Jumia, Africa’s leading e-commerce platform, expects to generate enough revenue to cover all operating expenses by 2027. This is not equivalent to net profitability, as taxes could still impact the projected bottom line, but it is a significant milestone for a public company that has historically reported losses.
“Driven by strong underlying growth in our core consumer business and decisive actions to improve efficiency, we are updating our financial outlook,” Dufay shared in the SEC filing. He projects that 2025’s loss before income tax will be expected to be $50–55 million and shrink further to $25–$30 million in 2026.
Jumia’s bold ambition to hit profitability by 2027 comes despite a rocky first quarter in 2025. Revenue slid to $36.3 million, a 26% year-on-year decline, which the company attributes to a slump in Egypt’s corporate sales, while total platform sales dipped 11%.
Yet, the e-commerce giant is gaining ground with consumers, with orders increasing by 21%—the strongest growth in two years—fueled by a pivot away from unprofitable markets and a push into rural regions, where consumer sales climbed 10%.
Fewer high-margin corporate deals dented gross profit, but easing currency pressures in Nigeria and Egypt slashed the pre-tax loss by more than half. Smarter logistics kept delivery costs and a leaner marketing strategy cut advertising expenses by 17%. A 61% boom in products from international sellers enriched Jumia’s catalogue, while 45% of new customers from late 2024 returned for more, up from 40%. JumiaPay’s payment volume held steady, covering 28% of sales, up from 25% last year.
“We anticipate physical goods orders to grow between 20% and 25%, up from the previous range of 15-20%,” Dufay said in the report. “GMV is projected to be between $795 million and $830 million in 2025, a year-over-year increase of 10% and 15%, respectively, excluding foreign exchange impact.”
Despite the company’s raised guidance and positive operational highlights, Jumia’s share price has experienced a decline. As of the time of publishing, the stock price is $2.40, down about 4.76% (a drop of $0.12) from the previous close of $2.52. Investors may be weighing its long-term potential against Africa’s economic uncertainties.
