Jumia’s Full-Year Financials Hit By Cutbacks & Headwinds Amid Wins
Africa’s top e-tailer Jumia revealed its financial results for Q4 and the full year 2023, showing signs of a turnaround in growth trends and a substantial reduction in operating loss. The company is optimistic about returning to growth in 2024 and further curbing cash utilisation.
Q4 2023 Highlights:
- Revenue: USD 59 M, a 2% YoY decrease, but a 28% increase in constant currency.
- GMV: USD 233 M, down 8% YoY, but up 21% in constant currency.
- Operating loss: USD 4 M, marking a 90% YoY reduction.
- Adjusted EBITDA loss: USD 1 M, down 99% YoY.
- Liquidity position: USD 121 M, decreasing by USD 27 M.
Full Year 2023 Highlights:
- Revenue: USD 186 million, an 8% YoY decrease, but a 20% increase in constant currency.
- GMV: USD 750 M, down 20% YoY, but up 1% in constant currency.
- Operating loss: USD 73 M, showing a 64% YoY reduction.
- Adjusted EBITDA loss: USD 58 M, down 68% YoY.
- Liquidity position: USD 121 M, decreasing by USD 107 M.
In a letter to shareholders, Jumia’s CEO, Francis Dufay, acknowledged the challenging economic landscape in Africa due to global upheavals, high inflation, and currency depreciation. Despite these challenges, the company implemented a transformative strategy in 2023, leading to a significant improvement in financials.
Dufay highlighted the key achievements, with Adjusted EBITDA loss decreasing to USD 58.2 M and loss before tax from continuing operations dropping to USD 98.6 M for the full year 2023. The liquidity decline slowed from USD 285.4 M in 2022 to USD 106.9 M in 2023, leaving Jumia with USD 120.6 M in liquidity at the end of 2023.
The CEO emphasized the deep transformation undergone by the company, focusing on efficiency, better unit economics, and strategic decisions regarding business activities. Notably, Jumia discontinued food delivery operations, redirecting resources to its physical goods business.
Dufay expressed confidence in Jumia’s ability to achieve growth in 2024, emphasizing the importance of efficiency and reduced marketing spend. The company successfully executed large promotional events with minimal marketing budgets in 2023, proving that growth in e-commerce does not solely depend on marketing costs.
Looking ahead, Jumia is committed to bringing the business back to growth in 2024 while further reducing losses. The CEO highlighted the company’s focus on growth priorities, strategic efficiency, and unlocking untapped potential in priority categories.
