Jumia Technologies AG

05/08/2025 | Press release | Distributed by Public on 05/08/2025 04:34

Jumia Reports First Quarter 2025 Results (Form 6-K)

Jumia Reports First Quarter 2025 Results
Jumia Raises Full-Year 2025 Guidance on Strong Execution
Accelerating Order and Customer Growth Drives Momentum; Expect To Achieve Breakeven in 4Q 2026
Lagos, May 8, 2025 - Jumia Technologies AG (NYSE: JMIA) ("Jumia" or the "Company") announced today its financial results for the first quarter ended March 31, 2025.
Financial highlights for the first quarter 2025
•Revenue of $36.3 million, down 26% year-over-year, or down 18% in constant currency.
•GMV of $161.7 million, down 11% year-over-year, or down 2% in constant currency.
•Operating loss of $18.7 million in the first quarter of 2025 compared to $8.3 million in the first quarter of 2024.
•Adjusted EBITDA loss of $15.7 million in the first quarter of 2025 compared to $4.3 million in the first quarter of 2024.
•Improving Loss before Income tax of $16.5 million in the first quarter of 2025, down 58% year-over-year, or down 25% in constant currency.
•Liquidity position of $110.7 million, a decrease of $23.2 million in the first quarter of 2025, compared to a decrease of $19.1 million in the first quarter of 2024.
•Net cash flows used in operating activities of $21.2 million compared to net cash flows from operating activities of $4.5 million in the first quarter of 2024.
•Lower Revenue and higher Operating loss, largely due to reduced corporate sales in Egypt, more than offset by lower net finance costs.
Business highlights for the first quarter 2025
All reported KPIs are for physical goods and exclude results from South Africa and Tunisia, which were exited in late 2024.
•Orders grew 21% year-over-year, the highest growth rate in the past two years.
•Quarterly Active Customers ordering physical goods grew by 15% year-over-year.
•Excluding corporate sales, GMV in reported currency grew 10% year-over-year, reflecting the underlying strength of our consumer-focused platform.
•GMV declined 8% year-over-year, primarily driven by a sharp drop in corporate sales in Egypt and the continued impact of currency devaluations. Please note that corporate sales are inherently more volatile than revenue from consumer business, particularly given the macro-economic environment in Egypt.
•Nigeria confirmed its strong turnaround, with Orders up 22% and GMV up 20% year-over-year.
•March trends, showed strong acceleration, with GMV up 16% year-over-year and Orders up 21%, demonstrating renewed momentum.
•Gross items sold from international sellers grew 61% year-over-year in the first quarter 2025, supporting a broader assortment and improved pricing power across our markets.
•Operational efficiency gains, with Fulfillment expense per Order (including South Africa and Tunisia), decreasing 14% year-over-year
Company Commentary
"Driven by strong underlying growth in our core consumer business (March physical goods GMV increased 16% year-over-year, adjusted for perimeter effects) and decisive actions to improve efficiency, we are updating our financial outlook:
•Raised Full-Year 2025 Guidance: Loss before income tax now expected to be $50-55 million.
•2026 Projection: Loss before income tax anticipated at $25-$30 million.
•Profitability Timeline: We believe to be 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." --CEO, Francis Dufay



SELECTED FINANCIAL INFORMATION

Financial Results for the first quarter ended March 31, 2025
For the three months ended
As reported
YoY

Change
Constant currency
YoY

Change
In USD million, unless otherwise stated March 31, 2024 March 31, 2025 March 31, 2025
Revenue 48.9 36.3 (26) % 40.2 (18) %
Gross Profit
31.2 19.9 (36) % 21.2 (32) %
Fulfillment expense
(9.4) (9.4) - % (10.1) 8 %
Sales and Advertising expense (3.7) (3.1) (17) % (3.5) (8) %
Technology and Content expense (9.1) (9.6) 6 % (9.9) 9 %
G&A expense, excluding SBC(1)
(15.3) (16.1) 5 % (17.0) 11 %
Adjusted EBITDA(1)
(4.3) (15.7) nm (16.4) nm
Operating Income/ (Loss) (8.3) (18.7) nm (19.6) nm
Loss before Income tax(2)
(39.6) (16.5) (58) % (19.7) (25) %
_________________________
(1) See "Non-IFRS and Other Financial and Operating Metrics" for a reconciliation of non-IFRS measures to IFRS measures.
(2) Loss before Income tax in constant currency, and the corresponding year-over-year change, excludes the impact of foreign exchange gains/(losses) recorded in finance income/costs. Net foreign exchange gains/(losses) in reported currency were $(13.3) million in the first quarter of 2024 and $2.1 million in the first quarter of 2025.
Revenue
•Revenue1 of $36.3 million, down 26% year-over-year or down 18% year-over-year on a constant currency basis.
◦Revenue for the quarter was impacted by the sharp decline in corporate sales, particularly in Egypt, compared to the first quarter of 2024.
◦Marketplace revenue, comprised of third-party sales, marketing and advertising, and value-added services, was $18.1 million, down 30% year-over-year or down 26% on a constant currency basis. The decline was driven by lower commissions from third-party corporate sales in Egypt and the impact of currency devaluations.
◦First-party sales revenue was $17.8 million, down 21% year-over-year or down 9% on a constant currency basis, similarly impacted by lower first-party corporate sales in Egypt and currency movements.
Gross Profit
•Gross profit was $19.9 million, down 36% year-over-year or down 32% year-over-year on a constant currency basis.
•Gross profit as a percentage of GMV was 12%, compared to 17% in the first quarter of 2024, primarily due to lower revenue from higher-margin corporate sales in Egypt. In the first quarter of 2024, first-party and third-party corporate sales in Egypt generated high margins, but these were in part offset by high finance costs incurred from the need to repatriate cash.
Expenses
•Fulfillment expense was flat year-over-year at $9.4 million, or up 8% year-over-year on a constant currency basis.
◦Fulfillment expense per Order, excluding JumiaPay app Orders, which do not incur logistics costs, was down 14% year-over-year to $2.07, or down 7% year-over-year on a constant currency basis, driven by stronger operating leverage, lower third-party logistics costs and continued efficiency gains.
•Sales and Advertising expense totaled $3.1 million, down 17% year-over-year or down 8% on a constant currency basis. The decline reflects continued cost discipline and the effectiveness of our targeted marketing strategy, delivering accelerating usage growth while reducing absolute costs.
•Technology and Content expense amounted to $9.6 million, up 6% year-over-year, or up 9% year-over-year on a constant currency basis. This increase was primarily driven by higher temporary infrastructure and licensing costs related to contract renegotiation, partially offset by savings from lower staff costs.
•General and Administrative expense was $17.2 million, down 2% year-over-year or up 4% year-over-year on a constant currency basis.
◦General and Administrative expense, excluding share-based compensation expense, was $16.1 million, up 5% year-over-year or up 11% year-over-year on a constant currency basis.
◦The first quarter of 2024 benefited from a reduction in tax provisions, an effect that did not recur in the first quarter of 2025. This impact was partially offset by a 10% reduction in staff costs within General and Administrative expense, excluding share-based compensation expense, which decreased to $7.8 million in the first quarter of 2025 from $8.8 million in the first quarter of 2024, primarily driven by headcount reduction.
Loss before Income tax
•Operating loss was $18.7 million in the first quarter of 2025 as compared to $8.3 million in the first quarter of 2024. The wider loss was primarily driven by lower corporate sales in Egypt and currency headwinds.
•Adjusting our operating loss for depreciation and amortization and share-based compensation expense, our Adjusted EBITDA loss increased from $4.3 million in the first quarter of 2024 to $15.7 million in the first quarter of 2025, in line with the increase in the operating loss.
•Loss before Income tax was $16.5 million in the first quarter of 2025 as compared to $39.6 million in the first quarter of 2024. The improvement in loss before income tax was primarily driven by:
◦A $11.3 million negative impact on gross profit, primarily due to lower corporate sales in Egypt;
◦A $1.0 million decrease in operating expenses; and
◦A $33.5 million improvement in net finance result. In the first quarter of 2024, Jumia incurred net finance costs of $31.3 million, primarily driven by treasury activities associated with higher corporate sales during a period affected by major currency devaluations in Nigeria and Egypt which did not recur in the first quarter of 2025, resulting in a substantial improvement in net finance result.
•Loss before Income tax, which excludes the impact of foreign exchange recorded in finance income and finance costs, was $19.7 million, down 25% in constant currency.
Cash Position
•As of March 31, 2025, the Company's liquidity position was $110.7 million, comprised of $61.6 million in cash and cash equivalents and $49.1 million in term deposits and other financial assets.
•Jumia's liquidity position decreased by $23.2 million in the first quarter of 2025, compared to a decrease of $19.1 million in the first quarter of 2024, and a decrease of $30.6 million in the fourth quarter of 2024.
•Net cash used in operating activities was $21.2 million in the first quarter of 2025, compared to a net cash inflow of $4.5 million in the first quarter of 2024, primarily driven by a negative working capital contribution of $8.0 million, largely reflecting higher inventory levels built up to ensure product availability and assortment ahead of the Jumia Anniversary campaign, which is set to launch in early May-earlier than in 2024.
◦In addition, the Company reported $0.9 million in capital expenditures in the first quarter of 2025, compared to $0.2 million in the first quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth.
1In addition to marketplace revenue and first-party sales, revenue included other revenue of $0.6 million in the first quarter of 2024 and $0.4 million in the first quarter of 2025.


SELECTED OPERATIONAL KPIs
Marketplace KPIs
For the three months ended
As Reported
YoY
Change
Constant currency
YoY
Change
March 31, 2024 March 31, 2025 March 31, 2025
Quarterly Active Customers (million) 1.9 2.1 8 % n.a. n.a.
Quarterly Active Customers (million) adjusted for perimeter effects(1)
1.8 2.1 14 % n.a. n.a.
Orders (million) 4.6 5.1 12 % n.a. n.a.
Orders (million) adjusted for perimeter effects(1)
4.5 5.1 15 % n.a. n.a.
GMV (USD million) 181.5 161.7 (11) % 178.3 (2) %
GMV (USD million) adjusted for perimeter effects(1)
176.2 161.7 (8) % 178.3 1 %
TPV (USD million) 45.4 45.5 - % 48.0 6 %
JumiaPay Transactions (million) 2.0 2.0 1 % n.a. n.a.
_________________________
(1) Adjustments for perimeter effects relate to the exit from Tunisia and South Africa
•GMV declined by 11% year-over-year to $161.7 million and Orders increased by 12% year-over-year to $5.1 million. The decline in GMV was driven by lower corporate sales in Egypt and currency devaluations. Order growth reflects continued improvement in product assortment and a stronger customer value proposition. Adjusted for perimeter effects, Orders from upcountry regions represented 58% of total Orders in the first quarter of 2025, up from 50% in the prior-year period.
◦Consistent with the GMV evolution, the average order value for physical goods Orders decreased in the first quarter of 2025 compared to the first quarter of 2024.
◦Jumia continues to take a disciplined and targeted approach to marketing spend, prioritizing channels that Jumia believes to be highly efficient, such as search engine optimization ("SEO"), customer relationship management ("CRM"), and relevant offline local channels (e.g. radio and print) while also leveraging its JForce agent network.
◦As a result of these efforts and adjusted for perimeter effects, Jumia is attracting what it believes to be a stickier and higher quality customer base as evidenced by a 505 basis point year-over-year improvement in repurchase rates.
▪Jumia's cohort analysis indicates that 45% of new customers, who placed their first order in the fourth quarter of 2024, made a second purchase within 90 days, compared to 40% of new customers in the fourth quarter of 2023.
•JumiaPay Transactions reached 2.0 million, an increase of 1% year-over-year mainly driven by increased penetration of JumiaPay on delivery in the first quarter of 2025.
◦Ongoing efforts to streamline the user experience and the continued rollout of JumiaPay on delivery to increase cashless orders have positioned JumiaPay as an enabler of the Company's e-commerce platform.
•TPV remained stable at $45.5 million in the first quarter of 2025 compared to $45.4 million in the first quarter of 2024, heavily impacted by currency devaluations. TPV as a percentage of GMV increased to 28% in the first quarter of 2025 compared to 25% in the first quarter of 2024.


GUIDANCE
Jumia remains committed to delivering profitable growth in 2025 by scaling usage, enhancing operational efficiency, and driving meaningful reductions in cash burn.
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 $795 million and $830 million in 2025, a year-over-year increase of 10% and 15%, respectively, excluding foreign exchange impacts.
•We forecast Loss before Income Tax to be in the range of negative $50 million to negative $55 million, a year-over-year decrease of 49% and 44%, respectively.
For full-year 2026:
•We are projecting Loss before income tax to be in the range of negative $25-$30 million
•We believe to be on track to achieve breakeven on a Loss before income tax basis in the fourth quarter of 2026, and deliver full-year profitability in 2027
The above forward-looking statements reflect Jumia's expectations as of May 8, 2025, are subject to change, and involve inherent risks, which are partially or fully beyond its control. These risks include but are not limited to political and economic conditions across countries where it operates, the broader economic impact of the ongoing regional conflicts, and global supply chain issues.



CONFERENCE CALL AND WEBCAST INFORMATION
Jumia will host a conference call to discuss its first quarter 2025 results at 8:30 AM ET on May 8, 2025.

Interested parties can access the conference at:
US Dial-in (Toll Free): 888-506-0062
International Dial-in: 973-528-0011
United Kingdom Dial-in: 44 20 3355 4169
Entry Code: 476363

The live call will also be available via webcast on Jumia's Investor Relations Website: https://investor.jumia.com/investor-relations/default.aspx.

A replay of the call will be available until Thursday, May 22, 2025 and can be accessed by dialing 877-481-4010 for toll free access or 919-882-2331 for international access using the replay passcode: 52347.



(UNAUDITED)
Consolidated statement of comprehensive income as of March 31, 2024 and 2025
For the three months ended
In thousands of USD March 31, 2024 March 31, 2025
Revenue 48,893 36,261
Cost of revenue
(17,709) (16,360)
Gross profit
31,184 19,901
Fulfillment expense
(9,377) (9,401)
Sales and advertising expense (3,742) (3,102)
Technology and content expense (9,109) (9,645)
General and administrative expense
(17,452) (17,189)
Other operating income 249 802
Other operating expense (86) (22)
Operating loss (8,333) (18,656)
Finance income 1,293 3,356
Finance costs (32,595) (1,186)
Loss before Income tax (39,635) (16,486)
Income tax benefit / (expense) (1,022) (221)
Loss for the period (40,657) (16,707)
Attributable to:
Equity holders of the Company (40,650) (16,710)
Non-controlling interests (7) 3
Loss for the period (40,657) (16,707)
Other comprehensive income / (loss) to be classified to profit or loss in subsequent periods
Exchange differences gain on translation of foreign operations 169,673 (22,903)
Other comprehensive loss on net investment in foreign operations (158,584) 20,315
Other comprehensive income on financial assets at fair value through OCI 1,381 196
Other comprehensive income / (loss) 12,470 (2,392)
Total comprehensive loss for the period (28,187) (19,099)
Attributable to:
Equity holders of the Company (28,189) (19,085)
Non-controlling interests 2 (14)
Total comprehensive loss for the period (28,187) (19,099)


(UNAUDITED)
Consolidated statement of financial position as of December 31, 2024 and March 31, 2025
As of
In thousands of USD December 31,
2024 		March 31,
2025
Assets
Non-current assets
Property and equipment 17,196 17,875
Deferred tax assets 323 319
Other taxes receivables 3,814 3,990
Other non-current assets 1,408 1,365
Total Non-current assets 22,741 23,549
Current assets
Inventories 6,432 10,892
Trade and other receivables 15,783 14,005
Income tax receivables 3,041 3,380
Other taxes receivable 4,227 4,652
Prepaid expenses 5,903 7,582
Term deposits and other financial assets 78,585 49,054
Cash and cash equivalents 55,360 61,644
Total Current assets 169,331 151,209
Total Assets 192,072 174,758
Equity and Liabilities
Equity
Share capital 283,093 283,093
Share premium 1,792,181 1,792,181
Other reserves 180,442 179,198
Accumulated losses (2,168,924) (2,185,640)
Equity attributable to the equity holders of the Company 86,792 68,832
Non-controlling interests (506) (518)
Total Equity 86,286 68,314
Liabilities
Non-current liabilities
Non-current borrowings 7,260 8,049
Trade and other payables 6 17
Deferred tax liabilities 540 342
Other taxes payable 1,626 1,139
Provisions for liabilities and other charges 638 649
Total Non-current liabilities 10,070 10,196
Current liabilities
Current borrowings 3,938 4,285
Trade and other payables 44,301 46,867
Income tax payables 13,510 13,386
Other taxes payable 13,994 13,763
Provisions for liabilities and other charges 12,893 13,436
Deferred income 7,080 4,511
Total Current liabilities 95,716 96,248
Total Liabilities 105,786 106,444
Total Equity and Liabilities 192,072 174,758


(UNAUDITED)
Consolidated statement of cash flows as of March 31, 2024 and 2025
For the three months ended
In thousands of USD March 31,
2024 		March 31,
2025
Loss before Income tax (39,635) (16,486)
Depreciation and amortization of tangible and intangible assets 1,881 1,864
Impairment losses on loans, receivables and other assets (68) 214
Impairment losses/(reversals) on obsolete inventories 160 309
Share-based compensation expense 2,156 1,062
Net (gain)/loss from disposal of tangible and intangible assets (45) 17
Change in provision for other liabilities and charges (1,955) 425
Lease modification (income)/expense (4) (6)
Interest (income)/expense 813 (154)
Discounting effect (income)/expense (119) 87
Net foreign exchange (gain)/loss 13,294 (325)
Net loss on financial instruments at fair value through profit or loss 16,098 -
Net loss recognized on disposal of debt instruments held at FVOCI 1,231 -
Share-based compensation expense - settlement (127) (136)
(Increase)/Decrease in trade and other receivables, prepaid expenses and other tax receivables 3,936 (296)
(Increase)/Decrease in inventories (1,353) (4,585)
Increase/(Decrease) in trade and other payables, deferred income and other tax payables 9,528 (2,250)
Income taxes (paid)/received (1,306) (915)
Net cash flows (used in) / from operating activities 4,485 (21,175)
Cash flows from investing activities
Purchase of property and equipment (245) (871)
Proceeds from sale of property and equipment 80 -
Interest or other charges received (822) 510
Movement in other non-current assets (44) (124)
Movement in term deposits and other financial assets (3,439) 30,239
Net cash flows (used in) / from investing activities (4,470) 29,754
Cash flows from financing activities
Payment of lease interest (178) (520)
Repayment of lease liabilities (809) (584)
Net cash flows (used in) / from financing activities (987) (1,104)
Net (decrease)/increase in cash and cash equivalents (972) 7,475
Effect of exchange rate changes on cash and cash equivalents (5,884) (1,191)
Cash and cash equivalents at the beginning of the period 35,483 55,360
Cash and cash equivalents at the end of the period 28,627 61,644



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