Key Takeaways
Jumia Technologies AG (NYSE: JMIA) reported a 39% surge in first-quarter revenue and a narrower loss, reinforcing its 2026 and 2027 profitability targets as the Africa-focused e-commerce company’s turnaround plan gains momentum.
"2025 was the year we demonstrated the resilience and scalability of our model and '26 is the year we plan to demonstrate our path to profitability," Chief Executive Officer Francis Dufay said on the company's earnings call.
The company's revenue grew to $50.6 million from $36.3 million in the same period a year earlier. Its adjusted loss before interest, taxes, depreciation, and amortization shrank by 32% to $10.7 million. The number of physical goods orders grew 31% year-over-year, adjusted for recent market exits.
The results show Jumia's cost-cutting and monetization efforts are gaining traction, even as it navigates inflation and supply-chain pressures in its markets. Investors will watch for continued margin expansion and execution on the company's ambitious targets.
Gross merchandise value, a measure of sales on the platform, rose 32% on an adjusted basis. Jumia ended the quarter with 25% more active customers compared to the prior year. The company's gross profit margin expanded by 160 basis points to 13.9% of GMV, helped by commission increases implemented in January and growth in high-margin advertising and logistics services.
Management highlighted progress on cost discipline, which has been central to its strategy. Total headcount stood at 1,980 as of March 31, down from 4,318 at the end of 2022, with plans to cut at least 200 more positions in the next two quarters. Fulfillment expense per order was down 10% in constant currency, aided by automation and a greater reliance on its network of pickup stations.
Performance varied across the company’s African footprint. Ghana was the standout performer, with physical goods GMV soaring 142%. Nigeria and Kenya, two of its largest markets, grew 42% and just under 50%, respectively. Growth was more subdued in Ivory Coast at 16%, where management cited supply disruptions and a sharp drop in cocoa prices that hurt consumer purchasing power.
The company is navigating several international headwinds, including a 20% price increase for entry-level smartphones due to memory chip inflation and rising fuel prices in several markets. Dufay characterized the smartphone issue, which affects about 10% of GMV, as temporary. Jumia is mitigating fuel cost exposure by fulfilling 74% of its packages through pickup stations, reducing its reliance on last-mile door delivery.
The reaffirmed guidance suggests management is confident in navigating the near-term headwinds. The key test will be achieving the company's goal of positive cash flow in the fourth quarter of 2026, which would set the stage for its target of full-year profitability in 2027.
This article is for informational purposes only and does not constitute investment advice.
