Jumia Technologies, the African e-commerce company, announced on Wednesday that cost-cutting measures have led to a 67% reduction in third-quarter losses compared to the previous year, with further substantial decreases anticipated for the rest of the year. Jumia is actively implementing cost-saving measures, including workforce reductions, streamlining product offerings such as groceries, and eliminating non-e-commerce-related delivery services.
As the first Africa-focused tech startup listed on the New York Stock Exchange, Jumia reported an adjusted EBITDA loss of $15 million for the three months ending September 30, a significant improvement from the $46 million loss in the same period in 2022. CEO Francis Dufay emphasized the enhanced liquidity position of $147 million by the end of September, enabling the company to focus on long-term improvements and the growth of its core business.
Jumia anticipates an adjusted EBITDA loss of $80 million to $90 million for 2023, down from the previously communicated range of $90 million to $100 million. While revenue declined 11% year-on-year to $45 million due to weakened currencies in various markets, it increased by 19% in constant currency terms.
The number of quarterly active consumers decreased by 24.3% to 2.3 million, reflecting strategic decisions to concentrate on core categories and reduce consumer incentives. Inflationary effects persisted during the period, impacting both consumer purchasing power and sellers’ ability to source goods internationally, according to Jumia.