Jumia Technologies AG Q2 FY2025 earnings call

Key Points

• Physical goods had solid growth: orders up 18%, GMV up 10% Y/Y (excluding exits), with revenue up 25% Y/Y.
• Narrowed loss before income tax to $16.3 million and reduced cash burn to $12.4 million.
• Successful Jumia anniversary campaign boosted consumer engagement.
• Country-level highlights: Nigeria had physical goods orders up 25% and GMV up 36% Y/Y; Kenya saw orders up 38% and GMV up 31% Y/Y; Ivory Coast had orders up 9% and GMV up 11% Y/Y; Egypt showed recovery; other markets had 27% GMV growth and 19% increase in physical goods orders.
• Jumia Delivery is live in Ivory Coast, Nigeria, Ghana, Kenya, targeting social commerce vendors.
• Sourced $2.9 million gross items from international sellers, up 36% Y/Y adjusted for perimeter effects; orders from underserved upcountry regions now 59% of total volumes.

Physical goods saw orders up 18% and GMV up 10% year-over-year (excluding exits from South Africa and Tunisia). Excluding corporate sales, physical goods GMV grew 24%. Revenue rose 25% year-over-year. Physical goods account for 99% of orders and approximately 100% of GMV this quarter. Digital products make up the remaining portion.

Guidance

• Raised full-year 2025 loss before income tax guidance to $45 million to $50 million.
• Maintained 2026 loss before income tax target of $25 million to $30 million and reaffirmed 2027 full-year profitability target.
• Revised 2025 PG Orders growth to 25% to 30% range (up from 20% to 25%), GMV growth to 15% to 20% Y/Y (up from 10% to 15%).
• July physical goods orders up ~32% Y/Y, GMV up 21%, showing sustained momentum.

Risks

• Regulatory scrutiny from local governments regarding international e-commerce platforms' practices.
• Currency volatility and macroeconomic challenges in operating markets.
• Dependence on successful execution of cost management and growth strategies.

Q: What's behind the July acceleration?

A: Continued improvement of value proposition (reliable logistics, broader assortment) and reactivation of marketing channels with disciplined ROI focus.

Q: Thoughts on Q4 inventory and cash use?

A: Working capital expected to be less volatile than last year, with inventory build-up starting in early October.

Q: Jumia Delivery TAM and margins?

A: Addressable market is anyone with parcels to ship; margins are profitable from outset, using existing logistics scale.

Q: GMV mix between 1P and 3P?

A: Mix not fixed, combination of new customer acquisition and increased repurchases; 1P used for key brands with good supply, but focus on marketplace monetization.

Q: Ivory Coast growth slowdown?

A: Temporary, due to monetization focus to balance growth and profitability in a mature market.