The electronic giant Mercado Libre reported on Wednesday that its profits grew 178.2% year-on-year in the third quarterexceeding market forecasts thanks to a general increase in its revenues, particularly in Brazil.
MercadoLibre, with a presence in 18 countries, recorded a net profit of US$359 million in the period, while analysts surveyed by LSEG expected a profit of $298.1 million.
“We had another super solid quarter”André Chaves, senior vice president of strategy and corporate development, told reporters, highlighting the acceleration of revenue growth in e-commerce and the firm’s fintech arm in its main markets.
The company’s total net income was around US$3.8 billion in the periodan increase of 39.8% compared to the July-September 2022 period.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 108.7% to $820 million. Its operating margin stood at 18.2% in the period, up from 16.3% in the second quarter and 11% a year earlier.
Within the e-commerce operation, net income increased to $2.1 billion, up 45.2%. “Brazil was the star of the quarter”Chaves said.
In the quarter between July and September, Mercado Libre managed to break US$11,000 million in merchandise volume and showed a 26% growth in items sold, reaching the third consecutive quarter of acceleration in the aforementioned metric. In this sense, among some of the aspects that explain the good performance of the e-commerce segment, the pace of growth stands out: Mexico, the market with the highest growth in income (+66% i/y) and Brazil, as the market that greatest contribution to growth (157% y/y).
As for its financial services arm, Mercado Pago, net income grew by 33.2% to $1.6 billionas the company increased the pace of lending, while its total volume of payments processed also rose.
“It is interesting to highlight the good performance that Mercado Libre’s Cedear has shown so far this year. In 2023 (and considering today’s closing, November 1), the yield exceeds 299.7% (in pesos), thus placing it widely above accumulated inflation. in the first 11 months of the year and, of course, also the financial exchange rate (+170%)”, he explained Maximiliano DonzelliHead of Research at IOLinvestonline.
Source: Ambito
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