Get the latest tech news
Jumia reduces losses by over 90% in Q4 amid focus on restoring order and GMV growth
Investors have shown approval for Jumia’s cost-cutting measures throughout the year, with its share price rallying up to 35%.
For the latter, Jumia’s notable exit from the food delivery business in Q4 led to layoffs and departmental restructuring, resulting in a 17% decrease in staff costs within G&A expenses year-over-year. A slight indicator is the increase in quarterly active customers, orders, and GMV by 16%, 17%, and 42%, respectively, quarter-over-quarter, primarily fueled by successful Black Friday and Christmas sales campaigns. There’s also the rise in the average order value for physical goods, climbing from $40.6 in 2022 to $45.5 in 2023, which likely cushioned the impact on the company’s revenue experiencing a modest 2% year-over-year decline to $59.4 million.
Or read this on TechCrunch