E-commerce giant Jumia posted $20.1 million in operating losses for Q3 2024, citing challenging macroeconomic conditions in key markets that put pressure on its revenues.
The loss marked a 10% increase compared to the same period last year. Jumia’s Q3 revenue dropped to $36.4 million, down from $45 million a year prior, while its gross merchandise value (GMV) decreased slightly to $162.9 million.
As of this report, Jumia’s stock ($JMIA) trades at $4.16, with a market cap of $501.49 million—significantly down from its peak of $1.32 billion in July, when investor confidence was higher.
CEO Francis Duffy attributed the challenges to macroeconomic pressures but emphasised the company’s commitment to strategic growth. “Our operational adjustments may impact our expenses in the short term, but we believe they set the stage for profitable scaling,” he noted.
Jumia has made strides in strengthening its logistics infrastructure, opening a major warehouse in Lagos in June, and improving its liquidity position to $164.6 million following an August capital raise. Its fintech app JumiaPay recorded a transaction volume of $3 million, showcasing the company’s efforts to drive cashless payments in Africa.
Dufay, appointed in 2022, has steered the company toward cost efficiency by cutting operating losses by 71% in Q1 2024. In a continued shift, Jumia recently announced it would exit underperforming markets in South Africa and Tunisia by year-end, focusing instead on its nine other core markets.
The company could begin selling assets in these regions, aiming to streamline its path to profitability through disciplined cost management and operational efficiency.
