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Africa’s e-commerce giant, Jumia, has reported a 10% year-over-year decline in revenue and operating loss for 2024, according to its Q4 and full-year financial statement released on Thursday.
The company’s operating loss dropped from $73.3 million in 2023 to $66 million in 2024. However, revenue also saw a decline, falling from $186 million in 2023 to $167.5 million in 2024.
Gross Merchandise Value (GMV): Decreased by 4% year-over-year to $720.6 million from $750 million in 2023.
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- Revenue: Declined by 10% to $167.5 million, compared to $186 million in the previous year.
- Operating Loss: Reduced by 10% to $66 million.
The decline in GMV was attributed to reduced corporate sales in Egypt and currency devaluations across Jumia’s markets.
Despite the revenue decline, Jumia’s CEO, Francis Dufay, highlighted significant progress in key areas, including:
- An 18% year-over-year increase in physical goods orders.
- An 8% rise in quarterly active customers in Q4 2024 (excluding South Africa and Tunisia).
- Marketing efficiency improvements through SEO, CRM, and localized offline channels like radio and print.
Dufay credited the company’s disciplined marketing approach and expansion into secondary cities for these gains.
Looking ahead, Jumia plans to:
- Expand into secondary cities to reach new customer bases.
- Enhance product assortment with competitive pricing.
- Strengthen relationships with international sellers.
- Enforce cost discipline and improve operational efficiencies to accelerate profitability.
“The business is stronger and more efficient than it was two years ago. We will double down on expansion outside major urban centers while maintaining cost discipline,” Dufay stated.
As part of its strategic restructuring, Jumia announced last year that it would shut down operations in South Africa and Tunisia by the end of 2024.
The decision came after an evaluation showed that these markets contributed just 3.5% and 2.7% of total orders, and 4.5% and 3.0% of GMV, respectively, in 2023 and the first half of 2024.
Jumia believes reallocating resources to stronger markets, such as Nigeria, will enhance efficiency and drive long-term growth.
With these strategic shifts, Jumia aims to position itself for a more sustainable and profitable future in Africa’s fast-evolving e-commerce landscape.
