African e-commerce leader Jumia Technologies reported a 10% reduction in operating losses to $66 million for 2024, highlighting the company’s ongoing efforts to achieve profitability through strategic cost-cutting measures.
The NYSE-listed company saw its revenue decline 10% to $167.5 million, while its Gross Merchandise Value (GMV) – the total value of goods sold on the platform – dropped 4% to $720.6 million. However, when accounting for currency fluctuations, both metrics showed significant growth, with GMV up 28% and revenue increasing 17% in constant currency terms.
Despite exiting South Africa and Tunisia markets in late 2024, Jumia demonstrated resilience with only a modest 5% decline in annual active customers to 5.4 million. The company reported promising growth in secondary cities, with orders outside main urban centers accounting for 56% of total orders in Q4 2024, up from 49% the previous year.
CEO Francis Dufay highlighted the company’s achievements, particularly in expanding its reach beyond major cities and improving marketing efficiency. “We achieved strong acceleration in our key usage metrics, with Physical Goods Orders increasing by 18% year-over-year, without an increase in marketing costs,” he said.
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Looking ahead to 2025, Jumia projects GMV growth between 10% and 15%, targeting between $795 million and $830 million. The company plans to focus on expanding its presence in secondary markets, enhancing product assortment, and strengthening relationships with international sellers.
