Pan-African e-commerce giant, Jumia, has reported stable revenue for the six months ending June 30, 2024, despite facing significant headwinds from currency fluctuations in key markets. The company’s total revenue clocked in at $85.37 million, a marginal increase from the previous year’s $85.28 million.
Jumia’s revenue is primarily generated from first-party sales, commissions, and fulfillment services. The company saw growth in third-party commissions from corporate sales, particularly in Egypt, but this was offset by the depreciation of the Nigerian Naira and Egyptian Pound.
“Our business is seasonal and, consequently, our results tend to fluctuate from quarter to quarter,” Jumia notes in its latest unaudited statement.
Currency Crisis Bites
Egypt and Nigeria, two of Jumia’s largest markets, have been grappling with severe economic challenges, exacerbated by ongoing regional conflicts. Egypt’s implementation of IMF-backed policies led to a 55% devaluation of the Egyptian Pound against the US Dollar in the first half of 2024. Similarly, Nigeria’s Central Bank’s decision to unify exchange rates resulted in a 71% depreciation of the Naira over the same period.
Operational Highlights
Despite the currency headwinds, Jumia managed to reduce fulfillment expenses by 16.6% to $18.7 million through cost-cutting measures and operational efficiencies. Sales and advertising expenses also declined by 24.5% to $8.17 million as the company shifted focus to organic growth strategies.
Regional Performance
A breakdown of Jumia’s revenue by region reveals mixed performance. North Africa, primarily driven by Egypt, witnessed growth, while West Africa, heavily reliant on Nigeria, experienced a decline. East and South Africa remained relatively stable.
- West Africa: Revenue dipped from $40.91 million in 2023 to $36.11 million in 2024.
- North Africa: Revenue surged from $32.03 million to $38.35 million.
- East and South Africa: Revenue modestly declined from $11.83 million to $10.67 million.
The Road Ahead
Listed on the New York Stock Exchange (NYSE) under the ticker symbol “JMIA” since April 2019, Jumia operates through a single reportable segment, guided by its chief operating decision makers — the CEO and the Executive Vice President of Finance & Operations — who allocate resources based on long-term growth potential. No single customer accounted for more than 10% of the Group’s revenues during the first half of 2024 and 2023.
Jumia continues to operate at a loss and acknowledges the need for additional funding to sustain its growth trajectory. The company is investing in expanding its logistics network and payment services to strengthen its market position.
As the economic outlook in Africa remains uncertain, Jumia’s ability to navigate currency fluctuations and macroeconomic challenges will be crucial for its long-term success.