Jumia is Africa’s largest e-commerce platform and it expects to generate revenue sufficient to cover all expenses by 2027. This is not the same as net profitability because taxes may still affect the bottom line. However, it is an important milestone for a company that has previously reported losses.
Due to the strong growth of our core consumer business, and our efforts to improve efficiency we are updating our financial forecast,” Dufay Shared the SEC filing. He estimates that the loss before income taxes in 2025 will be between $50-55 millions and will further shrink to $25-$30 millions in 2026.
Jumia has a bold ambition to reach profitability by 2027 despite a rough first quarter of 2025. The company attributes the decline in revenue to a slump of Egypt’s corporate sales and a 11% drop in total platform sales.
Despite this, the ecommerce giant is gaining traction with consumers. Orders increased by 21%, the strongest growth in two-years, fueled by a pivot from unprofitable market and a push to rural regions where consumer sales rose 10%.
Less high-margin deals with corporations lowered gross profit. However, the easing of currency pressures in Nigeria & Egypt reduced the pre-tax losses by more than half. Smarter logistics kept delivery expenses flat, while a leaner advertising strategy reduced advertising costs by 17%. Jumia catalogue was enriched by a 61% increase in international sellers’ products. 45% of the new customers who joined Jumia after 2024 bought more than 40%. JumiaPay remained steady with its payment volume, which now covers 28% of sales compared to 25% last year.
Dufay stated in the report that “we anticipate physical goods orders will grow between 20% and 25 percent, up from the previously range of 15-20 percent.” “GMV will be between $795 and $830 millions in 2025. This represents a 10% and 15% increase over the previous year, excluding the impact of foreign exchange.” At the time of publication, the stock price was $2.40. This is a decrease of about 4.76% ($0.12) from the previous close. Investors might be weighing the long-term potential of the stock against Africa’s economic uncertainty.
