The African electronic commerce giant Jumia published its 2024 fourth quarter (Q4) report on Thursday, presenting a mixed performance with operational improvements tempered by the drop in income.
Jumia declared a turnover of $ 167.5 million, down 10% in annual shift, compared to $ 186 million recorded the previous year. The gross value of goods (GMV) dropped from 12% to 206.1 million dollars.
The operating loss of the company was widely widened to $ 17.3 million, compared to $ 4.5 million in the fourth quarter of 2023, with liquidity decreasing to $ 133.9 million.
Register For TEKEDIA Mini-MBA Edition 16 (February 10 – May 3, 2025)) Today for early reductions.
Tekedia Ai in Masterclass Business open registration.
Join Tekedia Capital Syndicate and co-INivest in large world startups.
Register become a better CEO or director with CEO program and director of Tekedia.
Despite negative trends, Jumia has also recorded positive developments, which include the following elements
Project force: Jumia experienced an 18% growth in physical products orders (excluding South Africa and Tunisia) and the 8% growth in quarterly active customers without increasing marketing costs.
Strategic expansion: The company has developed in secondary cities and has strengthened the offer of international sellers, which represented 31% of the items sold in the fourth quarter.
Black Friday’s success: Solid sales performance have underlined the improvement of customer demand and the expansion of products.
International seller’s contribution increased to 31% of the items sold and the promoter’s net score has improved, indicating stronger customer satisfaction.
Customer buyout prices have increased by 375 base points.
Full annual 2024 operating loss has improved From 10% in annual sliding, decreasing to $ 66.0 million, compared to $ 73.3 million in 2023.
Commenting on the report, the CEO of Jumia, Francis Dufay, expressed his satisfaction, noting that he is proud of what the company accomplished in 2024.
He said,
“I am proud of what we have accomplished in 2024. We have seen solid growth in secondary cities, expanded our supply to international sellers and improved marketing efficiency. In the fourth quarter, excluding South Africa and Tunisia, we have obtained a strong acceleration in our main measures of use, with orders for physical goods and quarterly active customers increasing by 18% and 8% in annual sliding, respectively, without increased by Marketing costs. We closed the year on a high note with strong sales of Black Friday, stressing that our strategy is working. ”
Dufay also expressed its optimism about 2025, noting that the company is stronger and more efficient than it was only two years ago. He noted that Jumia is well placed to offer sustainable growth and achieve profitability.
In particular, despite the financial setbacks, Jumia has made significant operational progress. The 18% growth in orders on the main markets obtained without increasing marketing expenditure, demonstrates the improvement of the units economy and the efficiency of platforms. In addition, expansion in secondary cities now represents 56% of the total orders, compared to 49%, marking a strategic push for market penetration.
The increase in international sellers to 31% (an increase of 9.5 percentage points in annual sliding) indicates a more diverse selection of products while reducing the risks of inventory and working capital needs. This change reflects the market strategies successfully deployed on other emerging markets, which potentially leads to a stronger gross margins over time.
2025 Outlook
Jumia projects an increase of 15 to 20% of orders for physical goods, GMV estimated between 795 and 830 billion dollars. The company also provides for a loss before income tax from $ 65 to $ 70 million, reflecting a reduction of 28 to 33% of losses.
To achieve these objectives, Jumia focuses on the expansion of payments without cash via Jumiapay and the optimization of logistics. However, the risks of execution and volatility of the frames remain potential challenges. While operational efficiency improves, sustained growth will depend on the capacity of the company to manage costs and stimulate profitability in the coming quarters.
The company also plans to improve its product assortment with competitive prices and strengthen relations with international sellers.
“The company is stronger and more efficient than it was only two years ago, and I believe We have a good opportunity before us. We plan to double expansion outside the main urban centers, to expand our assortment of products with competitive prices and to strengthen relations with international sellers. To improve our path to profitability, we will continue to apply cost discipline and Improve operational and marketing efficiency ” Jumia wrote.
