South Africa - Personal
MercadoLibre, the leading ecommerce and fintech player in Latin America, reported excellent quarterly results in May with revenue up 37% and operating profit up 45% on a year-on-year (YoY) basis - a continuation of the strong profitable growth that we have come to expect from this company. MercadoLibre has an extremely strong competitive position due to its synergistic ecosystem that includes ecommerce, payments, and credit. We continue to be attracted to its long growth runway, with ecommerce and credit penetration remaining low in its geographies.
We consider MercadoLibre as one of the most competitively advantaged businesses within the EM universe. It possesses the key attributes of a winning business, including leading and improving market positions, exceptional management teams alongside a culture of innovation, as well as being digital businesses on the right side of technological change. Each business has a strong multi-year growth outlook, supported by structural tailwinds, and will generate very attractive returns on invested capital at scale.
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