Africa’s e-commerce giant Jumia on Thursday released its earnings statement for Q4 and full year 2024, reporting a 10 % decline year-on-year in its operating loss to $66 million from $73.3 million in 2023.
For the full year 2024, Jumia reported a revenue of of $167.5 million, also down 10% year-over-year compared with $186 million recorded in the previous year.
The company’s Gross Merchandise Value (GMV), which refers to the value of all goods bought on its platform, declined by 4% year-over-year to $720.6 million from $750 million in 2023.
The company blamed the decline in GVM on the decrease in corporate sales in Egypt and currency devaluations across its markets.
Strategic focus and operational efficiency
Jumia’s CEO, Francis Dufay, highlighted the company’s strategic achievements in 2024, emphasizing robust growth in secondary cities, expanded supply from international sellers, and improved marketing efficiency.
- Notably, Jumia achieved an 18% year-over-year increase in physical goods orders and an 8% rise in quarterly active customers in Q4 2024, excluding South Africa and Tunisia, without increasing marketing costs.
- Dufay attributed these gains to the company’s disciplined approach to marketing spend, which has focused on efficient channels such as search engine optimization (SEO), customer relationship management (CRM), and localized offline channels like radio and print.
- Additionally, Jumia has leveraged its JForce network to drive customer acquisition and retention.
Priorities for 2025
Dufay outlined key priorities for 2025, including driving top-line growth, improving operational efficiencies, and expanding further into secondary cities.
The company also plans to enhance its product assortment with competitive pricing and strengthen relationships with international sellers.
“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.
“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,” Dufay said.
What you should know
In October last year, Jumia announced plans to shut down its operations in South Africa and Tunisia by the end of 2024.
The strategic move was aimed at optimizing resources and focusing on markets with stronger growth potential across the continent, which include Nigeria and others.
- The company said the decision came as it evaluated its operations in the two countries, which accounted for a small share of the company’s overall business.
- According to Jumia, for the year ended December 31, 2023, and the first half of 2024, South Africa and Tunisia contributed just 3.5% and 2.7% of total orders, and 4.5% and 3.0% of gross merchandise value (GMV), respectively.
- Jumia believes that reallocating resources to higher-performing markets will significantly enhance the company’s operational efficiency and accelerate growth.
