Jumia, Africa’s biggest online marketplace, has predicted that it will maintain a loss streak till 2026, then hit full-year profitability in 2027.
Francis Dufay, chief executive officer at Jumia, while commenting on the first quarter 2025 result, revealed that the firm’s loss before income tax is now expected to be $50–55 million in full-year 2025 guidance, and loss before income tax is anticipated at $25–$30 million as projected for 2026.
“We believe we are on track for the fourth quarter of 2026, targeting full-year profitability on a Loss before income tax basis in 2027. These updates reflect positive momentum and our commitment to achieving profitability,” Dufay stated.
Jumia’s target to hit profitability by 2027 comes despite a rocky first quarter in 2025, which shows revenue decline by 26 percent to $36.3 million which was attributed to a slump in Egypt’s corporate sales.
Marketplace revenue, comprised of third-party sales, marketing, and advertising, and value-added services, was $18.1 million, down 30 percent year-over-year or down 26 percent on a constant currency basis.
It stated that the decline was driven by lower commissions from third-party corporate sales in Egypt and the impact of currency devaluations.
First-party sales revenue was $17.8 million, down 21 percent year-over-year or down 9 percent on a constant currency basis, similarly impacted by lower first-party corporate sales in Egypt and currency movements.
Jumia revealed that Nigeria confirmed its strong turnaround, with orders up 22 percent and Gross Merchandise Value(GMV) up 20 percent year-over-year.
Gross items sold from international sellers grew 61 percent year-over-year in the first quarter 2025, supporting a broader assortment and improved pricing power across Jumia markets.
Jumia has taken several steps to improve its financial performance, including exiting non-core markets and raising capital through a secondary share offering. However, achieving profitability remains a significant challenge due to ongoing economic uncertainties.
In the first quarter of 2024, Jumia incurred net finance costs of $31.3 million, primarily driven by treasury activities associated with higher corporate sales during a period affected by major currency devaluations in Nigeria and Egypt which did not recur in the first quarter of 2025, resulting in a substantial improvement in net finance result.
Quarterly Active Customers ordering physical goods grew by 15 percent year-over-year. Excluding corporate sales, GMV in reported currency grew 10 percent year-over-year, reflecting the underlying strength of our consumer-focused platform, Jumia stated.
Jumia’s technology and content expense amounted to $9.6 million, up 6 percent year-over-year, or up 9 percent year-over-year on a constant currency basis was primarily driven by higher temporary infrastructure and licensing costs related to contract renegotiation, partially offset by savings from lower staff costs.
