- Jumia flipped the script! After slashing annual losses by 68%.
- Lean operations & strategic restructuring fueled a liquidity jump.
- Investors are cheering with a 40% stock rise and commerce dominance in 2024.
68% reduction in full-year losses for 2023
Africa-focused e-commerce company Jumia ended 2023 on a high note, cutting adjusted EBITDA losses to under $1 million in Q4 – a 99% year-over-year plunge.
For the full year, losses dropped 68%. The dramatic reduction reflects Jumia’s intense focus on restoring financial order in 2023 through cost discipline.
Operating expenses like sales, advertising, and administration saw double-digit percentage declines from the company’s exit from food delivery and other restructuring.
Liquidity surges
This enabled Jumia to boost its liquidity position to $121 million despite revenue slipping 2% and GMV falling 8% annually amidst macro headwinds.
But early signs point to a return to growth in 2024. Quarterly active customers, orders, and GMV all rebounded by double-digit percentages in Q4 as Jumia leaned into Black Friday and Christmas promotions.
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Stock is up 40% this year
Investors have responded positively, sending the stock up 40% this year. Jumia plans to maintain its lean operations while getting back into expansion mode.
The e-commerce firm will count on rising demand for electronics and other physical goods to drive further improvements in engagement and profitability.
