Onome Amuge
Africa’s leading online marketplace, Jumia, has outlined a trajectory towards profitability, forecasting a break-even point on a loss before income tax basis by the fourth quarter of 2026, with full-year profitability anticipated in 2027. The ambitious target comes despite a challenging start to the year, marked by a 26 percent year-on-year decline in revenue to $36.3 million in the first quarter of 2025.
Francis Dufay, Jumia’s chief executive officer, commenting on the Q1 results, acknowledged the headwinds but reaffirmed the company’s commitment to financial sustainability. The firm’s full-year 2025 guidance now projects a loss before income tax in the range of $50–$55 million, with this figure expected to narrow to $25–$30 million in 2026.
“We believe we are on track for the fourth quarter of 2026, targeting full-year profitability on a Loss before income tax basis in 2027. These updates reflect positive momentum and our commitment to achieving profitability,” Dufay stated.
The first-quarter revenue decline was primarily attributed to a slump in corporate sales within the Egyptian market, alongside the adverse impact of currency devaluations across several of Jumia’s operating regions.
Breaking down the revenue streams, Jumia’s marketplace revenue, which encompasses third-party sales commissions, marketing and advertising income, and value-added services, contracted by 30 percent year-over-year to $18.1 million (a 26 percent decline on a constant currency basis). The company cited lower commissions from third-party corporate sales in Egypt and the lingering effects of currency devaluations as the primary drivers of this decline.
Similarly, first-party sales revenue amounted to $17.8 million, representing a 21 percent year-over-year decrease (or a 9 percent decline on a constant currency basis). This segment was also impacted by the reduced first-party corporate sales in Egypt and unfavourable currency movements.
However, the results contained pockets of optimism. Jumia highlighted a strong turnaround in its Nigerian operations, with orders rising by 22 percent and Gross Merchandise Value (GMV) increasing by 20 percent year-over-year, indicating a positive trajectory in its largest market.
Furthermore, the platform witnessed growth in cross-border trade, with gross items sold by international sellers increasing 61 percent year-over-year in the first quarter of 2025. This growth is contributing to a broader product assortment and improved pricing power across Jumia’s diverse markets.
In its efforts to improve financial performance and chart a path towards profitability, Jumia stated that it has undertaken several strategic initiatives, including exiting non-core markets to streamline operations and raising capital through a secondary share offering to strengthen its balance sheet. Nevertheless, achieving sustained profitability in the face of ongoing economic uncertainties across its operating markets remains a challenge for the e-commerce giant.
The company reported a substantial improvement in its net finance result, with net finance costs significantly lower in the first quarter of 2025 compared to the $31.3 million incurred in the same period of 2024. This improvement was primarily attributed to the non-recurrence of treasury activities associated with higher corporate sales during a period of major currency devaluations in Nigeria and Egypt in the first quarter of the previous year.
Jumia also reported a 15 percent year-over-year growth in Quarterly Active Customers ordering physical goods, indicating continued user acquisition and engagement on its platform. Excluding the impact of corporate sales, GMV in reported currency grew 10 percent year-over-year, which the company stated reflects the underlying strength of its consumer-focused platform.
On the cost side, Jumia’s technology and content expenses amounted to $9.6 million, representing a six percent year-over-year increase (or a 9 percent increase on a constant currency basis). The company attributed this rise primarily to higher temporary infrastructure and licensing costs related to contract renegotiations, partially offset by savings from lower staff costs.
