MercadoLibre's Q4 Profit Stable Despite Tax Hit

MercadoLibre, the e-commerce giant of Latin America, reported a stable fourth-quarter net profit of $165 million, impacted by one-off tax provisions in Brazil totaling $351 million, which analysts had anticipated. Excluding the one-offs, the net profit would have been $383 million. The company posted a 42% year-on-year increase in quarterly net revenues to $4.26 billion, with sales in Brazil rising 35%. However, its quarterly operating margin without one-offs stood at 13.4%, compared with 18.2% in the third quarter, leading to questions about its ability to maintain growth with profitability.