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Friday, December 09, 2022

Mercado Libre, through the roof: Reported record gains and its stock rose up to 14 percent on Wall Street

Free Market
free market

E-commerce giant Mercado Libre reported Wednesday that its profit in the second quarter rose 79.8% year-on-year to $123 million.As stated in a statement by the company accessed by Infobae, In this framework, the company’s quarterly earnings exceeded analysts’ forecasts at Refinitiv Agency of $98.9 million.

Thus, the shares of the company he founded Mark Galperin 23 years ago – yesterday they celebrated it on social networks – jumped up to 14% after market wall Street.

Mercado Libre (MELI) net income, with a presence in 18 countries, including Brazil, Mexico and Colombia, They rose 52.5% over the period to about $2.6 billion, although they grew 56.5 percent in constant currency.

Meanwhile, the group’s financial unit, Mercado Pago saw its profits rise 112.5% ​​in dollars to $1.2 billion, as it expanded its lines of business such as insurance and investment tools.

Meli'S Stock In Last 5 Days.  The Formal Settlement Today Stood At Us$890 Per Share, But It Rose More Than 14% To Over Us$1,000 After Market Volatility.
Meli’s stock in last 5 days. The formal settlement today stood at US$890 per share, but it rose more than 14% to over US$1,000 after market volatility.

Similarly, Mercado Pago registered an increase of 83.9% in the total volume of payments in stablecoins to $30,200 million. While its credit portfolio reached $2,700 million in the quarter, a growth of 12.5% ​​compared to the same period last year.

“Buyers have maintained their level of activity on the platform firm, leading to an increase in the number of items per buyer compared to the previous quarter,” Mercado Libre elaborated.

During the second quarter, the firm crossed 38 million active users, a growth of 26.3%, with growth across all markets in the region, primarily in payment services via QR codes, transfers within the ecosystem and those users. who applied for the credit.

,We saw a strong quarter across all businesses, reflecting continued improvement in profitability with record results in net income and gross profit. As a result of this continued performance, we remain steadfast in our objective of increasing access to business and financial services“, Assurance pedro aartoChief Financial Officer of Mercado Libre.

And he added: “The operation of the market achieved solid results with growth in sales and buyer base. Mercado Pago, for its part, has a strong growth with a growing user base and increased payment volume through digital accounts and acquisitions.” Maintains growth rate.Our strategy continues to prioritize the balance between profitable growth and cash management, supporting investments in technology for product development, always focusing on long-term differentiation.

With regard to electronic commerce, the company founded by Galperin highlighted that the total value of goods transacted in the market in the second quarter was US$8.6 billion, up 21.8% in dollars and 26.2% in constant currency .

Overall, 275.2 million items were sold — 6.7 items per buyer — representing an increase of 12.3%. The total volume of registered posts on the platform was 300.5 million. Argentina and Mexico achieved an average increase of 30% year-on-year in the dollar, with Brazil recording higher-than-average items per buyer.

Meanwhile, 264.1 million items were shipped to the region through Mercado Envios during the quarter, an increase of 26.9% year-over-year. Progress in execution and speed was significant for Mercado Envios, reaching 98.6% of the entire operation, up from the 97.3% registered in the same quarter of 2021. That total—reported company—matches Mercado Libre with over 91.1% managed networks.

Similarly, in normal quantities of goods, about 80% were delivered in a maximum of 48 hours and about 55% were delivered on the same day or a day after purchase.

Market operations yielded tangible results, with sales and buyer base increasing. Mercado Pago, for its part, maintains a strong growth rate with a growing user base and increased payment volume through digital accounts and acquisitions (Arnt).

In another order, the company explained that the Marketplace operation is maintaining its growth and relevant market share in Latin America, Efficient logistics, a diverse base of vendors and a wide offer, along with investments in technology, improve user experience, “It is worth noting the expansion of the Mercado Libre network of agencies – shipping, collection and clearance points for goods, which make up the logistics network – and the air fleet, which will allow to reduce delivery times in the northern regions, the Northeast and . Central-Western Brazil. Currently, the delivery time in the main capitals of this country is between one and two days”, he remarked.

In addition, Mercado Libre noted that the loyalty program continues to grow year on year, reaching millions of customers and playing a fundamental role in the integration and participation of Mercado Libre and Mercado Pago users. “At Level 6, the highest of the program, users have higher frequency, sales volume and retention, and enjoy a range of benefits such as free shipping, discounts and entertainment services,” the company highlighted.

“Some of the most important aspects reported by the leading e-commerce company in Latin America and that partly explain the positive readings by investors are, Fintech segment’s unique active users increase by 26%, They reached a total of 38.2 million at the end of June. It is worth noting that this situation occurs in a global scenario of economic slowdown, and where many of the most important technology companies have registered a decline in terms of active users and average revenue per user,” he assured. Maximiliano Donzelli, Head of Research in IOL invertironline.

“another, We cannot fail to mention the rapid pace of development created by Mercado Pago Divisionwhich reached a payment volume of over $30,000 million (record for the company), thus representing an increase of about 84% compared to the same quarter last year”, the analyst said.

Meanwhile, IOL Investonline highlighted that Argentina remains the second most important market for the company, contributing about 23% of total revenue, thus overtaking Mexico, which contributes 16% of revenue. gives. In addition, Argentina showed an increase of about 112% in 2021 compared to the same period, which translates to the country showing the fastest growth.

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