Jumia Technologies' Q4 2024: Navigating Contradictions in Order Growth, Inventory Strategy, and Sales Dynamics
Thursday, Feb 20, 2025 9:25 pm ET
These are the key contradictions discussed in Jumia Technologies' latest 2024Q4 earnings call, specifically including: Order Growth and Supply Side, Inventory Strategy, 1P and 3P Sales Strategy, Inventory and Volume Growth Strategy, Order Growth and Usage Trends, Inventory Strategy and Cost Management, and Fixed Cost Basis:
Order and Customer Growth:
- Jumia's physical goods orders grew by 18% year-over-year in Q4 2024, with even stronger growth observed in December.
- Quarterly active customers increased by 8%, reflecting the strength of the platform and the value it delivers to customers.
- The growth was driven by strategic initiatives such as expanding upcountry markets, improving product assortment, and enhancing logistics capabilities.
Financial Performance and Currency Impact:
- Jumia's revenue was $45.7 million in Q4 2024, down 23% year-over-year in USD and down 2% in constant currency.
- Adjusted EBITDA was negative $13.7 million, and loss before income tax was $17.6 million.
- The decline in revenue was primarily due to currency devaluations and a reduction in corporate sales, particularly in Egypt.
Cost Management and Efficiency:
- Jumia managed to reduce marketing spend from $6.2 million in Q4 '23 to $4.8 million in Q4 '24.
- Fulfillment expense per order, excluding JumiaPay app owners, decreased to $2.24, down 4% on a constant currency basis.
- These improvements were due to targeted marketing spend and operational efficiencies, including consolidating warehouse footprints.
Strategic Exits and Market Focus:
- Jumia exited nonstrategic markets in South Africa and Tunisia, focusing on operating in 9 countries.
- This strategic move helped consolidate operations and improve efficiency, contributing to a more streamlined business model.
- The decision was part of a broader strategy to build a sustainable and profitable future for Jumia by focusing on core markets.

Order and Customer Growth:
- Jumia's physical goods orders grew by 18% year-over-year in Q4 2024, with even stronger growth observed in December.
- Quarterly active customers increased by 8%, reflecting the strength of the platform and the value it delivers to customers.
- The growth was driven by strategic initiatives such as expanding upcountry markets, improving product assortment, and enhancing logistics capabilities.
Financial Performance and Currency Impact:
- Jumia's revenue was $45.7 million in Q4 2024, down 23% year-over-year in USD and down 2% in constant currency.
- Adjusted EBITDA was negative $13.7 million, and loss before income tax was $17.6 million.
- The decline in revenue was primarily due to currency devaluations and a reduction in corporate sales, particularly in Egypt.
Cost Management and Efficiency:
- Jumia managed to reduce marketing spend from $6.2 million in Q4 '23 to $4.8 million in Q4 '24.
- Fulfillment expense per order, excluding JumiaPay app owners, decreased to $2.24, down 4% on a constant currency basis.
- These improvements were due to targeted marketing spend and operational efficiencies, including consolidating warehouse footprints.
Strategic Exits and Market Focus:
- Jumia exited nonstrategic markets in South Africa and Tunisia, focusing on operating in 9 countries.
- This strategic move helped consolidate operations and improve efficiency, contributing to a more streamlined business model.
- The decision was part of a broader strategy to build a sustainable and profitable future for Jumia by focusing on core markets.

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