Mercado Libre although in red balance recovering . Announces investment in Bitcoin
(Edited)
The company Mercado Libre reported this week the financial/accounting results of the first quarter of the current year where it shows a balance of losses to date of approximately 34 million dollars in line with previous years and a profit before taxes of only 9.5 million, these figures were exhibited by the company that leads Mercado Libre and were well received by the company's financial analysts. div>
We can also highlight the growth in turnover, volume of shipments, those related to the financial business and the company's own growth investments, in the same way with its logistics scheme and the distribution of products in the established times despite the current difficulties. One piece of news that was very welcome and not expected is that the company was able to invest almost US$ 8 million in the purchase of the Bitcoin cryptocurrency.
Despite all the land, sea, river and air restrictions to be able to make deliveries on time due to the covid issue, as well as the sanitary security measures implemented by the company, we remain committed to democratize trade and financial services throughout Latin America with our main purpose of fulfilling our customers.
According to Pedro Arnt, Chief Financial Officer of Mercado Libre. "We are aware of the increasingly relevant social and economic role we play 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 sources of employment throughout the region, and that there are millions of consumers who were able to access the products they need".
Other very important reasons to mention are that the company's shares had a market capitalization value for Mercado Libre of US$ 76 billion and in January, it had reached US$ 100 billion. It is also reinvesting its revenues to improve its logistics and effectively fulfill all shipments. The investment in cryptocurrencies in a very short time is expected to bring higher cash flow.
Some improvements achieved:
- Our active user base in the first quarter increased from 61.7%, to 69.8%.
- We were able to record sales of 222.0 million items, which implies a year-on-year growth of 110.2%.
- We were able to register 299.5 million publications on our platform.
- Through the shipping marketplace, 208.1 million items were shipped, representing a year-on-year increase of 130.7%.
- Online payments grew 138.8% year-on-year in constant currency.
The digital wallet reached US$2.9 billion on a consolidated basis, representing a 192.0% year-on-year growth in constant currency.
Interesting first quarter financial results:
-First quarter net revenues were US$ 1.4 billion, a year-over-year increase of 111.4% in dollars and 158.4% in constant currency.
The quarter closed with a pre-tax profit of US$ 9.5 million, compared to a loss of US$ 16.7 million in the same period of 2020.
In conclusion, Pedro Arnt said, "We have had a great start to 2021, with solid growth and successful execution of our plans. All of this is the result of the extraordinary work of our now almost 19,000 employees who are demonstrating resilience and commitment to continue achieving our objectives"
I hope you like my article and I would appreciate all your comments.
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Hello dear friend, no doubt free market has been one of the most successful sales platforms, especially in our country Venezuela, I see that the pandemic has affected the finances of the company a little, but investing in bitcoin could significantly improve the situation that is going through. Every day the cryptocurrency market becomes much more robust.
See you later brother, have a great weekend !
greetings dear friend @ amestyj, the free market company, is looking for strategies to increase its capital because with the pandemic many of these should streamline their business strategies for more profitability and maintain a capital in cryptocurrencies is an alternative that many are doing.
Thank you very much for your comments.