Exclusive: Jumia goes from turning point to inflection point in Q3, CEO Dufay says

Exclusive: Jumia goes from turning point to inflection point in Q3, CEO Dufay says

Following Jumia Technologies’ (NYSE:JMIA) second-quarter results, CEO Francis Dufay described the company as being at a turning point. Now, after another solid quarter, Dufay says “Africa’s Amazon” has reached a key inflection point, with its cost-cutting strategy continuing to pay off.

Brought on in late 2022 to overhaul a sprawling e-commerce network across Africa, Dufay refocused Jumia on profitability goals, operational discipline, and scalable growth, a shift that continues to gain traction.

Jumia’s revenue rose 25% year-over-year to $45.6 million, while gross profit gained 4% year-over-year, driven by a more efficient cost base and higher-quality sales. Gross merchandise value (GMV) climbed 26% year-over-year, and orders rose 34%, signaling both renewed consumer demand and stronger vendor confidence.

“This quarter is important because it proves some very important components of our path to profitability,” Dufay said in an interview with Investing.com. “It shows that we can scale without hurting the economics, and we didn’t have to kill cash flow to do this.”

The company also posted notable efficiency gains. Fulfillment cost per order fell 22% to $1.86, while technology expenses declined 10% year-over-year despite the higher order volume, evidence that fixed costs are being optimized at scale.

“We’ve been able to optimize our fixed costs in tech while driving bigger volumes,” Dufay said. “So we believe the $1.90 per order this quarter is a new baseline, but it’s not the end of the story.”

While Jumia remains unprofitable, Dufay emphasized that the company is on track. Management reaffirmed guidance to reach break-even by Q4 2026 and expects to turn profitable in 2027, supported by improving macro stability and leaner operations.

“A lot of people would not think that this company could scale without hurting the economics,” Dufay said. “This quarter is proving that we can. We have a very clear plan, and it’s realistic.”

Macro Stability Helps Unlock Supply
Jumia has also benefited from an improving macroeconomic backdrop. For the first time in several years, many African markets are experiencing relative currency and inflation stability, boosting consumer spending and merchant confidence. Several of Jumia’s largest markets have also seen rate cuts and credit rating upgrades.

“FX stability is the greatest help,” Dufay said. “Huge volatility puts us back, because it keeps supply for six months.”

Importers and international vendors, once cautious amid sharp currency swings, now seem more confident in shipping and converting dollars locally. While Ghana’s ongoing depreciation continues to pressure margins, Dufay noted Jumia’s asset-light model shields it from direct FX losses, allowing operations to remain resilient.

Market Highlights: Nigeria and Egypt
In Nigeria, Jumia’s largest and most competitive market, the company’s core e-commerce business grew 43%, fueled by logistics improvements and stabilizing consumer demand, momentum Dufay called “very encouraging” for the market with “the biggest upside.”

In Egypt, which Dufay previously described as “a transformation in progress,” the turnaround is particularly striking. Last quarter, the country was cited as a major headwind, as steep currency depreciation hit corporate sales and dragged on profitability. Now, GMV (excluding corporate sales) jumped 44% year-over-year, supported by a stronger product assortment, new buy-now-pay-later adoption, and operational restructuring.

“It’s just the beginning. Egypt is turning the corner,” Dufay emphasized. “There’s still a lot of work, but showing that we can scale again is the first step.”

Dufay reaffirmed that Jumia will remain disciplined, focusing on its nine existing markets rather than pursuing re-expansion too quickly.

Efficiency and Strategic Partnerships
Efficiency remains at the heart of Jumia’s rebound. The company continues to improve fulfillment, tech, and marketing efficiency while expanding volumes, a sign of operating leverage taking hold.

Strategic partnerships are beginning to take shape as well. Over the past quarter, investor Axian Group increased its stake to nearly 10% and its CEO was appointed to Jumia’s supervisory board. Dufay praised the addition, noting Axian’s experience in African markets and fintech. The CEO reiterated statements from last quarter, saying that discussions around potential synergies are still ongoing, though no large-scale initiatives have yet launched.

Meanwhile, a pilot program with Spiro e-bikes in Kampala, Uganda, has replaced nearly half of the local delivery fleet and lowered operating costs. When asked if that strategy would be expanded, Dufay stated, “We’re looking into it… We are very open to that.”

A New Cycle for African E-Commerce
With cost discipline embedded and macro conditions improving, Jumia appears closer than ever to proving its model, not just as a pioneer of African e-commerce, but as a profitable, scalable tech platform.

“We want to make sure we deliver a business that can serve African customers with the purchasing power they have today, where they live today, and create value for everyone — vendors, customers, and Jumia. Limited ambitions, maybe, but when we drive that to scale and profitability, then we’ll have plenty of options,” Dufay concluded.

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