Pan-Africa e-commerce platform Jumia Technologies has slashed its loss before tax to US$16.5 million in the first quarter of 2025, down from US$39.6 million a year earlier, driven by sharply lower finance costs and improved performance in its core consumer business.
- •Total revenue fell 26% to US$36.3 million, while gross profit declined 36% to US$19.9 million, primarily due to a steep drop in high-margin corporate sales in Egypt and continued currency devaluations.
- •Gross merchandise value (GMV) declined 11% to US$161.7 million, though the company reported a 21% year-over-year increase in total orders, the fastest growth rate in two years.
- •Jumia continues to face intensifying competition from informal retail channels and emerging digital platforms across its key markets.
Excluding the volatile corporate segment, consumer-focused GMV grew 10%, underlining steady demand across key markets, especially Nigeria, where orders rose 22%.
Cash used in operating activities totaled US$21.2 million, a reversal from a US$4.5 million inflow in the first quarter of 2024. The company’s liquidity stood at US$110.7 million at the end of March, down from US$133.9 million three months earlier, following a higher inventory buildup ahead of its second-quarter anniversary sales campaign.
Jumia maintained tight cost controls in the quarter, with fulfillment expenses flat at US$9.4 million and sales and advertising costs down 17% to US$3.1 million. Technology and content expenses rose 6% due to higher infrastructure and licensing costs, while general and administrative expenses, excluding share-based compensation, increased 5% to $16.1 million, partly due to the absence of one-time tax benefits recorded last year.
Staff cost reductions helped offset some of these pressures. Moreover, Jumia exited the South Africa and Tunisia markets in late 2024, narrowing its geographic focus.
The company reported improvement in repurchase rates, with 45% of new customers from Q4 2024 making a second purchase within 90 days. Fulfillment efficiency improved, with cost per order down 14%, and international sellers boosted gross item sales by 61%, expanding product variety and price competitiveness.
Full Year, Profits, and Competition
“Based on current business trends, we are raising our full-year 2025 guidance as follows: We anticipate physical goods Orders to grow between 20% and 25% year-over-year, up from the previous range of 15-20%. GMV is projected to be between US$795 million and US$830 million in 2025, a year-over-year increase of 10% and 15%, respectively, excluding foreign exchange impacts,” Jumia stated.
The company now expects 20% to 25% order growth for the year and remains on track to reach break even in the fourth quarter of 2026, with full-year profitability targeted for 2027.
In its effort to remain relevant in the African market, Jumia has launched a new service, Jumia Delivery, allowing third-party businesses — including social media traders it once viewed as competitors — to use its logistics network. Following a successful pilot in Ivory Coast, the service has launched in Nigeria and is set to expand to Kenya, Senegal, and Ghana.
This will not be easy as Jumia continues to face intensifying competition from informal retail channels and emerging digital platforms across its key markets including the Chinese rival, Temu.
Temu bypasses local intermediaries by connecting African consumers directly to Chinese manufacturers, using state-subsidized shipping and a vast supply chain to offer significantly lower prices despite longer delivery times.
There are also local e-commerce firms like Konga in Nigeria and Kilimall in Kenya. Its South African unit was ousted from the market by a local rival, Takealot.
Traditional retail remains dominant in many regions due to lower prices, cash-based transactions, and established trust with local vendors. At the same time, global and regional e-commerce players are expanding their footprints, often with stronger logistics networks or integrated fintech offerings.
