Jumia Records Lowest Losses Since IPO, GMV Growth in Q3 2023

Emma Okonji

Jumia Technologies, a leading Pan-African e-commerce company, has reported its lowest Adjusted EBITDA losses since its IPO in 2019.

The company’s relentless focus on strategic growth initiatives has yielded promising results, evident in the Q3 2023 earnings report, according to the company’s financial report for Q3 2023.

The report said under the stewardship of its Group CEO, Francis Dufay, Jumia’s commitment to a transformative blueprint initiated in Q4 2022 has proven pivotal. In the area of reduced losses and enhanced value proposition,the report said the resolute focus on core categories—Phones, Electronics, Home & Living, Fashion, and Beauty—has yielded tangible improvements. Jumia’s emphasis on tailoring offerings to meet customer needs in these key markets has notably enhanced repurchase rates among new customers. Additionally, there is a discernible uptick in the average order value (AOV) for physical goods, signaling an evolving customer engagement strategy that resonates with the market’s demands. This strategic pivot, evident in the considerable 74 per cent year-over-year reduction in Sales and Advertising expenses, amounting to $4.3 million, aligns with the company’s pursuit of creating a stronger value proposition. Furthermore, the 67 per cent year-over-year decrease in Adjusted EBITDA loss, reaching $14.9 million, stands as a testament to Jumia’s concerted efforts toward profitability.

Analysing the report, Dufay said the most significant highlight of Q3 2023 report, is the encouraging growth in GMV of physical goods across five countries. This growth reflects a pivot towards more efficient economics and sustained growth, aligning with Jumia’s core business strategy.

Dufay’s emphasis on partnerships, notably with Starlink, highlights Jumia’s intent to diversify its product range and supply offerings. The collaboration aims to enhance Jumia’s assortment, catering to evolving consumer demands. The imminent distribution of Starlink’s residential kits in Nigeria signifies a promising partnership that could

According to the report, Jumia’s relentless pursuit of operational efficiency has been underscored by a remarkable achievement—a fulfillment expense per order reaching $2.1, marking a significant 26 per cent year-over-year reduction. Notably, these efficiencies have been realized concurrently with the company’s strategic expansion into secondary cities across Africa, emphasizing the commitment to reach underserved regions.