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E-commerce company, Jumia, has announced that it generated $50.5m in revenue in Q3 2022.
The company made this known during its Q3 2022 earnings call on Tuesday. According to Jumia the $50.5m is an increase of six percent from the $47.6m reported in Q2. This also represents an 18.4 percent increase from the $42.7m reported in the same period last year.
Jumia’s acting CEO, Francis Dufay, speaking on the new business strategy for the company 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.
“Results for Q3 showed more encouraging signs that the company is on the right path,” he said.
He further added that 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 it would cease projects and ventures that do not meet such criteria.
Dufay said the company planned to keep logistics open to third parties only in the countries where they have strong assets such as Nigeria, Ivory Coast, and 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.
Going forward, he added that the company would be looking to continue strengthening its foothold in all the countries where it is currently operational adding however that it is likely to come with changes to its operating model.
“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.
“Clearly, there is strong optimism that this new strategy will continue to deliver value to Jumia’s consumers in Nigeria. The company is on the right path to profitability through growth and optimisation.”
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