📊 Q2 2025 financial results - MercadoLibre $MELI (-0,06%)
1. turnover & growth
- Net salesapprox. USD 6.8 billiongrowth of approx. 34 % compared to the previous yearand was above analysts' estimates (~ USD 6.6-6.7 billion)
2. operating result (EBIT)
- EBIT (Earnings Before Interest & Taxes): USD 825 millionslightly below expectations (~ USD 869 million)
- EBIT margin: 12,2 %, down on the previous year's figure of 14,3 %
3. net profit & earnings per share
- Net income: USD 523 million, decrease of approx. 1.5 % compared to the previous yearand significantly below analyst estimates (~ USD 596 million)
- Adjusted EPS: USD 10.31compared to expected approx. 11.93 USD - this corresponds to a decline of 1.6 % YoY
4. business development & volume-based key figures
- Gross merchandise volume (GMV): approx. USD 15.3 billion, growth of 21 % YoY
- Fintech payment volume (TPV - MercadoPago): approx. USD 64.6 billion, increase of 39 % YoY
- Loan portfolio: USD 9.3 billion, grows by 91 % YoYDefault rate in the 15-90 day window fell to 6,7 % (lowest value in seven years)
5. reasons for profit decline & margin pressure
- Promotions & extended free shipping program in Brazil led to increased sales, but also to falling margins
- Regional currency losses (in particular the Argentinian peso) and a higher higher tax burden further reduced the net result
6. market reaction & analyst sentiment
- Share price: Decline of approx. 4-5 % after trading immediately after publication of the figures
- Analysts (e.g. Santander) see the short-term disappointment, but do not expect a lasting underperformanceas the company tends to invest strategic investments for long-term growth
🧭 Conclusion
MercadoLibre $MELI (-0,06%) is once again recording strong growth - particularly in e-commerce (GMV) and Fintech segment (TPV, credit volume). Despite increases in turnover, the profit development has not kept pacemainly due to strategic investments such as free shipping in Brazil, higher advertising costs, currency effects and tax burdens.
Management emphasizes that these short-term margin losses are being consciously accepted in order to gain market share and promote long-term growth. A positive profit trend is expected to continue in 2025 and beyond.
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