Sales in the Free Market slow in the 3rd quarter, but profit grows 6 times

O Market Delivered had a slowdown in revenue in the third trimaster, since the gradual reopening of physical commerce in Latin America has imposed greater competition with digital companies, which soared during the pandemic.

The largest e-commerce portal in Latin America reported on Thursday (4) that its volume of sales (GMV) reached US$ 7.3 billion from July to September, an increase of 29.7% in constant currency over the same stage of 2020.

But the movement represents a deceleration in relation to the 117.1% expansion registered a year earlier, also in the annual comparison.

This more modest expansion partly reflected the loss of traction in acquiring new customers. The company ended September with a base of 78.7 million unique users, an increase of 3.4% in 12 months. A year ago, this expansion had been 92.2%.

Still, the Market Delivered had in trimaster a net revenue of US$1.9 billion, up 72.9% against the same stage of 2020 in constant currency. In Brazil, which accounts for 57% of total revenues, the increase was 69%.

The total volume of payments made through the unit Market Payment no triMestre totaled US$ 20.9 billion, up 59% in constant currency. The company’s loan stock reached US$1.1 billion at the end of the trimaster, volume almost four times greater than a year earlier.

“We are entering a base maturation process, where the main objective is to build customer loyalty, encouraging them to make more revenue-yielding transactions,” the vice president of strategy, corporate development and investor relations told Reuters. Market Delivered, André Chaves.

According to the executive, once the focus of digital business companies moves to retain customers and make them transactional in a profitable way, the Market Delivered should have comparative advantages, since their efforts in the last trimasters to expand your logistical structure will allow you gains of scale and greater cost control.

“This is especially important now at a time of rising fuel prices,” he said. In addition, the group based in Argentina It also started to finance itself more with CDBs, which have a lower cost than receivables.

The set of revenue growth and expense control helped the Market Delivered to have profit net of US$ 95.2 million in trimaster, volume over six times higher than reported a year earlier.

Chaves stated that the shortage of chips has had some impact on sales of payment terminals (POS) of the Market Payment, but that the company is seeking to normalize the situation by seeking more suppliers for the equipment.