financetom
Business
financetom
/
Business
/
MercadoLibre investments in Brazil this year to top initial forecast
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
MercadoLibre investments in Brazil this year to top initial forecast
Jun 5, 2024 12:31 PM

CAJAMAR, Brazil (Reuters) - Latin American e-commerce giant MercadoLibre ( MELI ) expects its investments in Brazil this year to exceed the 23 billion reais ($4.35 billion) initially planned due to higher-than-expected sales, local marketplace head Fernando Yunes said on Wednesday.

He told reporters the revised capital expenditure plan cannot be fully disclosed at the moment as it is still in the works, but noted the firm now forecasts to hire 11,000 people in Brazil this year, up from a previous estimate of 6,500.

"Our growth was very strong in the first quarter. We have been seeing growth above what we planned," Yunes told reporters during an event at the firm's Cajamar logistic center. "This creates these two implications: more resources and staff".

MercadoLibre ( MELI ) intends to allocate part of the new staff in two new distributions centers it plans to open in Brazil this year, in the city of Porto Alegre and in Brasilia, the capital, Yunes said.

Until now, MercadoLibre ( MELI ) had only revealed its intention to open one Brazil distribution center, in Recife. It has over 20 distributions centers in Latin America, about half of them in Brazil, its main market.

Chief Executive Marcos Galperin said the new forecasts apply for Brazil and not other markets, but said the company has seen very strong growth in other countries where it operates.

MercadoLibre ( MELI ) posted in May a 71% increase in its first-quarter net profit from a year earlier, beating analysts' estimates driven by its performance in Brazil and Mexico.

At the event, MercadoLibre ( MELI ) said it has started to roll out a new strategy to make its distribution centers more efficient, using robots from China-based Quicktron to automate the process of picking products before packaging them.

As a result, the majority of products in the distribution center could potentially be shipped by about 30 minutes to one hour earlier than usual for same-day deliveries, Agustin Costa, senior vice president of shipping business, said.

The company has been expanding the strategy into one of the centers in Cajamar, near Sao Paulo city, and intends to reproduce it in other centers and countries, the executives said.

($1 = 5.2849 reais)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Penske Automotive Group Stock Dips After Q3 Earnings Miss Amid Continued Freight Challenges
Penske Automotive Group Stock Dips After Q3 Earnings Miss Amid Continued Freight Challenges
Nov 3, 2024
Penske Automotive Group, Inc. ( PAG ) shares are trading lower after the company reported worse-than-expected third-quarter financial results. The company reported earnings per share of $3.39, missing the street view of $3.42. Quarterly sales of $7.59 billion (+2%) missed the analyst consensus of $7.67 billion. The company reported quarterly retail automotive service and parts revenue of $778.0 million, marking...
Moody's says Boeing capital raise 'credit positive' but ratings review remains
Moody's says Boeing capital raise 'credit positive' but ratings review remains
Nov 3, 2024
Oct 29 (Reuters) - Ratings agency Moody's said on Tuesday that Boeing's ( BA ) stock offering is credit positive as it materially improves the planemaker's liquidity, but a review for a ratings downgrade is still ongoing. The equity raise is likely to take off the table the prospect of refinancing debt coming due through 4 February 2026, Moody's added....
Eli Lilly Reports Positive Kisunla Results in Early Alzheimer's Disease
Eli Lilly Reports Positive Kisunla Results in Early Alzheimer's Disease
Nov 3, 2024
01:21 PM EDT, 10/29/2024 (MT Newswires) -- Eli Lilly ( LLY ) reported Tuesday positive results from its phase 3b study of Kisunla in patients with early symptomatic Alzheimer's disease. The study showed a reduction in imaging abnormalities with edema/effusion at the 24-week primary endpoint for people receiving a slightly modified titration of donanemab in adults with early symptomatic Alzheimer's...
Microsoft GitHub to Reportedly Add AI Models From Google, Anthropic to Copilot
Microsoft GitHub to Reportedly Add AI Models From Google, Anthropic to Copilot
Nov 3, 2024
01:25 PM EDT, 10/29/2024 (MT Newswires) -- Microsoft's ( MSFT ) GitHub plans to integrate AI models from Anthropic and Alphabet's (GOOG) Google ( GOOG ) into its coding assistant, GitHub Copilot, providing users other options than OpenAI's models, multiple media outlets reported Tuesday. Initially, developers will be able to use Google's ( GOOG ) Gemini and Anthropic's Claude 3.5...
Copyright 2023-2026 - www.financetom.com All Rights Reserved