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Mercado Libre lost US $ 34 million, but the balance fell well among analysts


Marcos Galperín's company exhibited very strong volume growth in all its operations. For the market, the heavy investments will translate into significant profits in the short term.

05/05/2021 19:20

  • Clarí

  • Economy

Updated 05/05/2021 19:20

Mercado Libre reported on Wednesday the financial results for the first quarter of the year. Although the bottom line of the balance sheet shows a

loss of 34 million dollars and a profit before taxes of just 9.5 million

, the numbers exhibited by the company that runs Mercado Libre

were well received by financial analysts

. The growth in turnover, the volume of shipments, the financial business and the investments in growth of the company itself, such as its logistics and product distribution scheme, stand out.

"With more than a year having passed since the start of the COVID-19 pandemic, we remain strongly committed to our purpose of democratizing trade and financial services in Latin America," said

Pedro Arnt,

Mercado Libre's Chief Financial Officer. “We are aware of the increasingly relevant social and economic role that we occupy in the countries where we operate and we are proud to know that behind each reported indicator there are thousands of SMEs that can continue to operate and maintain jobs throughout the region, and that there are millions of consumers who were able to access the products they need ”, he added.

The company's shares had a market capitalization value for Mercado Libre of US $ 76,000 million.

By January, it had touched $ 100 billion.

After the close, the papers rose 1.3%.

The analyst

Gustavo Neffa,

from Research For Traders highlighted what in his opinion was the important part of the balance sheet. They showed a very good growth figure, above expectations.

- Before taxes, it achieved a profit of US $ 9.5 million against a loss of US $ 16.7 million during the same period of 2020.

- The company is aggressively reinvesting its income, especially in improving its logistics.

- The news fell very well that he

bought bitcoins for 7.9 million dollars.

The investments you are making will sooner or later cause operating cash flow to explode.

The main numbers

- The

active unique user base

during the quarter increased 61.7% year-on-year, reaching 69.8 million.

- The

total value of traded items for

the quarter was US $ 6.1 billion, which represents a year-on-year growth of 77.4% in dollars and 114.3% in constant currency.

72.9% of this value comes from transactions made from mobile devices.

222.0 million items were sold,

which implies a year-on-year growth of 110.2%.

299.5 million publications

were registered

on its platform.

208.1 million articles were shipped

through Mercado Envíos, a year-on-year increase of 130.7%.


total volume of payments processed

during the quarter through Mercado Pago was USD 14.7 billion, a year-on-year increase of 81.8% in dollars and 129.2% in constant currency.

630.1 million transactions were processed in the period, representing a year-on-year increase of 116.7%.

Mercado Pago

continues to grow its payment processing service outside the MercadoLibre platform.

The total volume of off-platform payments reached USD 8.5 billion, with a growth of 82.5% year-on-year in dollars and 136.4% in constant currency, through 478.9 million payments in the quarter, representing 120.4% year-on-year growth.

For their part,

online payments

grew by 138.8% year-on-year in constant currency.

The total volume of

payments processed

through “MPOS” mobile point of sale devices grew 90.2% year-on-year in constant currency.


transactions through the digital wallet

reached USD 2.9 billion on a

consolidated basis, which implies a growth of 192.0% in constant currency.

About 16.0 million users in the region already have their balances invested in

Mercado Fondo,

for a total of over USD 650 million.

Mercado Crédito's


grew to USD 576 million, more than double that of the first quarter of 2020.

Financial results for the quarter


net income

for the first quarter was $ 1.4 billion, an increase of 111.4% the dollar and the 158.4% in constant currency.

The i

NCOME of business e-commerce

increased by 139.2% in dollars, reaching USD 910.6 million, while revenues from the Fintech business increased 72.4% in dollars, reaching USD 467.8 millions.


gross profit for the quarter was $ 591.4 million

, with a margin of 42.9%, compared with 48.0% in the same quarter last year.

The quarter closed with a

profit before tax of USD 9.5 million,

different from the loss of USD 16.7 million during the same period of 2020.


net loss for the quarter

totaled USD 34.0 million, resulting in a net loss of USD 0.68 per share.

“We are off to a great start to 2021, with strong growth and successful execution of our plans.

All this is the result of the extraordinary work of our now almost 19 thousand employees who are demonstrating resilience and commitment to continue achieving our objectives ”, concluded Arnt.

Look also

An Axel Kicillof official called Marcos Galperin "undemocratic"

Mercado Libre, one of the 100 most influential companies in the world according to Time magazine

Source: clarin

All business articles on 2021-05-06

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