In its pursuit of profitability, Jumia meticulously reduced losses in Q2 2024 through sales and marketing expenses and cash burn cuts. However, the e-commerce platform’s revenue dipped to $36.5 million (₦51.3 billion).
Despite a wave of currency devaluation across most of its 11 markets, leading to significant losses, Jumia’s valuation peaked at $1.3 billion in the past three weeks. On a positive note, the e-commerce brand reduced its total quarterly losses to $19 million, less than half compared to Q2 2023.
This quarter’s performance reinforces our belief in our strategy’s effectiveness. Our deep understanding of the African e-commerce landscape, combined with our unique asset base and strategic approach, positions Jumia for growth as we progress towards profitability.
Francis Dufay, Jumia CEO
Currency fluctuations negatively impacted overall revenue, with total orders dropping to $170 million despite a 4.8 million order increase. To counter this, the company aims to expand its product range and leverage its JForce network to reach a wider customer base.
However, revenue growth was aided by third-party commissions from corporate sales to local and regional retailers, distributors, and other corporate buyers.
Based on the positive impact of its growth strategy, Jumia projects an increase in both orders and GMV in 2024, excluding the potential impact of foreign exchange.
Jumia
The company’s SEO and CRM efforts successfully attracted a new customer base for its sticker products.
Jumia boasts a strong cash position of $45.1 million and a total liquidity of $92.8 million. By holding 67% of its liquidity in USD, the company effectively mitigates currency exchange risks and optimizes cash management.
JumiaPay continues to thrive, with transactions surging 30% year-over-year to $1.9 million in Q2 2024. This growth can be attributed to increased usage during deliveries and successful cashback campaigns. The company has solidified JumiaPay as its primary payment platform and terminated its Mastercard partnership to explore broader payment options.
After a remarkable 252% share price surge that impressed investors, Jumia’s stock has experienced a sharp decline due to recent global market volatility. The stock is currently trading at $10.59.