Name: Operating Profit Margin

Definition: Operating profit margin focuses on profits from the company’s core business — before interest payments and taxes. It reflects how well the business manages operating costs relative to sales. Strong operating margins show efficient day-to-day operations. Shrinking margins may reveal rising overhead, pricing weakness, or declining efficiency.

Interpretation:
• In '2021', JMIA's operating profit margin was -131.0%, highlighting profit earned from core business operations. Industry average for Catalog/Specialty Distribution in '2021' stood at -11.3%.
• In '2022', JMIA's operating profit margin was -94.0%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Catalog/Specialty Distribution in '2022' stood at -9.3%. Industry average increased by 2.0% compared to previous year.
• In '2023', JMIA's operating profit margin was -38.9%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Catalog/Specialty Distribution in '2023' stood at -6.6%. Industry average increased by 2.7% compared to previous year.
• In '2024', JMIA's operating profit margin was -38.4%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Catalog/Specialty Distribution in '2024' stood at -8.2%. Industry average declined by 1.6% from previous year.
Overall, JMIA's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

Good Range: Often 10%-30% depending on business model.