dufay, stated that in the third quarter they have continually enforced strategies in strengthening the fundamentals of their business.

“In the third quarter, we continued to strengthen the underlying fundamentals of the business.

“We saw growth in both quarterly active customers, up 1 per cent year-over-year, and orders, up 4 per cent over the prior year, as we continue to focus on diversifying our supply and strengthening the Jumia value proposition.

“We are encouraged to see continued resilience in our usage and business fundamentals despite the significant first quarter currency depreciation headwinds in Nigeria and Egypt that continue to impact reported GMV and topline revenue’’

He further explained that Jumia Technologies took several major operational steps in the quarter, which involves improvements to their logistics network and the consolidation of our warehouse footprint to enable greater efficiencies and increase supply capacity.

He stated that the company believes that their various efforts towards stabilizing their finances positions them well to scale and drive profitable growth, in as much as the changes has negatively impacted operations and expenses in the third quarter.

“We also recently decided to cease operations in South Africa and Tunisia in order to better allocate our resources to markets with stronger growth potential’’.

“While these updates will have a near-term impact on our operations and financial performance, we believe that our efforts position the business well to scale on our path to profitability”

Dufay also mentioned that the company is fully committed to taking a disciplined approach to managing their operations.

In his words he said : “The proceeds of our recent capital raise will help to accelerate our growth trajectory. However, we are committed to accelerating our strategy in a disciplined manner that avoids excess spending and will position the business for profitable growth over the long term”.

Edited By: Chinedu Eze

The journey to greatness is one step at a time and you should be part of it.

Join the NDconnect community channels on WhatsApp and Telegram to get News updates and add to the voices shaping the future : ❤️

WhatsApp Channel: https://whatsapp.com/channel/0029VajWDeK29754T7BzHU2H

WhatsApp Community: https://chat.whatsapp.com/Dlm6LmlgmzaKCMUYP4BPwC

Telegram t.me/NDConnectNewsAlert

11 months ago

Apprehend Kidnappers of Justice Umukoro

11 months ago

Rivers: Peace at What Price?

11 months ago

2027: Can the Coalition Work?

1 year ago

Tinubu, Democracy Day, and June 12

1 year ago

Diri at 66: Daring The Terrain in Bayelsa

1 year ago

PDP's Rescue Mission

1 year ago

Reoccurring Nightmare of Police Brutality

1 year ago

Adieu Pa Clark (May 25, 1927 to February 17, 2025)

1 year ago

All Eyes on Pope Leo XIV

see more

Tinubu Secures $6.45bn Loan In 16 Months

1 year ago

Fatal Building Collapse in Ibadan Leaves 10 Dead, 7 Wounded

1 year ago

EDO GUBER: Former Edo APC Lawmaker Dumps Party

1 year ago

Group Calls On NDDC To Focus on Local, Grassroot Development

1 year ago

Police Fire Teargas on Protesters Marking #EndSARS Anniversary

1 year ago

Edo Election 2024: Obaseki Loses LG to APC

Niger Delta Connect is an award winning indigenous and community based news platform that delivers high quality and original stories that shine light on emerging developments, connect & unravel underreported realities in the Niger Delta.

Your News

Niger Delta News

Inside naija

World News

Quick Links

Jumia Records $20.1m Loss In Third Quarter Of 2024

Report shows that Africa’s leading e-commerce platform, Jumia technologies, concluded the third quarter of 2024 with a challenging loss of $20.1m.

This is coming from a financial report released on Thursday by the award winning e-commerce company.

Speaking on their recent loss, Jumia attributed its $20.1m loss to consistent macroeconomic pressures that have affected and impacted on consumer demand and operating costs across its market space.

This quarter’s results marked a slight deterioration from the $18.3m operating loss recorded in Q3 2023.

In as much as there was a year-over-year revenue decrease of 13 per cent to $36.4m, the company has continuously shown consistency in constant currency, thereby attaining a 9 per cent revenue increase as well as a 29 per cent growth in gross merchandise volume over 2023 figures.

Adjusted EBITDA, a measure of operating performance that excludes certain non-cash and non-operating items, reached a loss of $17m, a 15 per cent increase from the $14.8m shown recorded in the same quarter in 2023.

The company has continued to establish and execute strategies to strengthen its cash position, which has notably raised an additional $71.8m from an at-the-market offering in August.

This increase in their returns brought Jumia’s liquidity to $164.6m, underscoring its focus on facilitating economic headwinds while stabilizing its finances.

In his remarks, the Chief Executive Officer, Francis Dufay, stated that in the third quarter they have continually enforced strategies in strengthening the fundamentals of their business.

“In the third quarter, we continued to strengthen the underlying fundamentals of the business.

“We saw growth in both quarterly active customers, up 1 per cent year-over-year, and orders, up 4 per cent over the prior year, as we continue to focus on diversifying our supply and strengthening the Jumia value proposition.

“We are encouraged to see continued resilience in our usage and business fundamentals despite the significant first quarter currency depreciation headwinds in Nigeria and Egypt that continue to impact reported GMV and topline revenue’’

He further explained that Jumia Technologies took several major operational steps in the quarter, which involves improvements to their logistics network and the consolidation of our warehouse footprint to enable greater efficiencies and increase supply capacity.

He stated that the company believes that their various efforts towards stabilizing their finances positions them well to scale and drive profitable growth, in as much as the changes has negatively impacted operations and expenses in the third quarter.

“We also recently decided to cease operations in South Africa and Tunisia in order to better allocate our resources to markets with stronger growth potential’’.

“While these updates will have a near-term impact on our operations and financial performance, we believe that our efforts position the business well to scale on our path to profitability”

Dufay also mentioned that the company is fully committed to taking a disciplined approach to managing their operations.

In his words he said : “The proceeds of our recent capital raise will help to accelerate our growth trajectory. However, we are committed to accelerating our strategy in a disciplined manner that avoids excess spending and will position the business for profitable growth over the long term”.

Apprehend Kidnappers of Justice Umukoro

Rivers: Peace at What Price?

2027: Can the Coalition Work?

Tinubu, Democracy Day, and June 12

Diri at 66: Daring The Terrain in Bayelsa

PDP's Rescue Mission

Reoccurring Nightmare of Police Brutality

Adieu Pa Clark (May 25, 1927 to February 17, 2025)

All Eyes on Pope Leo XIV

see more

Recommended Stories

Tinubu Secures $6.45bn Loan In 16 Months

Fatal Building Collapse in Ibadan Leaves 10 Dead, 7 Wounded

EDO GUBER: Former Edo APC Lawmaker Dumps Party

Group Calls On NDDC To Focus on Local, Grassroot Development

Police Fire Teargas on Protesters Marking #EndSARS Anniversary

Edo Election 2024: Obaseki Loses LG to APC