Mercadolibre (MELI) has reported 14.74 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $38.91 million, or $0.88 a share in the quarter, compared with $45.64 million, or $1.03 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $101.30 million, or $2.29 a share compared with $100 million or $2.26 a share, a year ago.
Revenue during the quarter surged 36.89 percent to $230.85 million from $168.64 million in the previous year period. Gross margin for the quarter contracted 322 basis points over the previous year period to 63.09 percent. Total expenses were 76.73 percent of quarterly revenues, up from 73.15 percent for the same period last year. That has resulted in a contraction of 358 basis points in operating margin to 23.27 percent.
Operating income for the quarter was $53.71 million, compared with $45.28 million in the previous year period.
Pedro Arnt, chief financial officer of Mercado Libre, Inc., commented, "We continue to make progress in expanding our enhanced marketplace vision across all our geographies, as we grow the adoption of our payments, credit and shipping solutions in our marketplaces. More importantly, as a consequence of this, we have been able to sustain high growth rates in our trading volume, revenue, and customer satisfaction metrics"
Operating cash flow improves significantlyMercadolibre has generated cash of $147.68 million from operating activities during the nine month period, up 32.71 percent or $36.40 million, when compared with the last year period. The company has spent $91.91 million cash to meet investing activities during the nine month period as against cash outgo of $94.86 million in the last year period.
The company has spent $20.40 million cash to carry out financing activities during the nine month period as against cash outgo of $18.75 million in the last year period.
Cash and cash equivalents stood at $188 million as on Sep. 30, 2016, up 8.65 percent or $14.97 million from $173.02 million on Sep. 30, 2015.
Working capital increases marginally
Mercadolibre has recorded an increase in the working capital over the last year. It stood at $262.79 million as at Sep. 30, 2016, up 1.90 percent or $4.89 million from $257.90 million on Sep. 30, 2015. Current ratio was at 1.53 as on Sep. 30, 2016, down from 1.70 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 189 days for the quarter from 224 days for the last year period. Days sales outstanding went down to 87 days for the quarter compared with 114 days for the same period last year.
Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 276 days for the quarter from 338 for the same period last year.
Debt moves up marginallyMercadolibre has witnessed an increase in total debt over the last one year. It stood at $305.55 million as on Sep. 30, 2016, up 2.87 percent or $8.53 million from $297.02 million on Sep. 30, 2015. Total debt was 24.33 percent of total assets as on Sep. 30, 2016, compared with 27.79 percent on Sep. 30, 2015. Debt to equity ratio was at 0.77 as on Sep. 30, 2016, down from 0.82 as on Sep. 30, 2015. Interest coverage ratio improved to 8.27 for the quarter from 7.53 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
