Inflation is getting worse in Jumia’s main operational markets, including Nigeria, Ghana, and Egypt, as seen by the company’s Q2 2023 financial figures, which indicate a 28.1% reduction in customer base.
According to the corporation, the number of active users fell from 3.4 million in Q2 2022 to 2.4 million in Q2 2023, a 1 million year-over-year reduction. The value of items sold on Jumia’s platform, or its gross merchandise value (GMV), decreased by 25.1% from $271.1 million in Q2 2022 to $202.3 million in Q2 2023.
The financial report states that orders placed on the site for products decreased by 36.5% as well. In Q2 of this year, there were 6.5 million orders as opposed to 10.3 million in Q2 of 2022.
Despite the decline in revenue and customer numbers, the Jumia Group’s CEO, Francis Dufay, said the company is making progress in its bid to reduce losses. Commenting on the Q2 financials, Dufay said:
“We continue to deliver strongly on our overriding objective of loss reduction and progress towards profitability. In the second quarter of 2023, both Adjusted EBITDA and Operating losses decreased by 66% year-over-year, reaching the lowest loss levels in over 4 years.
“Considering this strong progress, we are updating our Adjusted EBITDA loss guidance for the full year 2023 to $90-100 million, compared to $100-120 million previously.
“We are navigating challenging macro conditions with discipline and focus, doubling down on our efficiency efforts. Compared to the second quarter of 2022, Fulfillment Sales & Advertising expenses were down 50% and 74%, respectively.
“We are also starting to reap the benefits of our actions on overhead costs with G&A excluding share-based compensation decreasing by a third year-over-year, reaching a 4-year low at $17.7 million.”
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...
INVESTIGATION: Uncompleted Old Enugu-Onitsha Road brings untold hardship, tears to commuters, residents of Enugu communities
Ugwu Obinna’s younger sister was killed after a truck driver transporting cows rammed into her shop located at the Okpatu...
INVESTIGATION: Students sit on floors, under leaking roofs as multi-million naira project is nowhere to be found in Zamfara
Suleman Tukur, 15, an SS 2 student of Government Day Secondary School (GDSS) Bakura in Bakura local government area of...
INVESTIGATION: UBEC mum as N80m Kebbi secondary school lab equipment still undelivered since 2020
“Our laboratories are not conducive for learning; the termites have destroyed most of these laboratories, and there is not enough...