African e-commerce firm Jumia aims for profit as it fends off Chinese rivals

LAGOS, Feb 11 (Reuters) - Africa-focused e-commerce retailer Jumia Technologies expects to break even in the last quarter of 2026 and deliver its first full-year profit next year as it accelerates growth after years of restructuring, its CEO said on Wednesday.

Jumia, which will operate in eight markets after exiting Algeria this month, has dropped everyday grocery items and food delivery and cut headcount in recent years to reduce costs.

Francis Dufay said Jumia narrowed its full-year loss to $60.1 million in 2025 from $97.6 million in 2024, putting the company on track to reach breakeven on an adjusted core earnings (EBITDA) basis and positive cash flow by the end of this year.

He said the company had benefited from a more stable economic environment in its markets, including Nigeria, where inflation has been easing from record highs and the currency has remained stable since the start of last year.

"The growth rate of the company has been accelerating, we are really scaling, we grew 35% in dollars year-on-year in the last quarter," said Dufay.

He said Jumia's more efficient logistics and distribution network had strengthened its ability to withstand competition from Chinese e-commerce players including Temu and Shein, which have been expanding in Africa.

Dufay said Jumia had expanded its sourcing team in China, making the company more competitive on pricing.

Jumia's payment-on-delivery service also remains a strong draw for customers, he said.

"People thought they would eat our lunch, but it's not a home run that everyone expected. We can actually fight against those platforms in our markets," he said.