Rodrigo Gastim

Rodrigo Gastim questioned MercadoLibre's strategy for balancing strong GMV growth in Brazil with margin pressure in 2026, and whether recent market share gains indicate prospects for future operating leverage in the region.

Answer

CFO Martín de los Santos emphasized that margin pressure stems from deliberate investments driving tremendous growth and user experience improvements, particularly in Brazil. He cited record NPS levels and market share gains as validation for these investments, including free shipping, 1P, and fulfillment capacity. He reiterated a long-term perspective, prioritizing capturing opportunities over short-term margin optimization, while remaining confident in the long-term margin trajectory.

Rodrigo Gastim asked about MercadoLibre's strategy for balancing strong GMV growth (above 30%) in Brazil with potential margin pressure in 2026, and whether operating leverage is expected given recent market share gains.

Answer

Martín de los Santos, CFO, emphasized that margin pressure results from deliberate investments driving significant growth (45% top-line), market share gains, and record NPS in Brazil. He stated that MercadoLibre prioritizes capturing large opportunities in commerce, fintech, and advertising over short-term margin optimization, expressing confidence in their long-term margin trajectory and value creation for shareholders.

Rodrigo Gastim questioned the sales dynamic for the upcoming election year, considering potential fiscal incentives and increased cash in the economy, especially given past trade-downs and the income profile of Assaí's customers. He also asked if the tax credit recognized is a recurring event and if the company expects to continue capturing it in future quarters.

Answer

Aymar Giglio Jr. (CFO, Assaí Atacadista) and Belmiro Gomes (CEO, Assaí Atacadista) clarified that the tax credit is a contingency asset, monetized over two years, and not recurring after 2026 due to tax reform. Belmiro noted that high household debt might offset election year consumption benefits, and commodity price recovery is expected to positively impact sales, as current low prices are unsustainable.

Rodrigo Gastim from Itaú BBA asked about the sales dynamic for 2026, an election year, considering potential fiscal incentives and consumption patterns, especially for low-income profiles. He also sought clarification on the recurrence of the tax credit, its monetization timeline, and the impact of the upcoming 2027 tax reform.

Answer

CFO Aymar Giglio Jr. addressed the tax credit, stating it's a contingency asset of BRL 1.5 billion, recognized as cash, with monetization expected within two years, assuming no legal changes before the 2027 tax reform. CEO Belmiro Gomes discussed sales, noting that while election years typically bring better consumption, high household debt levels persist. He also highlighted that current commodity deflation (e.g., rice prices) is temporary and will likely adjust upwards, positively impacting future nominal sales.