Jumia’s Revenue Declines By 17% In Second Quarter Of 2024, Despite 7% Increase In Orders

Jumia has reported its financial results for the second quarter of 2024. According to the reports, the e-commerce company witnessed a 17% revenue decline to $36.5 million. This is as a result of the impact of regional currency devaluations, which affected both GMV and Total Payment Volume (TPV).

Despite a 17% decline in reported revenue to $36.5 million, Jumia saw a 15% increase on a constant currency basis, indicating strong underlying performance masked by currency devaluations in key markets.

Gross Merchandise Value (GMV) experienced a similar pattern, with a 5% decrease in reported terms but a robust 35% growth in constant currency, reaching $170.1 million in reported currency. These metrics reflect Jumia’s adaptive strategies and its emphasis on core business strengths, such as optimizing its product assortment and improving customer engagement.

The company reduced its operating loss by 8% year-over-year to $20.2 million and its Adjusted EBITDA loss by 10% to $16.3 million. This indicates that the company’s concerted efforts in cost management are yielding significant results.

Notably, the company’s cash burn was cut by more than half, declining to $8.7 million, demonstrating a disciplined approach to expenditure and efficient use of resources.

According to the statement, this was partly achieved through a 19% reduction in marketing expenses, focusing on high-return channels like CRM, SEO, and targeted offline initiatives.