Jumia has declared revenue earnings of $50.5 million for the third quarter (Q3) of 2022.
The figure represents a six per cent increase from the $47.6 million reported in Q2 of the same year under review. It also represents an 18.4 per cent increase from the $42.7 million reported in the same period of last year.
Its acting Chief Executive Officer, Francis Dufay, laid out the new business strategy for the company during the Q3 2022 earnings call, stating 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.
He said results for Q3 showed more encouraging signs that the company is on the right path.
He further 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, adding that Jumia would deemphasise or cease projects and ventures that do not meet such criteria.
In line with the above, the company said it will scale back first party grocery offerings in geographies where the category remains sub-scale. In addition, Jumia prime would be paused indefinitely from January 1, 2023 as the company looks to focus more resources in other areas of the business.
Dufay said the company plans to keep logistics open to third parties only in the countries where they have strong assets like Nigeria, Ivory Coast, Morocco.
“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,” he said.