Africa’s e-commerce giant, Jumia, has released its Q2 2023 financial results, showing a 28.1% decline in its customer base as inflation bites harder in its major operating markets including Nigeria, Ghana, and Egypt.
The company said its active consumers declined by 1 million year-on-year to 2.4 million in Q2 2023 from 3.4 million recorded in the same period last year.
Jumia’s Gross merchandise value, GMV, that is, the value of goods sold on the platform also declined by 25.1% from $271.1 million in Q2 2022 to $202.3 million in Q2 2023.
According to the Jumia’s financial report obtained by Nairametrics, orders for products on the platform also declined by 36.5%. From 10.3 million orders in Q2 2022, the company slipped to 6.5 million in the same period this year.
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, Mr 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.”
