Afrigather The inventory market reacted positively after Jumia shared its monetary outcomes for the primary quarter of 2024, with shares of the Africa-focused e-commerce firm opening at $6.45 on Wednesday, a 17.92% bounce from the $5.47 share value it traded yesterday.
Jumia narrowed its operating loss in Q1 2024 by 71% after a number of cost-cutting measures, together with a 30% discount on promoting bills in comparison with Q1 2023. Nevertheless, difficult macroeconomic situations throughout its African markets proceed to dampen shopper spending.
The ecommerce large reported development in key metrics akin to Gross Merchandise Worth (GMV), order values, and income in comparison with Q1 2023. This development underscores investor confidence in CEO Francis Dufay’s strategic route, which prioritizes price self-discipline and a shift in the direction of higher-margin merchandise. Jumia elevated revenues by 15% pushed by an organization vast effort to focus solely on the gross sales of big-ticket objects akin to electronics and residential and residing objects, decreasing spending on buyer incentives and promotions.
“Within the first quarter, we noticed tangible outcomes that our technique is working. We will develop at scale with out spending closely. Our efforts are delivering actual tangible outcomes,” stated Dufay through the firm’s earnings name.
CEO Francis Dufay emphasised the necessity for a leaner, agile and extra targeted firm.
“Up to now, we have now lowered total headcount by 43% because the finish of 2022. In Q1, we made additional reductions. These actions translate to a leaner group that may assist future worthwhile development.”
Whereas the corporate seems to be to supply a diversified product assortment, it’s conscious of the macroeconomic headwinds that have an effect on shopper spending. The corporate shared plans to develop to extra cities on the continent whereas optimizing operations in present markets primarily based on learnings from its decade lengthy experience.
“We’re buying high-quality shoppers whereas spending much less in rising our enterprise amidst difficult macro environments.”
