Jumia Technologies Records Solid Growth in Second Quarter of 2024 Despite Currency Challenges

Jumia Technologies presented its results for the second quarter of 2024, showing significant progress in customer satisfaction and the efficiency of its strategic initiatives. CEO Francis Dufay and CFO Antoine Maillet-Mezeray led the conference call, emphasizing that despite substantial currency devaluations in key markets like Nigeria and Egypt, important metrics such as order volume and gross merchandise volume (GMV) increased in local currency. Compared to the same quarter last year, the number of orders rose by 6.9 percent, while GMV in constant currency surged by an impressive 35 percent. This growth was driven by more efficient market spending and an improved product range. However, revenue in US dollars declined by 17.2 percent due to the devaluation in Nigeria and Egypt. To counter these challenges, Jumia is focusing on geographical expansion and improved logistics. New warehouses in Nigeria and Morocco, as well as additional facilities in Egypt and Côte d'Ivoire, are planned to reduce operating costs and optimize supply chains. Jumia employs an asset-light model, renting rather than purchasing warehouses. In Ghana, for instance, GMV in constant currency grew by 116.4 percent year-over-year, attributed to improvements in sourcing from Chinese suppliers. Significant progress was also recorded in less developed cities. Orders from neighboring towns outside the capital cities accounted for 53 percent of total orders, an increase from 48 percent in the previous year. The company's cost management strategies are yielding results. Cash burn decreased to $8.7 million compared to the last quarter. Adjusted EBITDA loss reduced to $16.3 million, enabled by cost-saving initiatives. The company is further enhancing its cash efficiency by managing currency risks, optimizing marketing, and expanding its logistics network. Jumia plans to continue building its market leadership in Africa’s e-commerce sector, continuously improving customer satisfaction and its range of products and services. Overall, Jumia remains optimistic about its growth strategy and is committed to its three core pillars: focused growth initiatives in Africa, increased cash efficiency, and a strong value proposition for African consumers.