JMIA - Jumia: Under-The-Radar Turnaround

2024-02-21 07:18:31 ET

Summary

• Jumia has shifted its focus to prioritize profitability over growth, which has paid off in a challenging macro environment.
• Strategic changes include discontinuing unprofitable activities, improving logistics efficiency, streamlining the organization, and prioritizing higher-value categories.
• Reduced consumer price inflation and more stable exchange rates should be supportive of Jumia's business in 2024.
• Jumia's share price is already up significantly in recent months though, and the valuation looks about right given the amount of risk involved.

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