Mercado Libre started the year with everything. In the first quarter of the year, the unicorn created by Marcos Galperín, revenues of 3,000 million dollars in the region, which represents a growth of 35.1% over the same period last year. Its top three markets saw significant increases, with “Mexico advances 62%, Argentina 39% and Brazil 26%”reads the company statement.
Among all business units, especially eCommerce and finance (Mercado Pago), have allowed him to generate a net income of US$ 201.4 millionthis is 208.5% more than in the first quarter of 2022. Furthermore, the ecosystem lmanaged to add 3.9 million new users, with which Mercado Libre managed to exceed the threshold of 100.5 million active users.
These are the main data that emerge from the financial statements that delivered the company to the New York Stock Exchange. However, investors expected a good balance in their trades. Without going any further, in mid-April, Mercado Libre announced it it will incorporate approximately 13,000 people globally this year (of which 800 in Argentina), with which they estimate to close 2023 with a workforce of 50,000 employees.
“Net revenue from e-commerce business increased 31.2% year over year in dollar terms, reaching 1,700 million dollarsas a result of the rapid increase in sales volume,” the report indicates. The fintech business is almost catching up. Mercado Pago had revenues of $1.4 billion between January and March of this year (64% more than in the first quarter of last year). And this is the fifth consecutive quarter that its financial unit has crossed the $1 billion mark.
Online sales and electronic payments have grown exponentially during the pandemic. But in the return to the “new normal” the trend continued, albeit with less momentum. The restrictions due to Covid 19 have changed consumption habits, something Mercado Libre has taken advantage of. Most noticeable is the progress of its QR code-based ecosystem, which is gaining followers by leaps and bounds. “The volume of payments processed through Mercado Pago reached $37 billion for the first time,” the company said.
Financial transactions far exceed the volume of online sales. Mercado Libre stressed that “the total value of items traded on the market was $9.4 billion in the first quarter.” Total, 309 million items were sold —6.7 items per shopper—, which represents an increase of 15.9%.
Despite this, eCommerce is the most profitable business unit for Mercado Libre, as “financial businesses leave very small margins”. In Latin America, 301.8 million items were sold on the platform. According to the report, “the increase in the number of unique buyers has accelerated across the region.”
Mercado Libre is present in 18 countries in Latin America. And leads in almost all of them. However, in Mexico (its second largest market after Brazil) it is positioned above Amazon, its main competitor. In both, there was “solid growth in sales volume: Brazil and Mexico were up about 28% in constant currency,” the note noted.
Source: Clarin
