MercadoLibre Reports 71% Net Income Rise thanks to Brazil and Mexico’s strong market performance boosts

By LG Staff

By LG Staff

May 9, 2024

Despite economic challenges in Argentina, MercadoLibre Inc. demonstrated robust financial health in Q1 2024, marked by significant gains in Brazil and Mexico.

The company reported a net income of $344 million, surpassing the $313 million forecast by analysts. This 71% increase from the previous year included a negative impact of $10 million from new reporting methods.

The Argentine peso’s devaluation, under President Javier Milei, notably affected MercadoLibre’s local operations and consumer spending. However, CFO Martin de los Santos highlighted that the company’s resilience and strong performance in Brazil and Mexico have more than offset these challenges. The gross merchandise volume reached $11.4 billion, exceeding expectations, with a notable expansion in the credit-card sector.

MercadoLibre, founded in 1999 and now the second-largest public company in Latin America by market cap, also reported advancements in its fintech and advertising divisions. The advertising segment alone grew 64% in dollar terms, now representing 1.9% of the gross merchandise volume.

With plans to add 18,000 jobs, primarily in Mexico, and increase investments in Brazil by 21% to 23 billion reais, MercadoLibre is poised for continued growth and market leadership.

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