Individuals
Businesses
Company
Intelligence
News
African Capital Markets
EnglishEnglish
share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram

Jumia posts $19m in Q3 losses, lowest since New York IPO

Daba Finance/Jumia Q3 losses slowdown
BREAKING NEWSNovember 16, 2023 at 12:29 PM UTC

Jumia, a prominent e-commerce player in Africa, slashed its operating losses to $19 million in the third quarter of 2023, marking a reduction of more than half. This positive development comes amid challenges, as the company experienced a decline of 800,000 active customers compared to the same period last year.

The significant reduction in losses can be attributed to heightened cost discipline. With a cash balance of $54 million and a liquidity position of $147 million, Jumia implemented substantial expenditure cuts. Under the leadership of Francis Dufay, the company undertook strategic measures such as relocating senior executives from Dubai to Africa, downsizing its workforce, and shifting focus away from low-ticket item deliveries.

As part of its cost-cutting initiatives, Jumia trimmed its sales and advertising expenditure to $4.3 million, opting for reduced advertising on expensive channels and cutting back on consumer incentives. The decline in advertising spending is substantial, with a 73% drop compared to Q3 2022. Additionally, the company curtailed its general and administrative spending to $17 million as part of its efforts to enhance financial efficiency.

Key Takeaways

Jumia’s latest performance aligns with its plan to strengthen foundational elements for growth in core categories. Notably, there has been a substantial reduction in active customers and orders compared to the previous year, a deliberate outcome of the company's strategic streamlining initiatives initiated in Q4 2022. The e-commerce giant intentionally opted to recalibrate its product and service portfolio as part of these efforts. This involved suspending its first-party grocery offering, logistics-as-a-service, and food delivery operations in specific crucial markets where economic viability was deemed unsustainable. Furthermore, the decrease in numbers and GMV can be attributed to various macroeconomic conditions. High inflation has notably impacted customers' purchasing power, while import restrictions have limited retailers' ability to acquire products. The average inflation level across Jumia's footprint is 13.5%, with countries like Ghana, Egypt, and Nigeria experiencing record-high inflation and currency devaluations this year.

Jumia
E-commerce
NYSE
IPO
Francis Dufay

Think someone else should see this?

share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram
Stay informed with our newsletters read by 25,000+ professionals worldwide
Newsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companies

Next Frontier

Stay up to date on major news and events in African markets. Delivered weekly.

Pulse54

UDeep-dives into what’s old and new in Africa’s investment landscape. Delivered twice monthly.

Events

Sign up to stay informed about our regular webinars, product launches, and exhibitions.

+25k investors have already subscribed

To invest in this opportunity and other opportunities across Africa

Download the daba finance app on your mobile through
appstore iconappstore icon
Phone Image

Take action.

Download app

Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.

Partner with us

Unlock exciting business opportunities and growth potential.

Join Daba

Become a part of our vibrant community and enjoy exclusive benefits.

Contact us

Reach out to us for inquiries, support, or collaboration.
For Investor
StrategiesPortfolio ManagementAfrican Capital MarketsNews
Daba Pro Intelligence
For Capital Seekers
For StartupsFor Fund ManagersFor Private CompaniesFor Lenders
For Partners
Commercial BanksBroker DealersAsset ManagersInvestment BanksInvestment Advisors and ConsultantsLenders and Microfinance
Company
About UsMarket UpdatesEventsBlog and PodcastNewsletterCase StudiesAffiliate ProgramInvesting GlossaryOfficial ContactsTrust, Compliance and SecurityFrequently Asked Questions

Terms & ConditionsPrivacy Policy
EnglishEnglish

Owned by Daba Markets Inc. By using this site, you accept our Terms and Conditions and Privacy Policy. © 2024 All rights reserved. 2025 All rights reserved