Investing.com — shares surged on Thursday as the company demonstrated operational resilience despite a volatile geopolitical backdrop. Chief Executive Francis Dufay told Investing.com in an interview that the latest results show a new era of consistency for the African e-commerce leader.

The African platform reported a 39% year-over-year revenue increase to $50.6 million, beating consensus estimates. While quarterly cash burn rose to $15.3 million from $4.7 million in the previous period, management reaffirmed its target to reach Adjusted EBITDA breakeven by year-end.

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Dufay attributed the sequential step-up in cash usage to seasonal factors, including the renewal of major technology and insurance contracts. “Q1 is usually higher than Q4 significantly for pure seasonality reasons,” Dufay noted in the interview.

Though the cash burn was greater in Q1, it signaled less spending compared to the prior year, when the company reported a $23.2 million liquidity decrease. The narrowing year-over-year burn reflects a stabilized financial footing as the firm prunes structural costs.

Going into the report, investors were focused on the company’s navigation of significant regional uncertainty stemming from the conflict in the Middle East and rising energy costs. Dufay acknowledged in the company’s earnings release that while the first quarter saw limited impact, the second quarter will likely face “greater pressure” from elevated fuel prices and logistics disruptions.

The CEO emphasized that these external pressures do not fundamentally alter the company’s trajectory or its path to profitability. “It’s an uncertain environment. it does not fundamentally challenge our perspective, our medium-term plan, our path to profitability by end of year and so on,” he told Investing.com.

In Nigeria, where fuel prices have spiked nearly 50%, the company is leaning on its “upcountry” logistics network to maintain efficiency. Jumia achieved a fulfillment cost per order of $2.06 this quarter, showing a 10% decrease on a constant currency basis.

Management has shifted volume toward pickup stations, which now handle 74% of total orders. Dufay explained that these stations scale more efficiently than door delivery because they utilize local entrepreneurs whose cost bases are low and further diluted with scale.

Supply chain constraints in the smartphone market, driven by rising memory chip and CPU prices, have pushed device costs up by approximately 20%. Jumia is mitigating this by diversifying its supplier base and maintaining its wide selection of affordable white-label brands and entry-level smartphones from more prestigious brands, such as Xiaomi and Samsung.

While consumers continue to view smartphones as essential, the company anticipates a shift toward lower-specification models. “We expect customers to trade down,” Dufay said regarding the impact of tech inflation on mass-market demand.

Expansion into northern Nigerian states remains a long-term priority, and the current energy volatility is not persuading management to pause. “The business opportunity remains extremely strong,” Dufay told Investing.com regarding the demand in the secondary regions of Nigeria, before adding, “Temporary changes in our prices should not make us question this long-term plan.”

The regional energy crisis is accelerating Jumia’s interest in electric mobility following a successful e-bike delivery fleet pilot in Uganda. Dufay confirmed plans to scale the model to Jumia’s largest markets, including Kenya, the Ivory Coast, and potentially Nigeria, to enable better economics for partners.

In Egypt, the company is seeing positive trends despite government-mandated 9 p.m. business closures intended to conserve energy. Dufay noted that while it is hard to quantify the specific impact, the policy shift could potentially drive more consumers toward evening e-commerce ordering.

The company is also monitoring a 60% decline in cocoa farmgate prices in Ivory Coast, which has sharply reduced rural purchasing power. Dufay characterized the demand shock as temporary and “not a structural challenge,” but noted that Jumia’s high market penetration in the Ivory Coast makes it more sensitive to external pressures.

Global competitors like Temu are facing their own hurdles as Middle East airfreight disruptions impact direct international shipping routes. Dufay described these disruptions as a headwind for cross-border platforms while having “no impact” on Jumia’s local inventory model.

The company’s boardroom was bolstered last year by the addition of Hassanein Hiridjee of Axian Telecom, who now holds a dominant indirect stake. Dufay described Hiridjee as a valuable source of business advice, though no major logistics breakthroughs have been communicated at this stage.

The Supervisory Board recently adopted a new remuneration system that ties management incentives to specific profitability metrics. Dufay acknowledged that this resolution enables the board to align executive pay directly with the goal of hitting the Q4 2026 breakeven target.

Following recent exits from markets including Algeria, Jumia’s leadership believes it now possesses the correct geographic footprint. Dufay confirmed that no further market exits are currently planned, stating, “I think we’re exactly where we want to be.”

Despite the cautiously optimistic tone regarding the macro environment, Jumia’s stock ended Thursday’s session up nearly 17%, but fell 2% in in early trading Friday as investors took profits. The company’s ability to stack consistent operational wins has begun to challenge its long-standing reputation for volatility in the eyes of investors.