Jumia Technologies AG (NYSE: JMIA), the leading e-commerce platform in Africa, has raised its full-year 2025 financial guidance following a strong first-quarter performance in key operational areas, despite a significant decline in revenue. The company cited surging customer engagement and operational efficiencies as key drivers in its plan to achieve profitability by late 2026.
Jumia’s Q1 2025 revenue stood at $36.3 million, marking a 26% drop year-over-year and an 18% decline in constant currency terms, primarily attributed to a sharp reduction in corporate sales in Egypt. Gross profit fell by 36% to $19.9 million, while the company reported an operating loss of $18.7 million, more than double the $8.3 million loss from Q1 2024.
However, the company’s operational resilience was reflected in a 21% year-over-year increase in order volume, the highest growth in two years. Quarterly Active Customers grew 15%, and GMV excluding corporate sales grew 10%, highlighting the strength of Jumia’s core consumer business.
Nigeria, Jumia’s largest market, emerged as a bright spot, delivering a 22% increase in orders and a 20% growth in GMV (Gross Merchandise Value) year-over-year. Overall, Jumia’s GMV fell 11% to $161.7 million, largely due to the loss of high-margin corporate sales in Egypt and the impact of regional currency devaluations.
Excluding the volatile corporate sales, particularly in Egypt, GMV performance improved, showing underlying platform strength. March 2025 alone saw GMV rise 16% year-over-year, with order growth steady at 21%, indicating renewed business momentum.
Jumia’s efforts to enhance operational efficiency yielded tangible results. Fulfillment expense per order declined 14% year-over-year to $2.07, while targeted reductions in sales and advertising expenses (down 17%) demonstrated a disciplined approach to cost management.
Despite the wider adjusted EBITDA loss of $15.7 million (compared to $4.3 million in Q1 2024), the company significantly improved its loss before income tax, which shrank to $16.5 million from $39.6 million a year prior — a 58% improvement. This turnaround was aided by a $33.5 million improvement in net finance costs due to reduced currency volatility and treasury activities.
CEO Francis Dufay commented, “Driven by strong underlying growth in our core consumer business and decisive actions to improve efficiency, we are updating our financial outlook. We believe we are on track to achieve breakeven in Q4 2026 and full-year profitability by 2027.”
As of 31 March 2025, Jumia reported a liquidity position of $110.7 million, down from $133.9 million at the end of 2024. The decline includes $21.2 million in net cash used in operating activities, compared to a net inflow of $4.5 million in Q1 2024. The shortfall was attributed to inventory build-up ahead of the early launch of its annual anniversary campaign in May and increased infrastructure investment.
Cash and cash equivalents rose to $61.6 million, with an additional $49.1 million in term deposits and financial assets, keeping the company well-positioned to support its ongoing transformation.
Bolstered by strong consumer demand and ongoing cost optimisation efforts, Jumia has raised its full-year 2025 guidance, reflecting growing confidence in its operational turnaround. The company now projects order growth of between 20% and 25%, an increase from its previous forecast of 15% to 20%. Gross Merchandise Value (GMV) is expected to reach between $795 million and $830 million, representing a 10% to 15% increase year-over-year when excluding the impact of currency fluctuations.
Additionally, Jumia has narrowed its forecasted loss before income tax to a range of $50 million to $55 million nearly 50% lower than in 2024 marking a significant step toward its profitability goals. For 2026, Jumia projects losses of $25–30 million, with breakeven expected by Q4 of that year. Full-year profitability is targeted for 2027, signaling a significant milestone for the Berlin-headquartered African e-commerce leader.
Jumia continues to develop its fintech offering through JumiaPay, which processed 2.0 million transactions in Q1 2025, up slightly from the prior year. Total Payment Volume (TPV) remained stable at $45.5 million, though TPV as a percentage of GMV rose to 28%, reflecting growing adoption of digital payments.
Additionally, the number of items sold from international sellers increased by 61% year-over-year, expanding assortment and enabling better pricing across markets.
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