The first quarter of 2025 brought excellent news for the Argentine economic ecosystem. Mercado Libre, the most valuable company in Latin America, reported a 44% year-over-year increase in its net profit, reaching US$ 494 million and significantly surpassing market expectations (US$ 420.9 million, according to LSEG). MELI's shares climbed more than 10% in the after-market, reflecting investor enthusiasm for a performance already considered historic.
The most relevant data doesn't come from either Brazil or Mexico. Argentina, after years of regulatory stagnation, excelled again. Since the inauguration of President Javier Milei and the end of currency controls and trade barriers, MercadoLibre's internal activity skyrocketed. The growth of GMV (gross merchandise volume sold) in the country was 126% year-over-year in exchange rate-neutral terms, accompanied by a 52% increase in units sold.
Milei y Galperín en las oficinas de Mercado Libre.
"Argentina's performance was outstanding," officially acknowledged the company founded by Marcos Galperín. The nation became MercadoLibre's second most important market again, surpassing Mexico and ranking only behind Brazil. Martín de los Santos, the group's CFO, explained to Reuters that the improvement is due to the new economic context: "We have seen improvements in our platforms in Argentina in recent quarters, and they have continued in this first quarter." He also highlighted that the decrease in inflation and interest rates boosted both consumption and appetite for credit.
In general terms, the company's net revenues grew 37% year-over-year, reaching US$ 5.9 billion, also exceeding analysts' forecasts (US$ 5.51 billion). The EBIT (earnings before interest and taxes) rose to US$ 763 million, a 45% increase from last year and well above the US$ 617.4 million expected by the market. Its EBIT margin improved to 12.9%, compared to 12.2% in the same period last year.
Mercado Libre eleva 44% su ganancia del primer trimestre.
The overall activity of the platform also showed dynamism. Unique buyers grew 25% year-over-year, reaching 67 million. 492 million products were sold, a 28% increase compared to the same period in 2024. In terms of categories, the supermarket category led the growth, with a 65% increase in units sold, driven by technological improvements that optimized the user experience, such as new repurchase features.
Meanwhile, Mercado Pago—the group's fintech branch—maintained its expansive momentum. The platform reached 64 million active monthly users, a 31% increase from the previous year. Its credit portfolio grew 75%, reaching US$ 7.8 billion, mainly thanks to credit cards. Despite the growth, the company managed to keep the delinquency ratio from 15 to 90 days at 8.2%, and even reduced the rate of first-payment defaults on cards to historic lows, especially in Brazil.
"This quarter highlights our commitment to sustainable and profitable growth," stated Martín de los Santos, the group's CFO. "We continue to be a key force in the transition from traditional to electronic commerce, supported by investments that ensure a frictionless user experience. The outstanding financial performance in the first quarter is a clear indication that our strategies are yielding results."
