Jumia, a leading e-commerce platform in Africa, has released its financial results for the second quarter of Q2 2024, showing a 17% decline in revenue to $36.5 million, down from $44 million recorded in the same period last year.
Jumia attributed the decline to regional currency devaluations that impacted both Gross Merchandise Value (GMV) and Total Payment Volume (TPV). Despite these challenges, the company reported significant improvements in operational and financial metrics under the leadership of CEO Francis Dufay.
It reported a $20.2 million operating loss a decline, compared to $22.1 million in Q2 of 2023, down 8% year-over-year, and down 5% in constant currency. Adjusted EBITDA loss was $16.3 million, compared to a loss of $18.2 million in the second quarter of 2023, down 10% year-over-year, and down 11% in constant currency. Loss before income tax from continuing operations was $22.5 million in the second quarter of 2024, down 27% year-over-year.
Jumia reported a liquidity position of $92.8 million, a decrease of $8.7 million in the second quarter of 2024 as compared to a decrease of $39.1 million in the second quarter of 2023. Net cash flows used in operating activities was $8.4 million compared to net cash flows user in operating activities of $19.5 million in the second quarter of 2023.
Commenting on the report, the company wrote,
“Jumia delivered another quarter of acceleration in its usage trends along with improved cash efficiency. Continued execution against our strategic priorities drove a 7% year-over-year increase in Orders, while Orders per Customer, excluding JumiaPay app Orders, which do not incur logistics costs, climbed to 2.1 Orders in the second quarter of 2024. GMV improved 35% year-over-year in constant currency and we delivered GMV growth in reported currency in six of our countries in the second quarter, up from five in the first quarter of 2024, a sign that the Jumia’s value proposition continues to resonate with the African consumer.”
Also speaking, Jumia’s CEO Francis Dufay, said the company’s performance this quarter reinforces the belief that its strategy is working. He further noted that the deep understanding of the African e-commerce market as well as its unique asset base and strategy, positions Jumia for growth as the company progresses on its path towards profitability.
Moving forward, Jumia continues to take a disciplined and targeted approach to marketing spend focused on targeting more efficient marketing channels, such as search engine optimization (“SEO”), customer relationship management (“CRM”) and relevant offline local channels while also leveraging its Force network.
As a result of these efforts, Jumia is attracting a stickier and higher quality customer base as evidenced by a 262 basis point year-over-year improvement in repurchase rates in the first quarter of 2024. The company’s cohort analysis indicates that 36% of new customers, who placed an order for a product or a service on our platform in the first quarter of 2024, completed a second purchase within 90 days. This represents an improvement compared to 33% of new customers from the first quarter of 2023, who reordered within 90 days.
Its Fintech arm JumiaPay, recorded significant progress, after it saw its transactions reach 1.9 million, an increase of 31% year-over-year mainly driven by increased penetration of JumiaPay on delivery as well as the implementation of cashback campaigns and incentives conducted in the second quarter of 2024.
On the outlook for the remaining year, Jumia remains committed to reducing its losses and accelerating its progress towards cash efficiency and profitable growth. Based on the positive impact of its growth strategy, it projects an increase in both prefers and GMV in 2024.
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