“Jumia slashes Q3 losses by 67%, unveils robust cost-cutting plan for ongoing financial strength.”


Jumia Technologies, a prominent African e-commerce entity, disclosed a noteworthy contraction in its Q3 losses, marking a 67% decrease compared to the preceding year. The company, situated in the competitive landscape of the African tech sector, is strategically implementing cost-cutting measures to steer towards profitability. These initiatives include substantial workforce reductions, rationalizing product offerings with a focus on essentials like groceries, and curtailing non-core delivery services.

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In its financial report, Jumia, recognized as the inaugural Africa-centric tech startup listed on the New York Stock Exchange, reported an adjusted EBITDA loss of $15 million for the three months ending September 30. This constitutes a substantial improvement from the $46 million loss incurred during the corresponding period in 2022. Francis Dufay, the Chief Executive, emphasized the salient reduction in losses and efficient cash utilization, culminating in a strengthened liquidity position of $147 million as of September’s conclusion.

The outlook for Jumia anticipates a further refined financial performance, with a projected adjusted EBITDA loss ranging between $80 million and $90 million for 2023. This revised estimate contrasts with the earlier communicated range of $90 million to $100 million. Despite a year-on-year revenue decline of 11% to $45 million, attributed to currency weaknesses in diverse markets, the constant currency terms indicate a robust 19% upswing.

However, Jumia faced challenges as quarterly active consumers witnessed a significant decline of 24.3%, totaling 2.3 million. This reduction primarily stems from strategic decisions to concentrate on core product categories while simultaneously diminishing consumer incentives. The persistence of inflation effects during the reporting period impacted both consumer purchasing power and the ability of sellers to procure goods internationally, as stated by Jumia.

Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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