Jumia has announced its financial results for the fourth quarter and full year ended December 31, 2022. The logistics firm recorded an increase in revenue of up 25%, reporting a revenue at US $222million for 2022 compared to $178 million in 2021.
In the fourth quarter of 2022, Operating Loss decreased by 41% year-over-year, reaching $49.8 million and Adjusted EBITDA loss decreased by 30% year-over-year, reaching $49.2 million. Operating loss was down 6% at $227 million compared to $241 million in 2021. Annual active consumers reached 8.4 million for 2022, up 4% year-over-year, supported by the stronger usage momentum in the first half of 2022
At the end of December 31, 2022, Jumia had a liquidity position of $228 million including $72 million of cash and cash equivalents and $156 million of term deposits and other financial assets, the release added. Q4 show, 20% staff reduction.
Jumia revenues
All the key parameters were down in Q4 – quarterly active consumers dropped 15 percent to 3.2 million, orders declined 12 percent to 9.9 million, gross merchandise value was down 14 percent at $283 million and total payment value declined 18 percent to $74 million.
“In the fourth quarter of 2022, we started implementing our strategy to accelerate our path to profitability and further strengthen our fundamentals. While the fourth quarter results only reflect a fraction of the actions we are taking, we are seeing early signs of success and remain focused on execution. In light of these encouraging signs, we expect a sharp reduction in adjusted EBITDA loss from $207 million in FY2022 down to $100-120 million in FY2023. We remain more than ever confident about the growth opportunity across our markets and are making fundamental improvements to our consumer value proposition which will help us drive sustainable long-term growth,” says Francis Dufay, CEO, Jumia.
Jumia announced over 900 position terminations in Q4, “corresponding to a 20 percent headcount reduction. As part of our streamlining efforts, we have significantly reduced our presence in Dubai where certain management functions were located, reducing headcount by over 60 percent. Most of the remaining staff are being relocated to our African offices, closer to our consumers, sellers and operations.” The implementation of organisational changes resulted in $3.7 million in one-off restructuring cost, booked in the fourth quarter of 2022.