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    Joao Pedro Soares • Citigroup Inc.

    Joao Pedro Soares's questions to MercadoLibre Inc (MELI) leadership

    Joao Pedro Soares's questions to MercadoLibre Inc (MELI) leadership • Q2 2025

    Question

    João Pedro Soares from Citi inquired about how MercadoLibre is adapting its logistics infrastructure for an increased mix of lower ASP items and how to think about the profitability of these products.

    Answer

    Commerce President Ariel Szarfsztejn emphasized a focus on long-term user relationships over single transactions, noting the downstream benefits of higher engagement. He explained that new, slower delivery options provide room to improve unit economics. While margins on individual low-ticket items will vary, he stated the overall initiative is expected to be net positive for the P&L in the long term as scale reduces unit shipping costs.

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    Joao Pedro Soares's questions to MercadoLibre Inc (MELI) leadership • Q4 2024

    Question

    Joao Pedro Soares inquired about the significance of high-risk products like micro cards and whether reducing their issuance could negatively impact the growth pace of GMV.

    Answer

    Osvaldo Giménez (Executive) stated that they do not expect any significant impact on GMV or other key metrics from reducing micro card issuance, explaining it will become a much smaller part of the mix. Martin de Los Santos (CFO) reinforced that the credit card remains a highly strategic product that the company will continue to grow as long as cohort performance meets expectations.

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    Joao Pedro Soares's questions to MercadoLibre Inc (MELI) leadership • Q3 2024

    Question

    Joao Pedro Soares asked how MercadoLibre is thinking about the macroeconomic environment in Brazil, particularly rising interest rates, in the context of its confident credit origination pace. He also sought clarification on the relative growth rates of the credit business in Mexico versus Brazil.

    Answer

    Executive Martin de Los Santos responded that the ability to accurately predict defaults is far more critical to their credit business than macro factors like interest rate changes. He reiterated that the acceleration is driven by confidence in their improved underwriting models. Osvaldo Giménez clarified that while specific country growth numbers aren't disclosed, the credit card issuance in Mexico is ramping up at a significantly faster rate than it did in Brazil's early stages, due to prior experience.

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    Joao Pedro Soares's questions to Companhia Brasileira de Distribuicao SA (CBDBY) leadership

    Joao Pedro Soares's questions to Companhia Brasileira de Distribuicao SA (CBDBY) leadership • Q1 2025

    Question

    Joao Pedro Soares of Citi asked for quantification of assets still available for sale and sought to understand the path to improving cash conversion, considering working capital trends and potential asset sales.

    Answer

    Executive Rafael Russowsky stated that while he could not provide specific guidance, the value of potential asset sales could be in the 'dozens or hundreds of millions of reals.' He highlighted a 4-day improvement in working capital, with further opportunities in inventory management. Russowsky also noted that CapEx is planned at around 3% of revenue, with BRL 400-450 million for maintenance, and emphasized that the company's overall cash burn is declining as the turnaround progresses.

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