2023-11-15 13:42:53
African e-commerce company Jumia Technologies said on Wednesday that savings helped it reduce its third-quarter losses by 67% from a year earlier, and that it expected another significant decline this year. .
Jumia is aggressively cutting costs to become profitable, including reducing headcount, reducing the range of products offered, such as groceries, and reducing delivery services that are not related to its commerce business. electronic.
The first Africa-focused tech startup to list on the New York Stock Exchange reported a loss of $15 million for the quarter ended September 30, compared to a loss of $46 million for the same period in 2022.
Chief executive Francis Dufay said the significant reduction in losses and cash burn had ensured the company was in a liquidity position that will allow it to “work on long-term fundamental improvements” to grow its core business.
Jumia had a liquidity position of $147 million at the end of September.
It now expects a 2023 adjusted EBITDA loss of $80 million to $90 million, compared to a previously reported range of $90 million to $100 million.
Revenue fell 11% year-on-year to $45 million, hit by weaker currencies in several markets, but rose 19% in constant currency.
Quarterly active consumers fell 24.3% to 2.3 million, largely due to deliberate decisions to focus on core categories and reduce consumption incentives.
The effects of inflation persisted over the period, affecting both consumers’ purchasing power and sellers’ ability to source goods from abroad, Jumia said.
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