Key Takeaways
Jumia's orders grew by 6.9% year-over-year, while GMV in constant currency terms rose by 35%.
Revenue declined by 17.2% year-over-year to $36.5 million, but increased by 15% on a constant currency basis.
Active customer base and repurchase rates have improved.
Jumia is working on reducing cash burn, with a focus on cost management and finance cost reductions.
The company remains optimistic about tapping into the African market, despite currency devaluations affecting GMV in USD.
Company Outlook
Jumia aims to reduce cash utilization and increase orders and GMV in 2024.
The company is working towards profitability and has initiated an equity offering to support growth efforts.
Expansion beyond capital cities is a strategic focus, with secondary cities showing increased order fulfillment through pickup stations.
Bearish Highlights
GMV in USD declined by 5% due to currency devaluations in Nigeria and Egypt.
Revenue saw a significant year-over-year decline of 17.2%.
Bullish Highlights
Gross profit margin remained stable at 12.7%.
Jumia reported a 35% growth in GMV in local currency terms.
The company is seeing positive growth from actions and tactics rolled out across all markets.
Misses
Despite the growth in orders and GMV in constant currency, the revenue decline poses a challenge.
Q&A Highlights
Francis Dufay emphasized the sustainability of GMV growth and the stabilization of the active consumer base. Commissions have been kept stable to incentivize vendors, with a focus on capturing corporate sales opportunities. Sales and marketing spending saw a moderate increase in Q2 to support Jumia's Anniversary Sale, with plans to further accelerate customer acquisition.
Jumia's second quarter of 2024 showcased a complex landscape where growth in key performance indicators coexisted with market-driven challenges. The company's strategic focus on the African e-commerce market, cash efficiency, and consumer value proposition, coupled with the expansion of its logistics network and JumiaPay platform, highlights its commitment to overcoming these challenges. Jumia's optimism about the future is underpinned by its efforts to foster a strong value proposition and enable e-commerce through innovative payment solutions, such as buy now pay later options, and its continued expansion into high-potential, smaller cities.
