Jumia, Africa’s top e-commerce platform, anticipates generating sufficient revenue to cover its operating expenses by 2027. While this does not equate to net profitability, as taxes may still affect the bottom line, it marks a significant achievement for a publicly traded company that has traditionally posted losses.
“Driven by robust growth in our core consumer business and strategic efficiency improvements, we are revising our financial outlook,” Dufay stated in the SEC filing. He forecasts a pre-tax loss of $50–55 million for 2025, with a further reduction to $25–$30 million in 2026.
Despite a challenging first quarter in 2025, Jumia remains determined to achieve profitability by 2027. The company reported a 26% year-on-year decline in revenue, down to $36.3 million, largely due to a downturn in Egypt’s corporate sales, while total platform sales fell by 11%.
Despite the setbacks, Jumia is making strides with consumers, seeing a 21% increase in orders—the highest growth in two years. This growth is driven by a shift away from unprofitable markets and an expansion into rural areas, where consumer sales rose by 10%.
While fewer high-margin corporate deals impacted gross profit, a reduction in currency pressures in Nigeria and Egypt halved the pre-tax loss. Improved logistics kept delivery costs stable, and a more efficient marketing strategy reduced advertising expenses by 17%. A 61% increase in products from international sellers enhanced Jumia’s catalogue, and 45% of new customers from late 2024 returned, up from 40%. JumiaPay’s payment volume remained consistent, covering 28% of sales, compared to 25% the previous year.
“We expect physical goods orders to grow by 20% to 25%, up from the previous range of 15% to 20%,” Dufay stated in the report. “GMV is forecasted to be between $795 million and $830 million in 2025, reflecting a year-over-year increase of 10% to 15%, excluding foreign exchange impact.”
Despite the company’s raised guidance and positive operational highlights, Jumia’s share price has dropped. As of the time of publishing, the stock is priced at $2.40, reflecting a decline of approximately 4.76% (a decrease of $0.12) from the previous close of $2.52. Investors may be evaluating its long-term prospects amid Africa’s economic uncertainties.
