E-commerce company, Jumia, on Sunday, said it generated $50.5million revenue in the Q3 of 2022.
The acting chief executive officer (CEO), Jumia, Francis Dufay, stated that the Q3 2022 generation saw an increase of 6% from the $47.6 million reported in Q2.
According to him, it also represents an 18.4 per cent increase from the $42.7 million reported in the same period last year.
Dufay, who laid out the new business strategy for the company during the Q3, 2022 earnings call, stated that, the recent focus on cost discipline and return on investment speaks to an ever-increasing need to make the company profitable in the near future.
The third quarter of the year saw Jumia record substantial revenue and gross profit growth, according to the company’s financial earnings report. The most recent statistics show that $50.5 million was generated in revenue in Q3 2022, an increase of 6% from the $47.6 million reported in Q2. This also represents an 18.4 per cent increase from the $42.7 million reported in the same period last year.
Also, Jumia boss disclosed that the results for Q3 showed more encouraging signs that the company is on the right path.
He said, “The company intends to bring more focus to the core business, allocating capital, resources and teams to main areas and projects with attractive returns on investments and clear ecosystem benefits.
“Jumia will deemphasise or cease projects and ventures that do not meet such criteria. In line with the above, the company will scale back First Party grocery offerings in geographies where this category remains sub-scale. In addition, Jumia Prime will be paused indefinitely from the 1st of January 2023 as the company looks to focus more resources in other areas of the business.”
Dufay also noted that the company plans to keep logistics open to third parties in countries where the company has strong assets.
“The e-commerce opportunity in Nigeria remains vast with a very young population and growing middle class. Hence, this new focus will further strengthen the company’s hold in its biggest market.
“Going forward, the company is looking to continue strengthening its foothold in all the countries where it is currently operational. However, this is likely to come with changes to its operating model. In a statement released by Dufay.
“We have a clear focus for the next chapter of our journey and are taking decisive action to support our path to profitability. We will bring more focus to the business, directing our efforts and resources to projects and activities that deliver tangible value to our consumers, sellers and broader ecosystem participants.
“We are also enforcing tighter cost discipline and driving efficiencies across the full structure while enhancing the fundamentals of our core e-commerce business to drive user growth.”
The company is showing greater willingness to constantly invest in Nigeria and has stated it would be making some adjustments in its organisational setup in coming weeks.
Allocating more people and resources to its marketplace, tech and in-house logistics platform are some of the strategies expected to enhance future success.
