Mercado Libre in Mexico achieves sales in excess of $60 million dollars
Currently Mercado Libre has operations in 18 countries in the region, with more than 11 million sellers and 40 million buyers who make an average of 11 purchases per second.
Its history is marked by innovation and development, giving rise to the business units Mercado Pago, Mercado Envíos, Mercado Créditos, Mercado Shops and Mercado Libre Publicidad, forming a complete ecosystem of buying and selling products, services, payments, collections, credits and investments that promote financial inclusion. It has 7,200 employees.
Net sales in the second quarter were $545.2 million, a year-on-year increase of 102.1 percent, in constant currency. Mexico added $64.4 million dollars, which means a growth of 267 percent over the same period last year.
"We celebrate 20 years looking forward: we are focused on building the future of trade and finance. More sustainable e-commerce, which considers the care of the planet and new sources of energy. A more inclusive company that thinks of 21st-century job skills for a more diverse society" said Marcos Galperin, CEO, and founder of Mercado Libre.
"We will also continue to focus on facilitating access to credit and working capital, and on fighting battles to democratize access to more financial services and to include all sectors and all regions in growth," he concluded.
By PR Newswire
MERCADO LIBRE DID IT AGAIN: SHARES SKYROCKET 12%
MercadoLibre shares jumped more than 12% on Wall Street, after reporting to the market the results of the second quarter in which there was an increase of 102% in items traded and 90% in payment processing up to US$ 6.5 billion.
Based on these results from the Argentine platform led by businessman Marcos Galperin, shares registered today on Wall Street a rise of 12.78% at 16 o'clock and reached US$ 691.97, the historic high on the Nasdaq since its initial public offering in 2007.
MercadoLibre's CFO, Pedro Arnt, in a call with investors after the presentation of the 2Q results stated that the company "another very solid quarter" from a gross revenue perspective as it continues to grow and gain scale in its leading e-commerce and financial technology (fintech) ecosystems in Latin America.
In the detail of results, it was highlighted that net sales for the period were USD 545.2 million, an increase of 62.6% in dollars and 102.1% in constant currency.
88.7 million items were sold on the e-commerce platform, with an interannual growth of 3.8%, while the total value of items transacted increased 33% in constant currency, reaching US$ 3,397.7 million.
In relation to revenues, operating expenses were 52.3%, compared to 56.1% during the second quarter of 2018, while net profit for the same period was US$ 16.2 million.
The Mercado Pago financial platform processed 181.6 million transactions in the quarter with an increase of 112.5%, for a value of US$ 6,517.4 million, which represented an increase of 47.2% in dollars and 90.3% on a neutral exchange rate basis.
Mercado Pago continued to grow its payment processing service outside the MercadoLibre platform, both online and in the physical world, through commercial services, mobile point-of-sale ("MPOS") devices and virtual wallet businesses.
On a consolidated basis, the total volume of off-platform payments grew 121.5% year-over-year in dollars (197.5% in constant currency), exceeding US$ 3.15 billion.
The active users of the virtual wallet tripled with respect to the same quarter of the previous year, reaching 4.5 million, while in Argentina and Brazil, more than 2 million accounts already have their money available invested through Mercado Fondo.
"We are encouraged to see these solid growth rates in key performance indicators," said Arnt, noting that these data "point to greater consumer validation of innovative product and service offerings around e-commerce and financial technology.
As a result, the Mercado Libre CFO said that the company - which today celebrates 20 years of its creation - "given the size of the opportunity, will continue to build confidence in the aggressive investment cycle to add more users at the expense of short-term profitability.
In this sense, it is important to highlight that the results continue the sustained growth of single buyers, reaching 20.8% year-on-year, compared to 10.8% in the first quarter of 2019.
Of the total value of items sold, it again exceeded US$ 3 billion (+8.4% in dollars), of which 59.6% of that value comes from transactions made from mobile devices, and again exceeded the 200 million products offered on the marketplace to 224.1 million.
Finally, it was noted that 70.2 million items were shipped through Mercado Envíos, a 33.0% year-on-year increase, driven by the growth of the company's free shipping program.