Jumia’s Q1 2025 revenue drops by 26% year-on-year to $36.3 million

Jumia Technologies, a leading e-commerce platform in Africa, released its financial results for the first quarter of 2025. Its revenue for the quarter totalled $36.3 million, down 26% year-over-year, or 18% in constant currency, primarily due to a sharp decline in corporate sales in Egypt. Gross Merchandise Value (GMV) reached $161.7 million, an 11% decrease year-over-year, or 2% in constant currency, driven by reduced corporate sales and currency devaluations. Excluding corporate sales, GMV grew 10% year over year, highlighting the resilience of Jumia’s consumer business.

The company reported an operating loss of $18.7 million, compared to $8.3 million in the first quarter of 2024, reflecting lower corporate sales and currency headwinds. The adjusted EBITDA loss widened to $15.7 million from $4.3 million in the prior year. However, Jumia significantly improved its loss before income tax, which narrowed to $16.5 million, a 58% improvement year-over-year, or 25% in constant currency. This was largely driven by a $33.5 million improvement in net finance results, as the company avoided the high finance costs incurred in 2024 due to currency devaluations in Nigeria and Egypt.

Jumia’s liquidity position stood at $110.7 million as of March 31, 2025, comprising $61.6 million in cash and cash equivalents and $49.1 million in term deposits and other financial assets. The company’s liquidity decreased by $23.2 million during the quarter, compared to a $19.1 million decrease in the first quarter of 2024. Net cash used in operating activities was $21.2 million, driven by a negative working capital contribution of $8.0 million due to increased inventory to support the upcoming Jumia Anniversary campaign.

Jumia’s operational highlights

Jumia’s operational performance underscored its focus on consumer growth and operational efficiency. Orders for physical goods grew by 21% year over year, the highest growth rate in two years, while quarterly active customers increased by 15%. Adjusted for the exit from South Africa and Tunisia in late 2024, orders rose by 15% and active customers by 14%. Nigeria, a key market, demonstrated a strong turnaround, with orders up 22% and GMV up 20% year over year.

The company’s March trends were particularly encouraging, with GMV rising 16% and orders increasing 21% year over year, adjusted for perimeter effects. Jumia also reported a 61% year-over-year increase in gross items sold from international sellers, enhancing product assortment and pricing power across its markets. Operational efficiencies were evident, with fulfilment expense per order (including South Africa and Tunisia) decreasing by 14% year-over-year to $2.07, driven by stronger operating leverage and lower third-party logistics costs.

JumiaPay, the company’s payment platform, processed 2.0 million transactions, up 1% year over year, with Total Payment Volume (TPV) stable at $45.5 million. TPV as a percentage of GMV increased to 28% from 25% in the first quarter of 2024, reflecting the growing adoption of cashless payments.

Commenting on the report, Francis Dufay, CEO of Jumia, emphasised the company’s progress toward profitability, saying, “Driven by strong underlying growth in our core consumer business and decisive actions to improve efficiency, we are updating our financial outlook. These updates reflect positive momentum and our commitment to achieving profitability.”

Jumia’s disciplined marketing strategy, focusing on high-efficiency channels like SEO, CRM, and offline local channels, contributed to a 505 basis point improvement in repurchase rates. Cohort analysis revealed that 45% of new customers from the fourth quarter of 2024 made a second purchase within 90 days, up from 40% in the prior year, indicating a stickier customer base.

Jumia raised its full-year 2025 guidance, reflecting confidence in its growth trajectory. The company now expects physical goods orders to grow by 20–25% year-over-year, up from the previous range of 15–20%. GMV is projected to reach $795–830 million, a 10–15% increase excluding foreign exchange impacts. Loss before income tax is forecasted to be between $55 million, a 44–49% improvement year over year.

Looking ahead to 2026, Jumia projects a loss before income tax of $25–30 million and anticipates achieving breakeven in the fourth quarter of 2026, with full-year profitability targeted for 2027. These projections are subject to risks, including political and economic conditions in Jumia’s operating countries and global supply chain challenges.

These results reflect a company navigating complex macroeconomic conditions while capitalising on strong consumer demand. With accelerating order and customer growth, operational efficiencies, and a clear path to profitability, Jumia is positioning itself as a leader in African e-commerce. The raised guidance and long-term profitability targets underscore the company’s confidence in its strategic execution and market potential.