Jumia Technologies, Africa’s leading e-commerce platform, has announced its financial results for the first quarter ended March 31, 2025. The company reported a revenue of $36.3 million, down 26% year-over-year or 18% year-over-year on a constant currency basis.
Revenue for the quarter was impacted by the sharp decline in corporate sales, particularly in Egypt, compared to the first quarter of 2024. Marketplace revenue, comprised of third-party sales, marketing and advertising, and value-added services, was $18.1 million, down 30% year-over-year or down 26% on a constant currency basis. Lower commissions from third-party corporate sales in Egypt and the impact of currency devaluations drove the decline.
First-party sales revenue was $17.8 million, down 21% year-over-year or down 9% on a constant currency basis, similarly impacted by lower first-party corporate sales in Egypt and currency movements. Gross profit was $19.9 million, down 36% year-over-year or down 32% year-over-year on a constant currency basis. Gross profit as a percentage of GMV was 12%, compared to 17% in the first quarter of 2024, primarily due to lower revenue from higher-margin corporate sales in Egypt.
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In the first quarter of 2024, first-party and third-party corporate sales in Egypt generated high margins, but these were in part offset by high finance costs incurred from the need to repatriate cash. Adjusted EBITDA loss increased to $15.7 million from $4.3 million in the prior year, and net cash used in operating activities was $21.2 million, a stark contrast to the $4.5 million inflow in Q1 2024. This change reflected higher inventory levels in preparation for the Jumia Anniversary campaign and a negative working capital contribution of $8 million.
Despite these losses, Jumia posted a significant improvement in its loss before income tax, narrowing it to $16.5 million, compared to $39.6 million in Q1 2024. This was mainly due to a $33.5 million improvement in net finance costs, as foreign exchange losses experienced in 2024 did not recur in the same magnitude.
Commenting on the report, Jumia’s CEO Francis Dufay expressed optimism in the company’s trajectory, he said,
“Driven by strong growth in our consumer business and decisive steps to improve efficiency, we’re raising our full-year guidance. We now expect a loss before income tax of $50–55 million in 2025, improving to $25–30 million in 2026. We remain on track to achieve full-year profitability in 2027.”
As of March 31, 2025, the Company’s liquidity position was $110.7 million, comprised of $61.6 million in cash and cash equivalents and $49.1 million in term deposits and other financial assets. Jumia’s liquidity position decreased by $23.2 million in the first quarter of 2025, compared to a decrease of $19.1 million in the first quarter of 2024, and a decrease of $30.6 million in the fourth quarter of 2024.
Net cash used in operating activities was $21.2 million in the first quarter of 2025, compared to a net cash inflow of $4.5 million in the first quarter of 2024, primarily driven by a negative working capital contribution of $8.0 million, largely reflecting higher inventory levels built up to ensure product availability and assortment ahead of the Jumia Anniversary campaign, which is set to launch in early May earlier than in 2024.
In addition, the Company reported $0.9 million in capital expenditures in the first quarter of 2025, compared to $0.2 million in the first quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. The company’s digital payment platform, JumiaPay, saw transactions reach 2.0 million, an increase of 1% year-over-year mainly driven by increased penetration of JumiaPay on delivery in the first quarter of 2025. Ongoing efforts to streamline the user experience and the continued rollout of JumiaPay on delivery to increase cashless orders have positioned it as an enabler of the company’s e-commerce platform.
While Jumia faced significant revenue and profit pressures due to macroeconomic challenges and reduced corporate sales in Egypt, the company’s consumer-focused strategy and operational discipline are beginning to show promising signs.
With improving order growth, customer retention, and fulfillment efficiencies, Jumia appears to be on a clearer path toward long-term profitability and sustainable growth. The company is focused on achieving profitable growth in 2025 by increasing usage, improving operational efficiency, and significantly reducing cash burn.