Home Business Jumia Reports 25% Revenue Drop in Q2, Operating Losses Rise to $20 million
BusinessNews

Jumia Reports 25% Revenue Drop in Q2, Operating Losses Rise to $20 million

800

Jumia, Africa’s leading e-commerce platform, reported a significant drop in revenue and increased operating losses for Q2 2024.

The company’s revenue fell 25 per cent from the previous quarter to $36.5 million, marking a 17 per cent decline compared to last year. Operating losses rose to $20.2 million, though this was an 8 per cent improvement from the $22.1 million loss in Q2 2023.

The Gross Merchandise Value (GMV), which measures total customer payments before deductions, also declined by 5 per cent year-over-year to $170.1 million. Jumia’s gross profit saw a 6 per cent drop from last year, falling to $21.6 million.

Jumia CEO Francis Dufay expressed confidence in the company’s strategy, highlighting their efforts to cut costs and focus on physical goods. Since taking over in 2023, Dufay has implemented cost-cutting measures, including reducing marketing expenses and discontinuing Jumia Foods. Despite these efforts, sales and advertising expenses increased from $3.7 million in Q1 to $4.4 million in Q2.

36 per cent of new customers were said to be making a second purchase within 90 days in Q1 2024. The company also reported a 7 per cent increase in orders compared to last year’s period, averaging 2.1 per customer.

JumiaPay, the company’s fintech arm, saw transactions rise by 31% year-over-year, driven by increased use and cashback incentives. Former PalmPay executive Anthony Mbagwu was recently appointed to lead JumiaPay. Despite the positive outlook, Jumia faces potential regulatory challenges as the Nigerian government considers new regulations for e-commerce platforms.

Read Also: JUST IN: Ogun State High Court Restricts #EndBadGovernance Protests to Specific Locations and Hours

Large Number of Protesters Storm Yobe State Government House 

Veteran Nollywood Actresses Who Backed Government Now Silent Amid #EndBadGovernance Protests, Says Actor Damilare Olaiya

About The Author

Related Articles

Niger
NewsTravel

Niger Imposes Visa Restrictions On 5 European Nations In Retaliation Over Travel Barriers

Niger has announced new restrictions on where citizens of five European countries...

EntertainmentNews

TikTok Launches ‘TikTok for Artists’ in Nigeria, Giving Musicians New Tools to Grow Globally

TikTok has rolled out its TikTok for Artists platform in Nigeria, opening...

News

Nigeria: Osun State Drags Tinubu Regime To Supreme Court Over Withheld LG Allocations

The Osun State has dragged the Bola Tinubu regime to the Supreme...

BusinessNews

Senegal’s President Faye Celebrates Japan Ties, Invites Global Partners To Dakar For Invest In Senegal Forum

Senegal’s President Bassirou Diomaye Faye has celebrated the depth of bilateral relations...