Group 1 - The author has extensive experience in logistics, digitalization, and political-commercial strategy within the food and agricultural sectors, focusing on sustainable development and risk mitigation [1] - The author's expertise includes supplier development, EMS management, and cross-border operations, with a strong emphasis on the intersection of geopolitics and industrial policy [1] - The author writes about how FMCG and food commodities influence economic resilience and development, indicating a significant interest in these areas [1] Group 2 - The article does not provide specific investment recommendations or advice, emphasizing that past performance is not indicative of future results [2] - It is noted that the views expressed may not reflect those of Seeking Alpha as a whole, highlighting the independent nature of the analysis [2] - The authors of the analysis include both professional and individual investors, some of whom may not be licensed or certified [2]

Core Insights - Jumia Technologies is showing signs of potential profitability, with analysts optimistic about reaching breakeven by the end of 2026 [5] Group 1: Analyst Insights - RBC Capital analyst Brad Erickson raised the price target for Jumia stock from $5 to $6.50, maintaining a sector perform rating [2] - The price target increase followed Jumia's second-quarter results, which exceeded expectations [2] Group 2: Financial Performance - Jumia reported a 25% year-over-year increase in total sales, reaching $45.6 million, surpassing the consensus estimate of $43 million [3] - Gross merchandise value (GMV) rose by 6% to over $180 million [3] - Despite the sales growth, the company reported an operating loss of over $20 million, worsening from a $16.5 million loss the previous year [4] Group 3: Future Outlook - Management has raised full-year 2025 guidance for both total orders and GMV, indicating positive growth expectations [3] - The increase in order count is seen as a potential driver for profitability, with analysts speculating that breakeven could be achieved sooner than anticipated [5]

Core Insights - Jumia Technologies (NYSE: JMIA) reported a "clean" quarterly earnings report, indicating strong performance despite previous currency devaluations and one-time effects in the Egyptian market [1] - The company has improved its guidance for 2025, suggesting a positive outlook for future performance [1] Financial Performance - The earnings report reflects the use of consistent core financial metrics to measure success, which is crucial for assessing the company's operational health [1] - The impact of currency fluctuations and market conditions in Egypt has been acknowledged, but the company has managed to navigate these challenges effectively [1]

Financial Data and Key Metrics Changes - Revenue rose by 25% year over year to $45.6 million, demonstrating resilience in the core business [6][26] - Loss before income tax narrowed to $16.3 million, a 28% decrease year over year [6][33] - Cash burn significantly reduced to $12.4 million, driven by higher revenue and disciplined execution [6][15] Business Line Data and Key Metrics Changes - Physical goods orders increased by 18% year over year, with GMV up 10% excluding exits from South Africa and Tunisia [5][6] - Excluding corporate sales, physical goods GMV grew by 24%, indicating strong underlying consumer demand [5][6] - Revenue from first-party sales surged by 47% year over year, driven by strong demand from key international brands [26][28] Market Data and Key Metrics Changes - Nigeria saw physical goods orders rise by 25% year over year, with GMV up 36% [19] - Kenya experienced a 38% increase in physical goods orders, with GMV up 31% [19] - Egypt showed a decline in physical goods orders by 6% year over year, but GMV excluding corporate sales grew by 6% [21] Company Strategy and Development Direction - The company is focused on scaling physical goods e-commerce while reducing emphasis on JumiaPay app transactions [8] - Strategic initiatives include enhancing logistics reliability, expanding into underserved regions, and improving customer acquisition and retention [16][24] - The company aims to achieve profitability by 2027, with a focus on operational efficiency and cost reduction [6][25] Management's Comments on Operating Environment and Future Outlook - Management noted stable macroeconomic conditions and improved customer value propositions as key drivers for growth [43][44] - The company is optimistic about accelerating GMV growth in the second half of the year, supported by improved marketing strategies [12][39] - Management expressed confidence in achieving revised financial guidance for 2025, driven by strong operational execution [37][39] Other Important Information - The company has reduced overall headcount by 5% since the beginning of the year, reinforcing cost management efforts [13] - Jumia's anniversary campaign contributed significantly to order growth, with over 38,500 sellers participating [16] - The logistics platform, Jumia Delivery, is now operational in multiple countries, targeting social commerce vendors and individuals [22][63] Q&A Session Summary Question: What is driving the July acceleration in growth? - Management indicated that the acceleration is primarily driven by improvements in customer value propositions and a renewed focus on online marketing channels [42][43] Question: How is the company planning for inventory and cash use during the holiday season? - The company plans to build inventory starting in early October, with expectations of manageable working capital volatility [48] Question: What is the potential for growth in underserved areas? - Management believes there is significant untapped potential in secondary cities, with ongoing plans for expansion [50][52] Question: How is the company addressing supply from international suppliers? - The company anticipates increased attention from Chinese manufacturers due to tariff changes, which should enhance supply security [54][56] Question: What are the margins like for the Jumia Delivery service? - The delivery service is expected to be profitable from the outset, with competitive pricing strategies in place [61][67] Question: What is the outlook for Ivory Coast's growth? - Management noted that growth in Ivory Coast is slower due to market maturity and a deliberate focus on profitability over rapid growth [96][98]

Financial Performance - Q2 2025 revenue increased by 25% year-over-year to $45.6 million[9, 30] - Net loss before income tax improved by 28% year-over-year to $16.3 million in Q2 2025[7, 9] - Quarterly cash burn declined to $12.4 million in Q2 2025, compared to $23.2 million in Q1 2025[7] - Adjusted EBITDA loss improved to $13.6 million in Q2 2025, compared to $16.3 million in Q2 2024[9, 64] Usage Metrics - Physical goods Orders grew by 18% year-over-year[7, 19] - Physical goods Quarterly Active Customers grew by 13% year-over-year[7, 17] - Physical goods GMV grew 10% year-over-year[7] - GMV increased 9% year-over-year to $180.2 million[9, 22] Regional Performance - Nigeria momentum accelerated with physical goods Orders up 25% and Physical goods GMV up 39% year-over-year[7] Guidance - The company raised FY2025 guidance, anticipating physical goods Orders to grow between 25% and 30% year-over-year[56] - GMV is now projected to grow between 15% and 20% year-over-year[56]

Exhibit 99.1 Jumia Reports Second Quarter 2025 Results Jumia Accelerates Path to Profitability With 25% Revenue Growth and Reduced Cash Burn; Raises Full-Year 2025 Guidance Lagos, August 7, 2025 – Jumia Technologies AG (NYSE: JMIA) ("Jumia" or the "Company") announced today its financial results for the second quarter ended June 30, 2025. Financial highlights for the second quarter 2025 Business highlights for the second quarter 2025 Unless otherwise stated, all reported KPIs are for physical goods and excl ...

Editor's note: Seeking Alpha is proud to welcome Greentrack Insights as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.The author is a european supply chain professional with extensive experience in logistics, digitalization, and political-commercial strategy within the food and agricultural sectors. The author has worked across Europe and Latin America ...

Core Viewpoint - The article highlights the growing interest of Chinese sellers in the African e-commerce market, driven by the potential for growth and the demographic advantages of Africa, particularly its young population and rising middle class [3][6][10]. Group 1: Market Dynamics - Many sellers from Europe and Southeast Asia are exploring the African market due to the challenges in their current markets, such as increased competition and reduced profit margins [4][6]. - Data from China's customs shows a significant increase in exports to Africa, with a year-on-year growth of 33.4%, contrasting with declines in exports to the US and other regions [3][10]. Group 2: Demographic Advantages - Africa has the youngest population globally, with an average age of 19.3 years, and is projected to reach 1.549 billion people by 2025, making it a significant market for e-commerce [8][10]. - The middle class in Africa is expected to grow, potentially comprising over 40% of the population by 2060, which will drive consumption and economic growth [10][12]. Group 3: E-commerce Potential - E-commerce penetration in Africa is currently low, at only 2%-5% of total retail sales, compared to 20% in China, indicating substantial growth potential [10]. - The rise of the middle class and increased smartphone penetration are expected to further boost e-commerce growth in the region [14][15]. Group 4: Nigeria as a Key Market - Nigeria is identified as a primary target for Chinese sellers, with its e-commerce market expected to grow significantly, potentially tenfold in the future [15][16]. - The country has become a hub for technology and innovation, with a notable increase in startups and unicorns, particularly in fintech and e-commerce [16][18]. Group 5: Seller Adaptation - Sellers with experience in platforms like Shopee and AliExpress are more likely to succeed in Africa, where the market demands affordable products with lower return rates [21][22]. - The logistics challenges in Africa, such as poor road conditions and high last-mile delivery costs, necessitate a focus on local warehousing and community pickup points to improve efficiency [22][25]. Group 6: Payment and Brand Development - Cash on delivery remains the dominant payment method in Africa, and there is a growing need for financial technology solutions to address the lack of traditional banking services [26]. - The article emphasizes the importance of building local brands and adapting to consumer preferences, as the African market is still developing its brand consciousness [26][28].

Core Viewpoint - The African e-commerce market is experiencing significant growth, attracting interest from Chinese sellers, particularly due to the ongoing trade tensions between China and the U.S. and the saturation of Southeast Asian markets [1][2][3]. Group 1: Demographic and Economic Potential - Africa has a youthful population with an average age of 19.3 years, contrasting sharply with older regions like China and Europe, which have average ages of around 40 and 45 years respectively [5][6]. - The population in Africa is projected to reach 1.549 billion by 2025, with a significant growth rate of 2.7% annually in sub-Saharan Africa, indicating vast potential for e-commerce development [5][6]. - E-commerce penetration in Africa is currently only 2%-5% of total retail sales, compared to 20% in China, suggesting substantial room for growth [6]. - The rise of the middle class in Africa, expected to reach over 40% of the population by 2060, is driving economic growth and creating opportunities for e-commerce [6][7]. Group 2: Market Dynamics and Seller Opportunities - Nigeria is identified as the primary entry point for Chinese sellers into the African market, with its e-commerce market expected to grow tenfold in the future [10][11]. - The Nigerian startup ecosystem is thriving, with a 35% increase in startups in 2021 and five out of seven African tech unicorns originating from Nigeria [11]. - The increasing acceptance of digital solutions, such as mobile banking and e-commerce, is transforming traditional markets in Nigeria, making it a fertile ground for new entrants [12][13]. Group 3: Challenges and Adaptation Strategies - Logistics remain a significant challenge in Africa, with only 43% of roads paved, leading to high last-mile delivery costs of 35%-55% compared to 5%-8% in China [16]. - Jumia has shifted its focus to overseas warehouse sellers to improve delivery times, with a goal of 1-2 days for order fulfillment [16]. - Payment methods in Africa predominantly rely on cash on delivery, with emerging fintech solutions like M-Pesa addressing the gap in traditional financial services [17][18]. - Sellers must adapt their strategies to local market conditions, focusing on high-value products and understanding regional consumer preferences to succeed [15][16].

Company Overview - Jumia's liquidity position as of March 2025 was $110.7 million, including $61.6 million in cash and cash equivalents and $49.1 million in term deposits[10, 11] - Jumia has 5.4 million annual active customers and 2,100+ employees across 9 operating countries in Africa[10] - Jumia's physical goods orders reached 22.7 million and GMV was $720.6 million for the 12-month period ending December 2024[10, 11] - Jumia has approximately 70,000 active vendors as of December 2024[10, 11] Financial Performance & Outlook - In Q1 2025, Jumia's GMV was $161.7 million, a decrease of 2% year-over-year in constant currency[107] - Jumia's revenue for Q1 2025 was $36.3 million, a decrease of 18% year-over-year in constant currency[107] - Jumia's gross profit for Q1 2025 was $19.9 million, representing 12% of GMV[107] - Jumia anticipates physical goods orders to grow by 20-25% in 2025, with GMV between $795 million and $830 million, and a loss before income tax between $50 million and $55 million[84, 127] - Jumia projects a loss before income tax between $25 million and $30 million for 2026 and aims to reach breakeven in Q4 2026[84, 127] Operational Efficiency - Fulfillment expense per order decreased to $2.3 in 2024[87] - General & Administrative expense excluding share-based compensation decreased by 44% from $114.0 million in 2022 to $63.4 million in 2024[93]