© Reuters. FILE PHOTO – The logo of the Argentine online marketplace MercadoLibre is seen in this illustration of an undated handout distributed to Reuters on July 27, 2022. Mercado Libre/Handout via REUTERS
SAO PAULO (Reuters) – South American e-commerce giant MercadoLibre (NASDAQ:) Inc reported Wednesday that its second-quarter net income rose 79.8% year-over-year, beating earnings forecasts.
The company, with presence in 18 countries including Brazil, Mexico and Colombia, reported net income for the three-month period of $123 million, beating Refinitiv’s forecast of $98.9 million.
Following the results, MercadoLibre’s senior vice president of strategy Andre Chaves said the company has plans to grow in Latin America, but “there’s nothing in sight at the moment about an acquisition.”
“If so, it would be something small,” said Chaves.
Brazil, which accounted for 56% of the group’s net sales in the quarter, remains the company’s main focus, Chaves added.
In March, the group announced an investment of 17 billion reais in Brazil this year, part of which will be used to open four logistics centers and double its delivery capacity.
Furthermore, the company said on a call with analysts that it sees Mexico’s potential to become a larger and more profitable market in the long term, adding that this is their first profitable quarter. in this country for the past five years.
MercadoLibre shares were up 12% as of 6:00 p.m. Eastern time (2200 GMT) in extended trading Wednesday.
The company’s net revenue grew 56.5% in constant currency and 52.5% in dollar terms to $2.6 billion as the company registered revenue growth from the commercial and fintech.
The group’s financial arm, Mercado Pago, saw net sales grow 112.5% year-on-year to $1.2 billion, as it expands business areas such as insurance and investment tools.
Mercado Pago reported total volume of payments in constant currency increased 83.9% to $30.2 billion. Its credit portfolio reached $2.7 billion in the quarter, up 12.5% from the previous quarter.
