Coolblue was able to quadruple its net profit last year: it went from 15.2 to 61.1 million euros. This implies a record-breaking profit for the electronics retailer, which is aiming for an IPO.
Major profit leap
The e-commerce player announced earlier that Coolblue saw its turnover increase by more than a third in Covid year 2020. The Rotterdam-based company achieved a sales figure of 2 billion euros, good for a 34 per cent growth. However, the recently published annual report now shows that it was mainly the profit figures that jumped significantly last year: gross profit rose from 48 to 114 million euros.
Net profit quadrupled to 61 million euro, which is a record for the electronics retailer. The company says it owes this to economies of scale and its "focus on product journeys and infrastructure for each product type". According to the annual report, the gross profit margin increased by 22.4 per cent, thanks to "improved purchasing conditions, price optimisation, rationalisation of the assortment and improved service propositions".
In 2021 Coolblue will continue to expand further into the Netherlands, Belgium and Germany. For instance, there will be a second store in Rotterdam, and the retailer plans to open bicycle depots. Also, they wish to expand the infrastructure for charging stations and power supplier Coolblue Energie. To further optimise product journeys, the company is developing software and its "warehouse of the future". Coolblue is also exploring the possibilities of an IPO, although those plans are running behind schedule.