Jumia Technologies has updated its 2025 outlook, expressing confidence in its path to profitability. This was revealed even as headline revenues fell in Q1 2025. The e-commerce company posted mixed results for the quarter ending March 31. The company revealed that strong operational execution, growing customer activity, and better financial discipline as signs of an ongoing turnaround.
Revenue for the quarter stood at $36.3 million, which is a 26% drop year-over-year. The drop was largely due to a steep decline in high-margin corporate sales in Egypt. This segment is vulnerable to macroeconomic shocks and currency devaluations. Despite this, Jumia’s core consumer business showed encouraging momentum, with orders rising 21% year-over-year, the highest growth rate in two years. Active customers also grew by 15%, signaling deepening engagement across its markets.
Nigeria, Jumia’s largest market, stood out as a strong performer. Orders in the country grew by 22% and Gross Merchandise Value (GMV), a key indicator of transaction volume, rose by 20% year-over-year. In March alone, GMV climbed 16%, helping to offset Egypt’s corporate sales downturn. Excluding corporate sales, Jumia said GMV actually rose 10%, indicating a healthier underlying business.
“We’re seeing clear signs of recovery and growing traction with everyday consumers,” said CEO Francis Dufay. “The first quarter was marked by strong growth in orders and operational gains, and we believe this momentum positions us well to reach breakeven by Q4 2026.”
Jumia also affirmed its shift from volatile corporate sales to stable, consumer-led transactions. While this transition led to a $18.7 million operating loss in Q1,more than double last year’s $8.3 million loss, it is also driving long-term improvements. For example, Jumia reported a 14% year-over-year drop in fulfillment costs per order, highlighting gains in logistics efficiency.
The company’s loss before income tax narrowed sharply to $16.5 million, down from $39.6 million a year earlier. This was largely due to a $33.5 million swing in net finance results, reflecting fewer currency-related hits and improved treasury management.
Guidance for 2025
Based on Q1 trends and continued execution, Jumia has raised its full-year 2025 guidance. The company now expects a loss before income tax of $50–55 million (up from previous expectations). It also reaffirmed its target to reach profitability by the end of 2026 and achieve full-year profitability in 2027.
“This update reflects not only our strategic discipline but also the strength of consumer demand in markets like Nigeria and the improved resilience of our business model,” Dufay added.
There are still some key challenges, including a drop-in. Gross profit of 36% year-over-year to $19.9 million, and gross margin slip to 12% of GMV, down from 17% in Q1 2024. This last bit was largely because of the loss of high-margin Egyptian contracts. Liquidity also tightened, with the company ending the quarter with $110.7 million in cash and term deposits, down $23.2 million from the previous quarter.
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