In the first quarter of 2023, we reported that Jumia recorded its lowest losses in four years. Its adjusted EBITDA and operating losses dropped to $27 million and $30.9 million, respectively. Those numbers represented a 55% and 57% decrease year-over-year, on track to meet the company’s end-of-year target of $100 million to $120 million in adjusted losses.

Surprisingly, Jumia’s Q2 2023 financials show that the e-commerce giant outperformed its first-quarter efforts in this regard. The company’s adjusted EBITDA and operating losses fell 66% to $19.3 million and $23.3 million, respectively; as a result, Jumia has lowered its adjusted loss projection for the whole year, predicting a loss of $90 million to $100 million.

“We are navigating challenging macro conditions with discipline and focus, doubling our efficiency efforts. Compared to the second quarter of 2022, fulfillment and sales and advertising expenses were down 50% and 74%, respectively,” said Jumia CEO Francis Dufay in a statement. “We are also starting to reap the benefits of our actions on overhead costs with G&A excluding share-based compensation decreasing by a third year-over-year, reaching a 4-year low at $17.7 million.”In Q4 2022, Jumia embarked on a streamlining effort that reduced its headcount by 20%, affecting 900 roles across 11 markets. In an interview the following quarter, Dufay told TechCrunch that more layoffs could happen throughout the year. The e-commerce giant expects to reduce G&A costs by as much as $28 million by Q4, he said.

Other streamlining efforts have come from Jumia intentionally recalibrating its product and service portfolio in Q4 2022. The company suspended its first-party grocery offering, logistics-as-a-service and food delivery operations in specific key markets where the economics weren’t sustainable. It also reduced the promotional intensity behind several services on the JumiaPay app.