MercadoLibre Sees Growth in Commerce and Financial Services in Latin America

MercadoLibre says it’s taking advantage of growth opportunities in Latin America.

The Latin American eCommerce giant saw its net revenues rise 58% year over year during the quarter ended March 31, MercadoLibre said in a Wednesday (May 3) letter to shareholders.

“MercadoLibre has had a good start to the year, with encouraging performance across the business,” the company said in the letter. “Our Q1 ’23 results demonstrate once again our commitment to, and capacity to deliver, profit growth alongside rapid revenue expansion.”

In its Commerce business, the firm saw its gross merchandise volume (GMV) rise 43% year over year, with growth accelerating in all three of its major markets: Brazil, Mexico and Argentina, according to the letter.

MercadoLibre attributed this to its improvements in logistics and delivery times in Brazil and Mexico, and the strength of its brand and value proposition amid a challenging consumer environment in Argentina, the letter said.

In its FinTech business, the company saw its total payment volume (TPV) leap 96% year over year. Here, too, it saw a faster rate of growth in all three major markets, per the letter.

A move upmarket to serve larger clients in Brazil, strong adoption of its digital offerings in Mexico and the launch of a marketing campaign in both countries contributed to the growth of the FinTech business, the letter said.

“Our Q1 ’23 KPIs [key performance indicators] highlight that momentum is strong across geographies, and that we are executing well as we pursue the long-term growth opportunities offered by Latin America’s commerce and financial services markets,” MercadoLibre said in the letter.

Bloomberg reported Wednesday that the company’s profits topped Wall Street forecasts and that the rise was aided by its growth in Brazil following the collapse of a major retailer in the country, Americanas, which filed for bankruptcy protection in January.

The release of MercadoLibre’s first-quarter results comes about two weeks after it was reported that the firm plans to add 13,000 jobs this year.

The hiring will focus on logistics operations in Brazil and Mexico, as well as its tech and product teams, and aims in part to bolster its fulfillment network, especially in smaller cities, Bloomberg reported April 20.

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