Jumia rebounds, experiencing growth in total sales and orders in Q1 2024
Jumia’s Q1 2024 report showcases a remarkable performance despite challenges in quarterly active customers. The company achieved substantial growth in revenue and gross merchandise volume (GMV), indicating resilience and strategic adaptability.
Despite a slight decline in quarterly active customers, Jumia’s revenue surged by 19% year-over-year to $48.9 million, driven by sales of larger ticket items, higher commissions, and corporate sales. The GMV also saw growth of 5% year-over-year to $181 million, reflecting efforts to enhance product assortment and improve marketing efficiency.
Jumia’s disciplined expense management and streamlining of its logistics network resulted in a reduction in quarterly cash burn to $19.1 million, showcasing the company’s commitment to cost reduction and improving gross margins. This effort led to a significant drop in operating loss and adjusted EBITDA loss, demonstrating progress towards profitability.
CEO Francis Dufay highlighted the achievement of returning to growth in GMV and orders, emphasizing the company’s ability to grow despite workforce reductions and cost-cutting measures. The increase in average order value and quarterly orders further underscores Jumia’s success in attracting a higher-quality customer base and driving repurchase rates.
Overall, Jumia’s Q1 2024 performance reflects its resilience, strategic focus on growth, and efforts to achieve profitability in the e-commerce market in Africa.
