Jumia revenue up 19% y/y to $48.9mn in Q1’24

Jumia, the NYSE-listed e-commerce giant, reported a significant uptick in revenue in the first quarter of the year, reaching $48.9 million. The company's revenue surge of 19% was attributed to improvements in Gross Merchandise Value and orders. Furthermore, Jumia's operating loss experienced a sharp decline of 71% year-on-year to $8.3 million. Group CEO, Francis Dufay, expressed satisfaction with the company's quarterly performance, noting that Jumia is now back on the path to growth. During a recent interview with CNBC Africa, Dufay elaborated on the strategies that contributed to Jumia's improved financial performance. He highlighted efforts in expense management, streamlined logistics networks, and decreased marketing expenses by three to four times. These initiatives have enabled the company to operate more efficiently while still driving growth. Dufay emphasized that the enhanced value proposition, including a wider assortment and better price points, has resonated well with price-sensitive customers, leading to increased market share. In terms of market outlook, Dufay acknowledged the nuances across various African countries but emphasized that Jumia's standardized strategic approach has proven effective across all 11 markets where the company operates. By focusing on supply and consumer value propositions rather than excessive marketing expenditure, Jumia has achieved consistent results. Despite varying economic conditions in countries like Egypt and Nigeria, Dufay remains optimistic about the company's overarching strategy. Looking ahead, Dufay highlighted the immense growth potential in the African e-commerce market, which he described as still in its infancy. He noted that the online retail sector represents a tiny fraction of overall retail in Africa, indicating significant room for expansion. While acknowledging some competition in markets like South Africa and Egypt, Dufay underscored the importance of growing the online market as a whole to capitalize on untapped consumer demand. As Jumia plans for the future, Dufay reaffirmed the company's commitment to delivering a superior value proposition to consumers. Expansion into new cities and regions, particularly in areas with limited e-commerce penetration, remains a top priority. Investors and customers can expect Jumia to continue its growth trajectory through strategic initiatives and investments. While considering potential marketing acceleration and new projects later in 2024, the company believes that persevering with its current plan will yield sustained success. In conclusion, Jumia's impressive Q1 performance underscores its resilience and growth potential in the African e-commerce landscape. With a focus on efficiency, customer value, and expansion, the company is poised to capitalize on the burgeoning online retail market across the continent.