Jumia(JMIA) - 2025 Q2 - Quarterly Report

Executive Summary & Highlights Financial Highlights (Q2 2025) Jumia achieved significant financial improvements in Q2 2025, including a 25% year-over-year revenue increase and substantial reductions in operating loss, Adjusted EBITDA loss, and loss before income tax, demonstrating progress towards profitability Financial Highlights Table | Metric | Q2 2024 (USD million) | Q2 2025 (USD million) | YoY Change | Constant Currency YoY Change | | :-------------------------- | :-------------------- | :-------------------- | :--------- | :--------------------------- | | Revenue | 36.5 | 45.6 | 25% | 22% | | GMV | 170.1 | 180.2 | 6% | 5% | | Operating loss | (20.2) | (16.5) | (18)% | (21)% | | Adjusted EBITDA loss | (16.3) | (13.6) | (17)% | (19)% | | Loss before Income tax | (22.5) | (16.3) | (28)% | (17)% | | Liquidity position | N/A | 98.3 | N/A | N/A | | Net cash flow used in operating activities | (8.4) | (12.7) | 51% | N/A | Business Highlights (Q2 2025) Jumia's Q2 2025 operational performance showed strong growth in orders and active customers, significant GMV increase for physical goods, accelerated momentum in Nigeria, and reduced cash burn - Orders grew 18% year-over-year, driven by strong execution and improved product assortment across key categories[5] - Quarterly Active Customers ordering physical goods grew by 13% year-over-year, demonstrating sustained engagement and customer retention[5] - GMV increased 10% year-over-year (excluding corporate sales in Egypt and perimeter effects), driven by robust consumer demand[5] - Nigeria's momentum accelerated, with Orders growth up 25% and total GMV up 36% year-over-year[5] - Cash burn was $12.4 million in Q2 2025, a sequential decline from $23.2 million in Q1 2025, reflecting disciplined cost management and operational efficiencies[5] - Gross items sold from international sellers grew 36% year-over-year in Q2 2025, reflecting strong cross-border merchant engagement and rising consumer demand[5] Company Commentary CEO Francis Dufay highlighted continued momentum in the core consumer business, robust usage growth, and strong engagement, reinforcing confidence in achieving breakeven by Q4 2026 and full-year profitability in 2027, with raised guidance for 2025 - Second quarter results demonstrate continued momentum in the core consumer business, with robust usage growth and strong engagement across markets[6] - Meaningful improvement in cash burn quarter-over-quarter, driven by growth and a positive impact from working capital[6] - Confidence in reaching the strategic goal to breakeven on a Loss before Income tax basis in Q4 2026 and achieving full-year profitability in 2027[7] - Full-year 2025 guidance and long-term profitability targets have been raised based on current trends[7] Selected Financial Information Overview of Financial Results Jumia's Q2 2025 financial results show strong year-over-year improvements in key profitability metrics, with revenue increasing by 25% and operating loss decreasing by 18% Financial Results Table | In USD million | June 30, 2024 | June 30, 2025 | YoY Change | June 30, 2025 (Constant Currency) | Constant Currency YoY Change | | :-------------------------- | :------------ | :------------ | :--------- | :-------------------------------- | :--------------------------- | | Revenue | 36.5 | 45.6 | 25 % | 44.4 | 22 % |\n| Gross Profit | 21.6 | 23.9 | 11 % | 22.7 | 5 % |\n| Fulfillment expense | (9.3) | (10.8) | 16 % | (10.1) | 9 % |\n| Sales and Advertising expense | (4.4) | (4.2) | (6)% | (4.1) | (7)% |\n| Technology and Content expense | (8.7) | (9.2) | 6 % | (9.0) | 3 % |\n| G&A expense, excluding SBC | (17.6) | (16.0) | (9)% | (15.2) | (14)% |\n| Adjusted EBITDA | (16.3) | (13.6) | (17)% | (13.1) | (19)% |\n| Operating Income/ (Loss) | (20.2) | (16.5) | (18)% | (16.0) | (21)% |\n| Loss before Income tax | (22.5) | (16.3) | (28)% | (18.5) | (17)% | Revenue Analysis Total revenue grew 25% YoY to $45.6 million, primarily driven by a 47% increase in first-party sales, while marketplace revenue also saw an 8% increase - Total Revenue: $45.6 million, up 25% year-over-year (22% on a constant currency basis)[10] - Marketplace revenue: $21.6 million, up 8% year-over-year (2% on a constant currency basis), driven by strong usage growth and increases in take rate, partially offset by lower commissions from third-party corporate sales in Egypt[12] - First-party sales revenue: $23.6 million, up 47% year-over-year (both reported and constant currency basis), driven by strong momentum with key international brands such as Starlink or Adidas[12] Gross Profit Analysis Gross profit increased by 11% YoY to $23.9 million, with gross profit as a percentage of GMV improving to 13.3% due to stronger marketplace margins and strategic enhancements - Gross profit: $23.9 million, up 11% year-over-year (5% on a constant currency basis)[12] - Gross profit as a percentage of GMV: 13.3% in Q2 2025, compared to 12.7% in Q2 2024, driven by stronger marketplace margins[12] - Launch of an advanced seller advertising platform in June 2025 to significantly expand monetization opportunities, with advertising revenue at 1% of GMV[12] Expense Analysis Jumia demonstrated disciplined cost management, with Sales and Advertising expenses decreasing by 6% YoY and General and Administrative expenses declining by 12% YoY, while leveraging AI for efficiency - Fulfillment expense: $10.8 million, up 16% year-over-year (9% on a constant currency basis). Fulfillment expense per Order (excluding JumiaPay app Orders) was $2.19, up 1% year-over-year (down 5% on a constant currency basis)[12] - Sales and Advertising expense: $4.2 million, down 6% year-over-year (7% on a constant currency basis), reflecting continued cost discipline and effective targeted marketing[12] - Technology and Content expense: $9.2 million, up 6% year-over-year (3% on a constant currency basis), primarily due to currency translation effects. Anticipated decreases from workforce optimization and renegotiated contracts[12] - General and Administrative expense: $17.0 million, down 12% year-over-year (16% on a constant currency basis). Headcount declined by 5% since December 31, 2024, to just over 2,050 employees[12][15] - Leveraging AI across key functions (customer service, marketing, technology operations) to enhance productivity and reduce operating expenses, contributing to ongoing reductions in total operating expenses[15] Profitability Metrics (Operating Loss, Adjusted EBITDA, Loss before Income Tax) Operating loss improved by 18% YoY to $16.5 million, Adjusted EBITDA loss declined by 17% YoY to $13.6 million, and Loss before Income tax significantly improved by 28% YoY to $16.3 million, driven by higher revenue and reduced expenses - Operating loss: $16.5 million in Q2 2025, compared to $20.2 million in Q2 2024 (18% YoY improvement)[15] - Adjusted EBITDA loss: $13.6 million in Q2 2025, compared to $16.3 million in Q2 2024 (17% YoY decline), consistent with improved operating performance[15] - Loss before Income tax: $16.3 million in Q2 2025, compared to $22.5 million in Q2 2024 (28% YoY improvement)[15] - Improvement in Loss before Income tax was primarily driven by a $2.3 million positive impact on gross profit, a $1.3 million decrease in operating expenses, and a $2.5 million improvement in net finance result[15] Cash Position Jumia's liquidity position stood at $98.3 million as of June 30, 2025, with net cash used in operating activities at $12.7 million, including a positive working capital contribution of $4.1 million - Liquidity position as of June 30, 2025: $98.3 million, comprised of $95.6 million in cash and cash equivalents and $2.7 million in term deposits and other financial assets[15] - Liquidity position decreased by $12.4 million in Q2 2025, compared to a decrease of $23.2 million in Q1 2025[15] - Net cash used in operating activities: $12.7 million in Q2 2025, including a positive working capital contribution of $4.1 million[15] - Capital expenditures: $0.7 million in Q2 2025, consistent with Q2 2024, primarily reflecting investments in infrastructure and facility enhancements[15] Selected Operational KPIs Marketplace KPIs Overview Key marketplace metrics for Q2 2025 show growth in active customers, orders, and GMV, especially when adjusted for perimeter effects (exit from Tunisia and South Africa). TPV also increased, maintaining its percentage of GMV Marketplace KPIs Table | Metric | June 30, 2024 | June 30, 2025 | YoY Change | June 30, 2025 (Constant Currency) | Constant Currency YoY Change | | :-------------------------------------- | :------------ | :------------ | :--------- | :-------------------------------- | :--------------------------- | | Quarterly Active Customers (million) | 2.0 | 2.2 | 7 % | n.a. | n.a. |\n| Quarterly Active Customers (million) adjusted for perimeter effects | 1.9 | 2.2 | 12 % | n.a. | n.a. |\n| Orders (million) | 4.8 | 5.0 | 4 % | n.a. | n.a. |\n| Orders (million) adjusted for perimeter effects | 4.7 | 5.0 | 7 % | n.a. | n.a. |\n| GMV (USD million) | 170.1 | 180.2 | 6 % | 179.3 | 5 % |\n| GMV (USD million) adjusted for perimeter effects | 164.7 | 180.2 | 9 % | 179.3 | 9 % |\n| TPV (USD million) | 45.9 | 49.0 | 7 % | 49.3 | 7 % |\n| JumiaPay Transactions (million) | 1.9 | 1.4 | (23)% | n.a. | n.a. | GMV and Orders Analysis GMV increased by 6% year-over-year to $180.2 million, and Orders grew by 4% year-over-year to 5 million, with adjusted physical goods GMV and Orders growing by 10% and 18% respectively - GMV increased by 6% year-over-year to $180.2 million and Orders increased by 4% year-over-year to 5 million[17] - Adjusted for perimeter effects (exit from Tunisia and South Africa), physical goods GMV and Orders grew by 10% and 18% year-over-year, respectively[17] - Order growth reflects continued improvement in product assortment and a stronger customer value proposition in physical goods[17] - Orders from upcountry regions (adjusted for perimeter effects) represented 59% of total Orders in Q2 2025, up from 52% in the prior-year period[17] Total Payment Volume (TPV) and Customer Engagement TPV improved to $49.0 million, maintaining 27% of GMV, with repurchase rates improving by 466 basis points year-over-year due to disciplined marketing and a focus on efficient channels - TPV improved to $49.0 million in Q2 2025 compared to $45.9 million in Q2 2024 (7% YoY). TPV as a percentage of GMV remained stable year-over-year at 27%[18] - Repurchase rates improved by 466 basis points year-over-year, indicating a stickier and higher quality customer base[17] - 42% of new customers who placed their first order in Q1 2025 made a second purchase within 90 days, compared to 37% of new customers in Q1 2024[17] - Disciplined marketing approach prioritizing efficient channels such as targeted paid online marketing, CRM, SEO, and relevant offline local channels[17] Guidance and Strategic Outlook Full-Year 2025 Guidance Jumia revised its full-year 2025 guidance upwards, anticipating stronger growth in physical goods orders and GMV, and a further reduction in Loss before Income tax, reflecting improved operational outlook - Physical goods Orders: Anticipated to grow between 25% and 30% year-over-year (revised up from the previous range of 20% to 25%)[20] - GMV: Now projected to grow between 15% and 20% year-over-year (revised upward from previous range of 10% to 15%)[20] - Loss before Income tax: Forecasted to be in the range of negative $45 million to negative $50 million (an improvement from the previous range of negative $50 million to negative $55 million)[20] Long-Term Strategic Targets (2026-2027) The company targets a Loss before Income tax in the range of negative $25-$30 million for full-year 2026 and aims to achieve breakeven on a Loss before Income tax basis in Q4 2026, leading to full-year profitability in 2027 - Target Loss before Income tax for full-year 2026: Negative $25 million to negative $30 million[20] - Strategic goal: Achieve breakeven on a Loss before Income tax basis in the fourth quarter of 2026[20] - Strategic goal: Deliver full-year profitability in 2027[20] Consolidated Financial Statements (Unaudited) Consolidated Statement of Comprehensive Income The consolidated statement of comprehensive income shows a significant reduction in loss for the period, from $(22.0) million in Q2 2024 to $(16.6) million in Q2 2025, driven by increased revenue and improved operating efficiency Consolidated Statement of Comprehensive Income Table | In thousands of USD | June 30, 2024 (3 months) | June 30, 2025 (3 months) | June 30, 2024 (6 months) | June 30, 2025 (6 months) | | :---------------------------------------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Revenue | 36,474 | 45,642 | 85,367 | 81,903 |\n| Cost of revenue | (14,895) | (21,704) | (32,604) | (38,063) |\n| Gross profit | 21,579 | 23,938 | 52,763 | 43,840 |\n| Operating loss | (20,230) | (16,524) | (28,563) | (35,179) |\n| Loss before Income tax | (22,488) | (16,270) | (62,123) | (32,756) |\n| Loss for the period | (22,012) | (16,591) | (62,669) | (33,298) |\n| Total comprehensive loss for the period | (19,039) | (16,066) | (47,226) | (35,165) | Consolidated Statement of Financial Position The consolidated statement of financial position indicates a decrease in total assets from $192.1 million at December 31, 2024, to $160.7 million at June 30, 2025, primarily due to a reduction in current assets, while total liabilities saw a slight increase Consolidated Statement of Financial Position Table | In thousands of USD | December 31, 2024 | June 30, 2025 | | :------------------------------------ | :---------------- | :------------ | | Assets | | |\n| Total Non-current assets | 22,741 | 25,511 |\n| Total Current assets | 169,331 | 135,225 |\n| Total Assets | 192,072 | 160,736 |\n| Equity and Liabilities | | |\n| Total Equity | 86,286 | 53,012 |\n| Total Non-current liabilities | 10,070 | 9,869 |\n| Total Current liabilities | 95,716 | 97,855 |\n| Total Liabilities | 105,786 | 107,724 |\n| Total Equity and Liabilities | 192,072 | 160,736 | Consolidated Statement of Cash Flows The consolidated statement of cash flows shows net cash used in operating activities increased to $(12.7) million in Q2 2025 from $(8.4) million in Q2 2024, while net cash flows from investing activities significantly increased to $46.4 million Consolidated Statement of Cash Flows Table | In thousands of USD | June 30, 2024 (3 months) | June 30, 2025 (3 months) | June 30, 2024 (6 months) | June 30, 2025 (6 months) | | :------------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Net cash flows (used in) / from operating activities | (8,392) | (12,683) | (3,910) | (33,858) |\n| Net cash flows (used in) / from investing activities | 25,243 | 46,379 | 20,772 | 76,133 |\n| Net cash flows (used in) / from financing activities | (1,831) | (1,772) | (2,817) | (2,875) |\n| Net (decrease)/increase in cash and cash equivalents | 15,020 | 31,924 | 14,045 | 39,400 |\n| Cash and cash equivalents at the end of the period | 45,057 | 95,553 | 45,057 | 95,553 | Non-IFRS Financial and Operating Metrics Definitions of Key Metrics Jumia defines several non-IFRS metrics to provide a clearer picture of its operational and financial performance, including Annual/Quarterly Active Customers, Orders, GMV, TPV, JumiaPay Transactions, and Adjusted EBITDA - Annual Active Customers: Unique customers who placed an order for a product or service on the platform within the 12-month period preceding the relevant date[29] - Quarterly Active Customers: Unique customers who placed an order for a product or service on the platform within the 3-month period preceding the relevant date[30] - Gross Merchandise Value ("GMV"): Total value of orders for products and services, including shipping fees, value added tax, and before deductions of any discounts or vouchers[32] - Total Payment Volume ("TPV"): Total value of orders for products and services for which JumiaPay was used, including shipping fees, value-added tax, and before deductions of any discounts or vouchers[33] - Adjusted EBITDA: Loss for the period, adjusted for income tax expense (benefit), finance income, finance costs, depreciation and amortization, and further adjusted for share-based compensation expense[37] Adjusted EBITDA Reconciliation Adjusted EBITDA is presented as a supplemental non-IFRS measure to assess operating performance, excluding income tax, finance income/costs, depreciation, amortization, and share-based compensation, used by management for performance comparison and strategic evaluation - Adjusted EBITDA is a supplemental non-IFRS measure of operating performance, not a measurement of financial performance under IFRS[38] - Management uses Adjusted EBITDA for comparing operating performance, planning, evaluating strategic initiatives, and assessing business expansion capacity[39] Adjusted EBITDA Reconciliation Table | (USD million) | June 30, 2024 (3 months) | June 30, 2025 (3 months) | June 30, 2024 (6 months) | June 30, 2025 (6 months) | | :-------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Loss for the period | (22.0) | (16.6) | (62.7) | (33.3) |\n| Income tax benefit / (expense) | (0.5) | 0.3 | 0.5 | 0.5 |\n| Net Finance costs / (income) | 2.3 | (0.3) | 33.6 | (2.4) |\n| Depreciation and amortization | 2.3 | 2.0 | 4.2 | 4.0 |\n| Share-based compensation expense | 1.7 | 0.9 | 3.8 | 2.0 |\n| Adjusted EBITDA | (16.3) | (13.6) | (20.6) | (29.2) | Constant Currency Data Constant currency metrics are used to understand underlying business dynamics by excluding currency effects, calculated by applying prior year's average exchange rates to current year results, providing a stable comparison - Constant currency information is used to provide a picture of underlying business dynamics, excluding currency effects[41] - Calculated using average foreign exchange rates for each month during 2024 and applying them to corresponding months in 2025, excluding local currency inflation or price adjustments[42] Constant Currency Data Table | In USD million, except percentages | June 30, 2024 | June 30, 2025 | YoY Change | June 30, 2025 (Constant Currency) | Constant Currency YoY Change | | :--------------------------------- | :------------ | :------------ | :--------- | :-------------------------------- | :--------------------------- | | Revenue | 36.5 | 45.6 | 25 % | 44.4 | 22 % |\n| Marketplace revenue | 20.0 | 21.6 | 8 % | 20.4 | 2 % |\n| First-party sales | 16.1 | 23.6 | 47 % | 23.6 | 47 % |\n| Gross Profit | 21.6 | 23.9 | 11 % | 22.7 | 5 % |\n| Adjusted EBITDA | (16.3) | (13.6) | (17)% | (13.1) | (19)% |\n| GMV | 170.1 | 180.2 | 6 % | 179.3 | 5 % |\n| TPV | 45.9 | 49.0 | 7 % | 49.3 | 7 % | Forward-Looking Statements & Disclaimers This release includes forward-looking statements based on current expectations and projections about future events and financial trends, which involve known and unknown risks and uncertainties that may cause actual results to differ materially - This release includes forward-looking statements based on current expectations and projections about future events and financial trends[26] - These statements involve known and unknown risks, uncertainties, and changes in circumstances that may cause actual results to differ materially[26] - Readers are cautioned against relying on these forward-looking statements, and the company undertakes no obligation to update them except as required by law[27] Conference Call and Webcast Information Jumia hosted a conference call to discuss its Q2 2025 results at 8:30 AM ET on August 7, 2025, with access details and a live webcast available on its Investor Relations Website - Jumia hosted a conference call to discuss its Q2 2025 results at 8:30 AM ET on August 7, 2025[21] - Access details for the conference call, including US, International, and UK dial-in numbers and an entry code, were provided[21] - A live webcast was available on Jumia's Investor Relations Website, and a replay was accessible until August 21, 2025[21][22]