Mercado Libre recorded a profit of US$65 million in the first quarter

MercadoLibre’s revenue, with a presence in 18 countries including Brazil, Mexico and Colombia, increased 63.1% year-on-year to about $2.2 billion, although in constant currency it grew 67.4%.

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As reported by the company to investors, the volume of merchandise sold during the first quarter was almost US$7.7 billion, which represents approximately 27% year-on-year growth compared to US$6.057 million in the same quarter. period last year. Likewise, they sold a total of 267 million products, a figure higher than the 222 million in the first quarter of 2021.

In addition, the report indicates that during the first quarter the company registered a significant year-on-year improvement in gross profit margins, growing 47.7% and registering a record of almost US$1.1 billion. “Our strong top-line growth creates scale in our business, with operating leverage in our cost base sustaining commerce and payments operations. Shipping costs as a percentage of total revenue continue to decline, even in the first quarter that has a seasonally higher unit shipping cost due to lower volume compared to the previous quarter quarter,” the company said.

MELI’s total operating expenses, as a percentage of revenues, excluding bad debt charges, were at a similar percentage to that registered a year ago, during the first quarter of 2021, at 30.2% compared to 30, one%. We have achieved year-over-year operating leverage on these expenses as we continue to invest efficiently in customer acquisition and brand initiatives.

Within the operating plan, the company reported that they will continue to invest in the expansion of the team. Days ago, they confirmed that they will hire 14,000 people in the region, of which 2,400 will be employed in Argentina. “This includes software engineers and product developers in accordance with our annual hiring plan. As a result, we are increasing spending as a percentage of revenue for general and administrative expenses and product development expenses,” they said.

“We are confident that we are advancing in our mission to democratize access to trade and financial services throughout Latin America,” they stressed from MELI, adding that they have made a good start in terms of execution and results this year. “We will continue to grow while staying focused on our priorities and aware of our path towards improvements in operational efficiency,” they added.

News in development.-

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