Latin America’s largest e-commerce platform reported fourth-quarter net revenue of $2.1 billion, a 73.9% year-over-year increase.
Despite a strong increase in sales, Mercado Libre posted a net loss in the fourth quarter of $46.1 million, for the full year net profit was $83.3 million.
The company, which was founded in Buenos Aires in 1999, said its active user base grew to 139.5 million users last year from 132.5 in 2020.
Mercado Libre’s main markets all showed strong growth in 2021. Its consolidated net sales by country increased 78.2% year-on-year in Brazil, reaching $3.9 billion; 103.8% in Mexico with 1.17 billion dollars and 56.2% over the year in Argentina with 1.53 billion dollars. The e-tailer operates in 18 Latin American countries.
The company said e-commerce revenue grew 81.1% from 2020, reaching $4.63 billion.
“The end result was a year of record results across the board, sustained growth in key business metrics and revenue, and improved margins and operating profit for the second year in a row,” he said. Chief Financial Officer Pedro Arnt said on a conference call with analysts. .
Arnt pointed to a sustained shift in consumer behavior on the platform with improved customer loyalty and retention as a key driver of the company’s success.
“Even with physical stores reopening, customers in Latin America have embraced online shopping, paving the way for further long-term growth in our region,” he added.
Mercado Libre CEO Stelleo Tolda resigns
The e-commerce giant’s co-founder and head of the platform’s Brazilian operations will step down as chief executive on April 1, but will stay on as Mercado Libre’s strategic advisor after that date.