Icecat profit increased sharply by 56% and revenues by 9% during 2019
Despite Covid-19 crisis, a global deal with Facebook is signed.
By: Icecat NV
AMSTERDAM - April 30, 2020 - PRLog -- During 2019, the annual revenues of Icecat increased by 9%. Most of the growth was organic. The net profit increased sharply by 56% to 1.4 million euro, mainly caused by the EBITDA increasing sharply by 26% to 1.2 million euro compared to the year before, thanks to cost optimizations, and an increase in the result of daughter companies. As a percentage, the net result increased to 15% compared to 11% of revenues during the year before. "During 2019, we were more cautious regarding costs than previous years as there were persistent recession signals from the end of 2018. Although that didn't materialize during 2019, it has been a very good preparation for the current Covid-19 crisis," according to Icecat CEO Martijn Hoogeveen. Consequently, cash reserves have increased healthily to 5.1 million euro (up from 4.4 million).
Icecat is further focused on continued fast-growth and operational excellence to optimize but not yet maximize profitability, in order to finance further acquisitions in the consolidating Product Information Management & Syndication (PIMS) market such as recently, in early 2020, the acquisition of Cedemo's toys and entertainment data activity, which has no effect on the 2019 figures, but is expected to add around 10% in revenues from Q2-2020 on. "The take-over of Cedemo in 2020, has strengthened Icecat's position in the Toys & Entertainment vertical and reduces the competition in this key online vertical, that also has proven to be quite resilient during Covid-19 lockdowns," according to Martijn Hoogeveen.
Global deal Facebook
Being a content supplier of global ecommerce marketplaces, such as Amazon, Alibaba, Google Shopping, and – very recently in a global deal - Facebook, to help manufacturers to easily upload their product data, has redefined Icecat's competitive edge. By providing free PIMS entry services, in the form of Icecat's free Vendor Central, Icecat is positioning itself for the long term.
Covid-19 impact still limited
The general economic conditions during 2019 were favorable, despite recession fears global political tensions, and increased uncertainties related to Brexit and US-centered trade conflicts. Nevertheless, the Covid-19 pandemic makes a global slowdown and recessions unavoidable in many G-20 economies during 2020. Thus far, the impact on Icecat and its daughter companies has been very limited because lockdowns primarily impact traditional retail, while they accelerate the growth of Icecat's core market: e-commerce. The pressure on the labor market has diminished, making it easier for Icecat to hire new staff. The subscription based model at reasonable tariffs forms a good buffer for sudden demand shocks.
Icecat NV Martijn Hoogeveen