Jumia Technologies (JMIA): Future Growth and Stock Forecast

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

Jumia Technologies is an e-commerce platform company with a focus on Africa. In addition to an online marketplace, the company offers a logistics network and digital payment service (JumiaPay), and has a growing presence in African markets where Internet penetration and urbanization are increasing.

The company went public in 2019, garnering international attention as the "Amazon of Africa". With population growth and increasing smartphone use, e-commerce demand is expected to grow rapidly, and Jumia is seen as a key player in this growth story.

Personally, I have not paid much attention to the African market as an investment target, but Jumia Technologies is slowly gaining attention and I am seeing more and more of its name.

We take a closer look at Jumia Technologies (JMIA), an e-commerce company that has skillfully entered the African market and is experiencing tremendous growth, and what it does, its unique strengths, and its future prospects.

What is Jumia Technologies (JMIA)?

Jumia Technologies AG, a Jumia Technologies Inc,A technology company that operates in African countries with a focus on e-commerce.

Founded in Nigeria in 2012, the company initially grew with the support of Rocket Internet and now offers services in several countries, including Nigeria, Egypt, Kenya, and South Africa, while maintaining its headquarters in Germany.

The company's mission is to"Making life easier and better for the people of Africa."This is to improve access to products and services through online shopping.

While logistics infrastructure and low bank account penetration are challenges in Africa, Jumia is eliminating bottlenecks to e-commerce penetration by providing an integrated logistics, warehousing, and delivery service in addition to a marketplace, as well as JumiaPay, an online payment service.

The target market is mainly young urban consumers and smartphone users, especially the rapidly growing middle-income segment in Africa.

The services offered are characterized by operations tailored to regional characteristics, such as local language support, local currency settlement, and last-mile delivery.

Jumia is,Africa's Alibaba, Africa's Amazonand its business model is similar, and it is aiming for success in the African market.

Jumia Technologies (JMIA) company information is as follows

• Company Name:Jumia Technologies AG : Jumia Technologies AG
• Year Established: 2012
• Head Office LocationBerlin, Germany
• representative: Francis Dufour, Antoine Meylan (co-CEOs)
• Official Site: https://group.jumia.com/
• Main Businesses: E-commerce platform operation, logistics services (Jumia Logistics), digital payment (JumiaPay)

What kind of business does Jumia Technologies (JMIA) do?

Jumia Technologies (JMIA) is an integrated e-commerce company with a focus on Africa and the following key businesses

Marketplace (Jumia Marketplace)

Jumia's online marketplace is a platform that connects consumers and sellers.
This marketplace offers a wide range of categories of products, including

• fashion
• electronics
• household articles
• foodstuff
• Beauty Products

The platform is designed to allow consumers to easily search for and purchase products.

Jumia Logistics (Logistics Services: Jumia Logistics)

Jumia operates its own logistics service, Jumia Logistics.
This service is designed to streamline the delivery of goods from the seller to the consumer.
Jumia Logistics offers the following features

• Warehouse operations
• Distribution center operations
• Collaboration with local logistics partners

This allows for quick and reliable product delivery.

JumiaPay (payment service: JumiaPay)

Jumia Pay is Jumia's electronic payment service.
The service supports secure and fast online payments, improves user convenience, and has mobile money integration to cater to an unbanked customer base.

• online payment
• Mobile Phone Charge
• Payment of utility bills
• Mobile wallet function
• Installment payment and BNPL (Buy Now Pay Later) support

Jumia Pay is closely integrated with Jumia's e-commerce platform to ensure a smooth transaction experience for users.

JumiaFood

Jumia Food is a food and beverage delivery service.
Through this service, users can order food from restaurants and grocery stores and have it delivered to their homes. Jumia Food meets the demand, especially in urban areas.

• Delivery Fee: This service charges a fee for delivery orders from restaurants and grocery stores.

Advertising and Promotions

Jumia provides advertising space and promotional services to sellers to generate additional revenue.

• Promotional Packages:.Sellers can purchase promotional packages to increase exposure of their products on the Jumia platform.

Other Services

In addition to the main businesses listed above, Jumia also offers the following additional services

• Travel Reservation Service
• Job Posting Service
• Real Estate Listing Services

These services support users in their daily lives through the Jumia platform. Through these services, the company has secured multiple revenue streams and increased business stability.

Jumia is a member of theseEstablishing itself as an e-commerce leader in the African market through diverse businessesThe company is doing so.
The company has achieved rapid growth with a business model tailored to the characteristics of the region and is attracting attention as a company that is expected to continue to grow.

In how many countries on the African continent does JMIA operate?

Jumia Technologies used to have operations in 11 African countries, but has withdrawn from several markets due to restructuring after 2022; as of 2025, the company has consolidated its operations in nine countries.

Countries in which Jumia currently operates

• Nigeria
• Egypt
• Kenya
• South Africa
• Morocco
• Côte d'Ivoire
• Ghana
• Senegal
• Uganda

Countries that have already withdrawn include Tunisia and Algeria.

The total population of these nine countries is approximately 600 million, which accounts for around 40% of the total African population of approximately 1.5 billion.
Jumia is leveraging its presence in these markets to pursue economic diversification and economies of scale.

Why is Jumia Technologies (JMIA) called the Alibaba of Africa?

The similarities and strategies behind Jumia Technologies (JMIA), often described as the "Alibaba of Africa," include the following

• Similarity of marketplace functionality:Like Alibaba, Jumia offers an online marketplace connecting consumers and sellers. The two companies share a broad product lineup spanning multiple categories and a platform structure that supports a diverse range of sellers.
• Building a logistics infrastructure:Just as Alibaba is strengthening its logistics through Cainiao Network and other channels, Jumia is building its own warehouses and distribution network through Jumia Logistics, making logistics a pillar of its business.
• Provides fintech and payment services:While Alibaba supports online payments through "Alipay," Jumia provides a secure and fast means of payment through JumiaPay, offering comprehensive support for e-commerce transactions.
• Scale orientation in growing markets:Just as Alibaba has experienced explosive growth in the Chinese market, Jumia is expanding its operations in the African market due to its high growth potential. The parallels are similar in that e-commerce in Africa leaves room for growth, especially as urbanization and Internet penetration progresses.
• Strategic Realignment and Concentration Strategy:Just as Alibaba has built its market dominance through a diversified strategy and huge investments, Jumia is also moving toward a sustainable profit structure by withdrawing from non-profitable markets and restructuring its business to concentrate its resources in key markets. In particular, in recent years, the company has been restructuring its business by narrowing its focus to nine countries.

As described above, Jumia is often compared to the "Alibaba of Africa" in that it has a similar business mix to Alibaba (marketplace, logistics, and payments) and pursues a scalable strategy in growing markets.

However, unlike the massive capital power and extensive international expansion of Alibaba,Optimized model specialized for the African marketIt should be noted that the construction of the
Comparisons have been made.

What's so great about Jumia Technologies (JMIA)?

The great thing about Jumia Technologies (JMIA) is,The fact that we are not just an e-commerce company, but are boosting Africa's digital economy itselfIt is located in Africa.Consolidation of operations in 9 countriesSh,Comprehensive platform integrating marketplace, logistics, and settlementand provides consumers with access to a wide range of products and sellers with sales channels to a vast market.

This two-way mechanism is,Not only does it expand purchasing opportunities, but it also improves employment and distributionThe logistics aspect of the company's operations is its own logistics operations. In terms of logistics, the company operates its ownJumia Logisticscovers from the warehouse to the last mile,Increased delivery reliability and efficiencyThe following is a list of the most common problems with the "C" in the "C" column.

On the settlement sidejumiapeiis a cash settlement-centered market.Penetrate the cashless societyOne of the company's major strengths is that it has created a safe and convenient trading environment.

Early entrant into the African market.Advantages as a first moverto capitalize on the tailwind of rising Internet penetration and a large young population,Marketing rooted in the language and culture of each regionfrom local consumers.A brand that is familiar and trusted."It is accepted as a

Further,Partner with local logistics and technology partners to complement infrastructureJumia's ability to achieve both business sustainability and scalability is also commendable. The accumulation of these strategies has enabled Jumia toA symbol of the digitalization of African economiesThe company is growing into aUnshakable position in a rapidly expanding marketThe company is building a

What is the background of Jumia Technologies (JMIA)?

Jumia Technologies (JMIA) was founded in 2012, and its founding background is largely due to Africa's rapid economic growth and increasing digitalization.
Jumia was founded in anticipation of the untapped potential of the African e-commerce market.

Founders and Initial Goals

Jumia was founded by Sacha Poignonnec and Jeremy Hodara.Both consultants were from McKinsey, and they saw the potential of the African market to offer the convenience of online shopping to consumers in the region.

Background of Establishment

• African Market Potential: Africa had a young population and rapid Internet and mobile device penetration. This led to a growing e-commerce market, and the founders of Jumia planned to take advantage of this growth opportunity to offer a wide range of products and services to African consumers.
• Lack of logistics and payment infrastructure: The logistics and payment infrastructure in Africa was not well developed, making efficient product delivery and secure online payments difficult in many areas. Jumia developed its own logistics network and electronic payment system (Jumia Pay) to address these challenges.
• Economic diversification needs: Many African countries encouraged the growth of new industries to promote economic diversification. Jumia aimed to stimulate the local economy and create new job opportunities through e-commerce.

Early Development and Partnerships

After its establishment, Jumia quickly expanded its operations and entered key markets such as Nigeria, Egypt, Kenya, and South Africa. It also formed a number of strategic partnerships in its early stages, working with local logistics companies and technology partners to strengthen its infrastructure.

The background of Jumia's establishment is largely due to the development of Africa's digital economy and the resulting changes in consumer needs.

What is the trading market?

• listed exchange: New York Stock Exchange (NYSE)
• ticker symbolJMIA : JMIA
• Listing Date: April 12, 2019

Jumia's listing on the New York Stock Exchange was the first for an African e-commerce company and attracted international attention.

What are Jumia Technologies' (JMIA) sectors, industries, and themes to which it belongs?

sector

Consumer Discretionary: Jumia Technologies is part of the General Consumer Goods sector. This sector primarily targets consumers' discretionary spending and includes e-commerce and retail. Jumia provides a platform for consumers to purchase goods online across Africa, responding to changes in consumer lifestyles and purchasing behavior.

type of industry

Internet Retail: Jumia is classified as an Internet retailer. This industry consists of companies that sell products and services through online platforms. Jumia's marketplace offers a wide range of categories, including fashion, electronics, housewares, food, and beauty products, providing convenience and choice for African consumers.

Themes belonging to

E-commerce and Digital Transformation: Jumia's business is dedicated to e-commerce and digital transformation. This theme aims to leverage digital technology to innovate traditional business processes and expand online transactions. Jumia contributes to the economic development of the region by providing an e-commerce platform against the backdrop of increasing Internet penetration and mobile devices in African markets, and through services such as Jumia Logistics and Jumia Pay, Jumia provides efficient logistics and secure payments, and promotes consumer digital The company promotes the digitalization of consumers.

Dividends?

Jumia Technologies has not paid a dividend.

As part of the company's business strategy and financial structure, profits are reinvested and focused on business expansion.

What is the size and growth potential of the industry to which Jumia Technologies (JMIA) belongs?

The industry to which Jumia Technologies (JMIA) belongs is the African e-commerce market, and the size and growth potential of this market is described below.

market scale

The e-commerce market in Africa as a whole is expanding rapidly, and by 2024 the market size will be approximately US$317 billion and by 2033, it will reach US$1,101.7 billion This is a significant increase from the previous year. This is Average annual growth rate (CAGR) of 13.81 TP3T This is the expected result.

Other data show that by 2025, the overall e-commerce market will be worth about US$40.49 billion It is estimated that by 2029, the US$56.03 billion The CAGR has expanded to 8.46%It is seen as a

Growth is also remarkable in the field of social commerce (purchasing via social networking services), which is expected to grow significantly from 2021 to 2024. 38.4% CAGR of, 2025-2030. 16.2%The market size in 2025 is expected to increase due to the growth of US$4.45 billion The number is expected to reach
In 2030. US$9.43 billionIt is believed that the market will expand to

growth factor

• Increased Internet penetration: Internet penetration is growing rapidly in Africa, with the number of Internet users reaching approximately 400 million by 2020. This is equivalent to about 40% of the total population. Increasing Internet penetration is a major driver of growth in the e-commerce market.
• Widespread use of smartphones: The proliferation of smartphones is also supporting the growth of the e-commerce market. Many people in Africa are using smartphones as their first means of accessing the Internet. This has made online shopping easier, contributing to the growth of the e-commerce market.
• Urbanization: Increasing urbanization has led to the development of logistics infrastructure and payment systems, which has facilitated the use of e-commerce. The growing middle class in urban areas is also increasing their spending power, which is supporting the growth of the market.

growth potential

The African e-commerce market is expected to continue to show high growth potential due to the following factors

• Large population of young people: Africa is the youngest continent in the world, with about 60% under the age of 25. This young population is digitally savvy and is a key customer segment for e-commerce.
• Expansion of digital payments: Mobile money and electronic payment services are becoming increasingly popular, and there is a shift from cash transactions to digital payments. This makes online shopping more convenient and is driving growth in the e-commerce market.
• Increased international investment: Many international investors are looking at the African e-commerce market and are increasingly injecting money into companies like Jumia. This has led to the development of infrastructure and expansion of services.

In general, the African e-commerce market is growing rapidly and is expected to maintain a high growth rate. As a leader in this market, Jumia Technologies is expected to further expand and grow.

Who are some of Jumia Technologies' (JMIA) competitors?

Jumia Technologies' (JMIA) competitors include several major players in the African e-commerce market. The following is a list of the major competitors and a description of their characteristics and competitive relationship with Jumia.

Konga

Konga is a Nigerian-based e-commerce company and one of Jumia's direct competitors. 

• The company offers a wide range of product categories, including fashion, electronics, and household goods.
• It has its own electronic payment system called KongaPay and offers a fast delivery service.

Takealot

South Africa-based Takealot is one of the largest online retailers in Africa. 

• It offers a diverse range of product categories and has a particularly strong presence in the South African market.
• Known for its efficient logistics system and excellent customer service.

Kilimall.

Based in Kenya, Kilimall is an e-commerce company with a large market share in the East African region. 

• The company has close ties with China and offers a diverse range of products at affordable prices.
• The local logistics network has been strengthened to ensure prompt delivery.

Masoko.

An e-commerce platform operated by Safaricom, a Kenyan telecommunications company.

• It is integrated with a widely used mobile payment system called M-Pesa.
• Utilizing its telecommunications infrastructure, the company has a strong customer base and logistics network.

Alibaba and Aliexpress

Alibaba Group is a global e-commerce giant based in China that also influences African markets through Aliexpress.

• Extensive product line and competitive prices.
• Efficient global delivery network.

What are Jumia Technologies' (JMIA) differentiators and advantages over the competition?

Jumia Technologies (JMIA) has differentiators and competitive advantages in the African e-commerce market. Below are Jumia's key differentiators and competitive advantages.

differentiator

• Region-specific approach: Jumia has developed a business model that focuses on the African market, offering services tailored to each country's culture and consumer needs. It implements region-specific marketing strategies and builds strong relationships of trust with local consumers.
• Integrated logistics and payment systems: Jumia Logistics has a logistics network that extends throughout Africa, enabling fast and efficient delivery of goods. It also offers a unique electronic payment system called Jumia Pay, which supports secure and convenient online payments. This enhances the consumer's purchasing experience.
• Wide range of product categories: Jumia's marketplace offers a wide range of product categories, including fashion, electronics, housewares, food, and beauty products, catering to a variety of consumer needs.

predominance

• Strong Partnerships: Jumia has strong cooperative relationships with regional logistics and technology partners. This has led to the development of infrastructure and expansion of services, increasing competitiveness.
• Brand recognition and credibility: Jumia is known as the "Alibaba of Africa" and has established itself as a top brand in the African market. It has high brand recognition and credibility among consumers, which helps differentiate it from its competitors.
• Innovation and Technology: Jumia maintains its competitive advantage through technological innovation. For example, services such as Jumia Pay and Jumia Logistics utilize the latest technology to enhance convenience for consumers and sellers, and have a technological edge over competitors.

These factors allow Jumia Technologies to continue to hold a strong competitive advantage in the African e-commerce market.

What is Jumia's growth strategy and vision?

Jumia Technologies' (JMIA) growth strategy and vision focuses on driving Africa's digital economy and delivering new value to consumers and businesses in the region.

growth strategy

• Jumia is a pan-AfricanExpansion of online marketplaceThe company aims to This is being done by adding new product categories and enhancing existing categories to provide the variety of products consumers are seeking and to expand the user base.
• Jumia is,Creating an efficient logistics networkBy doing so, the company is improving the speed and reliability of product delivery. The company is optimizing its delivery infrastructure by expanding its own distribution centers and strengthening cooperation with regional logistics partners.
• As an electronic payment service,We aim to promote Jumiapei andand allowing more transactions to be conducted securely online. This facilitates cashless transactions and increases convenience for consumers and sellers.
• Jumia is,Develop marketing strategies tailored to each country's market characteristics and consumer behaviorThe company is doing so. Through localized promotions and advertising campaigns, the company is increasing brand awareness and building trust with consumers.
• Jumia is,Partnerships with local businesses and international investorsThe company is accelerating its business expansion through a number of partnerships, including those in the areas of logistics, technology, and financial services.

vision

Jumia's vision is to contribute to the development of Africa's digital economy and provide new value to consumers and businesses. Specifically, the company has the following goals

• Building a Digital Infrastructure: The goal is to promote Internet access and digital technology throughout Africa and to develop a digital infrastructure so that more people can enjoy the convenience of online shopping.
• Economic Growth and Job Creation: Jumia aims to promote local economic growth and create new job opportunities. It supports the diversification and development of the economy by allowing local businesses and small and medium-sized enterprises to participate in the online marketplace.
• Sustainable Growth: The Jumia is pursuing sustainable growth and an environmentally friendly business model. The company is committed to reducing its environmental impact through the use of recyclable packaging and the operation of an efficient logistics network.

Jumia's growth strategy and vision is to drive Africa's digital economy and positively impact local communities.

Jumia Technologies (JMIA) Financial Results

Jumia Technologies' (JMIA) financial year ended December 31, and its quarterly results are presented in the following schedule.

• First quarter results (around the beginning of May):First quarter results typically focus on New Year sales trends from the end of the previous year, marketplace growth, and the efficiency of logistics services.

• Second quarter results (around early August):The second quarter financial report will reflect Jumia's major sale events and seasonal sales trends.
• Third quarter results (around the beginning of November):The third quarter financial report will include preparations for the year-end sales season and holiday season sales forecasts.
• Fourth quarter and full year results (around early February):The fourth quarter and full year results will summarize holiday season sales performance and the results of the company's growth strategy throughout the year.

First, we will review the following four indicators to perform a minimum performance analysis of Jumia Technologies (JMIA).

1. Sales:An indicator of a company's performance and growth.
2. Operating cash flow and operating cash flow margin:An indicator that looks at how much cash a company generates from its services. Margins are considered excellent when they are 15% of that ratio.
3. Operating Income:Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. EPS:An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the profitability.

Each data is,Investing.com, ,TradingViewSee from

Jumia Technologies (JMIA) Stock Price

View a real-time stock price chart (TradingView) showing the current stock price of Jumia Technologies (JMIA).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

Jumia (JMIA) Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

Jumia (JMIA) Quarterly: Cash Flow Trends

Quarterly operating CF, operating CF margin, and free CF.

• Operating CF: (Millions of yen) The total amount of cash earned from this business.
• Free CF:. Money at the disposal of companies. The real earning power of a company.
• Operating CF Margin An indicator of earning efficiency. How many % of sales remain as cash. (151 TP3T or more is excellent)

Jumia (JMIA) Quarterly: Operating Income Trends

Quarterly operating income and operating margin.

• Operating income The most important profit that shows the power of earning in this business.

Jumia (JMIA) Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Jumia (JMIA) Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Jumia (JMIA) Full Year: Cash Flow Trends

Quarterly operating CF, operating CF margin, and free CF.

Jumia (JMIA) Full Year: Operating Income Trends

Operating income and operating margin for the full year.

Jumia (JMIA) Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

What is the future life of Jumia Technologies (JMIA)? What are the future developments?

The following points are important for the future of Jumia Technologies (JMIA) and its future development.

promise

What is the future of Jumia Technologies (JMIA)?Positioning itself as a forerunner in Africa's e-commerce market, which is expected to more than double in the next 10 yearsThe growth of Africa is largely supported by the Africa has a population of over 1.5 billion and is expected to reach 2.5 billion by 2050. The number of Internet users and potential demand for online purchasing is very high due to the large number of young people and increasing urbanization.

Jumia already has a businessConcentration in 9 major countriesBy making the company's e-commerce business more profitable and withdrawing from less profitable markets, the company has improved its cost structure and is on a path to profitability. The company's evolution from a simple e-commerce company to a comprehensive digital platform** for "logistics + payment + e-commerce" through the upgrading of its logistics network and the expanded use of JumiaPay is also commendable.

Future Development

Going forward, the company is expected to strengthen its penetration into regional cities and rural areas, expand the product categories it handles, and increase the number of marketplace sellers, against a backdrop of smartphone penetration and the growth of mobile payments. In addition, it will be possible to improve product assortments and service quality through alliances with local companies and collaboration with international brands.

Challenges include a lack of logistics infrastructure, limited Internet access in some areas, and disparities in purchasing power, but these are improving over time and will be driven by international investment and infrastructure development.

In general, Jumia isCompanies at the center of the African market growth storyIn the long-term span of the next 5 to 10 years, it is expected that the company will be able to both improve profitability and expand its market. In particular, the future focus will be on whether the company can build a successful regional-specific model like Amazon and Alibaba, leveraging its payment and logistics ecosystem.

Jumia Technologies (JMIA) Q2 2024 Financial Summary

• Net sales: $364.7 million, a decrease of 171 TP3T from the same period last year. However, in fixed currency terms, the increase was 151 TP3T.
• Gross Commodity Value Transactions (GMV): $170.1 million, a decrease of 51 TP3T from the same period last year. Increase of 35% in fixed currency terms.
• Operating loss: $20.2 million, down 8% from $22.1 million in the same period last year.
• Adjusted EBITDA loss: $16.3 million, a 10% improvement from $18.2 million in the same period last year.
• Loss before income taxes: $22.5M, a decrease of 27% from the same period last year.

Business Progress

• Number of Orders: 4.8 million, an increase of 71 TP3T over the same period last year. This is due to a stronger product assortment and improved value proposition to customers.
• JumiaPay Transaction: 1.9 million, an increase of 311 TP3T over the same period last year. Efforts to increase cashless orders continue.
• Marketing Expenditures: Decreased 19% over the year and focused on investments in efficient channels, including SEO, CRM, offline channels, etc.

cash position

• liquidity: $92.8 million, down $8.7 million from the previous quarter.
• Net cash used in operating activities: $8.39 million, down from $19.5 million in the same period last year.

Management's Comments

• Francis Dufay, CEO of Jumia, confirmed that "our strategy is working and usage trends are accelerating. We continue to grow by leveraging our deep understanding of the African e-commerce market and our unique assets".

Future Outlook

• growth strategy: Jumia expects order volume and GMV to increase throughout 2024, and is focused on reducing losses and improving cash efficiency.
• Excluding local currency fluctuations: Focus is on improving performance excluding the impact of foreign exchange rates.

Although Jumia's sales and GMV declined in the second quarter, the loss was reduced by improved cost control and marketing efficiencies. The company plans to continue to improve its competitiveness in the African market based on its growth strategy.

Jumia Technologies (JMIA) Q3 2024 Financial Summary

Sales and Revenues

• Net sales: Total sales for the third quarter were $36.43 million, down 131 TP3T from the same period last year. Mainly due to foreign exchange fluctuations in the Egyptian market and lower own sales.
• Gross Merchandise Volume (GMV): $162.9 million, a decrease of 11 TP3T from the same period last year. However, excluding foreign exchange effects, it increased by 29%.
• Adjusted EBITDALosses were $17 million, up from $14.8 million in the same period of the previous year.

Business Highlights

• Marketplace revenues: Revenue from the marketplace increased 6.7% yoy. Increased corporate sales in Egypt contributed to the increase.
• Improvement of logistics network: Logistics costs temporarily increased due to warehouse consolidation and other efficiency improvement measures.
• Withdrawals and market restructuring: Decided to exit operations in South Africa and Tunisia and concentrate resources on markets with high growth potential.

Cash Flow and Financial Condition

• Enhanced liquidity: Through a capital increase of $94.7 million, the company had $164.6 million in liquidity at the end of the period. This represents the availability of funds for strategic growth.
• Operating Cash Flow: Cash flow from operating activities was minus $26.8 million. Deteriorated from -$24.0 million in the same period of the previous year.

Future Guidance

• growth forecast: Continue to reduce costs and improve efficiency, aiming to improve profitability and cash efficiency during 2024.
• Market Concentration Strategy: We intend to build a foundation for sustainable growth by concentrating on promising markets.

Factors behind the decline in stock prices

• Decrease in revenues: Declining sales and widening losses are a cause for concern, and investor sentiment is deteriorating.
• Cost of market restructuring: Exit costs in South Africa and Tunisia put a short-term strain on earnings and created uncertainty about long-term growth.

Jumia Technologies aims to strengthen its foundation for future growth while improving efficiency and market concentration.

Jumia Technologies (JMIA) Q1 2025 Financial Summary

Announcement Date:2025/05/08

Sales and Revenues

• Quarterly Sales: 36.3 million dollars (-261 TP3T y/y, -181 TP3T on a constant currency basis)
• Gross profit: 19.9 million dollars (-361 TP3T from the previous year)
• Gross profit margin: 12% (vs. 17% in 1HFY2011, mainly due to lower high-margin corporate sales in Egypt)
• Operating loss: ($18.7 million) (previous year: ($8.3) million)
• Adjusted EBITDA loss: ($15.7 million) (previous year: -$4.3 million)
• Loss before income taxes: ($16.5M) (prior year: -$39.6M, -$25% on a constant currency basis)

Operating Expenses and Profits

• Fulfillment Costs: 9.4 million dollars (same level as the previous year)
• Sales and advertising expenses: 3.1 million dollars (-171 TP3T from the previous year)
• Technology & Content Costs: 9.6 million dollars (+6% over the previous year)
• General and administrative expenses (excluding SBC): 16.1 million dollars (+51 TP3T over the previous year)

Contracts and Orders (Bookings)

• Number of orders: 5.1 million (+121 TP3T YoY; +151 TP3T on an adjusted basis)
• Number of active customers: 2.1 million (+81 TP3T y/y, +141 TP3T adjusted)
• GMV (Gross Value of Transactions in Circulation): 161.7 million dollars (-111 TP3T from the previous year, -21 TP3T on a constant currency basis)
  • Excluding corporate sales, +10%
  • Mainly due to reduced corporate sales in the Egyptian market and exchange rate depreciation

Cash and Financial Position

• Cash and marketable securities: 110.7 million dollars (-23.2 million dollars from the end of the previous year)
• Operating Cash Flow: ($21.2 million (previous year: +$4.5 million)
• Main Factors: Inventory buildup in preparation for May promotions and increased expenditures due to business expansion

Technology and Business Highlights

• March single month: GMV y/y +161 TP3T, orders +211 TP3T (growth acceleration)
• Country Highlights:
  • Nigeria: Order +22%, GMV +20% (strong recovery)
• Recognizing the instability of corporate sales, the company's strategy is focused on consumer platforms.
• Number of products sold by international exhibitors: +61% (contributes to price competitiveness and product assortment enhancement)
• Improved fulfillment efficiency: Cost per order reduced by 141 TP3T (vs. previous year)

Guidance for 2025

• Number of orders: Revised upward to +20-251 TP3T YoY (previously +15-201 TP3T)
• GMV Outlook: 795-$830 million (+10-$151 TP3T on a constant currency basis)
• Pre-tax loss forecast: ($50-$55 million (-$96 million in the previous year → significant improvement expected)
• Forecast for 2026: Pre-tax loss -$25 million to -$30 million
• Plan to return to profitability in Q4 2026 and full year 2027

Jumia has broken away from its corporate dependence on the African market,The company is steadily transforming itself into a profitable structure by refocusing on consumer commerce and improving efficiency.Strong growth in the single month of March, normalization of GMV composition, and thorough expenditure control are beginning to show results,Financial results steadily progressing toward achieving profitability in 2026The company's stock price has been raised to ¥2,860 per share. Although foreign exchange and political risks remain as risk factors, this stock has high growth potential from a medium- to long-term perspective.

Jumia Technologies (JMIA) Q2 2025 Financial Summary

Announcement Date:2025/08/07

Sales and Revenues

• Quarterly Sales: 45.6 million dollars (+25% over the previous year)
• Operating loss: ($(16.52) million (previous year: $(20.23) million)
• Adjusted EBITDA loss: ($(13.6) million) (previous year: $(16.3) million)
• Loss before income taxes: ($16.3) million (previous year: ($22.48) million)

Operating Expenses and Profits

• Gross profit: 23.93 million dollars (+11% over the previous year)
• Fulfillment Costs: 10.83 million dollars (+16% over the previous year)
• Sales and advertising expenses: 4.15 million dollars (-6% from the previous year)
• G&A expenses (excluding SBC): 16 million dollars (-9% from the previous year)

Contracts and Orders (Bookings)

• Total number of orders: 5 million (+4% YoY)
• GMV (Gross Value of Transactions in Circulation): 180.2 million dollars (+6% over the previous year)
• Ordering physical goods: +18% YoY on an adjusted basis
• Quarterly active customer count: 2.2 million (+13% over the previous year)

Cash and Financial Position

• Cash balances: 98.3 million, of which $95.6 million is cash equivalents
• Operating Cash Flow: ($(12.68) million, an improvement from the previous year)
• Cash burn: Significant decrease from the previous year (Q1: ($23.2) million → Q2: ($12.4) million)

Technology and Business Highlights

• Worked with brands such as Starlink and Adidas to increase 1st party sales +47%.
• New ad platform to be launched in June, aiming to increase ad revenues.
• Reduce costs by improving operational efficiency (customer service, marketing, IT operations) using AI
• Rapid growth in Nigerian market (orders +25%, GMV +36%)
• Number of cross-border transactions with overseas sellers +36%; repurchase rate of new customers also increased

2025 Guidance (as revised)

• Physical commodity order growth rate: 25-30% (conventional: 20-25%)
• GMV Growth Rate: 15-20% (conventional: 10-15%)
• Loss before income taxes: (45 million to (50 million) dollars (previously: (50 million to (55 million) dollars)
• Reiterated its goal of returning to profitability in Q4 2026 and full-year profitability in 2027.

Jumia (group of languages)Steady progress toward profitability while balancing sales growth and loss reductionThe company has also revised its full-year 2025 guidance upward. The company's market growth, especially in Nigeria, and its revenue diversification strategy through the introduction of advertising and AI are paying off. As an e-commerce company from Africa, it is likely to attract even more attention.

Source (primary information)

• Jumia Technologies AG IR "Jumia Reports Second Quarter 2025 Results" (August 7, 2025))

Which brokerage firms can I buy shares of Jumia Technologies (JMIA)?

The following is a list of major brokerages that offer Jumia Technologies (JMIA) shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of Jumia Technologies' (JMIA) business, its unique characteristics, competitive advantages, and earnings growth.

Jumia has skillfully entered the fast-growing African market and has achieved growth by accurately identifying local needs. The company's concentration of operations in nine major countries, efficient management, and a clear path to profitability are major strengths.

The rapidly growing African market has many tailwinds, including population growth, Internet penetration, and urbanization, and Jumia is expanding its business by accurately capturing these factors. In particular,Service design tailored to local culture and consumer behaviorAnd,Collaboration with local partners to complement infrastructureis a differentiating factor from the competition.

While logistics, purchasing power disparities, and regulatory changes remain as challenges, these constraints are likely to improve in the long run, and Jumia will further strengthen its position as a symbol of the digitalization of African economies.

The timing of the investment is attractive, and I have personally picked up a steady stream of shares, judging that it is worth proceeding with the investment in anticipation of long-term growth.