Jumia Q1 2023 Operating Loss Down 54%

Jumia is a company in Africa that sells things on the internet. It lost $31 million in the first three months of 2023. This is 54% less than the same time last year.

The company said it had its lowest quarterly loss in over four years. They think this happened because they reduced costs. All operating costs went down compared to last year.

Jumia reduced its marketing and advertising costs by 70% in the last quarter. They did this to decrease their losses. Jumia's marketing efficiency improved because of this decision. They spent 58% less on sales and advertising costs per order. Additionally, their percentage of GMV improved by 451 basis points.

Jumia spent less on advertising, but still made more money. Revenue went down 3%, but went up 24% in constant currency.

Jumia talked about how its cost-reduction strategies have affected its finances in the Q1 financial statement.

The CEO of Jumia, Francis Dufay, said the company is changing how it grows. This is for the rest of this year. He talked about this at a meeting.

He is hopeful for Jumia's progress. The first quarter results show great progress towards profitability. Jumia is determined to achieve long-term growth, despite tough economic conditions.

Jumia, a company facing big losses, cut its workforce by 20%. This meant 900 people lost their jobs. The aim was to save money. Now, Jumia has a new, streamlined structure with smaller, more efficient teams. These teams are focused on carrying out the company's plans.

Jumia made changes and reduced its presence in Dubai. Some management functions were affected.