Mercado Libre in Mexico achieves sales in excess of $60 million dollars

Mercado libre celebrates its 20 years of permanence in the market with more than 40 million buyers in the world's largest network that make 11 purchases per second and in which Mexico achieves sales in excess of $60 million dollars.

The history of Mercado Libre began with four entrepreneurs, who created the Free Market site "Internet auctions" convinced that the Internet would change the world.
The history of Mercado Libre began with four entrepreneurs, who created the Free Market site "Internet auctions" convinced that the Internet would change the world.

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

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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.

By Agencies

Curious facts about Mercado Libre to celebrate its 20th anniversary

In 1999 its first office was in a garage in the Saavedra neighborhood, north of Buenos Aires, and in the same 1999 began to operate Mercado Libre in Uruguay, Brazil, and Mexico.

The company is present in 18 countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Nicaragua, Panama, Peru, Paraguay, El Salvador, Dominican Republic, Uruguay, Honduras and Venezuela.

On the 20th anniversary of the country's and Latin America's largest online shopping hub, here are 20 curious facts you may not have known:

There are more than 20 million products published in Mercado Libre Mexico and more than two million sellers. In Latin America, there are 11 million sellers.

One of the most sold products in Mercado Libre Mexico in 1999 was the CD Todo está bien by Juan Gabriel. "For me to save myself from the end of the world," wrote one of the buyers.

There are more than 270 million registered Free Market users in Latin America and more than 30 million in Mexico. 80% of current registrations are done through smartphones.

Mercado Libre has more than eight thousand employees in the region (25% entered in 2018) and more than 220 in Mexico. In global figures, 60% are men and 40% women, but in Mexico, the proportion is 51-49.

Mercado Libre is registered in Mexico under the name of Mexico, as can be seen at the bottom of the platform. In 2008, and after a decade of a dispute over online sales, Mercado Libre bought De Remate for 40 million dollars.

In the Hot Sale 2019, Mercado Libre sold more than three products per second and received 11 million visits a day.

In the category of books, the most sought-after is Baldor's Algebra and in the category of music, the albums of Mötley Crüe and Caifanes.

The record of purchases is held by a user in Mexico City with a total of $172,000 dollars (more than $3.2 million pesos) in transactions within the platform and more than 3,200 purchases.

Mercado Libre almost disappeared in early 2000 with the bursting of the dotcom bubble. It took the company six years to overcome the crisis.

In 2001, eBay (Marcos Galperin's inspiration) bought 19.5% of the shares of Mercado Libre. In 2016, eBay sold it back. They maintain a collaborative relationship and Mercado Libre sells eBay products within its platform through an official store.

Mercado Libre became the first technology company in Latin America to make its IPO on the Nasdaq in 2007. The New York Stock Exchange (NYSE) listed it under the name MELI.

To celebrate its 20 years, Mercado Libre launched a special category of Sustainable Products. "We celebrate by looking ahead," Galperin said. Responsible sales and purchases are trends.

Mercado Libre Mexico sells more than 100,000 products a day. Throughout the region, there are more than one million daily sales (11 per second) and six thousand searches per second.

Mercado Libre is a millennial company: 70% of its more than eight thousand employees are less than 30 years old.

Mexico is the third market with more sales in the region, after Brazil and Argentina. In a number of employees, however, it is below these two and also Uruguay and Colombia.

Mercado Libre has invested in three Mexican startups: Ibushak, an e-commerce solution for sales; Liftit, a cargo delivery platform; and Sirena, an omnichannel platform that connects customers and vendors in B2C businesses.

Mercado Libre opened two distribution centers in the State of Mexico with an area of 130 thousand square meters, allowing it to store more products and deliver thousands of them in less than 24 hours.

The top five searches in the entire platform is led by bluetooth headphones, tennis, smartwatch, laptops and cell phones.

Source: PC World Mexico