Bob Ford

Bob Ford asked about merchant adherence to MercadoLibre's recent relative value notice in Brazil, the impact on the search algorithm and promotional support qualification, and how the company is addressing cost structure and ancillary revenue streams amid intensifying competitive dynamics.

Answer

MercadoLibre Incoming CEO Ariel Szarfsztejn explained that the short-term initiative aims to provide the best value proposition for buyers and sellers by prioritizing competitive offerings and positive customer experiences in search results. He noted that this aligns with record investment levels in logistics, free shipping, and promotions, expecting high merchant adherence. While too early to discuss specific results, he emphasized the system's goal to optimize limited resources for merchants offering the best customer experience.

Bob Ford asked about merchant adherence to Mercado Libre's recent relative value notice in Brazil, the implied changes to the search algorithm, qualification for promotional support, and how intensifying competitive dynamics might impact cost structure and ancillary revenue streams.

Answer

Incoming CEO Ariel Szarfsztejn explained that the price monitoring initiative aims to present buyers with the most competitive offerings and best-experience items, supported by record investments in logistics, free shipping, and promotions. He expects high adherence as it benefits both buyers and sellers by optimizing limited onsite resources, though it's too early to discuss specific results.

Bob Ford asked about the company's pricing strategy across its various markets and the net impact of the Argentine peso's real appreciation on G&A expenses and overall profitability.

Answer

CFO Mariano Tannenbaum reiterated the strategy of aligning price increases with inflation to protect traffic. He explained that while the Argentine peso's appreciation negatively impacts corporate G&A expenses based there, this is more than offset by the positive effect on the Argentine operation's profitability, resulting in a net positive impact for Arcos Dorados on a consolidated basis.